Effects of Economic Slowdown on Employee- Employer Relationship &Work Environment

Abstract

This is an elaborate study on the effects of Economic Slowdown on the management and employees. During economic slowdown, managements generally go for sudden retrenchments, cuts on various incentives/perks, increase in workload etc to set a balance between output and cost. The fear of losing the job anytime leading to piling up of stress is a common feature amongst the employees. It is thus imperative to understand the behaviour of management and employees so as to find out ways and means to handle such situations. Due to intense pressure and stress during slowdown the employee-employer relationship also gets affected, it may result in major layoffs further leading to fear among the employees. These aggressive cost cutting measures might lead to high absenteeism, low turnover, less job involvement and hence the low productivity.

The research paper is based on extensive primary data collected through questionnaires. The secondary data through articles, journals, books, reports and discussion papers have also been duly referred to.