Which of the following is an example of a trade-off risk?

(A) Loss of responsiveness if you decide to move from a divisional to a functional structure

(B) Loss of employee loyalty and commitment if you decide to move from a clan culture to a market culture

(C) Staff complaints when you decide to focus your HR development budget exclusively on your most critical roles, instead of the current practice of offering training opportunities to everyone in the organisation

(D) All of the above


All of the above are examples of a trade-off risk. Loss of responsiveness due to a move from divisional to functional structure, loss of employee loyalty due to the move from clan to market culture, and complaints from staff due to the absence of training opportunities for everyone in the organisation are classic examples of trade-off risk.


This question is a part of the Recall: Diagnosis to solutions exercise from the Organisational design: Know your organisation course. You can check out all the answers to this exam in our Organisational design: Know your organisation Quiz Answers page.

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