Recession and Its Impact
by Lot has been said about the ongoing Recession that we have been witnessing. Each one of us have many questions in our minds and we don’t know whom to ask. Just tried to assimilate some views on it. I guess many of us would relate to these views.
In a dynamic and uncertain business environment where cost cutting is the buzz word, Organizations are trying innovative methods to reduce their operating costs. Though employees pose a stiff resistance against such methos, organizations claim that it is in benefit of the employees and the company at large. Management Gurus have been advising since ages that every cent saved is equivalent to two earned. Then why is it that people have realized its importance only when we are facing worst ever economic recession since 1929. It certainly is a point to ponder upon.
Also, we have witnessed something which we can relate only to nightmares. Companies which are more than 150 years old are on the edge of bankruptcy or already have filed for the same. Question that comes to my mind is, how is this possible when companies hire best of the Management experts from all around the world and from the best institutions across. I am sure that they would have gauged the situation much before than the dip that started around September last year. These questions will always remain unanswered I guess.
Hence to come out of it, as I pointed out earlier, companies have tried different ways to control their operating expenses. Jut to quote an example you would find increasingly Companies have emphasied on either reduction in the overall head count or they have gone for a variable pay cut. Degree of intensity of each of the above mentioned ways have varied across the sectors and geographies. Though to avoid strong resistance from Government and other stakeholders management have tried not to lay off employees. Instead they have gone either for something called as virtual pool or without pay sabbaticals.
However from employees point of view, it is advisable to develop multiple skills across domains. I know its easier said than done, but one needs face the storm with a positive attitude. I know no reason can justify of what we have witnessed in recent past, but it can’t be helped. Hence its either perform or perish situation that we are in.
Well I always have admired work of Darwin. And as he says its a Jungle out there and “Survival of Fittest” rules.
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