All organizations want to keep their employees satisfied and motivated to work throughout. They take many measures in order to ensure that their current employees are content with their work and also other professional working in the market are longing to join their firm. Management holds seminars, training programs, does yearly evaluation and goes an extra mile to fulfill all the legitimate demands of an employee working with them. In spite of doing so much, employees tend to disconnect themselves from their current management.
The beginning of a new century has brought many insecurities and anxiety with its self. This trend has taken over almost all the developed and developing countries of the world. Management Crisis Decline, stagnant, slowdown, lull, downturn, financial crisis, these are few words management all over the world are using to avoid the terminology ‘recession’. How ever how hard an organization tends to avoid this word it still can’t be ignored. Managements are forced to shutdown their operation in order to cut cost and meet breakeven. Their crisis is resulting in shape of employee lay offs.
Big organizations tend to lose their very best and most efficient people working with them for years due to the global decline. With the growing inflation every industry is facing a dark sight of their business. From stock market to multi national companies, from banking to advertising, from pharmaceuticals or fast foods all small and big industries are going through a difficult time. Moreover this era seems to be prolonging every day. Due do growing price rises people are finding it hard to meet their ends. Management is faceing the biggest dilemma of laying off their staffs.
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It is not something they want to do but it is something that they have to do. Left with no choices most of the managements are making this brutal and difficult decisions. Unemployment rate has been gradually increasing every month (Commercialappeal, October 2008). Local and international operations are being closed down if they fail to meet a balance between expenses and revenues. Many organizations are just meeting the breakeven point. Employers have this strong pressure of reducing staff in order to survive this critical circumstance that no one knows how deep it will be and also how long will it last for.
It is the most difficult task any management is facing these days. They try every alternative method like cutting perks and benefit, overtime and bonus in order to retain their workers. Only in the worse condition when left with no choice they end up terminating their staff. These layoffs reveal the seriousness of the prevailing economic recession and wearing off a management’s norms that protected a permanent employee to be fearful about his job. This current era was unimaginable by managements a few decades back (Pantagraph, n. d. ). Due to non profitability management fails to retain their best employees.
It has affected both blue collar and white collar jobs. People with good educational background and the once with their high school diploma, management disaster has affected all the boundaries. Management is also turning work hours into part-time. It is predicted that management will be forced to cut down approximately 1. 5 to 2 million more jobs in the year 2009. Employment rate will also reach 9 – 10% (Yahoonews, 2009, Jan). This economic slum has given shocks to nearly every management. Their worse nightmare has come true. In this situation work of five employees are being done by two employees.
Companies have become under resourced and employees have become under paid and over worked. In these circumstances it is extremely important for a management to have support of their employee to help them get through this lull. It can not be passed unless management and workers work together to achieve a combine goal. Employees have lost their interest in work. Their motivation level has gone down. They have nothing to look forward to. Workers have started looking for jobs already in this situation. Their insecurity has led every employee to keep looking for other options with at least some job security..
Employees have lost all trust from the management. Employees that are retained also fear the vicious job slash everyday. They are mentally prepared to be asked to leave. This situation has actually made working conditions worse of a business. It is highly important for management to earn trust of the remaining employees so that they do not lose concentration from their work. Employees should know that they will not be affected from this recession. This will help them keep paying attention to their work. They will remain focused to their current jobs. The company should treat their employees as families.
If by freezing bonus, cutting down reimbursement, holding appraisals and promotions jobs can be saved, this strategy should be adopted without a second thought. This will improve a public image of a company and brand. In case of lay off being very important, management should do an internal appraisal with the help of Human Resource department and get rid off unproductive employee. This will keep a check on approved head counts and a company will have strongest team. While you are cutting your head counts and laying people off it would be nice to give a little raise to remaining employees.
This strategy will gain employees motivation level and their dedication towards work. It is very essential for a management to keep a check on their competitors. If they end up laying off some talented and useful employee, he can be negotiated to join your organization. A good resource can always replace other employees and do work more competently (Practicalsmallbusiness, n. d. ). An intelligent management should predict the coming crisis and have ready policies to fight them. Human Resource Department should be trained to tackle this situation. Nothing can be more difficult then losing employees who make and break an organization.
This is probably the worse patch for any management where they are forced to be ruthless in order to keep the business running in the industry. Cost cutting methods can be both very selfish and effective at the same time. A balance plan can guide a management to walk through this tremendously tricky period. Employees should be motivated towards their work in all time and all situations regardless of economic conditions. Conclusion Every dark night has a bright morning. This recession will not last for too long. Once the economy stabilizes globally all the unemployment will vanish slowly.
People will come out of their fear shell and start spending and demanding. This era might have prolonged a little too long but is defiantly not permanent. A wise management will always have it loyal employees by them through thick and thin. A well planned management will right strategies will not be effected too much by this economic recession.
References Commercialappeal. (Internet). Wade, Don, (2008, October 04) Unemployment. Accessed on February 5, 2009 http://www. commercialappeal. com/news/2008/oct/04/the-economic-crunchunemployment-crisis-at-work/ Pantagraph.
(Internet). Tuna, Cari. In recession, companies kiss their no-layoff policies goodbye. Accessed on February 5, 2009 http://www. pantagraph. com/articles/2009/01/04/money/doc495f914ec9873714643524. txt Practicalsmallbusiness. (Internet). Best Recession Employment Practices. Accessed on February 5, 2009 http://practicalsmallbusiness. info/recession/best-recession-employment-practices/ Yahoo news. (Internet) Aversa, Jeannine. 2009, January 9. Job losses hit 2. 6 million as layoff pain deepens http://news. yahoo. com/s/ap/20090109/ap_on_bi_go_ec_fi/financial_meltdown
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