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To reduce costs, a company is considering a drastic [#permalink]
08 Apr 2004, 04:04
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8. To reduce costs, a company is considering a drastic
reduction in the number of middle-level managers.
This reduction would be accomplished by first
offering early retirement to those 50 years of age or
older with 15 years of service, and then by firing
enough of the others to bring the overall reduction
to 50 percent.
Each of the following, assuming that it is a realistic
possibility, is a possible disadvantage to the
company of the plan EXCEPT:
(A) Loyalty to the company will be reduced among
those surviving the reduction, because they
will perceive the status of even good
managers as uncertain.
(B) The restructuring of managerial jobs will allow
business units to be adapted to fit a changing
(C) The company will have a smaller pool of
managers from which to choose in selecting
future senior managers.
(D) Some of the best managers, unsure of their
security against being fired, will choose early
(E) The increased workload of managers remaining
with the company will subject them to stress
that will eventually affect their performance.
C has some disadvantage because of less choice in selecting senior manager. If two managers remain and both are worst then senior manager selected will also be worst. If 50 managers are there then probability that all are worst is very less.