Hard decisions a must for companies - Dr. Uditha Liyanage

Downsizing is not the way to go but due to external macro reasons, if the expected growth is not coming then taking hard decisions is a must. All companies will have to do surgery to face the global financial crisis but better managed companies will have less surgery to do while it will be more for the others, said Director PIM Dr Uditha Liyanage.

He told the Think HR CEO Forum on Economic Trends and HR challenges organised by the Association of HR professionals that right sizing a company should be built upon productivity.

The most productive must stay be it the knowledge worker or the skilled worker.

The labour regulations are overregulated but right sizing should be done in a caring and responsible manner. This is an acid test for the leaders.

Therefore, select leaders and get them to motivate the staff as the employees will have a "what if" syndrome when they sense uncertainty.

Organisations should reinvent and go back to the basics to come out stronger after the crisis. There is an opportunity for Sri Lanka as by default Sri Lanka will not be impacted as China. Therefore, now it is time to think, analyse and do things differently.

Holcim Lanka CEO Peter Spirig said, "educate people to stay current, improve their mindset, skill set and knowledge on how the staff can help the company grow during this time. "

There is a need for trimming but don't cut to the bone. He assured that they will not cut down the money allocated for training.

Head of Unilever Ceylon Amal Cabraal said that the world is facing the greatest depression but we will come out stronger after the crisis.

This is not the end of the world but it is another challenge. Therefore, everybody will have to face reality.

Our economy is the second weakest economy with heavy commercial borrowings. Therefore, our country will not be immune to the crisis as the foreign exchange earned from the apparel, tea, rubber and expatriate earnings have reduced.

The slow down in exports, reduced FDI and liquidity issues will result in developing nations being seriously impacted due to the global financial crisis, said Vice Chairman CCC Dr Anura Ekanayaka.

He said that according to IMF forecasts for 2009 world growth will be around 2.5-3% while the advanced economies will grow by 1%.

SG