PorticalInc., a leading electrical appliance manufacturing firm based in Canada, faced a severe financial crisis as 15 percent of itsvitalemployees moved to different firms and 21 percent ofits employeesretired. It faced severe deficit in customer satisfaction, production rate, sales, and customer relationship. The new employees tried their best to overcome the deficit but were successful only to a small extent. Which of the following can be a reasonfor the issues faced by the firm?

a. Permanent loss of expertise of key individuals
b. Collaboration among contractors, suppliers, and other business partners
c. Leveraging the expertise of employees across the firm
d. Fostering innovation by encouraging the free flow of ideas


a. Permanent loss of expertise of key individuals
Many organizations use knowledge management to capture the valuable expertise of their key individuals before it is lost forever. The permanent loss of expertise related to the core operations of an organization can result in a significant loss of productivity and a decrease in the quality of service.

Computer Science & Information Technology

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Computer Science & Information Technology