CHAP17.TB - Chapter 17 Strategic Restructuring and the...

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Chapter 17 Strategic Restructuring and the Virtual Organization True/False 1. Deciding to permanently close a plant would be considered a cutback. Answer: False Page: 641 Moderate 2. Deciding to permanently close a plant operating in a region of the country separate from a firm's headquarters would be considered a restructuring of the firm. Answer: True Page: 641 Moderate 3. Downsizing is typically more short term in its focus. Answer: False Page: 641 Difficult 4. Among cutbacks, downsizing, and consolidation, consolidation would be the most likely restructuring after a merger between two companies. Answer: True Page: 642 Easy 5. Cost restructuring usually has an ultimate goal of changing and lowering costs in an organization. Answer: True Page: 647 Easy 6. LBOs have not been a major cause of cost restructuring in the recent past (1980s). Answer: False Page: 647 Moderate 7. The most common problem organizations face after restructuring is that the wrong people have been lost. Answer: False Page: 649 Moderate
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Chapter 17—Strategic Restructuring and the Virtual Organization 8. A firm that relies on relatively unskilled labor would be most likely to have a non-layoff policy. Answer: False Page: 651 Difficult 9. Using a reduced workweek is an alternative in implementing a non-layoff strategy. Answer: False Page: 651 Difficult 10. Reducing the workforce through attrition is an alternative in pursuing a non- layoff strategy Answer: True Page: 651 Moderate 11. Reducing the workforce through attrition generally would not use hiring freezes to accomplish the reduction. Answer: False Page: 651 Difficult 12. Worker loan-out programs are the most common means of implementing a non- layoff strategy. Answer: False Page: 655 Difficult 13. Under an indefinite layoff, the organization may release the employees from the company after a fixed period. Answer: True Page: 657 Easy 14. Organizations should avoid laying off employees in non-technical areas. Answer: False Page: 658 Easy 15. Firms that use employee ability layoff criterion lay off workers according to the length of time each employee has been with the firm. Answer: False Page: 661 Moderate 16. Tenure relates to the length of time an employee has worked in an organization. Answer: True Page: 663 Easy 17-2
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Chapter 17—Strategic Restructuring and the Virtual Organization 17. Corporate anorexia is the effect of too much downsizing that results in a very “thin” but very unhealthy organization. Answer: True Page: 670 Difficult 18. Virtual organizations rely heavily on information and communication technology. Answer: True Page: 671 Moderate 19. The main reason most companies are increasingly using contingency workers is to save money. Answer:
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This note was uploaded on 01/31/2011 for the course MGMT 322 taught by Professor N/a during the Spring '10 term at Mountain State.

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CHAP17.TB - Chapter 17 Strategic Restructuring and the...

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