Friday, April 19, 2013

Are staff cuts always the answer?-3

Despite having forecasting projects in their hands, still the top management of the corporations badly predicts how the consumers of their products are going to react to economic circumstances and in anticipation of the huge sales, hire people whom they have to let go afterwards. The effect of one employee lay off creates a ripple effect not only on him but to his entire family and the financial problems that family entails are not shown. I still believe that only the absolute necessity staff should be hired and laying off should not be an option since you can train that staff or relocate that staff to some other department or other locations of the company (and if the staff refuses to relocate then it is not the fault of the company). But the moral of the employees goes down too and that the corporations ignore. The loyal consumers also suffer since either they have dealt with the corporation for a long time and have developed a kind of rapport with them or they just like the interaction with the local sales staff. The store also suffers because during the time of rush, there is not adequate staff to deal with the customers and lots of resentment and frustration starts to built up in these cases. Although sometimes it is absolutely necessary to cut staff since the company is not generating enough business or it loses some major client but the corporations should try to avoid layoffs and try to manage difficult economic times with retraining, relocation and developing new business aggressively.

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