7 December

Linda Yueh, an economist, shared an article about how managerial practices influence the ability of economies to weather large shocks such as the Great Recession and the more recent Covid-19 crisis. The article draws useful insights from the Great Recession to understand how to build managerial talent and logistics in cushioning economic shocks from crises such as the coronavirus.

Research suggests that countries with a higher quality of management prior to the Great Recession were able to limit employment losses by moderating real wage growth, the article noted. However, economists also believe that the effect of management quality on macroeconomic outcomes could be quantitatively different for Covid-19 and its recovery, but qualitatively similar.

The Covid-19 crisis has highlighted the importance of the swift reorganisation of tasks and logistics to cushion economic shocks. This implies rapidly deploying teleworking and online services, reorganising supply chains, and supporting firms to preserve skills, production, as well as market shares.

Many studies have suggested that effective managers respond to exogeneous microeconomic shocks by reallocating workers to preserve, develop and utilise workers’ skills, maintain their incentives and satisfaction, and preserve productivity, the article detailed.

Read more

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.