ARE LAY-OFFS A SOLUTION TO EFFICIENT MANAGEMENT..?

“Management is the process of working with and thru others to effectively achieve organizational goals byt
efficiently using limited resources in the changing environment.”
By EFFICIENT utilization of resources we mean using the resources wisely and in a cost-effective manner.

Lay-off on the other hand refer to -The elimination of jobs, often without regard to employee performance, usually
when a company is experiencing financial difficulties.

In today’s market conditions, there exists global recession which has been the root
cause for so many companies having to lay-off their employees in a substantial
number. For example Many IT companies in India have laid-off several employees to
combat the financial crunch.

I believe that blindly LAYING-OFF is not a solution for efficient

management.

A firm should take into consideration it’s “core competency” ; and then look into the
other areas where it has ventured into. Core Competency for a firm would always
yield growth potential as compared to it’s divaricated ventures. A firm should hold
it’s investment in fields like r&d which would yield benefits in the future. The focus
of all the firms should be to concentrate only in those areas where the return on
investment wud be good in the present.

Most of the companies are facing financial crunch in some way or the other. A firm
should look into the growth potential and requirements of it’s other areas,, estimate
it’s manpower needs and act accordingly instead of simple laying-off several
employees at a single time

For example : A BPO offers services in BANKING & TELECOMMUNICATIONS SECTOR.

The Banking sector is facing a crunch all across the globe, However telecom. Sector
is the only sector that has been on an upward side.. Thus, instead of simply laying-
off employees from the BANKING FIELD, The firm should try and put these people
into the Telecom sector and see if it yield any positive return on investment.

If ROI is good then continue with the employees, else form policies and measures to
lay additional employess out.!!