GDB MGT501

CEO of ABC Company has observed inefficiency of staff members. He doesn’t want to fire people from the company and also the objective is to increase the efficiency rather to decrease the cost. Some advisors advise CEO to hire more people to overcome this problem and some are saying that existing staff needs training and development. The matter of fact is that the existing staff is capable enough and has the ability to perform better. But there is a problem that few managers are very influential and put negative impact on other employees. They are politicizing the organization, forbade employees to work hard and create messy situation. On the other hand Jobs are well defined and assigned tasks are specific so removing any person may create problem in running operations. CEO is now thinking to replace these culprits (managers) only with some efficient and professional people to overcome this problem and the best solution to increase the overall productivity of the organization.

In your opinion what CEO is going to do; Downsizing or Rightsizing? Give reason in one sentence only (reason should not exceed more than 30 words to avoid negative marking).

Answer:

Rightsizing.

Reason:-

Downsizing refers to the permanent reduction of a company's workforce but Right sizing refers to corporate restructuring, or rationalization, with the goal of reducing costs and improving efficiency and effectiveness.