IIPM Ranked No. 1 B-School In Global Exposre - Zee...
Global economic turmoil is taking its toll across industries and economies. And this could have terrible consequences for employment even in India, notes Shashank Tripathi
American neoclassical economist Paul A. Samuelson was absolutely right when he famously said, “What we know about the global financial crisis is that we don't know very much.”What started at a very small scale in August last year in form of bad debts due to mortgage crisis in the world’s oldest democracy, The United States, has today transformed into a gigantic Chimera ready to decimate anything and everything coming its way. It’s after affect in form of credit crisis threatens to leave large parts of the entire world economically paralyzed. And its hard to find a country that has not come in the firing line, only the degree varies. In fact, economies like Iceland, Pakistan, Ukraine and Egypt are on the verge of bankruptcy.
The outright affect of this economic mayhem has been on the global industries and the people working there. Real estate, Information Technology, aviation, hospitality, to name a few; are facing the brunt of the slowdown. The losses have been so humongous that across the globe companies are mulling over every possible cost cutting measure left right and center to tide over these rough times.
A company exists for its stakeholders. And employees come quite prominently on that list in good times. But when the going gets tough, the tough get their people going! After all, there are the investors to answer to. Due to this basic corporate tenet, that's brimming with logic but scarce on Emotional Quotient (EQ), jobs are being slashed across sectors as companies desperately seek to rationalise their earlier excesses.
The best example to both describe and understand this logic is the recent alliance of the foe-truned-friend companies, Jet Airways and Kingfisher Airlines, who announce an informal alliance for code sharing on domestic and international routes, cross-selling of flight inventories and route rationalization. Though, this would save a lot of money for both the airlines, this would eventually result into huge lay offs. And the failed attempt by the jet Airways to throw out its almost 2000 people supports this fact. Actually these sort of alliances are cartels in disguise, wherein companies come together to form a monopoly. But this often results into internal restructuring and causing job losses. In such industries, job losses are a bigger scourge, as C. K. Santhakumar, Director, TRITIUM Consulting of Bangalore told TSI, “ The people who are thrown out of jobs (in sectors like hospitality) normally do not have skill-sets for being employed elsewhere. Hence recruitment agencies find it difficult to get them alternate job.” When it comes to internal restructuring, a Deutsche Bank report that was released in October this year concludes that internal restructuring has caused close to 73% of job cuts at European banks since 2002. So most certainly, employees are the ones in trouble.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
Global economic turmoil is taking its toll across industries and economies. And this could have terrible consequences for employment even in India, notes Shashank Tripathi
American neoclassical economist Paul A. Samuelson was absolutely right when he famously said, “What we know about the global financial crisis is that we don't know very much.”What started at a very small scale in August last year in form of bad debts due to mortgage crisis in the world’s oldest democracy, The United States, has today transformed into a gigantic Chimera ready to decimate anything and everything coming its way. It’s after affect in form of credit crisis threatens to leave large parts of the entire world economically paralyzed. And its hard to find a country that has not come in the firing line, only the degree varies. In fact, economies like Iceland, Pakistan, Ukraine and Egypt are on the verge of bankruptcy.The outright affect of this economic mayhem has been on the global industries and the people working there. Real estate, Information Technology, aviation, hospitality, to name a few; are facing the brunt of the slowdown. The losses have been so humongous that across the globe companies are mulling over every possible cost cutting measure left right and center to tide over these rough times.
A company exists for its stakeholders. And employees come quite prominently on that list in good times. But when the going gets tough, the tough get their people going! After all, there are the investors to answer to. Due to this basic corporate tenet, that's brimming with logic but scarce on Emotional Quotient (EQ), jobs are being slashed across sectors as companies desperately seek to rationalise their earlier excesses.
The best example to both describe and understand this logic is the recent alliance of the foe-truned-friend companies, Jet Airways and Kingfisher Airlines, who announce an informal alliance for code sharing on domestic and international routes, cross-selling of flight inventories and route rationalization. Though, this would save a lot of money for both the airlines, this would eventually result into huge lay offs. And the failed attempt by the jet Airways to throw out its almost 2000 people supports this fact. Actually these sort of alliances are cartels in disguise, wherein companies come together to form a monopoly. But this often results into internal restructuring and causing job losses. In such industries, job losses are a bigger scourge, as C. K. Santhakumar, Director, TRITIUM Consulting of Bangalore told TSI, “ The people who are thrown out of jobs (in sectors like hospitality) normally do not have skill-sets for being employed elsewhere. Hence recruitment agencies find it difficult to get them alternate job.” When it comes to internal restructuring, a Deutsche Bank report that was released in October this year concludes that internal restructuring has caused close to 73% of job cuts at European banks since 2002. So most certainly, employees are the ones in trouble.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
No comments:
Post a Comment