The only talk of the wolrd is "Meltdown Economy". Experts are all the way telling people that this may lead for a year or two. Even it is murmerd that " US becomes second USSR". The worst affected part of economy is Manpower. Each company is delcaring the cuts or Pink Slip to their chunk of employees.
Being Science teacher and researcher I personally feel there is need to answer the concern situation with gandhian philosophy and scientific aptitute. Presently, economists give very straight forward solutions for this meltdown. Infact, they are not solutions, they are defencive methods.
Effectivity of these methods sometimes give direct result in having "Liquidity" in hand but in practice it is slow poison for the current running business.
A few popular methods are:
Close down busines for a while
Slow down business (it may be a natural process)
Liquidate asset (Most popular measures)
Pink slip to employee (Generally junior gets it)
Sell off Inventory or finishe product at throw away price
Accumulate Gold wealth or easy liquidity instruments
Re-schedule loans and other payments
Slow down production and be defensive
Also certain bad methods :
Dont pay loans
Dont pay salaries in time
Dont pay credits
Slow down communications with business network
Unfortunetly, all busines concern treats economy as controlling factor to their business. Infact, it is your and social attitute makes or mars your business and not economy. Only certain high quality products do suffer due to economy slow down but the basic business works even in turmoil situations.
Today, all the news papers writes about the effect of economy meltdown. The daily news which I found in my local newspaper is of "Pink Slip to certain employee". Nearly all the major business concerns declared the cut in their manpower and number of young families are at threat as if they have no future.
Also company goes for liquidity. The way as explained, give liquid money to handle any concern situations in business.
I feel there may be more scientific methods to solve present meltdown problem.
Very first, change the idea that only liquidity is the solution. It is a defensive methods and not any solutions. In fact, it brings the structure of business in more segragated form and as per chemistry, any segragation structure is having more "Entropy" and hence less potential to do effective work.
Secondly, don't give pink slip to any one. Instead, let there be "Yellow Slip". Let the employee understand there is crisis and it is the time to work in group and not as an individual. Again science proclaims "higly structure group reduces the Entropy and hence more energy in business to do some potential work".
You may wonder about the how you will pay to employee? I suggest the social solution for this. This may not be digestable to higher salary employee but if they accept the business can run even in highest turmoil situations.
The solution is :
" Let top class officer shed their salary by 10% to 15%. Don't worry you will get your share back when business will float again.".
"Reduce the salary of juniors by say 20% to 30%. If any junior employee gets $5000 then reduce it to $3500". This junior employee is not jobless. At the end of month he do have money to maintain his family needs. He/She may not have enough money to enjoy the quality life but it is better to have mantained life than jobless life.
Third law of thermodynamics proclaims that to have usefull energy, you must reduce the entropy of the system. It also suggests to maintain cool temperature of the system.
This lay directly applies to any business.
To understand let us belive, your business is a box.
Now this box has a potential. i.e. the business. In business potential is always link with the Money. Profit is also counted by acquiring money. This money is having certain value. In meltdown situation businessman runs for "Money" or Liquidity so that he can acquire his immediate needs.
As explained businessman runs for "Value" attached to "Money" or Liquidity Instruments.
This value is nothing but the energy of the sytem i.e. business. If this value increases the system acquired more energy. To convert this energy into the potential and profit, you have to see that the entropy part of your business is minimum.
There is also one more factor, which helps in increasing the potential of your business, is "Temperature of your business". Temperture in science may attached to "Heat" but in case of business it is attached to the unwanted clashes, ego conflict, unwanted activities, individualism etc.
The business controller should see that the temperature of his business is minimum. He should bring coordial relationship among employee. By reducing salary of seniors and distributing to juniors will bring lots of respect for seniors in juniors. This will bring new brotherhood relationship in business and will definitely reduce the "Temperature" in business system.
End of Part I
Will continue with measures and methods to withstand business problems in present situation using scientific apptitute.
Contact : Sunil H. Ganatra, Nagpur, India.