Management actions are very important. If a company or organization is in financial difficulty,
then cost cutting may be inevitable. The way management tackles the problem determines the long-term outcome. Cost reduction that destroys morale will only have a short-term advantage if the organizational fabric is destroyed in the process. Senior management has a major influence. The chief executive is a key appointment. His or her leadership is critical. The senior management team sets not only a direction but also "the tone" of how things are done. In times of difficulty, it is important to work with staff. A positive culture, where people are working hard to overcome difficulties. If organizations lose their focus on service, they eventually suffer. If management influence is negative, rather than positive, staff morale and the organization climate suffers. Management must back up their statements with positive actions. Their behavior has to help rather than hinder. It has to be real and positive.