One manager I know was told to do a large project. When he told his manager that he needed more people to do that plus the regular work, he was told that his job was to motivate and manage people. If he cannot manage his people (pack 10 lbs in a 2 lb bag), they would find someone who can. The message is clear. The beatings will continue until morale improves. Soon the IT/TI infrastructure will hit the tipping point. That is when extended outages will occur with no one willing to do any more than is absolutely required to keep their job. They are headed down the road of a meltdown if this continues.
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People have been saying this for years now, the end is coming, it'll all fall apart, people will quit, do crappy job, cutting to the bone, etc. None of that happened. People come to work, work long hours, get exploited, get compensated, go back home. Sleep, eat, go back to BAC. Repeat... Nothing will change as long as we pay people.