leaders who swim upstream to ensure the organization keeps the momentum in accelerated growth. look at their success now. human capital is crucial towards organization success.
i think being a management consultant you will readily attest success in these recent times is largely if not entirely based upon how quickly and efficiently organizations become service-based, or call it value based. people are an important part of this revolution that focuses on getting closer to their customers. i like to call it “de-comoditizing” your products and services….
what do you think?

Agreed. Layoffs should be the last resort, and if you have hired carefully then there should be no problem. Southwest Airlines in the US are renowned for this – they believe layoffs destroy organisational culture. Closer to home, Serena Hotels do the same. Both industries are characterised by severe cyclical downturns, so it takes some guts. But guess what – both are leaders in their markets.

the professor (and you too) are spot on! this is a culture that is now prevalent across the industries. the reasons – ‘justification’ appear clear, or even ‘scholarly’. but this doesnt make it the right thing to do!
i believe more than anything its mostly a reaction to the ‘falling from grace” – read, profit – by most of these companies. lay-offs are just telling of business leaders too scared to confront the market and therefore ceded to the forces.
if you study closely, you will find that these are companies that mostly loose out in the market. market share, shrinking customer base and shrinking margins. after all, didnt the companies enjoy eminence with that same workforce???
Sunny, i personally think its more of a management conceptual issue than it is structural. so what if your wage bill is significantly reduced?? are you still able to get more from your customers? is your business still offering unmatched and profitable services and goods?
i think its just a grim approach to dealing with a downfall and as in the past i have correctly predicted, these firms actually only see a partial recovery at best. organizational heads should only consider such restructuring endevors in a strategic and long term basis of growing the firm, for instance, purchasing of software to increase efficiency might say lead to an organization finding itself with a few extra hands. these must be immediately rechanneled and/or retrained then re-deployed. relieving them must be the last resort.