Hi! Managers: Avoiding a distorted employee structure

This is not an unusual business practice in tough times, but it must be undertaken with caution because if it lasts too long, the firm's employee structure will be affected.

If a firm is healthy enough to continue to operate in the current economic turmoil, managers must always be looking ahead, even though they may be as busy as bees. They must bear in mind that senior management - and they themselves - will become old and leave the company sooner or later. A corporate succession plan must always be in place through thick and thin. It is commonly accepted that to grow its own leaders is cheaper and better for a company than to hire from outside. Moreover, if the firm is badly in need of capable people in future, they may be in short supply.

It is one of the duties of managers to groom their future successors, to run the company profitably as a going concern. If the active recruitment plan is discontinued until the market recovers, the employee structure may be distorted. Since no one knows how long this crisis will last and how deep it will become, the company may lose its momentum if it stops hiring capable employees. Its future leaders may even be taken by competitors.

While getting rid of the "dead wood" by introducing early retirement or voluntary resignation schemes, the company must continue to search for "superstars" at the same time. At present, there are many university graduates in the employment market from which healthy companies can select. Their future contributions to firms may be tremendous.

Managers are obliged to have an eye for the future of the company. But during this market slump, it is likely that they won't be giving much thought to new recruits. However, it cannot be overlooked that organisations must be effectively structured. The key point is what optimum approach should be taken to sustain the future growth of the company. Although there may be some significant hurdles ahead, the active employee structure must always be retained.

Panatda Chennavasin is vice president for corporate strategies and corporate relations of Tri Petch Isuzu Sales, as well as being senior vice president for overseas marketing of Isuzu Operations (Thailand). Her column is published on every third Wednesday of the month.