GMAT Question of the Day:Critical Reasoning
To reduce costs, a company is considering a drastic reduction in the number of middle-level managers. This reduction would be accomplished by first offering early retirement to those 50 years of age or older with 15 years of service, and then by firing enough of the others to bring the overall reduction to 50 percent. Each of the following, assuming that it is a realistic possibility, is a possible disadvantage to the company of the plan EXCEPT:
(A) Loyalty to the company will be reduced among those surviving the reduction, because they
will perceive the status of even good managers as uncertain.
(B) The restructuring of managerial jobs will allow business units to be adapted to fit a changing
business environment.
(C) The company will have a smaller pool of managers from which to choose in selecting
future senior managers.
(D) Some of the best managers, unsure of their security against being fired, will choose early
retirement.
(E) The increased workload of managers remaining with the company will subject them to stress
that will eventually affect their performance
Written by Take GMAT Team on September 28th, 2008 with
34 comments.
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#1. September 21st, 2006, at 8:28 AM.
(B) The restructuring of managerial jobs will allow business units to be adapted to fit a changing
business environment.