Revision of the Survey on the effects of economic depression on the mass layoff of employees in industries affected by the 2019 Lebanon financial crisis: Outlook on leadership

 

Mr. Georges Sebastian Gerard Bellos

Masters Degree Holder in Geology (AUB) and Archeology (Lebanese University)

MBA Graduate, and TD Holder (Lebanese International University)

Beirut, Lebanon,

 

The author decided to write an update of the survey on "the effects of the recent economic depression on the mass layoff of employees in industries affected by the 2019 Lebanon financial crisis: An overview of their impact on the administrative decisions affecting payroll motivation” (see original article at www.libnanews.com). The baseline study, which needs to be updated, given the evolution of Lebanon's financial crisis has deteriorated (click here here to become aware of the importance of the additional contribution of Leadership in times of crisis).

 

Although “gender discrimination and leadership styles in Lebanon in terms of business law and principles of business ethics” has no direct link with this topic, it should be considered as a factor affecting salary motivation. Because, any source of demotivation will have adverse effects on the performance of a company (the article discussing this subject is recommended). according to the cited researcher, there would be a link between the style of leadership used and the motivation of the payroll (read this article for more details).

 

As the literature search indicates, these four points will facilitate the understanding of the subject in question: Firstly the Lebanese anti-corruption revolution of October 2019 showed more clearly that political corruption is pervasive in all sectors, and it seems worsen 3 years later. Secondly, having identified that the root cause of the Lebanese economic crisis was the political corruption mentioned above, we can say with certainty that it is one of the main causes of demotivation and attrition, or layoffs voluntary, or involuntary, according to the cases of interruption of the wage contracts (see: http://blog.blominvet.com). Thirdly, in-depth economic studies are lacking in this country, so it is important to link them to studies on (wrongful, or mass) dismissals in the near future, or conduct in-depth research (see: www.lcps-lebanon.org). Fourthly, any biases that had been targeted had been objectively identified.

 

They had been approached because of the outcome of the Lebanese revolution of October 17, 2019, which raised awareness about the role of the political elite in this financial crisis. Especially with the way this corrupt class ran the show, and monopolized everything, even the so-called development projects were very heavily criticized according to some scholars and other intellectuals (see: www.lcps-lebanon.org). As demonstrated by all respondents, 100% of them agreed that with the terrible economic situation in Lebanon, massive layoffs of the wage bill had occurred in several sectors. The experts interviewed were also all in agreement that these massive layoffs of the workforce would harm, rather than help, the institutions, regardless of the poor economic situation (see: www.worldbank.org). According to the IMF, it seems to be getting worse now.

 

Entrepreneurship is the solution and must be taken into account to bring down the unemployment rate, because using the Helix model would be beneficial for the country. According to some experts, and the enhancement of the country's natural, cultural and tourist resources, because we focus on its assets, according to other experts especially in the tourism, hospitality and hotel sector, would be beneficial for the land of cedars. Because like, the majority of survey respondents (68.18%) would indeed say that mass layoffs or attrition hinders organizational motivation, productivity, revenue, and performance, but 18.18% of them were neutral. So applying the Helix model might solve the problem once and for all. 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). Numerous studies corroborating the data from the previous survey are discussed here. Finally, to conclude, see Figures 1 and 2, and please see the findings of the same author's 2020 published on www.libannews.com.

 

 

Figure 1: Results of the triangulation of data from the pilot study, and surveys..



 

Figure 2: Results taken during the preliminary literature review research linking managerial decisions with employee motivation.

 

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 and employee motivation Figure 3 shows the author's interpretation of previous research on linking Leadership Styles (TSL, TCL, TFL) to employee motivation.

 

 

Figure 3 : Interpreting the relationship of leadership style with productivity and employee motivation..

 

If we include this figure we can notice this. 1) TSL-type (transactional) leaders are concerned with productivity at the expense of employee motivation and well-being, so the style of leadership used also has an effect on company productivity, and/or the motivation of the wage bill. This is what happens in a military hierarchy or with any other defined hierarchy. 2) However, leaders of the TFL type (transformational) facilitate the human relationship, can contribute to improving the motivation of the wage bill within the company. These leaders are more understanding than those of the TSL Style, and closer to their salaries.

 

The authoritarian style of leadership "known as directive leadership" does not help to motivate the payroll, and even less promotes human relations. This is a perfect leadership style for the military. The type of leadership axed on success (or achievement-oriented leadership) is a style of leadership axed on performance and productivity could also be an attribute of TSL-style leaders. Participatory and supportive leadership (TFL style leaders) is communication-oriented, and human relations could promote employee motivation.


Source: www.libnanews.com


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