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E-learning modules for Integrated Virtual Learning


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    Managing in Turbulent Times by Peter F. Drucker

    Klarisse Esteban
    Klarisse Esteban


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    Managing in Turbulent Times by Peter F. Drucker Empty Managing in Turbulent Times by Peter F. Drucker

    Post  Klarisse Esteban Tue 31 Aug 2010, 1:22 am

    Upon reading the book, our group came up to a realization that no matter how great a company is, it will face problems -- turbulence, as the author called it. A company, during turbulent times, has only the manager to resolve it. The manager must be ready and capable of managing the company as a whole, of handling the employees whose lives and living are dependent on the company, and of utilizing the resources that are vital during times of crisis.

    MANAGEMENT (by Raphael Desoyo)

    Reading the book “Managing in Turbulent times” and having the Nursing Administration course, made us novice leaders understand how it is to be an effective and efficient leader. The present time we are in is very turbulent and we clearly need leaders to lead us into the future; turbulence is found in government, labor force and most especially healthcare. Commitment and conviction is key to the proposed components that the author suggested in order to establish change they will be the fire that fuels the change needed; the path to a bright future is difficult thus the commitment and conviction of our leaders is essential.. The book made us realize the things that are essential to produce an organization into a viable organism.

    A step that we realized is essential to management in turbulence is that we have to plan effectively; we have to take everything into consideration and utilize everything that would help the organization move forward. Without planning effectively the whole initiative would be in vain; everything would be in chaos thus leading into collapse of the organization. This can be applied to the situation we have in the Philippines; we do need an effective plan that would address the problems we have like poverty, unemployment and corruption.

    The priority in planning is the management of resource whether it would be manpower, financial or logistics. It would be the essential to the organization because this is the intrinsic fuel that burns for the goal. Without resources utilized effectively, it would lead to waste and thus leading to the failure of plan, wasting time and effort of the people. Most plans fail because they do not utilize the resource that they have abundance of, the Philippines is a prime example, we have an abundance of manpower, natural resource, land, etc. Our leaders overlook this fact and tend to focus on other things less important. If we lean towards what we have advantage or have an abundance of, the members and the organization would grow and become self-sufficient.

    The most important lesson that we learned from the book and the Nursing Administration Experience is that we must never be afraid to assert leadership. If being a leader is makes you unpopular, then be unpopular, the end goal is to bring the organization to a better place not to make friends with everybody; nobody said that being a leader is easy, you must always challenge yourself and be an asset to the organization. That’s why P-noy is losing popularity fast, he is putting a lot of departments out of their comfort zones and challenging them to be an asset to the Republic of the Philippines. He is asserting his leadership to everyone, no one said it’s going to be easy to build a better Philippines but it is a start and I do hope everyone would realize that we must work to make the country better.

    EMPLOYEES (by Klarisse Esteban)

    As Drucker stated in the book, “Whether university, hospital or business, the employer will have to move from managing personnel to managing people.”
    This statement emphasizes the constantly changing role of the leader. The leader’s role is a dynamic process that should be constantly adjusted to fit the changing needs, attitudes and perception of the society. When dealing with employees, they should be viewed as a whole along with the other components of the society. It should not be viewed as young adults, adults and people among the retirement age. They should be viewed by the leader as a whole for, in a way, they influence on another.

    Turbulent times as influenced by the employees may be due to the following factors: they demand for their benefits, they reach certain retirement age, their capabilities and job backgrounds and they depend on another employee rather than on the institution itself. As the society changes, as they learn more about the law, and as more laws are being passed for the benefit of the employees, employees tend to be more difficult to manage and control. Company policies should be tailored to fit the needs of every employee and should be updated form time to time.


    As the company ages, the members of their work force ages as well. New employees must be hired but must be trained according to the guidelines of the company. The employees who are aging are mostly the employees who are well-trained and well-experienced that brings the stability of the company. Proper retirement age should be well identified for as the employees reach their retirement years, the company must be ready to let go of them and hire new employees.

    RESOURCES (by Mark Prado)

    According to Drucker, "to manage in turbulent times, therefore, means to face up to the new realities. It means starting out with the question: 'What is the world really like?' rather than with assertions and assumptions that made sense a few years ago".

    That assumption means that managers must learn to accept reality first in order for them to start to think of an action plan. A lot of managers are blinded by figures that were there for quite some time without realizing that those figures are already obsolete and what they are facing is beyond their control.

    It is their job, however, as managers first and foremost to "manage" the situation. It is, after all, their primary task. It is their job to handle depletion in resources by doubling up the productivity if the situation calls for but more importantly to have a production enough to sustain and keep the company afloat through times of turbulence.

    Drucker suggests that doubling up productivity in times of turbulence is what makes a company stand out. Managers need to commit themselves in increasing productivity without increasing the number of employees. It is a hard work but to be able to manage a turbulent time, managers need to make hard decisions. The author identified 4 key resources to be managed consistently, systematically and conscientiously and these are: capital, crucial physical assets, time and knowledge. A good manager knows where the money is and what a good strategy to invest it in is.


    Guide Questions
    1. When was the last time you exerted leadership? How was it turbulent?
    2. Was there reluctance with your members or with yourself? How did you handle it?
    3. How should the manager handle the sea of change brought by the workforce?
    4. What do you think is the most effective strategy to approach the turbulence among the work force?
    5. Do you agree that a good way to manage a turbulent time is to double up the production without increasing the workforce? Do you think it is feasible for both parties?
    6. Do you think making unpopular decisions in turbulent times like cost saving would benefit the company more even if it would possibly hurt the employees?

    Posted by:
    Raphael Desoyo RN
    Klarisse Esteban RN
    Mark Prado RN

    Tet Soriano
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    Post  Tet Soriano Tue 31 Aug 2010, 1:32 pm

    Klarisse Esteban wrote:


    "Commitment and conviction is key to the proposed components that the author suggested in order to establish change they will be the fire that fuels the change needed"

    "to manage in turbulent times, therefore, means to face up to the new realities"[/justify]


    "doubling up productivity in times of turbulence is what makes a company stand out"



    I like these lines from Peter Drucker. They are very powerful and true. Managers should create committed people so that in turbulent times, they will not give up easily. They should have that power of conviction to keep them going. A change cannot be promoted if there is no power.

    A time of turbulence, a reality that everyone has to face and manage. If managers turn their back on these difficult times, when will these problems be solved? I believe a great manager works on turbulence promptly.

    I like that thought that when a company is facing turbulence, everyone should double up their productivity. A company will not win a battle without unity. Managers should unite their people and increase each of everyone's productivity.
    Tet Soriano
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    Post  Tet Soriano Tue 31 Aug 2010, 1:36 pm

    Klarisse Esteban wrote:

    “.... the employer will have to move from managing personnel to managing people.”

    May I know how did Drucker differentiate personnel from people? What does he mean by this?
    Klarisse Esteban
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    Post  Klarisse Esteban Tue 31 Aug 2010, 3:18 pm

    Tet Soriano wrote:

    May I know how did Drucker differentiate personnel from people? What does he mean by this?

    Thank you for your question, Ms. Soriano.

    In the book, the author did not differentiate personnel from people. What he stated implies the dynamic role of the manager in handling his employees. He referred to the employees as people, for in our constantly changing society, managers will not handle a single type of employee. For sure, he will handle a lot of types of people with individual problems and backgrounds.Because of this, the manager must know how to handle these people so that this perceived turbulence may not have a negative effect on the company.
    Tet Soriano
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    Post  Tet Soriano Tue 31 Aug 2010, 3:46 pm

    Thank you Ms. Esteban. Then the manager should be flexible enough because he will deal with different kinds of people with different personalities and perspectives. The manager should also love his people not just merely employees.
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    Post  regina_ferrer Tue 31 Aug 2010, 8:44 pm

    Today’s economic climate is forcing organizations to make difficult decisions about how best to maximize the productivity and effectiveness of various assets. Issues such as access to financial capital, buildings, equipment, technology, and employees are being placed on the table for discussion. Unfortunately, many organizations have not invested in defining, capturing, and analyzing workforce data to the same extent
    as in other critical business areas, such as procurement and finance.Many of these functions have standard performance indicators that enable organizations to more effectively adjust their operations to business cycle fluctuations. HR professionals, however, have had a harder time defining their
    human capital requirements in a business performance context. Strategies to consider during turbulent times are the following:

    Defining the requisite knowledge, skills, and capability requirementsneeded for the execution of business strategy - Organizations must have a firm understanding of what skills and capabilities they have in-house, where gaps exist, and the best ways to fill those gaps through external hires or internal mobility.

    Evaluating workforce performance- In turbulent times, organizations need to differentiate high performers from low performers, compensate and reward these individuals accordingly, and identify opportunities to close performance gaps.

    Retaining valuable talent- Along with identifying top performers, organizations should have retention plans to keep these employees highly motivated and engaged. This helps ensure the continuity of operations and enable future growth.

    Determining strategies for redeployment, retraining, and workforce reductions. It goes without saying that tough times mean tough decisions. However, organizations can minimize the impact of layoffs and the subsequent loss of employees’ intellectual capital through reassignment, retraining, and reallocation of resources to higher-priority areas.

    Understanding collaboration and knowledge sharing. Organizations must ensure that critical knowledge is retained, as downsizings and early retirement programs make it difficult to hold onto institutional memory.

    Developing career paths and succession plans. Formal career pathing and succession planning are vital to accelerating time-to-competency and minimizing productivity losses due to departures.
    Raphael_Desoyo
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    Post  Raphael_Desoyo Tue 31 Aug 2010, 10:29 pm

    regina_ferrer wrote: Strategies to consider during turbulent times are the following:

    Defining the requisite knowledge, skills, and capability requirementsneeded for the execution of business strategy - Organizations must have a firm understanding of what skills and capabilities they have in-house, where gaps exist, and the best ways to fill those gaps through external hires or internal mobility.

    Evaluating workforce performance- In turbulent times, organizations need to differentiate high performers from low performers, compensate and reward these individuals accordingly, and identify opportunities to close performance gaps.

    Retaining valuable talent- Along with identifying top performers, organizations should have retention plans to keep these employees highly motivated and engaged. This helps ensure the continuity of operations and enable future growth.

    Determining strategies for redeployment, retraining, and workforce reductions. It goes without saying that tough times mean tough decisions. However, organizations can minimize the impact of layoffs and the subsequent loss of employees’ intellectual capital through reassignment, retraining, and reallocation of resources to higher-priority areas.

    Understanding collaboration and knowledge sharing. Organizations must ensure that critical knowledge is retained, as downsizings and early retirement programs make it difficult to hold onto institutional memory.

    Developing career paths and succession plans. Formal career pathing and succession planning are vital to accelerating time-to-competency and minimizing productivity losses due to departures.
    [/justify]


    Thank you Ms. Regina Ferrer for providing your insight regarding management in turbulent times. We assume that you have conceptualized these from your experience; the group has a question for you and the group; how did you handle the reluctance within yourself and your members for the change you want to implement?
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    Post  gelatin Tue 31 Aug 2010, 10:46 pm

    There are two sides of the story on how turbulence happens depending on whose looking at it, and if it came from people who have a narrow view about the situation. One, the leader who thinks that he had done everything, would blame it to the reluctance of the members to cooperate, and second, the members who think that they are not responsible with decisions and it’s the leader’s fault why the organization is in chaos. It’s really easy to point the finger on who’s responsible for the downfall, but looking for the solution to the problem makes it the least priority of those people who fail to realize that everyone is accountable whether they play the role of a leader or followers.

    So instead of blaming who’s at fault, why not look for alternatives that can salvage the company? I believe that considering our present situation, turbulence in a company is imminent. Take a look at the Reader’s Digest as an example. It has been established for decades as one of the most successful published magazine in the world. But they didn’t escape the bitter consequence of recession. They filed for bankruptcy last year and they are still struggling with debts, hoping that emerging from bankruptcy will continue.

    There are numerous strategies that may work for some but does not necessarily mean effective for another. That is why careful planning and analysis is done to lay out what solution is best for the company and its employees.

    Dilemma happens when the company uses cost saving. It will definitely help the company to regain its loss but what happens if the company chooses to lay off its people? Employees and production will suffer, so it’s not a win- win situation. Cost cutting may be a good strategy but if I were in a position to control the system, laying off the employees would be the last resort.

    Analyzing the system first is the key to tell if doubling the production without increasing the workforce is feasible. If there’s a way to increase the workload without sacrificing the health of the employees and if it complies with the established law, then I don’t think that there’s nothing wrong with that. Cooperation is possible if the management would treat their people as a human being and not as robots that can instantly double the numbers in order to save the company in turbulent times. A company that values profit first more than its people will surely backfire in the end. A workforce is important for it brings profit for the company. If they are not treated well, who else would enable the company to get through the rough times? Mass resignation can paralyze the company and hiring new employees will only add expense since they need to undergo training first. There will be a domino effect that would lead to company’s collapse. Therefore, a strategy that would be as humane as possible should be the first solution to save the company from bankruptcy.
    Raphael_Desoyo
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    Post  Raphael_Desoyo Tue 31 Aug 2010, 11:08 pm

    gelatin wrote:

    So instead of blaming who’s at fault, why not look for alternatives that can salvage the company?

    There are numerous strategies that may work for some but does not necessarily mean effective for another. That is why careful planning and analysis is done to lay out what solution is best for the company and its employees.

    Dilemma happens when the company uses cost saving. It will definitely help the company to regain its loss but what happens if the company chooses to lay off its people? Employees and production will suffer, so it’s not a win- win situation. Cost cutting may be a good strategy but if I were in a position to control the system, laying off the employees would be the last resort.

    A company that values profit first more than its people will surely backfire in the end. A workforce is important for it brings profit for the company.

    I would Like to commend Mrs. Mosque for her beautiful insight, Alternatives are really the next option after planning for everyone who is on the verge of collapse. It lets the company grow thus expanding in all aspects. people would probably are reluctant regarding this manner but in the long run, they would appreciate this effort. Another good insight is that she prioritizes manpower above all, they are the backbone for a good organization. without a proper backbone, the organization would fall down.
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    Post  markpradow Tue 31 Aug 2010, 11:17 pm

    gelatin wrote:\

    Dilemma happens when the company uses cost saving. It will definitely help the company to regain its loss but what happens if the company chooses to lay off its people? Employees and production will suffer, so it’s not a win- win situation. Cost cutting may be a good strategy but if I were in a position to control the system, laying off the employees would be the last resort.


    As a manager, what do you think is the best way to create an optimistic environment where subordinates can just go to work with a smile on their face knowing that they have to work double and harder to keep the company afloat?
    Tet Soriano
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    Post  Tet Soriano Tue 31 Aug 2010, 11:33 pm

    To Ms. Ferrer, the strategies that you have mentioned are great ideas. May I know what is your reference? Thank you! Smile
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    Post  Tet Soriano Tue 31 Aug 2010, 11:41 pm

    You are right, Ms.Mosquera. Great thoughts indeed!
    Every individual in an organization plays an important role. They should be treated right and at the same time they should exercise their rights. Your people will be the one to help you attain success. Again,it should be people over profit.
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    Post  regina_ferrer Tue 31 Aug 2010, 11:46 pm

    Resistance to change comes from a fear of the unknown or an expectation of loss and interfering with comfort zones. The front-end of an individual's resistance to change is how they perceive the change. The back-end is how well they are equipped to deal with the change they expect. An individual's degree of resistance to change is determined by whether they perceive the change as good or bad, and how severe they expect the impact of the change to be on them. Their ultimate acceptance of the change is a function of how much resistance the person has and the quality of their coping skills and their support system.

    Your job as a leader is to address their resistance from both ends to help the individual reduce it to a minimal, manageable level. You need to define the change for the individual in as much detail and as early as you can. Provide updates as things develop and become more clear. Also, you let the people understand what is changing and why as well as understanding their reluctance. Focus on opening and maintaining clear channels of communication with people so they understand what is coming and what it means to them. They will appreciate you for it and will be more productive both before and after the change.
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    Post  Raphael_Desoyo Tue 31 Aug 2010, 11:52 pm

    Can i post a question? what can you say about companies downsizing in order to help the organization survive? do you think its just? what can you suggest to the companies that did it?
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    Post  rochelette_sarmiento Tue 31 Aug 2010, 11:54 pm




    Peter F. Drucker pointed out that there will be a time that a company will face certain problems which he called turbulent times. I think the first thing the management should do is to ensure the capacity for survival, to makes sure of the strength and soundness of the organization, adaptation to sudden change and to become available to new opportunities. I think the author wants his reader to take actions rather than understanding with the decisions rather than the analysis. It wants us to become practical in decision making.

    For an organization to survive in difficult times, it is essential that you must have a plan, assess your weaknesses and strengths, so that you can have an advantage of the chances in the environment brought about by change.

    The turbulent times today is a challenge for us to build on our coping mechanism and the capability to survive. It takes more than fortitude and determination to keep going.

    Companies work in a more and more complex, dynamic, less predictable environment. The leader should develop new ways of thinking and acting as an approach to turbulence in the company. He/she must also possess a deep and quiet faith, coupled with knowledge, skills and attitudes, to take advantage of the hard times, and to turn the crisis into opportunities.



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    Post  markpradow Wed 01 Sep 2010, 12:09 am

    rochelette_sarmiento wrote:

    For an organization to survive in difficult times, it is essential that you must have a plan, assess your weaknesses and strengths, so that you can have an advantage of the chances in the environment brought about by change.

    The turbulent times today is a challenge for us to build on our coping mechanism and the capability to survive. It takes more than fortitude and determination to keep going.



    Drucker also stated that managers are blinded by figures or "spectacular income" of the past, do you think dwelling in the past is a hindrance in moving forward or would it help create an optimistic environment?
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    Post  Raphael_Desoyo Wed 01 Sep 2010, 12:23 am

    rochelette_sarmiento wrote:

    The turbulent times today is a challenge for us to build on our coping mechanism and the capability to survive. It takes more than fortitude and determination to keep going.


    I agree on the concept that Ms. Sarmiento stated, it is a type of coping mechanism for companies who is in turbulent times. the organization feels as well for the members. It shows the organization as a living organism not a group of people.
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    Post  cpenuliar Wed 01 Sep 2010, 12:24 am

    It has been said that difficult times do not build character… it reveals it. During these unique times of economic uncertainty, many organizational leaders may be struggling for answers. Here are five leadership guidelines to follow during challenging times:

    Integrity - is the essence of everything successful and that is never truer than during difficult times. Your team needs to trust what you say.

    Knowledge – is power. During challenging times it is important for an organization to focus on what it knows. You need to know your customers, know your strategy, and you need to know what you do not know. Part of being a great leader is acquiring the skills to find the right answers.

    Decisiveness – is a characteristic of high performance. Almost any decision is better than no decision at all. Good things happen when you take action. The worst quality you can show a team is indecision.

    Vision – is the ability to see the future. Nothing stops an organization faster than people who believe that the way you worked yesterday is the best way to work tomorrow. A leader needs to continually communicate the vision.

    Unselfishness – is the magnet in your heart that will attract others. When you learn to live for others, they will live for you. Stephen Covey wrote that a “true leader must be a servant to the ones he or she leads”.
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    Post  Raphael_Desoyo Wed 01 Sep 2010, 12:28 am

    I would lie to commend Mr. Penuliar with his output, he synthesized our group's output into the leadership qualities that leaders should have.

    Vision – is the ability to see the future. Nothing stops an organization faster than people who believe that the way you worked yesterday is the best way to work tomorrow. A leader needs to continually communicate the vision

    Vision is the most important aspect that a leader should have because this statement envisions goals and the organization together. it is what people aim and hope for.
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    Post  Klarisse Esteban Wed 01 Sep 2010, 12:33 am

    cpenuliar wrote:It has been said that difficult times do not build character… it reveals it. During these unique times of economic uncertainty, many organizational leaders may be struggling for answers. Here are five leadership guidelines to follow during challenging times:

    Integrity
    Knowledge
    Decisiveness
    Vision
    Unselfishness

    Mr. Penuliar, I agree with you that these are the traits essential for a good leader to succeed in the endeavors of the company. But do you think this is enough for the leader to appropriately handle the turbulence that his company experiences? If not, how do you think should the leader handle problems that the company encounters as a whole?
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    Post  carlosabangan Wed 01 Sep 2010, 12:35 am

    Prior to make my own reflection on your book review, I would like to ask for clarrification on the following statements or rather I would like to ask this following questions:

    1. As you stated for us novice leaders to understand, how it is to be effective and efficient leader?

    2. How does this commitment and conviction of our leaders is essential?

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    Post  regina_ferrer Wed 01 Sep 2010, 12:39 am

    Ms. Soriano, my reference is Getting Smart About Your Workforce: Why Analytics Matter. This is IBM company in Canada. This is what they do when a turbulence in the company happens.
    rochelette_sarmiento
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    Post  rochelette_sarmiento Wed 01 Sep 2010, 12:47 am

    markpradow wrote:
    Drucker also stated that managers are blinded by figures or "spectacular income" of the past, do you think dwelling in the past is a hindrance in moving forward or would it help create an optimistic environment?

    I don’t see anything wrong if managers dwell in the past. The past will be the basis of the approach they are going to use for improvement of the company. The new situation entails to develop new ways of thinking and acting as what I’ve said on my reflection. However, many managers are still using the old approach to strategize. Basing from the weakness of the past, it will help the manager to build up new approaches in management towards more flexibility and more strategic innovativeness but they do not usually offer a ready to use solutions but rather they intend to offer ideas for new thinking and acting as a beginning point to give all the processes in the organization a new strategic trend
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    Post  gelatin Wed 01 Sep 2010, 12:49 am

    To Mr. Prado


    As a manager, what do you think is the best way to create an optimistic environment where subordinates can just go to work with a smile on their face knowing that they have to work double and harder to keep the company afloat?

    One alternative is to find ways to infuse the workplace with more passion and purpose.

    Since it has been established that a company that is hanging by a thread in losing its profit,as a manager it is necessary to get the people together and figure out what the operation stands for and cares about. Everyone needs to work hard--people from top to bottom, since that is the only way to assure that the company will survive the crisis in return of assuring that they will have a stable position in the company since everyone is willing to give their share.

    Recognizing individual accomplishment can also help boost the employees' ego. As I said earlier in my post, employees should be treated as a human being in order to have an optimistic environment.Their rights should be respected especially in the times of crisis.

    Lastly, every member of the workforce needs to support the initiatives and creativity in invigorating life at work. Creating a culture that pulls people together w to ill surely put smile on their faces, more than what paycheck can do. It will be great to work in an environment that can make you feel warm and safe from the turbulence that economic crisis may bring.[quote]


    Last edited by gelatin on Wed 01 Sep 2010, 12:52 am; edited 2 times in total (Reason for editing : put quotation)
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    Managing in Turbulent Times by Peter F. Drucker Empty Re:

    Post  Tet Soriano Wed 01 Sep 2010, 1:05 am

    To Mr. Desoyo:

    Downsizing in order to help an organization to survive is I think not appropriate because it will be unfair for the employees who will lose their jobs. You will hire them because you need them but will you fire them eventhough you still need them?It is not as easy as it is. If downsizing will be taken into place, the quality of work might be compromised. Employees will have heavier loads and as a result, they might come up with not so good outcomes. It might cause more problems or it might slow the progress. Laying off is not always the best choice to save the company. A company should preserve his people.

    I know sometimes managers are really forced to because they have no choice. But still, moving out people should be the last resort.
    I have read that Rightsizing is downsizing in the belief that an enterprise really should operate with fewer people. If that's so, then the company should compensate and give out benefits.

    In turbulent times,a company should be strong. Business is not always smooth sailing. Without trials, there will be no growth.

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    Managing in Turbulent Times by Peter F. Drucker Empty Re: Managing in Turbulent Times by Peter F. Drucker

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