Question: What are some potential problems with downsizing as an organization's first response to a need to cut labor costs. (Select ALL that apply)Downsizing can result
What are some potential problems with downsizing as an organization's first response to a need to cut labor costs. (Select ALL that apply)Downsizing can result in the loss of critical employees and valuable KSAOs (knowledge, skills, abilities, and other characteristics)Organizations may incur significant financial costs including severance packages, early retirement packages, and higher unemployment insurance premiumsOrganizations may experience decreased morale and increased feelings of job insecurity among remaining employeesOrganizations may face difficulty responding quickly to future surges in product and service demand due to staffing shortagesDownsizing can damage an organization's reputation, making it difficult to attract new employees in the future
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