From past couple of years, we have seen some downsizing in many major industries worldwide. The reason is not just cost cutting and increasing the profit, but the truth behind is far worse than expected. The actual reason is that those companies are not been able to meet even their breakeven point because of the sudden increase of everything thatis used by any common person.
Most of the companies nowadays are just thinking of how to survive in this market. The only solution they find is to get rid of those people whom others could fulfill contribution. However, that doesn’t mean they won’t need any more of the staff for that work. The contract-based jobs are very common nowadays in almost every company we see.
The contract employees do the same job, which was done by the previous employees, but only the difference is whenever the task is completed, they are terminated at that spot and no more pay or incentives are provided to them. The normal period for contract employees varies from months to couple of years. No specific rule has been made for the period of contract employees.
Motivational techniques become quite useful in this kind of situation. As the competition is increasing in the market, the major focuslies on increase in sales. Herzberg two-factor theory becomes quite useful in this kind of circumstances, especially the motivational technique. Specific targets has been assigned to these employees and on the completion of that target, they are then rewarded with sales recognition award. It works for both the employees and the firm.
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The company normally gets what they want with this technique and the employee’s gets personal satisfaction that they are doing a good job and they will be staying as a part of that particular organization. Also these sales recognition awards give employees something good to write on their resume, which is also a good stuff for their future.
Increase in sales has become the most important tool nowadays for any organization to keep their foot strong in the market. Many new companies have emerged and whenever there is something new in the market, no company takes that lightly. Emerging of new companies is a very dangerous threat for any competing companies who have been taking their SWOT analysis seriously.
In this scenario, sometimes companies are aware of this potential threat and they take some steps to keep their selves in a safe place. However,sometimes, they do not take that seriously and when that competitor is becoming a threat; they go for some drastic measures. It is more like a risk, because no such thoughts have been put to it and there is no guarantee that those steps would work.
At this scenario, leadership role comes into question because the fate of the company is then relying on their particular decision. Any good leader at this situation would be required to stay as a cool headed, so that in this particular pressure situation, he should be able to come up with solutions rather than getting panicked. At this critical situation, he should be available for any kind of suggestions but it then depends on him that what is good for the company. Nevertheless, he should keep in mind that he should be in good terms with everyone because the last thing he would need at this situation is someone on purpose is working for his downfall.
Any company, which is going through a slump or is at a potential threat of going through a slump has to make sure that they don’t lose their loyal customers. In a situation like this, loyal customers become key assets that shouldn’t be losing at any cost. In order to retain them, they are then provided with some extra facilities so that they should get all the luxury from the present company and never have a thought of shifting it. Customer delight becomes very important i.e. their preferences are kept at the foremost priority.
The sales team become quite handful in this situation because they are the ones who have to make sure that customer is provided with everything at the foremost priority. Sales team tries their best to make sure that a customer is satisfied with their performance because they not only have their targets to meet but also they want to make sure that they keep their job.
Also sales team members prefer that they are known by their senior members so that by achieving sales recognition award, they become prominent in the eyes of their seniors and they are then recommended as permanent employees, which is considered as a huge achievement by these sales employees who been working in the organization for a large amount of time.
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Presently, some of the companies come up with the solution beforehand i.e. when they see other companies going through a slump; they come up with a solution, which would avoid problems for them in the future. Also there is a plan B for such situations when something is not going right with the present plan, there should be a backup plan which would come up handy at that situation.
Surviving in this critical situation has become a key factor or to put it the other way, is the only way to get you known in the world market for future. This is the bitter truth, which almost every company has accepted that they are now dealing with it, but at the cost of the loss of number of employees. As profit is the main motive for any company, they just have to meet the target profit and for that, they have to cut some costs. Downsizing has become a common factor.
Every organization hopes that the current situation should improve worldwide so that they should have a tension free environment and also it would be better for employees to work in that situation. So they can now just hope for the current situation to improve and continue in the way they are working now.