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The recession-performance vicious cycle

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I've been thinking about this recession.

Some organisations are stuck in a vicious cycle. Businesses in all sectors are struggling and many are being forced to restructure/downsize/whatever you want to call it. 

As a result, the employees left are concerned about their future. They aren't even certain they'll have a job in 6 months time.

As Maslow eluded to, if you're not getting your most basic needs of job security met, the chances of achieving any higher level needs are slim.

And what does that mean for how people behave? Well, it means people are understandably cautious; they won't raise their head above the parapet. They will cover up mistakes. They won't take risks.

They'll cover for poor performance because they don't want to expose their colleagues.

As a result, organisational performance starts to slip. People try and do too much, and not do it well.
The organisations' performance slips and the inevitable restructure again rears its head. The cycle continues.

So, how do we help them break out of the cycle? What needs to happen that is different?

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