Summary of the investigation of the effects of
the recent economic depression on the mass layoff of employees in industries
affected by Lebanon's 2019 financial crisis
Mr. Georges Sebastian
Gerard Bellos
Masters Degree Holder in Geology (AUB) and Archeology
(Lebanese University)
MBA Graduate, and Holder of a TD (Lebanese
International University)
Beirut, Lebanon,
This article resumes the summary of the previous
investigation on “the effects of the recent economic depression on the mass
dismissal of employees in industries affected by the 2019 Lebanon financial
crisis: An overview on their impact on administrative decisions affecting the
motivation of payroll ". (see the original article by the same author on www.libnanews.com) The author also recalls
that the mental health problem with frontline workers remains a serious scourge
and requires an immediate solution (see the article).
According
to previous research carried out on this subject, the author groups this
according to the following themes: Firstly:
The Lebanese anti-corruption revolution of October 2019 showed more clearly
that political corruption is pervasive in all sectors (see the article on the
Saoura by the same author on www.libnannews.com).
Secondly: Having
identified that the root cause of the Lebanese economic crisis was the
political corruption mentioned above, we can say with certainty that this is
one of the main causes of demotivation and turnover (see: http://blog.blominvet.com).
Thirdly: In-depth
economic studies are lacking in this country, and have gotten worse since the
time the original article was written. He recalls that it is essential to find
a solution to massive attritions, because unfair dismissals have multiplied if
one refers to the previous articles demonstrating the link between inflation
and layoffs, even more so than those who remain at work have deplorable
conditions, especially with the salary paid at the rate of 1500LL and the life
according to the current US Dollar rate of the black market (voir: www.lcps-lebanon.org). Fourthly: All
targeted biases had been objectively identified. They were approached because
of the outcome of the Lebanese revolution of October 17, 2019 which sensitized
the corrupt political elite and the way they ran the show, and monopolized
everything, even the so-called development projects (voir: www.lcps-lebanon.org).
As all
respondents showed, 100% of them agreed that with the terrible economic
situation in Lebanon, massive layoffs of the wage bill have occurred in several
sectors. The experts who were interviewed were also all in agreement that these
massive layoffs of the labor force would hurt, rather than help, the
institutions, regardless of the bad economic situation (see: www.worldbank.org). According to recent
statistics from the World Bank, the case of Lebanon is getting worse day by day.
Entrepreneurship is the solution and must be taken into account to bring
down the unemployment rate. This idea, however, which could get the pys out of the financial
crisis, was not adopted given the circular of the BDL (Circ. 331) has still not
been put into effect and this for almost 10 years already. Yet, if it came back
to the survey, the majority of stakeholders (68.18%) thought that indeed mass layoffs or attrition hinders the
organization's motivation, productivity, revenue and performance, but
that 18.18% of them were neutral. However, 13.64% of the sampled population did
not believe that a massive layoff would harm the economy, undermine employee
motivation and lead to poorer industrial performance (see: www.worldbank.org). Many studies
corroborating the data proved this, but that the authorities do not seem to be
concerned with the deterioration of the standard of living, the fall of the
GDP, or the devaluation of the Lebanese Pound (LBP). Finally, see Figures 1 and
2, and the study findings.
Figure 1: Results of the
triangulation of data from the pilot study, and surveys.
Figure 2: Results taken during the literature review phase that links managerial decisions with employee motivations.
Figure
1 demonstrated the triangulation of data collected throughout the survey.
Indeed, the extensive literature search (conducted at the start of the research
was aligned with the pilot study that was administered, which was consistent
with the polls. Finally, Figure 2 presented causally (but correlative and
non-experimental way) the relationship between dismissal policies with employee
motivation. This opens up new horizons especially as to identify the causes of the loss of intrinsic
motivation of employees of Lebanese companies versus their performance
in these cases.
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