Communication and Recession
Air Guangzhou is a nationwide well-known airline in China. A multi-level management structure is being implemented within the large-scale business organization. The board of directors is the top management, under which are the middle-level and front-line managerial teams. Its middle management is departmentalized, which consists of marketing, accounting, human resource departments and so on. Formal and informal communications are both used depending on the actual situation. The business’ current profit is much lower than before, even made an economic loss several months ago.
In today’s globally economic recession, many fresh graduates have not undertaken an employment for a long time since they leave school, and some persons who used to have a job are also suffering from unemployment at the moment. There is a largest population in China, besides. Due to the extremely competitive employment circumstance existing in the country, the staffs at AG (Air Guangzhou) cannot but be aware of the possible recession, they often talk about it in the spare time. It is easy to find out the reduced purchasing power according to the fallen sales reported monthly by the marketing department. As a respond to the customers’ smaller buying power, the board of directors of AG holds a formal meeting to develop SMART goals to attract more travelers, and then action plans like promotions will be created.
However, accounting department’s reports predict that it is still difficult for AG to enlarge profits in the long-run even thought promotions have been doing for a period. As a result, staffs at human resource department know they will be forced to make employees redundant in the near future. Once the decision of 20% employees redundant has been agreed by the majority of the board of directors, the human resource manager will prepare and put up an announcement memo written in the information, and send e-mails to all organization members. The...