Firms traditionally claim that they

downsize (i.e., make permanent

personnel cuts) for economic reasons,

Line laying off supposedly unnecessary staff

(5) in an attempt to become more efficient

and competitive. Organization theory

would explain this reasoning as an

example of the “economic rationality”

that it assumes underlies all organi-

(10) zational activities. There is evidence

that firms believe they are behaving

rationally whenever they downsize; yet

recent research has shown that the

actual economic effects of downsizing

(15) are often negative for firms. Thus,

organization theory cannot adequately

explain downsizing; non-economic

factors must also be considered.

One such factor is the evolution of

(20) downsizing into a powerful business

myth: managers simply believe that

downsizing is efficacious. Moreover,

downsizing nowadays is greeted

favorably by the business press; the

(25) press often refers to soaring stock

prices of downsizing firms (even though

research shows that stocks usually

rise only briefly after downsizing and

then suffer a prolonged decline).

(30) Once viewed as a sign of desperation,

downsizing is now viewed as a signal

that firms are serious about competing

in the global marketplace; such signals

are received positively by key actors—

(35) financial analysts, consultants,

shareholders—who supply firms with

vital organizing resources. Thus, even

if downsizers do not become economi-

cally more efficient, downsizing’s mythic

(40) properties give them added prestige

in the business community, enhancing

their survival prospects.

GWD-7-Q37:

According to the passage, the “key actors” (line 34) view a firm’s downsizing activities as an indication of the firm’s

troubled financial condition

inability to develop effective long-term strategies

inability to retain vital organizational resources

desire to boost its stock price

desire to become more competitive

答案是B，可我怎么都觉得很明显应该是C嘛，这道题在gwd中没人讨论过，难道大家都没问题吗？.....

It should be E.

downsizing is now viewed as a signal

that firms are serious about competing

in the global marketplace;

...

downsizing’s mythic

(40) properties give them added prestige

in the business community, enhancing

their survival prospects.

thanks!