Which management skill do you require to persuade these employees?

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.

Answer 1

Might be better to let an employee go.  Once people are paid a certain amount they are likely to be very unhappy if this decreases.  Or give them the choice - one goes or you all have to take a pay cut.  If you are a decent employer you might keep their loyalty.  Also depends if there are lots of job opportunities around - the better staff may start looking elsewhere.  Loyalty begins at home and people have to consider their families before their workplaces.