The leaders have to make tough and difficult decisions in the recession. When the economy grows, the leaders can make nice and popular decisions, which are in favor of employees. The salaries grow, the benefit packages are excellent and many other improvements for employees are introduced.
The economic slowdown is about dramatic cost cuts and they have to be explained. The leaders are surprised and they need some time to orientate themselves.
The leaders are under a huge pressure in the recession or the economic slowdown. As they built a successful organization, they are expected to bring a „magical“ solution for the recession. They have to build a new-shared vision for the employees to fight with the recession and less pain is better. They think.
The leaders have to make a tough decision about the number of employees in the organization, which can make the employees nervous as there is always a limited period of time with some uncertainty. The leaders have to push the managers to act quickly and to identify the employees to leave the organization.
The leaders have to build a vision for the new organization after the recession, the organization has a better chance to survive. The HRM Function has to help the leaders to build the vision and eliminate all the potential losses.
