Why penalise the workforce?

The Indian economy is not doing badly. It may have slowed down after its exemplary performance in the last couple of years, but with a growth pegged at 6% or so in the current fiscal year, it is way ahead of the economies of the leading Western countries. If this be true, why are Indian corporate organisations and businesses, following their Western counterparts, adopting austerity measures which are affecting the Indian workforce negatively?

From retrenchment of workforce to delayed appraisals to delayed/non-payment of salaries to non-payment of performance bonuses for previous year’s excellent performance to cutbacks in salaries to cutbacks on perks promised... (the list is long)... Indian businesses, big and small, are trying to reduce costs in order to bring their businesses back on track. By which, they mean bringing up their businesses to previous levels of profitability.

Although there is a big question whether previous levels of profitability were/are sustainable over longer periods, I am more concerned about the negative effect these austerity measures have on the Indian workforce. The biggest negative effect is, of course, a disenchanted and disgruntled workforce. More so, because the workforce – at least, comprising of those who have retained their jobs – continues to work in the same dedicated manner that had brought in the revenues and profits in the previous years of growth and profitability.

If this be true, why are Indian corporate organisations and businesses penalising the workforce?