Losses. Retrenchment. Downsizing. Scandals. Scams. Quitting. Shutting. These words surround us these days. These situations put companies and people down. These circumstances force companies to take ultimate calls. Calls that are undesirable but the need of the hour. The financial stories start painting a tragic end. The returns over investment plummets.

As these investments give negative returns the boardrooms become wary and ready for some pruning of business. Fair enough? On paper yes. When business is costing more than its earning, such actions become inevitable. Numbers are important. Numbers are the measure.

Are numbers the point of decision? Yes they are. Do numbers tell the whole story? Not necessarily. Do numbers show the real cause of the downfall? Not always. If the numbers only reflect the reduction in profits or revenue, the decisions would obviously focus on how to save your financial capital from further erosion.

This focus on financial capital normally results in cutting down expenses. This means layoffs, postponement of increments and training, etc. That of course helps margins, for the time being. However, it makes people feel more marginalised. That is a factor that is ignored. That is a factor that may be decisive.

That is a factor that is not even considered important. When we talk about emotional capital it is dismissed as something philosophical, some buzzword that is there for social media talks. That dismissal is actually the........

© Business Recorder