In The News Week 5 Essay Example | Topics and Well Written Essays - 1000 words

In The News Week 5 - Essay Example In times of economic recession, businesses are mostly facing such situations as they are not able to gain the required profits from all their business units operating locally and at the global level. The closure of three units currently would affect the economic cycle of Wales greatly but Unilever as an organization is facing the effects of recession and therefore has to take such steps of downsizing and closures of factories in certain areas (Wright, 2012). Business shuts down some factories by reviewing their profits and losses. The main reason for business shutdowns are due to the fact that their marginal revenue is below their average variable cost. The analysis is done based upon whether the particular factory is adding on to the profits or is allowing it to be an expense for the organization. Such decisions need to be carefully reviewed by the managers before giving the final verdict as shut down decisions allows the unemployment rate to increase for the economy. The organization also has to face charges against being not a corporate socially responsible organization as shutting down factories in between work operations impacts the work force tremendously. The shutdown of business leads the workforce to be in a stressful situation as their source of income and medical facilities are impacted due to loss of jobs. Along with impacting the economy, this further affects the family life of the employees. The managers need to disclose the news on an immediate basis and with full honesty and sincerity. The clear picture should be told to the employees so that they don’t have doubts about any prevailing or future circumstances taking place in the organization. The managers should let the employees reveal their emotional response without getting agitated or frustrated. The emotional responses of employees may be through showing anger, depression, and insecurity so on and so forth. The managers should console