Terms Management Used When Down-sizing

While I was surfing for information about the industry I work, I came accross an article about a media agency planning a major restructuring of its U.S. operations, including an undetermined number of layoffs. However, the news was accidentally released by the agency's top New York-based HR executive e-mailed via memo to the entire agency that appeared to be intended only for senior managers. It must be a dreadful event for her. Anyway, there was no mention of disciplinary action taken as a result of the e-mail mishap. Maybe they have learnt the lesson and ke[t it closed door.

In E-mail Blunder Alerts Carat Staff to Major Restructuring, you can download the powerpoint presentation and a "messages" template/guide to how staff should be told of their fate and what should be said to their still-employed colleagues, clients and vendors.

In today's business world, words like right-size to replace downsize, integrated organization means combine department or offices, centralised means close some department or offices and combine the remaining employees into one department. In the powerpoint, there are script provided when handling those involved in the retrenchment. Script how the affected should be handled. Example: "If you would like to go home today and come back tomorrow to clean out your desk or office, you are free to do so. We would like you to meet with your manager following our meeting to transition your work. We will be communicating to your team today. Your manager will be contacting clients. We ask that you do not contact your clients to discuss this situation."

The management even has a script prepared for executives and managers when handling their recently joined colleagues who question their career path with the company. "Let them know we are building for the future," it read. "The actions we had to take, although unfortunate, were necessary to right-size the company and ... bring in the skill sets we need to effectively service our business and future client needs."

For their clients, they have this to say: "Mary Smith will be moving off your business. Now that we understand your business better, we are replacing her with someone whom we feel will be a better partner for you." The document offered an alternative for times when the "staffing change" affected a longer-standing relationship with the client: "Mary Smith will not (sic) longer be working on your business. In order to serve you better and provide greater innovation we have made a staffing change to your business." All pre-prepared. Easy, but sad huh...

You can read the memo and powerpoint presentation here. I personally experienced similar situation once during 2002 when I had to lay off 90% of the team in our sister company. There were about 100 employees and I was seconded to the company. I can only keep 6 team members and had to let go of the rest. Our clients are declining too (same as the article here) and after a years of minimum income, we are force to closed the sister company and "centralised" the remaining staff to the main company.

My manager and I informed team mates of their fates face to face in a staff meeting. There was a Q&A session. That was the toughest time I experienced. Although I was so much younger with no commmitment, I felt really bad because some of the staff have family and commitment. We also compensate them by providing 2 months salaries and staff can gave staff workstation to them. We have in mind that they could probably do some freelancing while looking for new job. So we provide them the tools.

Now 2008, the economic crisis seems to be far worse than 2002 and it has been compare to the great depression in US which started from the end of 1929 until the early 1940s. Beginning in the United States, the depression spread to most of the world’s industrial countries, which in the 20th century had become economically dependent on one another. The Great Depression saw rapid declines in the production and sale of goods and a sudden, severe rise in unemployment. Businesses and banks closed their doors, people lost their jobs, homes, and savings, and many depended on charity to survive. In 1933, at the worst point in the depression, more than 15 million Americans—one-quarter of the nation’s workforce—were unemployed. You can read more from the link.

In my personal point of view, we are facing towards that again. We have seen banks closed, airlines bankcrupted, home mortgage fell and people has very little or no saving. Unemployment is very high all over the world. Well, I've been keeping an eye on our Malaysian banks at the moment. Altough my saving is insured up to RM60K per financial institution, there was never a dry run and I don't know how long before I can get my money back. So better cash out if I see signs of instability. What do you think?

Troublesome Crisis

I think it's about 2 years now since the financial crisis hits US housing and mortgage. I don't see any sign of recovery in the next 6 months or in the near future. I fear that it is likely to continue worsen in the next 12 months. It has cracked US and spread its sickness to Europe. Now's is creeping into Asia with Indonesia and Japan became one of the first 2 countries to be infected.

On the news, we see major airports shut down, banks at the verge of bankcrupcy, US Governments having to use $1700 billion to bail out troublesome giant financial, insurance and mortgage companies early this month. UK and Australia are following the moves. Europe is tailing from behind. What do these tell us? Are we going through another world depression again? I fear that we are heading that way.

What dissapointed me is the way Malaysia Government is handling this crisis. I hardly read in the paper or the TV about plans to minimise the global impact it will do to us. I haven't seen any of our policy makers and BNM cracking their heads to rescue the situation. All I see is the news telling me that it's going to be alright. It's going to be minimal impact on Malaysia...Are we waiting for it to hit us at the face before our think-tankers sit down and brainstorm? Do we think that just because we got out safely from the 1997 crisis we could do it again? I don't think we will be so lucky twice. Our stock market is lost 1/3 of its value since January this year. It keeps announcing its worst level. Today is the worst in 28 months. Inflation in many countries are at all time high. Malaysia is not spare of this. The global meltdown is so real, yet I am very worried that the government and central bank having come up with plans to weather it.

I'm worried that when it hit us, it's already too late. I'm worry about the unemployment, credit and the mortgage. I believe majority of us are in the rat race and we need our regular paycheck to cover our monthly survival. We need money to settle house loan, car loan, children education, credit cards, groceries and utility bills. A delay in paycheck has a serious impact. I had first hand experience in this.

My odeal lasted about 3 years. It started during 2000 when the dot com bubble burst and the multinational company I worked rely on US market. Our clients and business are US and Canada dependance. During that time, Malaysia wasn't so great either. It just recovered from the 1997 financial crisis. Our VP announced the company's situation in an emergency meeting. I think that was the most open session we had. Questions like is it going to bankcrupt or sold off was fired away and my VP answered it honestly. During that time, it wasn't easy to look for a new job. I remember my colleague told me that any job he applied, he is sure that other colleagues in our company applied too. Supplies were far more than demand. I couldn't find a job so I had to stick to the company and accepted delay paycheck. My salary was 1.5 - 2 months delayed. Earlier stage was 2 months, then it was 1.5 months for almost 3 years. I was renting a room only at RM200. I took LRT to work. I cook at home. Due to my non-commitments, I was able to weather this through. Although I ended up oweing credit cards a lot and no longer shopping for clothes. I was earning RM2k then and it was already difficult for me. Each paycheck has to be spread into the next 3 months.

Now, I have mortgage to pay, maintenance bills, tranportation and insurance bills. With the value of our curency in international market and the worst spending power, I don't think I can go though this round smoothly. My salary has inreased about 50% since the first crisis. However, I feel that it's going to be much tougher because of the essential items increased. I feel like my spending power is the same as the first crisis but now I have mortgages to commit. I don't dare to foresee how bad we are going to be hit by the global meltdown. Is there many of you out there in the same situation?

Finally A Microwave Oven

After months of surveying, I finally bought the microwave oven of my choice. The decision came when the old one is dying on me. In fact I think it already dead because it tends to cut off my house main electricity supply. What's that tells you?

I spend 2 weekend surveying for microwave oven and looking for the one that meet my requirement. It has to be easy, it can be manually or auto select for various weight and cooking mode, it must have grill mode, it must have convection and combi mode. You see, I like to cook and now I finally have time to experiencing the recipes from my collection of cook books. I also like to experience new recipes and learn new one. I want to learn more about cakes and cookies hence the requirement.



Last week, I finally found it. Panasonic NN-CD997S Inverter Convection Microwave Oven. It's not like the actual oven but for me, this is just perfect. It has all the function I want and I specially like the auto menu because I just have to select which food category and this microwave oven adjust for me. Another one is the touch sensor cooking. The sensor detect the steam from the covered container and calculate the cooking time. This oven is very easy to use and has spacious space. It suppose to control the microwave power more efficiently due to the 'inverter' thingy. Let's see if my electricity bill next month reduce, maintain or increase.