Cost cutting or we better known by saying making the organization lean. If you are a resource which can be made redundant or the automation of your job can be done the organization will usually take the necessary steps.Expense reduction is a big factor which contributes to the organization profit as many have said.
For you to save cost might be driven by the desire to improve the current financial condition of your organization, better serve your customers or to price your product or service competitively. The decision of cost-cutting for any leader is not simple you have to be very careful that you don’t make such mistakes which can affect your organization growth. There are two types of cost-cutting good cost cutting or bad cost cutting. A Human Resource plays a vital role when we want to understand the reasons for cost-cutting and the choice of resource. In HR training in Pune, we provide an understanding how you can spot the revenue leakage within an organization.
In good cost cutting, you would have to reduce the expense of the organization it might come in from various ends. Like there deduction in the amount used of daily company activities, adopting more eco-friendly products to reduce cost. In good cost-cutting, you have to maintain your product/service quality without impacting the daily function of customers and employees. A customer should never feel that the company is going through a cost-cutting session through its product/service. In HR training we provide you with a thorough analysis of understanding different factors to impact your positive cost cutting.
Bad Cost Cutting
A better name for bad cost cutting is ugly cost cutting. This type of cost-cutting usually happens through the hands of HR which results in customer dissatisfaction, fearful employee or both. Affecting the growth numbers directly.
Human Resource training helps in managing proper balance among good and bad cost cutting.