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# Last year a large firm set a goal of decreasing its workforce by 25

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BSchool Forum Moderator
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Concentration: Nonprofit, Social Entrepreneurship
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Last year a large firm set a goal of decreasing its workforce by 25  [#permalink]

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21 Oct 2017, 15:32
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5% (low)

Question Stats:

85% (01:36) correct 15% (01:39) wrong based on 131 sessions

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Last year a large firm set a goal of decreasing its workforce by 25 percent. Three divisions, totaling 25 percent of its workforce at that time, were to be eliminated and no new people hired. These divisions have since been eliminated and no new people have joined the firm, but its workforce has decreased by only 15 percent.
Which one of the following, if true, contributes most to an explanation of the difference in the planned versus the actual reduction in the workforce?
(A) The three divisions that were eliminated were well run and had the potential to earn profits.
(B) Normal attrition in the retained divisions continued to reduce staff because no new people were added to the firm.
(C) Some of the employees in the eliminated divisions were eligible for early retirement and chose that option.
(D) As the divisions were being eliminated some of their employees were assigned to other divisions.
(E) Employees in the retained divisions were forced to work faster to offset the loss of the eliminated divisions.

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Re: Last year a large firm set a goal of decreasing its workforce by 25  [#permalink]

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21 Oct 2017, 16:59
IMO Option D
Options A,B& C are irrelevant.
Workforce being eliminated from the three divisions were assigned somewhere else in the firm.So people eliminated is not equal to the new people assigned.Hence the workforce decreased by only 15 percent.
So Option D is correct.
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Re: Last year a large firm set a goal of decreasing its workforce by 25  [#permalink]

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20 Nov 2017, 23:21
Answer is D because it is the only answer choice that explains why there was less of a decrease than expected.
A) irrelevant
B) states that decrease should be higher
C) irrelevant
E) irrelevant

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Last year a large firm set a goal of decreasing its workforce by 25  [#permalink]

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19 Jan 2019, 06:17
I had narrowed the choices to C and D. But marked C as the answer in hurry. The answer should be D.

The option C is wrong because even if the people in those 3 divisions chose to take early retirement then also the total work force would be reduced to 25%. The option C did not explain the fact why it reduced to 15% instead of 25% which is explained clearly in option D.
Last year a large firm set a goal of decreasing its workforce by 25   [#permalink] 19 Jan 2019, 06:17
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# Last year a large firm set a goal of decreasing its workforce by 25

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