Lecturer:dr ilham sentosa
Mojtaba ghorbani birkani
INTRODUCTION Everyone is aware of the current economic crisis as the daily news is filled with falling corporate earnings, stock market losses and company doors closing. During these difficult economic times it is easy for an employer to focus on the crisis and how to stay afloat financially. Employees expect company leaders to take measures to keep the company operating and more importantly; to keep their employees employed.
However, that is not always the choice made by management as many companies look to downsize their workforce in order to cut costs. Automotive giant General Motors recently announced that they might need to cut as many as 60,000 jobs to stay financially viable. The once seemingly indestructible auto manufacturer has been strangled by falling consumer demand, changing environmental demands and questionable management decisions and is pleading with the federal government for taxpayer dollars to continue operating. Their major argument for receiving the funds is that without the cash infusion they would likely have to file for bankruptcy and the loss of jobs would send shockwaves through an already struggling economy.
Auto manufactures aren’t the only ones on shaky ground. The top five banks that are expected to receive money from the billion-dollar bailout plan recently passed in the United States expect to lay off up to 131,700 employees. Many of the workers who lose their jobs in the banking industry in the United States are often replaced by lower wage earning employees brought in from overseas. This can have a devastating affect on the remaining employees that have to do more with less while also training a new and less skilled workforce.
Regardless of the industry, senior managers and company leaders in most companies look to the usual areas of cost cutting and maximizing...