Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack
GMAT Club

 It is currently 23 Mar 2017, 21:37

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# To reduce costs, a company is considering a drastic

Author Message
TAGS:

### Hide Tags

Manager
Joined: 28 Jul 2009
Posts: 153
Followers: 3

Kudos [?]: 188 [0], given: 4

To reduce costs, a company is considering a drastic [#permalink]

### Show Tags

25 Nov 2009, 08:11
00:00

Difficulty:

(N/A)

Question Stats:

100% (01:54) correct 0% (00:00) wrong based on 3 sessions

### HideShow timer Statistics

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 achanging business environment
(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 retirement
(E) The increased workload of managers remaining with the company will subject them to stress that will eventually affect their performance
If you have any questions
New!
Joined: 20 Aug 2009
Posts: 311
Location: Tbilisi, Georgia
Schools: Stanford (in), Tuck (WL), Wharton (ding), Cornell (in)
Followers: 18

Kudos [?]: 145 [0], given: 69

Re: To reduce costs, a company is considering a drastic [#permalink]

### Show Tags

25 Nov 2009, 09:53
(B) The restructuring of managerial jobs will allow business units to be adapted to fit a achanging business environment

IMO that is the only advantage, all other answer choices clearly represent possible threats
Intern
Joined: 04 Jun 2008
Posts: 1
Followers: 0

Kudos [?]: 0 [0], given: 0

Re: To reduce costs, a company is considering a drastic [#permalink]

### Show Tags

25 Nov 2009, 15:44
i too agree with the above answer -if the middle level managers are fired,one advantage is that the ailing/exisiting business units can follow a new business environment.(hopefully a good one )

wats ur opnion gmaters?
Manager
Joined: 19 Nov 2007
Posts: 225
Followers: 1

Kudos [?]: 269 [0], given: 1

Re: To reduce costs, a company is considering a drastic [#permalink]

### Show Tags

25 Nov 2009, 23:05
(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
-An disadvantage. Loyalty would be reduced and hence the performance of the company. Hence incorrect

(B) The restructuring of managerial jobs will allow business units to be adapted to fit a changing business environment
-An advantage to the company, as the company would be ready for the future. Hence correct

(C) The company will have a smaller pool of managers from which to choose in selecting future senior managers
-An disadvantage, smaller pool means lesser choice for the company

(D) Some of the best managers, unsure of their security against being fired, will choose early retirement
-An disadvantage. Some best managers leaving would effect the performance of the company

(E) The increased workload of managers remaining with the company will subject them to stress that will eventually affect their performance
-An disadvantage. Stress effects the managers performance, in turn effecting the company output.

Manager
Joined: 28 Jul 2009
Posts: 153
Followers: 3

Kudos [?]: 188 [0], given: 4

Re: To reduce costs, a company is considering a drastic [#permalink]

### Show Tags

25 Nov 2009, 23:32
I'll get OA only on Saturday, but I believe it should be B.
Senior Manager
Joined: 25 Jul 2009
Posts: 330
Followers: 1

Kudos [?]: 106 [0], given: 0

Re: To reduce costs, a company is considering a drastic [#permalink]

### Show Tags

26 Nov 2009, 05:15
Its B for sure
Manager
Joined: 08 Jul 2008
Posts: 147
Followers: 0

Kudos [?]: 3 [0], given: 1

Re: To reduce costs, a company is considering a drastic [#permalink]

### Show Tags

26 Nov 2009, 23:42
It is B
Re: To reduce costs, a company is considering a drastic   [#permalink] 26 Nov 2009, 23:42
Similar topics Replies Last post
Similar
Topics:
Companies considering new cost-cutting manufacturing 0 01 Jan 2013, 23:28
21 Companies considering new cost-cutting manufacturing 26 17 Mar 2010, 20:08
Companies considering new cost-cutting manufacturing 0 11 Oct 2013, 12:54
Sigatoka disease drastically reduces the yield of banana 14 20 May 2008, 07:42
Companies considering new cost-cutting manufacturing 5 13 Jul 2007, 23:19
Display posts from previous: Sort by