As the terrible storm of economic crisis envelops organizations across the world, choosing an appropriate strategy to communicate with employees during such times is essential, the absence of which can prove to be fatal in the long run. The hasty manner in which some organizations like Jet Airways in the recent past used ill-suited communication strategies has not only made employees, the most indispensable assets of organizations, skeptical, but also crippled their trust in the management. These uncertain times call for a crisp, humane and transparent communication strategy that addresses the emotional needs of the employees, fortifies relationship between employees and the employer, and consolidates the reputation and reliability of the organizations. It is in the interest of the organization that it develops a credible and long-term strategy of communication to its key internal stakeholders, i.e., the employees.

Companies have been facing a very uncertain environment for the last two years or so. Blame it on the American subprime crisis or the uncertainty in the Gulf, the after-effects have been quite devastating. The scenario in some of the developed economies is more precarious, while developing countries like India and China have been spared some of the pain their western counterparts had to go through. Many organizations in these countries are today facing a scenario for which few were well prepared. Very much like an organism responding to an unknown external stimulus, organizations of today are struggling to come to grips with the new emerging reality. The struggle for market share, safeguarding bottom line and competing with rivals notwithstanding, there are some factors which are more serious than all the three factors put together. And that happens to be a breakdown in the internal communication system. The purpose of this paper is to present the characteristics of organizations in a downturn, the impact of the downturn on internal communication, and a few strategies that organizations can pursue to overcome the crisis.

Different organizations behave differently in such uncertain environments. Some aver that it has to do with varying coping mechanisms, while some just wish it away as being a routine administrative matter. Some organizations take a far easier and less strategic route of downsizing/rightsizing. In doing so, they use methods that are perceived to be far more impersonal. The problem lies in the way harsh decisions are communicated. So, what does it take to present a face that is acceptable to all internal stakeholders (the employees)?

Soft Skills Journal, Communication Strategies, Economic Crisis, Internal Communication System, Top Management, Personal Crisis, Open Communications, Internal Stakeholders, Business Cycles, Internal Meetings, Business Imperatives.