Joe, the CEO of TexTel Inc., studies the structure of his organization and finds that many of its processes are inefficient. His company has a team-oriented culture in which people perform as groups and complete short-term projects to earn revenue. He decides to downsize the organization to increase profits and use the profits to enhance the organization's efficiency. Emily, the company's HR manager, thinks downsizing is detrimental to the organization's growth. Which one of them is right?
What will be an ideal response?
Answer: Emily is right because downsizing will affect the organization's team culture and result in poor productivity.
Business