Attitude Of Employees During The Times Of Recession

Problem Identification and Analysis

Describe about Attitude of the Employees During the Times of Recession?

The case study is based on how the companies are going to make the employees’ attitude positive during the recession period. The recessions cause problems of lower head counts, and cutting of the costs in all the aspects. Some of the managers of some companies are trying to grab people during the time of recession. Like the managing director of Bain & company, Steve Ellis was adding consultants in the hot growth areas like the emerging markets as well as corporate turnarounds and he was more aggressively targeting the former consultants who went to financial service firms but now is stranded. He thinks that it is a big opportunity to grab talented people (Antoniou and Cooper, 2013). it need s to be seen that the manager was trying to help the consultants by giving them opportunities to find work during the time of recession and at the same time find suitable talented employees for their own company, which will be cost efficient. This is done so that the consultants remain loyal to the company during easier times. It needs to be kept in mind that during the time of recession, employees fear that the companies will downsize. It is a big challenge to retain the employees during the times of recession.

It needs to be seen that people are often guided by their past experience as pointed out in the social perception theory. It was said that it was the process of interpreting the environment of the individual (Employee outlook Employee attitudes and the recession, 2015). The attitudes of the people are developed after the people experience the already occurred situation. People will try to sympathize with the company when the company are in trouble and not leave the company if the company looks at the interest of the employees during the time of recession.

The main aim is to stand by the employees during the time of recession by motivating them as well as reducing their workloads so that they do not feel pressurized to leave the jobs (Katzenbach, 2015).

During the time of recession when there is a freeze in the hiring process of the workforce, there is ample chance that the engage the top workers of the company. Though there were cut in the jobs of the Home Depot, and closing of the locations, the chief executive Frank Blake wanted to boost the morale of the employees (Nuffieldfoundation.org, 2013). The chief executive of the company lowered the sales and the profit margin of the employees so that the employees do not feel the pressure and can meet the hourly targets and get the bonuses. Thus the company is proud to say that the employees got bonuses during the first half of the year.

Most of the company thinks or believes that the people are main forces of the company and the company should look after the benefits of the people. Self efficacy is the person’s belief that he or she has the chance of successfully doing or accomplishing the task. The person needs to be given the right kind of job and the motivating factors that will enhance their performances. The employees need to be assured that the jobs can be achieved by them by putting the efforts. The people needs to be focused on their jobs no matter what the situation is since the companies will not want to lose the best of the employees even during the times of recession.

Generation and Evaluation of Alternative Solutions

It was seen that the companies that took advantages of the employees during the earlier downturns were rewarded with people bailing when the situation improved. Many companies are finding ways to make the employees feel valued. Companies like the Best Buy announced that they will hire fewer seasonal employees amid a dismal holiday shopping outlook. Moreover the company was trying to find ways to cut the cost for which they have made a portal where the employees can add their valuable opinions. It was seen the self perception theory that the people try to acquire perception from the things which has already occurred. It was identified that the when it was known that the employees can make a change by being a part of the solution, the employees will largely contribute to it. It is the self fulfilling prophecy that the employees are guided by. It was seen in the Pygmalion Effect that the performances or the high expectation from the employees will result in the high performance of the employees. Thus it can be said that the company need to expect high from the employees in order to motivate the employees (MacLeod and Clarke, 2015). Higher the employees’ motivation or the engagement with the work the higher is the motivational factor of the employees which will lead to a change in the attitude of the employees.

The emotion of the employee plays an important role during these times. The emotional intelligence is the ability to manage oneself and interact with others in a constructive way. It is important for the company to communicate their decision to the employees and also include them in the various decisions of the management (Recession drives change in workplace practices, 2010). Unvarnished communication of managers with the employees in turn makes the employees feel that they will get the assurance of the managers that they are transparent in their decision. Thus this develops the attitude of the people and they feel assured during the time of recession.

The self serving bias of the Attributional Tendencies which says that taking more personal responsibility for success than failure is an important aspect in this case. The success depends solely on the effort or the ability of the people in the organization. The employees need to see that the managers are also in their frame of reference and that they are sympathizing with them. The manager needs to take the steps to make things a success for the company which will make the employees feel that they are not alone in this struggle (Sanborn and Oehler, 2015). It was seen that the CEO of the JetBlue Airways, David Berger has cut down his salary in order to meet the situation during the recession. The employees in that case will feel motivated as well as feel that everyone is sharing the pain; which is essential for the employees in order to maintain the correct attitude.

It is a fact that the only a few workplace have avoided the situation of the recession. It needs to be seen that the employees needs to be well motivated during the tomes of economic downturn. This will make the employees see through the tough times of recession. Job satisfaction is necessary for the employees (Wanrooy, n.d.). The managers need to boost the morale of the employees by reducing the target of the sales as well as the profit. According to the Cognitive Dissonance theory, it was seen that the people seek consistency among the attitudes of the people and more over they try to reduce the gap. This will increase the job satisfaction of the employees in the times of the recession. The managers must make the employees feel that they are sharing the pain and thus not burden the employees with huge work pressure (Trompenaars and Hampden-Turner, 2009). Once the employees feel motivated about the fact that they are satisfied with their job then the employees will work more freely during these times and the situation will improve.

Recommendation

The main focus of the company is the employees and their benefits. During the time of recession the company needs to guide the employees to deliver their best in the company (Green and Medlin, 2010). Self efficacy is the person’s belief that he or she has the chance of successfully doing or accomplishing the task. The person needs to be given the right kind of job and the motivating factors that will enhance their performances. The relation of the employees with the senior managers is crucial for the employees to feel motivated. The employees needs to give their best to the employees and meet the expectations of the managers then only the managers will be able to feel that the employee is important for the organization. The people should not have any stereotype values in their minds. Thus they will want to retain the employee even during the time of recession.

Communication is another important aspect that needs to be implemented during recession. The emotional intelligence is the ability to manage oneself and interact with others in a constructive way. Unvarnished communication of managers with the employees in turn makes the employees feel that they will get the assurance of the managers that they are transparent in their decision (Martikainen, Maki and Jantti, 2007). If the employees feel that the managers are not clear about their decisions and there is lack of communication, then the employees will develop a negative attitude towards the organization. It needs to be ensured that honest and frequent communication is essential in recession times in the organization so that the employees are motivated and are engaged in their work.

During the time of recession, the company needs to reduce the targets of the company since the sale will decline as the cost of the prices will increase (The Psychology of the recession on the workplace, 2013). The reduction in the targets of the employee will make sure that the employees are not pressurized.

The company could cut the cost by making the employees work with fewer luxuries. This will help the company to control the extra cost that was generated. The company should make the employees feel that they are the solutions to the problem in hand.

The company should take steps to communicate to the employees that they sympathize with the situation. The company can reduce the salary of the managers as well as the employees, so that the employees do not feel that they are cheated by the management. Clear communications from the company will make the employees see that they are a part of the company and their attitude will become positive.

References

Antoniou, A. and Cooper, C. (2013). The psychology of the recession on the workplace. Cheltenham: Edward Elgar.

Employee outlook Employee attitudes and the recession. (2015). 1st ed. [ebook] Available at: https://www.cipd.co.uk/NR/rdonlyres/948E682A-B5B9-4154-A87C-1D1673A8805F/0/employee_outlook_attitudes_recession.pdf [Accessed 23 Mar. 2015].

Green, K. and Medlin, B. (2010). Impact of recession-based workplace anxiety. IJMED, 9(3), p.213.

Katzenbach, J. (2015). Energizing Employees in Recessionary Times Try Motivating, Not Mandating. 1st ed. [ebook] Available at: https://www.strategyand.pwc.com/media/uploads/Energizing_Employees.pdf [Accessed 23 Mar. 2015].

MacLeod, D. and Clarke, N. (2015). Engaging for Success: enhancing performance through employee engagement. 1st ed. [ebook] Available at: https://www.engageforsuccess.org/wp-content/uploads/2012/09/file52215.pdf [Accessed 23 Mar. 2015].

Martikainen, P., Maki, N. and Jantti, M. (2007). The Effects of Unemployment on Mortality following Workplace Downsizing and Workplace Closure: A Register-based Follow-up Study of Finnish Men and Women during Economic Boom and Recession. American Journal of Epidemiology, 165(9), pp.1070-1075.

Nuffieldfoundation.org, (2013). Recession hits workplaces, but not employee attitudes | Nuffield Foundation. [online] Available at: https://www.nuffieldfoundation.org/news/recession-hits-workplaces-not-employee-attitudes [Accessed 23 Mar. 2015].

Recession drives change in workplace practices. (2010). 1st ed. [ebook] IRN Publishing. Available at: https://eurofound.europa.eu/sites/default/files/ef_files/eiro/surveyreports/ie1012039d/ie1012039d.pdf [Accessed 23 Mar. 2015].

Sanborn, P. and Oehler, K. (2015). 2013 Trends in Global Employee Engagement. 1st ed. [ebook] Available at: https://www.aon.com/attachments/human-capital-consulting/2013_Trends_in_Global_Employee_Engagement_Highlights.pdf [Accessed 23 Mar. 2015].

The Psychology of the recession on the workplace. (2013). Choice Reviews Online, 51(04), pp.51-2182-51-2182.

Trompenaars, F. and Hampden-Turner, C. (2009). Innovating in a Global Crisis. Oxford: Infinite Ideas Ltd.

Wanrooy, B. (n.d.). Employment relations in the shadow of recession.