Post by arfanho7 on Feb 28, 2024 15:23:49 GMT 12
When the Great Recession hit in late Honeywell like all diversified manufacturers experienced a drop off in new orders. Yet after six years of improving operating efficiency there was little room left to cut costs through additional efficiency improvements. Company executives would have to make a choice of whether and how to cut their workforce costs—either through mass layoffs or furloughs. Our goal with the case was to explore the tradeoffs between these two forms of employee cost reduction.
We also wanted to examine the long term orientation that to managing their company during the Great Recession. The shift to managing companies for short term financial interests has been Indonesia Mobile Number List an increasing trend among US businesses leading to a focus on actions that are believed to yield immediate financial results to boost profitability and returns for shareholders. During the last two recessions layoffs were an almost universal go to cost saving choice in the United States. Compared with other recessions since companies were much more likely to lay off workers than to suffer short term declines in productivity according to a report by the McKinsey Global Institute.
Yet the costs of this unbalanced approach to managing economic downturns are not always well understood by managers. LAYOFFS ARE EXTREMELY DISRUPTIVE In April the Honeywell case was taught for the first time in Leadership and Corporate Accountability a required course for first year MBA students that examines the responsibilities business leaders have to their shareholders customers employees and to society Click Here Cote visited Boston for the occasion sitting in on two classes while students debated the choices they would make if they had been in Cote’s position during the recession.
We also wanted to examine the long term orientation that to managing their company during the Great Recession. The shift to managing companies for short term financial interests has been Indonesia Mobile Number List an increasing trend among US businesses leading to a focus on actions that are believed to yield immediate financial results to boost profitability and returns for shareholders. During the last two recessions layoffs were an almost universal go to cost saving choice in the United States. Compared with other recessions since companies were much more likely to lay off workers than to suffer short term declines in productivity according to a report by the McKinsey Global Institute.
Yet the costs of this unbalanced approach to managing economic downturns are not always well understood by managers. LAYOFFS ARE EXTREMELY DISRUPTIVE In April the Honeywell case was taught for the first time in Leadership and Corporate Accountability a required course for first year MBA students that examines the responsibilities business leaders have to their shareholders customers employees and to society Click Here Cote visited Boston for the occasion sitting in on two classes while students debated the choices they would make if they had been in Cote’s position during the recession.
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