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Discuss some potential problems with downsizing as an organization's first response to a need to cut labor costs

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User CharonX
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1 Answer

6 votes

Answer:

1. Morale

2. Production changes.

Step-by-step explanation:

Morale: when a company goes the downsizing path in cutting labor cost, this can lead to a loss in morale as the remaining staff are not sure of their fates and due to how fast rumors travel this days this can affect their productivity.

Production changes: when staffs are downsize to save labor cost production would also be affected, less staff would results in less output as the number of man power has being reduced.

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User Lmm
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