Give the answer?

Question

Suppose you are a manager in an organization in leather industry. Suddenly due to some natural

catastrophe, the supply of animal skin has been stopped and your business is being affected badly.

Now you decide to decrease the remuneration of your employees. But you need to convince them

to remain loyal to your organization.

1. Which management skill do you require to persuade these employees?

2. Which managerial role would you play to control this situation?

3. In your opinion which management function is missing due to which this situation

occurred?

Give logical reasons to support your answer.

Answer 1

I suggest a top down communication should be implemented... Let them be aware of the scenario that the company is currently into.  Ensure your employees that the management is looking for alternative means to get the materials required.  Also, you can start looking at other alternatives (synthetic, etc) for your materials should the resources becomes really scarce.

The communication should be clear and straight forward to avoid several interpretation from different persons.

From an initial look, the management maybe becomes too confident with its current suppliers/sources that it failed to plan ahead should this scenario occurs.

Answer 2

Keep it real and tell them the facts and your reasoning of why the the paycut is needed, and why it is better than laying people off?  :P

IMO, if you haven't already been brainwashing your employee to be loyal regarless of the pay, it's probably too late to start now.