Monthly Archives: December 2022

Economic Recession and Employee Lay-offs have been frequently talked about and most worried-about public topics in the recent times. While layoffs seem to be the most trodden path by businesses to remain financially viable, there are many other approaches that companies can take to navigate economic downturns.

Cut 10% for 100% : If reducing employee cost seems inevitable and say, reducing 10% of the salary cost is the need, reduce 10% of the salary to 100% of the employees and distribute the pain rather than giving 100% of the pain to 10% people by driving them away when they need you the most. If you wish not to take risk losing your top most performers by reducing salaries, exempt the top 1% performers from the salary reduction exercise. Most companies talk a lot about how they care for their people and about a family culture within the organisation; this is the time to practice what they preach.

Cut costs, not jobs : One more alternative to layoffs is to implement cost-saving measures in the company’s operations. Layoffs aren’t free of cost. They come with costs such as severance pay apart from other indirect costs. Instead of incurring costs to reduce costs, work on streamlining processes, reducing waste and inefficiencies, and finding more cost-effective ways to produce goods or deliver services. By identifying and addressing areas where the company can be more efficient, it may be possible to cut costs without having to let go of staff.

An even better approach is to encourage employee involvement in cost-cutting efforts. Many companies have found that employees can be a valuable source of ideas for cost-saving measures, as they often have first-hand knowledge of inefficiencies and areas for improvement. By involving employees in the process and encouraging them to come up with creative solutions, a company can not only save money but also improve morale and foster a culture of continuous improvement.

Look around creatively for new opportunities : Finally, Business leaders could think of how their organisations can adapt to a different economic situation and explore ways to value-add to customers in a recession scenario. As Robin Sharma said, recession could be an opportunity in wolf’s clothing. During COVID outbreak, we have witnessed some companies quickly changing their product portfolio and improving business while their peer companies ran out of ideas and then out of business. It is said that telephone and automobile were invented during recession times. Winners during recession are companies that adapt to consumers’ changed needs during recession or invent new technologies.

In summary, while layoffs may be necessary for some companies in a recession, there are several other approaches that can be taken to navigate economic challenges and maintain a strong and motivated workforce. By implementing cost-saving measures, involving employees in the process, investing in employee development, and diversifying revenue streams, companies can find creative and sustainable ways to weather any economic storms.

We now have more new and younger managers than humanity ever had. We humans, tend to struggle with anything new and being a manager is not an exception.

Some myths and misconceptions have emerged about what it entails to be a manager and how it should be practiced, that can make management more challenging that what is should be. While seasoned professionals also fall prey to these myths, young managers are more prone to be bogged down by the following five common myths :

The myth of the “perfect” manager: Many people believe that there is a specific formula or set of characteristics that define a “perfect” manager. However, the reality is that effective management is highly context-specific and depends on the needs and goals of the organization, as well as the strengths and weaknesses of the individual manager. There is no one-size-fits-all solution to management.

The myth of the “hands-off” manager: Some managers believe that the best way to lead is to give employees a lot of freedom and autonomy, with minimal supervision or direction. While it’s true that micromanaging can be stifling and demoralizing, it’s also important for managers to provide guidance and support to their teams. A good manager strikes a balance between autonomy and oversight, ensuring that the team has the resources and guidance it needs to succeed.

The myth of the “tough love” manager: Some managers believe that the best way to motivate employees is to be demanding and push them hard. While it’s true that setting high standards and holding people accountable can be important, a manager who is consistently critical or negative can create a toxic work environment that is demoralizing and ultimately counterproductive. A good manager knows how to give constructive feedback and support employees in their development.

The myth of the “all-knowing” manager: Many people believe that a good manager should have all the answers and be able to solve any problem that arises. However, this is simply not realistic. Even the most experienced manager will encounter situations that they don’t have all the answers to. A good manager knows how to ask for help, delegate tasks, and empower the team to find solutions.

The myth of the “workhorse” manager: Some managers believe that the best way to lead is to be the first one in the office and the last one to leave, setting an example for their team by working long hours. While it’s important for a manager to be dedicated and committed to their work, it’s also important to recognize that overwork can lead to burnout and poor performance. A good manager knows how to set boundaries and prioritize their own well-being, as well as the well-being of the team.

Last, but the most fatal – People Management is more about the head and less about the heart. Emotions eat analysis for breakfast! While this punchline is similar to the familiar quote of Peter Drucker, it is very true. We, homo sapiens are emotional first and logical next. To be effective, Managers need to align the head and the heart well. One cannot take precedence over the other always.

In conclusion, effective management involves a lot more than following a specific formula or set of rules. It requires a nuanced understanding of the organization’s goals, the needs of the team, and the strengths and weaknesses of the individual manager. By understanding and dispelling these myths, managers can be more effective in their roles and better support the success of their teams.