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Faced with 3 years of steadily decreasing profits despite increased sales and a growing economy, which of the following is the healthiest course of action for a chief executive officer to take?
A. set a turnaround goal of significantly increasing profits within 2 months. Set clear short-term objectives for ach operating unit that, together should produce the turnaround.
B. Implement a plan to encourage innovation at all levels. Use early retirement and reemployment programs to trim staff size.
C. Classify all job functions as either a) adding value in the eyes of the customer such as production and sales) or b) not adding value in the eyes of the customer such as accounting and human resources)_ Reduce staff in the non-value-adding functions by 20%.
D. Reduce staff by 10% in every unit
Answer: B
Explanation:
Organizational decline has been found to have the following characteristics: greater 7 centralization lack of long-term planning, reduced innovation, scapegoating, resistance to change, high turnover of competent leaders, low morale, nonprioritized downsizing, and conflict. Reversing these characteristics is the key to reversing organizational decline, for example, by encouraging innovation in all aspects of the organization's activities and by redeploying personnel.

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D. It ensures a loop-free multicast network.
Answer: D


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