Management fact: If you put too much emphasis on cost-cutting, you usually forget to consider other brilliant options and course of action. Following the trend from most companies today is never effective.. Its like saying, okay I saw that they did that in their company so I will do it in my own organization.. That.. is futile thinking. You dont even think of your options and evaluate them before making a decision. In the light of world-class organizations, employee involvement has a room within an organization. Within a year, you must gather your workforce in a meeting to encourage employee involvement and discuss matters and/or issues for the betterment of the organization. Disregarding the balance between top-down and bottom-up strategies in handling an organization is a mortal sin in management. This is because decisions cannot be made alone by a leader today since employees are a vital part... Imagine the heart taking control over the entire human body.. And the heart says to the brain, No, you must follow! I am in charge here. Okay.. then this human body thats taken over by the heart is just an organism with flowing blood in its veins. In an organization that wants to maximize its resources, cost-cutting should only be done in areas that are under these categories: 1. Utilities 2. Supplies 3. Unnecessary expenses 4. Equipment repair 5. Third party services such as consultation 6. Others that can be determined by the organization, except for employees basic needs. However, reducing the time on every organizational undertaking is also a must in reducing costs.. Never forget that when you reduce costs, you must take into consideration the value of the cost being taken out of the equation.. Example, if you take away the cost of training, you also take away the investment of developing the skills of the employee/s.. Decisions are a tricky thing. But one thing is for sure, cost-cutting and employee involvement are key tools in improving your organization, only that many managers make the mistake of not considering employee involvement as a tool for cost-cutting.
Posted on: Wed, 05 Mar 2014 00:59:15 +0000
Trending Topics
Recently Viewed Topics
© 2015