What I found more interesting, however, was columnist Mike Cassidy's comments on layoffs. He argues that we no longer think of layoffs as the tragedy they really are; we've forgotten that it's real people losing their jobs and their livelihoods. Of course, if you're someone who's experiencing this situation--"in transition" as C & B has learned it's called--you fully understand the implications of not having a job.
Viewing layoffs as a part of doing business in this economy versus viewing layoffs as having far-reaching effects on communities highlights the differences between the machine and organism metaphors for organization. The former leads to what Cassidy observes as "a certain detachment in news reports of the latest company cutting payroll to increase profits 'going forward.'" Contrast that perspective with the one Cassidy suggests we should take:
But that doesn't mean we can ignore the way massive job losses, including from profitable companies with extravagantly paid executives, are choking the life out of our economy and our communities. People who don't work don't buy things or keep current on their mortgages. Stores close. Homes go vacant. Neighborhoods and commercial districts shrivel up.Company layoffs are particularly troubling when the businesses are profitable, as with HP and Cisco Systems. As you'll read in later chapters, a critical approach to organizational communication will provide additional insights into issues such as executive pay and employee layoffs.
~ Professor Cyborg
3 comments:
I find Mark Hurd's HP particularly troubling. He just announced another 6000 jobs to go.
So, that’s six thousand living, breathing, educated, tax and mortgage paying, children raising, men and woman, cast out into a world racked with recession and rapidly rising unemployment, because HP only made $1.7bn nett profit in the last twelve weeks is it?
HP is not struggling, quite the contrary, HP is a highly profitable company sitting on cash reserves of $13.0bn having made $3.7bn net profit in the past two quarters, which is supposedly justification for cutting the salaries of the entire workforce, and putting off 6000 people.
The founding fathers of HP would be turning in their graves if they could see what their company has become under Mark Hurd. Sure, I agree that there was a strong need for fiscal reform when Mark Hurd came along but I don’t see why HP had to be turned into a black hearted, ugly beast who’s own mother wouldn’t recognize it.
The strong fiscal discipline has come at the cost of HP’s heart, it’s inventiveness, creativity, and energy, and it’s soul , the HP shared values, the HP way.
The latest figures are a short term illusion created by the acquisition of EDS and the systemic exploitation of HP's people.
You can see here and by the thousand plus comments from HP people that my opinion is shared.
This is an interesting article. I have to say that it is very unfair how many CEO, or big bosses are earning a huge amount of money, which I believe are too much for one person. But that’s capitalism for you; you have to keep the poor, poor to keep the rich, rich. I may sound like a socialist but I believe that a person’s salary has to have a limit. I just can’t imagine how someone can use his millions of his money for unnecessary things such as jewelries while knowing that there are many poor people struggling to feed themselves and live life. I definitely like the idea of capitalism and challenging citizens to work hard for their money, however there has to be a limit as to how much a person can earn.
Damian, so true about HP. One of our COMM alums works for the company, and as the U.S. arm of HP is laying off workers, the China and India divisions are hiring--often workers in the U.S. for less pay than they were making previously. So the question becomes, how much profit is necessary for a company to survive and do well? I agree, the HP founders wouldn't recognize the HP of today. Like SquEarl I agree that executive compensation must have limits. A company depends on all its workers to thrive.
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