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  • Bachevinder Singh A/L Param Singh @ Bob

    Member
    January 15, 2022 at 2:02 pm

    When the economy is in a crisis, a company’s revenue and profit suffer, forcing it to use crisis management strategies including cutting costs and improving efficiency. It may be necessary to stop hiring as a first step. Even when a post is vacated, managers may choose not to replace it, resulting in understaffing in their departments. Departments that are understaffed may see a drop in production and performance, which may lead to low morale and a lack of drive among their workers. In times of crisis, the business may even take severe steps to reorganize the organization and conduct out workforce reduction activities, which is one of the most difficult issues for managers.

    Management must first investigate and appreciate the true nature of the impact of the downturn on the company to effectively deal with problems caused by recession or economic downturn. Simply said, understanding the present state of your company’s health is essential for any serious planning. Additionally, you may identify any unproductive goods or services, as well as your customers since available capital as well as consumer spending might both be lowered during a recession. This results in cost-cutting measures being taken and employees being laid off when the firm is experiencing financial problems, further depressing morale, and productivity. Maintaining control over change while still providing enough assistance for employees is a tricky balance that managers must achieve. Management must ensure that all workers are informed and aware of the company’s employee assistance programme, which may be able to aid them in coping with their financial issues when they have no choice but to lay off employees.
    To the long-term, it is necessary to keep an eye out for fresh chances and prepare ahead when dealing with crisis management and performance management.