Several factors have generated movement from the old paradigm to the new one. 10
Organizations have had legitimate and pressing reasons to shift to a new paradigm of 11
employer-employee relations. Large numbers of permanent employees make it difficult 12
for organizations to respond quickly to downturns in demand by decreasing payroll costs. 13
The enormous rights in wrongful discharge suites has created incentives for organizations 14
to use temporary, contract, and leased employees in order to distance themselves from 15
potential litigation problems. Moreover, top management is under increased pressure 16
from shareholders to generate higher and higher levels of return on investment in the 17
short run, resulting in declines in hiring, increases in layoffs, and shortage of funds for 18
employee development.
Question 6:
The passage suggests that which of the following is a legitimate reason for
organizations’ shift to the new model of employer-employee relations?
A. Organizations tend to operate more effectively when they have a high manager-
to-employee ratio.
B. Organizations can move their operations to less expensive locations more easily
when they have fewer permanent employees.
C. Organizations have found that they often receive higher quality work when they
engage in outsourcing.
D. Organizations with large pools of permanent workers risk significant financial losses
if the demand for their product or service decreases.
E. Organizations are under increasing pressure to adopt new technologies that often
obviate the need for certain workers.
answer should be D bah...why does the key say E????
You are right, D is the best answer.
Some of the GWD "keys" need to be viewed with a grain of salt.
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