Build your professional network on facebook via our app Go to app
 
 
Posted in Community :

Leadership Styles |

SIEMENS

 

Do you think companies are using financial crisis as an excuse to remove non-performers??

Created by : Sudeep Tarafdar, Senior Consultant, IBM  | 12 11 2008 12:13:21 +0000
Industry : Management & Strategy ConsultingFunctional Area : Business Policy(Strategy & Execution)
Activity:  325 views;  last activity : 07 06 2010 20:18:09 +0000
As there is job cut that is happening all over the world due to the financial crisis, which has taken many jobs than ever before, where companies are cutting jobs in thousands together, and pink slips has become a trend and you can see the daily news papers where every company is competing against each other during the layoffs with their numbers, so what do you think ppl is companies using financial crisis as an excuse to remove non-performers.......Do share your views on this.......
  
 Refer 98
Share
 
 
  Rate : 
 
 
Yes Vs No
6
 
 
 
 
7
3
4
Support   Support
Top Argument
1
0

Issueing pink slips to staff in the name of 'non-performers' is not the only solution. In a situation of recession, cos may find out other alternatives.

Way before declaring an individual a non-performer, HR ppl in the co should lay down the criteria and draw the thresold limit. A performance apprisal should be done. The staff may be deployed elsewhere with training in new job, the may be oriented for new job, their salary may be reduced by a portion, Co executives may volenteer for a pay/bonus cut, cost of production / services may be reduced by eleminating un-wanted costs etc.

Those Cos who respected loyalty of their staff, ultimately won over. Even those  retrenched staff returned back to them when things changed knowing that they had to leave in sheer need of the Co.
By ASOKE KUSARI, Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India  01 01 2010 15:55:57 +0000
 
Top Argument
2
0

No it is not that. In their attempt for survival, most of the Companies first try retrenching Staff. Not all Companies consider the same criteria for retrenchment. When some adopt Golden Handshakes by first identifying the Highly Paid Segment to lay off, others do list the least contributing placements, pointing at the nonperformers. I dont think Companies that follow ethical principles do exploit the crisis for such actions.look at the present scenario. u would see the most efficient and high performers to be the first to be laid off.
By Resmi Maxim, GENERAL MANAGER - OPERATIONS, SI PROPERTY (KERALA) PVT.LTD.,  01 01 2010 13:17:12 +0000
0
0

Partially agreed.
By Ajay Madhav, Accounts Executive/Accountant, Dept of Treasuries  | 01 02 2010 03:43:12 +0000
0
0
According to me i think yes they are using it as an excuse to remove non performers who were in company, as they were not mhaving enough work or projects for them to provide, and in this sort of situation they were just having their salary without any work being done, so they are all removing them apart from those who are having vast knowledge and experience they are keeping them and remaining they are giving pink slips, just to weather out the crisis situation....
By Sudeep Tarafdar, Senior Consultant, IBM  | 12 11 2008 12:13:21 +0000
0
0

I'll jus say that if you are at lower management or middle management level than juss put yourself into your owner shoes for once and then think over this situation that if now you are an entrepreneur and company goin throu financial crisis than this step is right or wrong..
By Rohit Singh, Marketing, URSTAFF SOLUTIONS  | 08 13 2009 11:41:36 +0000
0
0

I don't think, financial crisis an excuse for pinkslips and lay offs. And also it is not a new age trend.

Pink slips are always there throughout the year, when ever there is non performers. The companies negative or decreasing performance, number of projects in hand, low profit margins, imbalance in revenue and resourse/employee/project cost will leads to pink slips and not the employees performance. Employee performance is one of the filtering method or we can say a loop hole which provides easy execution of such pink slips and layoffs.
By Anil Kumar Lohithan, Project Manager, Zensar Technologies Ltd.  | 02 04 2009 09:05:24 +0000
0
0
No they are not using it as an excuse, They are more layoffs because to survive the situation which may become stable within a couple of years, when there is nothing happening in the industry what is the use of so much employees, apart from senior administration with experienced workers rest of them who were very good performers are also being axed, which is a sorry situation, but when the economy is stable they will get back their jobs.....
By Dayanand Deshpande, Senior Consultant, Ernst & Young  | 12 11 2008 12:30:47 +0000
Argue for "Yes"
Argue for "No"
 Found the debate "Do you think companies are using financial crisis as an excuse to remove non-performers??"  interesting ?  Suggest to your connections and communities  
Leading Biotech Firm startup.
Viewers also viewed
Literacy is the remedy of poverty vs Provide basic facilities to the needy
 
557 referals 11 arguments, 854 views
It's been long time since I posted my last article. Today I am posting a dedate  on workplace...
 
92 referals 4 arguments, 212 views
more...  
Recent Knowledge (3)
WE HAD A GOOD NUMBER OF INVENTORS WITH GREATER VISION ABOUT THE SOCIETY. INVENTORS HERE NEED NOT...
 
2 referals 2 arguments, 128 views
C vs B
 
0 referals 3 arguments, 72 views
Nirmal Baba is a fraud vs Nirmal Baba is a Saint
 
513 referals 6 arguments, 55 views
more...  
Sponsored Jobs
More From Author
I would like to support Mr. Manjunath here. Bharat Ganarajya.. that is what it should be...
@ Abhishekh He has clearly explained the differnce between an enterpuener and an owner.. But the problem of the debate is that we fall in neither as we are not into business.. But if he asks that what you wanna be.. I would love to be an enterpuener.....
Believers believe and non-believers don't . No one can tell what will happen tomorrow but we want to get assurity which makes us feel more secure and so we want to believe in it. All the astrologers are taking advantage of this mentality.
more...