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Consulting Case Interview Practice Questions

Category - Strategy

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A number of highly trained workers from a large domestic airline have been reclassified owing to major technological changes in the operations of the airline. These employees have been told that the work they performed in the past is no longer required.Which of the concepts below best describes this situation?
  1. De-skilling
  2. Globalization
  3. Inertia of managers
  4. Resistance to change
  5. Planned obsolesce
Explanation
Answer: a - De-skilling is when skilled labor within an industry or economy is eliminated by the introduction of technologies operated by less skilled or unskilled workers.

Key Takeaway: De-skilling can be a major issue in union companies. Your brilliant idea to eliminate skilled laborers with a new technology may face serious resistance. Also, there may be upfront charges required to paid (restructuring fee, severance pay) when these employees are let go.
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