Economic crisis : Who is affected leaders or employees

Normally most of the leaders(managers) are smart enough to save their position when a problem seen. They are much capable to convience the board about the inefficiency of subordinates and terminate them so that their position become more stronger.

Any negative aspects in business world affects the lower echelon of the work force first. Very few at the top get axed.It is the norms in normal cases in todays world.Why?

Due to the Influx of International Business firms ,the nature of working of the business units has completely changed.It is now”hire and fire “, “no employee is indispensable” thinking which has come into force.It is just the main policy of capitalistic business world.If it is accepted ,then you have to bear the consequences.

In India,when industry was just emerging,the attitude was to make profit and also keep the work force together thru all times keeping in mind that they are the bread and butter of the business etc etc.It was involuntary since situation was as such ,tradition and culture held supremacy and so tolerance level was high.The attrition rate was close to nil.

Now it is not so. Business is money, and just money. Man has no priority here. Money talks.You are paid more with risk attached to it.

So the system ,you like it or not has become so selfish that people /positions who take decisions safe guard themselves first with justifications and crisis looms large on the lower echelons.

Employees. Because they loose their jobs. At the time of recession, the chances of a manager to lose his job is 40% where as, of an employee is 60%-70%. That is why an employee struggles the most since they are always at risk....

Ideally both the leaders & employees  should get affected but the present recession has proved otherwise. Both in the country & outside inspite of posting huge losess the top management have been earning salaries,perks & huge sums as bonus's.

Theoritically leaders should be affected more than employees. In practice however, the converse is invariably true. Even in organizations that have received government bail-outs, and salaries of employees have either been frozen or cut, the compensation levels and perks of top management has hardly changed. A survey of over 5000 organizations has revealed the stratling fact that the CEOs of the bottom 5% of the companies in terms of accepted performance parameters earned more than the CEOs of the top 5% of the companies. This is a damning indictment of the role of leadership. Again, you hear of lay-offs, downsizing and rightsizing among the lower echelons. You rarely come across a reduction in the number of CXOs. Since a majority of leaders act and behave on the principle of enlightened self-interest, it is unrealistic to expect leaders (with some exceptions) to place the interests of employees above their own.

At this present slump economy which had affected the working class globally, what will be the common phrases do you hear from family members, friends, neighbours and newspaper.

"Honey, I lost my job" next "Our Company had laid-off a few hundred workers" next "We are financially strapped, how we are going to pay our daily bills" next "XXX Company is laying off hundreds of workers to reduce cost".

Everybody have to put on their austerity belt to offset daily expenditures and cutting cost over unnecessary expenses.Battling a deepening recession, some parents even scale back or abandon day care services, keeping their children at home under the care of their grandparents.Many people have to upend their work life balance because petrol and food prices have become prohibitive and the average day care costs outpace rent and mortgage payments even for those drawing salaries. Even after a sharp decline in petrol prices.

And who are these people? Obvious employees..