Which of the following is a difference between the inaction stage and the faulty action stage of organizational decline?
In the inaction stage, managers lack awareness about changes or are unable to understand their significance, whereas in the blinded stage, managers find it difficult to change the practices and policies that previously led to success.

In the inaction stage, managers assume that if they just run a tighter ship, company performance will return to previous levels, whereas in the faulty action stage, companies typically lack the resources to fully change how they run their businesses.

In the inaction stage, the company is dissolved through bankruptcy proceedings, whereas in the faulty action stage, management recognizes the need to change but still takes no steps.

In the inaction stage, managers wait to see if organizational performance problems correct themselves, whereas in the faulty action stage, management announces belt-tightening plans designed to cut costs, increase efficiency, and restore profits.