gwd 2-6

mliu1024

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????

robertchu

You are right, D is the best answer.

Some of the GWD "keys" need to be viewed with a grain of salt.