Survival of the fittestthe
short mighty mantra holds
good for all times. This famous phrase of Herbert Spencer
applies, not only to biology, but also to business management. A recession
is the paralyzed state of economy, inflation and cash flow. All
corporate organizations in the world have to survive tough times in order to
exist in the business market and get going to overcome the next
tide. Owing to fitness, some organizations may take over others;
some may hop with minimal operations, while some may be washed
out. Tough measures are taken at the higher level to withstand the
brunt of the economy. All steps prescribed for sustained running need not
be necessarily bad, but predominantly some of the practices are seen
are emergency operations.
In an organization, crucial remedies are evenly applied on all
fronts leading to a cut in infrastructure, operations, human resources,
diversifications and acquisitions. The immediate impact of the
downbeat of the economy echoes as the gradual downfall of new projects
inflow. This subsequently leads to surplus employees, unoccupied
infrastructure and reduction in operations which appear redundant.
The strategic parameters are effectively applied and organizations, in
spite of this, announced layoffs, partial closure and sometimes total
closure. |