Everybody was scared when this so-called recession (and behind that some companies) started to decide the fate of their employees.
Everybody was advising on cost control, cost cutting. Though few organizations were telling that the lay off would be the last option, they were also firing the employees.
In such scenario the role of senior management is very important and the right communication is required.
In one company, such communication meeting was organized. Everybody was eager to know the views of the management. One of the directors, typical bureaucratic, was the key person to deliver the message. He, as usual, preached on cost cutting measures, travel restrictions, discipline etc etc.
All the employees and managers were asked not to use taxis for travel, come on time in the office, not to drink tea at the cost of company, not to use light and air conditioners. (It was switched off upto 12.00 noon!) etc. etc. He also threatened that the salary cuts would be enforced in coming days.
However the same person was using company car with driver and traveling by air for short distance, staying in the hotel as per his eligibility and spending his time in travel for preaching on cost cutting.
Employees, however, were very sarcastic and started to discuss that top management has not sacrifice their any benefit including performance bonus and how they could preach on cost cutting. The impact was very negative and created the dissatisfaction among the employees.
As a result, few employees left the job, few employees started to pretend to work.
The business was at stake. Management had to take the decision to stop few operations.
Employees always follow the role model and it is the responsibility of top management to be a role model to the employees. We have also to take a call on cost cutting. Just stopping paper napkins in toilet and asking employees not to take tea at company will not save the money.
1. Top management should be the role model
2. The strategic cost control is the key.