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Organizational Behaviour

Assignment Of Organization Behaviour

Organizational Behaviour

Name: Nikhil Jain Class: M. B. A. Core Division: 4 (A) Roll No. : 9035 Submitted to: Prof. Miss LEENA

Organizational Behaviour

What is the Outcome of Recession?

Outcome of Recession in Global market is nothing but a correction phase where all organizations need to shade their skin; this can be an outcome of wrong policies adopted by government, and regulators. According to economy which grows over a period of time tends to slow down the growth as a part of the normal economic cycle. An economy typically expands for 6-10 years and tends to go into a recession for about six months to 2 years. A recession normally takes place when consumers lose confidence in the growth of the economy and spend less. This leads to a decreased demand for goods and services, which in turn leads to a decrease in production, lay-offs and a sharp rise in unemployment. Investors spend less as they fear stocks values will fall and thus stock markets fall on negative sentiment. The economy and the stock market are closely related in this matter. The stock markets reflect the buoyancy of the economy. The Indian stock markets also crashed due to a slowdown in the US economy. The Sensex crashed by nearly 13 per cent in just two trading sessions in January. The markets bounced back after the US Fed cut interest rates. However, stock prices are now at a low in India with little cheer coming to investors.

Effects of Recession
1. Even the strongest feel the cracks in the face of an earthquake. The cracks are visible even during a brief recession. When the markets are disrupted the effect shows. Unemployment is the greatest dread of any man. How will he feed his family now? Expatriates are being shown the doors. America which has been home to many people is now turning them out. Branches of American companies abroad are shutting shop. When there are cuts in the weekly budgets, priorities changes, when job seekers are dumped there is a big change in lifestyle. 2. When there are recessions the female employees feel the winds of change first as they are more vulnerable. They know they will be laid off the jobs. It is difficult to believe, but it is true. Women who work as receptionists, doing odd jobs in the office, public relations and communications are picked out when downsizing is done.

Organizational Behaviour

3. Recessions have the tendency to touch sore spots of business. Those which are no longer viable are shut off. For instance publications that are now low on subscription, advertising and sales get the first cut. Most companies spend large sums on advertising in print and electronic media. The PR companies have to work on tighter budgets with maximum mileage. Chances are that different agencies that were used for different products are now merged. A single agency is given the job to do. Staff in the office faces retention as now the work load is divided between only the most necessary employees. The ones left can also forget about the raise in salaries and also work hard. 4. USA faces a visible recession in current times, it is evident that economists are in overdrive to review the fiscal statistics and give expert opinions. The stock markets have already created a panic situation in the country. The biggest lenders are now facing a cash crunch and for the first time they are also admitting it. 5. Most of the credit has gone into housing, car, security and insurance schemes. Americans who have invested in such schemes have only their stocks to offer as collaterals and now are facing the brunt with embarrassing foreclosures. Does this recessive situation warrant a soul search amongst the other nations who are depending and banking their economies on Uncle Sams federal reserves? The answer is yes. There has been no sustainable development in major sectors like housing, medical, small scale business. The US economy has reached its peak and is slowly going downhill. 6. Jobs are being outsourced to other countries while Americans are themselves jobless. As Asian countries are getting more employment, even expatriates are returning home. India and China are major outsourcing backyards for the US. Cheap goods manufactured in China, Thailand and other poor countries have hitherto relied on the dollar power for sustenance. As the value of the dollar falls, the American dream is going bust for many. Whether it is the shoe maker or the food chain or cola giants or even real estate developers, the earning potential has been cut.

Organizational Behaviour For Example: Satyam fraud is the hottest topic among everyone now after the horrifying terror attacks. The markets have crashed even further and there is too much stress. Depression is the common outcome of the recession / economic slowdown. Its important that we understand, this is a temporary phase, although a tough one. No one knows how long it will stay? But dont magnify the crises, making it bigger than it really is and tend to act in haste.

5 tips to deal with recession stress.

1) Most important - Stay positive and be mature. Rather than panic, stay optimistic and convert this time into an opportunity. Assess the situation by weighing pros and cons. Avoid taking crucial decisions like quitting your job, selling property, because you are unlikely to think logically at a time like this. 2) Take it as a challenge to think of alternate work plans/business plans. Its good to be ready with plan B. Think of a start up idea. 3) Its a time to clean up the system/records, streamline processes. Make those few change required for the smooth running of any project and time did not permit. 4) Network more than usual, within the firm and outside. Visit clients more often and build a good relation with consumers. On the personal front, spend more time with family, friends, make new friends or revive the old friendship. Join a group of likeminded people. Its a source of feel good factor. 5) Invest time in yourself and learn new skills. It is also a good opportunity to pick up a hobby. Learn some computer software which will help you in future or even cooking. Think of something you always wanted to do and never got enough time. Singing, learning salsa help you distress.

Conclusions
If you realize that you have been feeling low for long, dont hesitate and approach a professional for help. A simple psychotherapy session, and antidepressant drugs in some cases, will get you back to your regular routine.

Organizational Behaviour