Wednesday, 8 December 2010

You fall for everything

This post is brought to you by the words "despair" and "anager"

So times are tight. Cuts to change the nature of society are happening left, right and centre (though mostly the last two cutting the first). So what about organisations and businesses that are feeling the pinch? Well it seems that they are taking the same short sighted tack, I've seen before and will see many times again.

Let's take as an example a small enterprise, with 90 people, ranging from a Chief Executive and board of directors, via some high paid senior members of staff, some less high paid less senior members of staff, some administrators and down to the junior staff. For the sake of argument let's make this a not for profit organisation.

This not for profit private company tended to earn money from big government contracts but now the government has stopped ordering from it and so has local government. It has an expensive office space which needs at least one full time receptionist.

So who do you cut out?

Do you cut out the specialists who have specialisms that are no longer called for and who are bringing in no money (despite contracts saying they must) and who cost a lot in terms of payroll?

Or do you make strategic decisions about the future of the business and make posts redundant based on that?

Or do you make the "strategic" decision to make redundant the lowest paid and least likely to be in a Union/make a fuss. The ones who you feel no real short term hit from as their redundancy settlement is negligibility despite being with the company since the start.

Obviously you take option 3 and then get confused when the top heavy organisation you created falls over.

Cut off the legs and what have you got to stand on?

And this is happening at every level, local authorities, universities, management consultancies. This is hitting the poorest, and then when they are down the housing, welfare, health and education reforms will take it in turns to kick them further into the gutter.

Welcome to the ConDem Nation

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