ACTIVITY 1b: Corporate Governance

Eduardo Nieto Aguilar

After reading the article "Layoffs that don't break your company" I could corroborate the information
I had obtained by other means, such as books and magazines, that one of the main causes of job
loss is technology, For no one is a secret that is a factor that, every day, replaces the human being
in work, mainly mechanical.

The other point, which the article is really about, was very interesting to me because it allowed me
to get another point of view on restructuring involving mass layoffs, which, in general, always occur
claiming the financial health of companies that , in turn, are unable to recognize the failures in their
contracting mechanics derived from the over-demand they face at a given time or, where
appropriate, due to the poor application (or non-existent) of organization and methods and, in the
end simpler for the solution of these problems that, in many cases, is led by managers, it is usually
to lay offs without a pre-established method without thinking about the loss of talents and, at the
same time, the loss of the investment that has been made in terms of training, considering it from
the beginning until the moment of separation, the high cost of responding to the labor rights of those
who are being unemployed and, at the same time, of the impact that this has on the general public
and the stakeholders, without counting on the fact that vicious circles are carried out because, in
times of bonanza, massive contracts will be made again.

Therefore, it is essential to project these situations and, learn from success stories such as
Michelin, Honeywell and even Nokia after the German crash, where programs have been
established that can, in the first instance, keep employees for times of high demand without making
a disbursement in terms of training and keeping the rest of the workforce in the most normal
conditions possible until the accompaniment of people in the transition that involves losing
employment, so that productivity does not decrease, profitability is not affected and, at the same
time, there is no poor perception of the company abroad that impacts the confidence of investors or
boycotts by consumers.

In conclusion, I can say that I agree with the authors' point of view because, mass layoffs, many
times damage the entity's finances more than they already are, also imply discontent in survivors
and even It decreases the morale of those who stay because, in the end, they feel that the
company betrayed their peers and, therefore, there is a latent possibility that they will be done to
them as well, which makes productivity and commitment decrease and, even that affects your
health by always being in a situation of stress that affects your health and performance, so the
implementation of proposed measures seems logical and, from my point of view, they imply a
managerial challenge that gives opportunity to stand out both within the entity and outside it, is to
see beyond the conventional.
 ACTIVITY 1b: Corporate Governance
References

Sandra J. Sucher, S. G. (2018). Layoffs That Don’t Break Your Company. Harvard Business
Review,

122-129. Recuperado el 25 de enero de 2020, de https://hbr.org/2018/05/layoffs-that-dontbreak-

your-company