Question

Which of the following scenarios are examples of job separation (i. E. , workers who quit or were laid off) as a result of creative destruction?.

Answer 1

The scenarios which are examples of job separation as a result of creative destruction include:

1. A company installs a new accounting system that does all the billing automatically, which subsequently shuts down the accounting department.
2. Indeed.com provides an Internet-based job service; as a result, newspaper job offerings shrink and newspapers lay off workers.
3. The book retailer Borders laid off 19,000 employees when it went bankrupt in 2011.

What is job separation?

Job separation can be defined as the termination (end) to an employee's working relationship with his or her employer due to certain factors and circumstances such as creative destruction.

What is creative destruction?

Creative destruction refers to deliberate dismantling or termination of an employee's job position, in order to make way for innovation and improved methods of production.

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