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 Sunday, 19 May 2013
Middle Managers discuss Cost Measures, Pay Cuts, and Retrenchment   PDF  Print  E-mail
Written by Roger Tan  
Friday, 02 January 2009

In the article “CEO Ponders Cost Measures, Pay Cuts, and Retrenchment”, Vincent Chia discussed issues faced by CEO during economic downturns.  But other than CEOs, there is another group of people who have to make tough decisions during such times – the middle managers.

What is in the minds of these managers during this economic crisis?  We peer into a conversation between our fictitious couple, Mitchell and Sandra, who are both middle managers in the financial industry, to get a sense of middle managers’ thoughts.

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(Sandra got into Mitchell’s car after a long day’s work.)

Mitchell: Hey Hon, why the long face?

Sandra: What else… economy is bad and my boss wants me to submit a retrenchment list to him by the end of the week.

Mitchell: Oh, have you decided on who?

Sandra: This is ridiculous.  I won’t give the list.  Glad your side is ok.

Mitchell: Of course not.  I have been asked to submit a list too.

Sandra: And you did?

Mitchell:  Not yet but I will.

Sandra: What?! You mean you will give the list?!

Mitchell: Of course!  That’s my job.  I received an order to discharge my duty and I will.  In fact, that’s your job too!

Sandra: I am not into breaking people’s rice bowl.  That’s wrong and I won’t go to hell for a decision made by the top.

Mitchell: Well.  The decision is not yours to make.  As middle managers, we can give reasons for not needing to retrench but if the decision is final then our job is to get it done correctly.

Sandra: How can we break someone’s rice bowl correctly? There is no such thing.  I want to be a good boss.

Mitchell: Our job is to keep the best people and so the people with poor performance should be asked to go.  That is doing our job right.  To be a good boss, you have to help these people find jobs.  You don’t stop helping them until it is done. If you want to be a good person, then you may want to fork out some of your own money to help them sustain expenses for a while.

Sandra: I think you have been with Maynard for too long.  How can you separate the matters so simply.  It’s not as easy as it seems.  In the first place, if my boss wants to fire people to reduce his cost, don’t ask me to do it.  He should! As I said, I don’t want to be the one doing the dirty job.  He should.

Mithcell: Is that why you are not going to give the list?!

Sandra: Yah.  If he wants to fire anyone in my team, he should be the one doing it. Not me.

Mitchell: That is irresponsible!

Sandra: No its not!  I can’t bring myself to write that list.  They are all like my children.  I may not like some of them but to ask me to kill my own… I really don’t like the idea.

Mitchell: Please.  They are not your children and this is not a family.  It is an organization put together to make profits.  Demand for your service is temporary distorted and therefore some people have to go.  If you don’t do what is necessary, then everyone will suffer.  Do what you need to do but do it right.

Sandra: I know it has to be done.  I am not refuting that but I won’t do it.  I will let my boss do it.  At least I don’t look like the bad person.  Anyway, I told them all that I have left it to my boss.  He will decide who is redundant and who is not.  For those I like and I want to keep, I just change their job scope a little so that they don’t look redundant.

Mitchell: You are complicating things then.  Are you not implying a retrenchment list by doing that?!

Sandra: It’s different.  First, I don’t need to do the dirty job.  The decision is in my boss’s hands.  Second, I look good since I am saving people and not firing them.  And finally, their continued survival is in my hands.  If they don’t do the work well, I can still fire them base on performance. I don’t even need to pay them retrenchment benefit.

Mitchell: That is precisely what I am trying to tell you.  You are not trying to help them; you are doing the job but managing it to your advantage.  That is outright dirty.  If you want to be a good boss – do it right!  Not like this.  Not everyone is stupid you know.

Sandra: Not everyone is smart either and if they are smart enough to tell what I am doing, they shouldn’t be working for me.  I don’t need people who are too smart.

Mitchell: This is wrong Sandy.  Be a good boss.  Talk to those you want to fire.  Tell them objectively why you are firing them and then help them find a job.  For those that you did not intent to fire but eventually got fired, you must help them too.  This will go a long way.  Your staff will accept your action as righteous and they will join you again when you can hire.  Don’t play all these games.

Sandra: Come on Mitch.  I have already explained my reasons to you.  I have my style, you have yours.  Don’t tell me what to do.  If you want to talk about rank, my position is higher then yours if you want to compare.  So I should be the one telling you what to do and I am not.  So please.  Spare me your “do it right nonsense”.

Mitchell: Fine.  Do it your way…

 
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