Job Cuts vs. Pay Cuts: In a Slowing Economy, What's Better for India?
http://knowledge.wharton.upenn.edu/india/index.cfm?fa=viewfeature&id=4333
As the world financial crisis wreaks havoc on emerging economies,
Indian firms -- like their counterparts around the world -- are
looking at ways to scale back their operations. Some companies -- such
as Jet Airways -- have announced layoffs, only to backtrack and offer
other options, including salary cuts, to their employees. Experts
interviewed by India Knowledge@Wharton believe that the management
culture in India makes layoffs one of the last options rather than the
first. Still, companies will have to find ways to bring their staffing
and costs in line with reality, at least for the next two years.
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1 comment:
definitely pay cuts as well as a re-distribution between professions. pure and applied science professionals including engineers and doctors need to be paid much more - i.e. about 2-3 times the current average.
pay for mbas, chartered accountants, management consultants, sales and marketing professionals, fashion designers, feng shui and reiki practitioners and other neanderthals needs to be slashed to 1/3 and also linked directly to corporate earnings. plus these people should also be taxed more as they are a burden on society.
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