Tom Dowling, managing director of the Pittsburgh office of public relations firm Burson-Marsteller, deliberated in his Gateway Center office last week as deadlines loomed for several key year-end and holiday-related decisions.

In front of him was an application for Steelers playoff tickets -- a hefty investment his firm typically makes to entertain select clients at Heinz Field during the post-season.

Then there was the holiday party for his 20 employees. Should it be a casual buffet dinner at one of the manager's homes or a happy hour at a Downtown bar after work on a Friday in December?

Finally, what to do about Burson's long-standing tradition, the Hair of the Dog party -- the festive cocktails-and-hors d'oeuvres soiree it has thrown for clients, friends and members of the media every January for the last 46 years.

In typical times, Mr. Dowling said, he would routinely sign off on all these events and expenditures, submit the budget items for approval to Burson's New York office, "and then the next thing would come along."

This year, though, is far from typical.

With the economy sputtering through what some observers believe are the most trying times since the 1930s, many companies and managers such as Mr. Dowling are embarking on serious soul-searching to figure out how to mark the holiday season.

"We're putting a much more disciplined approach to these decisions," he said. "My hunch is, something's going to give, not because of any other reason but the uncertainty of the economy."

Despite Wall Street's woes, soaring unemployment and debate over whether automakers or homeowners should get bailed out by the federal government, Burson is actually having one of its best years ever, Mr. Dowling said. "You would think, hey, we're in our heyday. Let's spend and not worry."

But with the firm's clients slashing budgets and most people grappling with at least some aspect of the global economic downturn, Mr. Dowling is following "a bit of my gut feeling" that says the right thing to do is scale back on frivolity.

For companies that already have felt the effects of layoffs and downsizing this year, it didn't take much deliberation to trim the party expenses.

Vocollect Inc., which laid off 65 at its Wilkins headquarters two weeks ago, canceled its annual dinner and dancing event for employees . But it will continue a tradition of a breakfast with Santa for employees' children.

"We felt it was appropriate to go ahead [with the Santa party held at the office] but as you'd expect, we're certainly not going to be doing festivities at the level we did last year," said Jennifer Clement, a Vocollect spokeswoman.

The company encourages the 350 employees who remain at headquarters to organize potluck lunches in their departments throughout the holidays "because they are hugely popular and it's a chance to get together," she said.

At GlaxoSmithKline Consumer Healthcare, a restructuring earlier this year resulted in an undisclosed number of layoffs. So rather than travel to an off-site party venue, such as Heinz Field, as it did last year, GSK's 500 employees will gather for a holiday lunch in the company cafe in Moon.

"Clearly, it won't be as elaborate," said spokeswoman Malesia Dunn. "Our cafe staff will create a nice holiday menu. But it will be much simpler."

Celebrating the holidays on-site reflects national trends, according to surveys on corporate revelry conducted in the weeks since the economic free fall began in late September.

Only 77 percent of companies planned to hold holiday parties this year compared with 90 percent in 2007, according to the annual party survey from Challenger, Gray & Christmas, an outplacement consulting firm.

Among those that will throw parties, more are holding them during work and on company premises, fewer are using a caterer or outside event planner, and fewer are inviting spouses or partners, Challenger said.

Executive search firm Battalia Winston found the number of companies holding parties will hit a 20-year low. Of those surveyed, 81 percent will have events, a figure even lower than the 83 percent who held parties in 2001 after the terrorist attacks on Sept. 11.

Sheila Weiner, president of The Event Group, which manages parties and events for corporations and private individuals, said the firm's Pittsburgh office has seen some clients scale back from say, a sit-down dinner, to a cocktail reception. One organization recently canceled plans altogether "because they said this would not be the time to do the event."

Most groups that have booked for the holidays, though, "want to get together" even if the event isn't as upscale as past celebrations, she said.

"They might not do it so lavishly but they want to bring people together for a sense of security. After 9/11, we found some companies who did events to bring people together to have a sense of family and sharing," she said.

At the Senator John Heinz History Center in the Strip District, a popular space for corporate and private parties, business is still robust, said Ann Fortescue, director of education and visitors services.

But most events taking place there over the holidays were booked from six to 12 months ago, she noted. What toll the economy will take on future bookings is up in the air.

One tip she offers to customers who want to cut costs and make parties more modest is to provide guests with a ticket for one drink and use a cash bar. "Or they can just provide a cash bar for the whole event but it depends on the customer and their guests."

Leadership coach Gay Fogarty believes gathering people together during stressful times is perhaps more important than when the economy is booming.

"I think if you can do it in some kind of way that shows yes, we're cutting back but we're not stopping, it can be helpful to people because they need something when it all looks like doom and gloom.

"In times of uncertainty, people need to be together more."

Ms. Fogarty holds an annual holiday and networking party in early December for female clients and friends at her home on Washington's Landing. For the last five years, she has asked guests to bring a present for a charitable organization rather than a hostess gift.

Before she mailed invitations this year, "I really thought about whether I should do this or not because of the economy. Then I thought, I really need to. In difficult times, networking becomes even more important and it becomes harder to keep it up."

The gifts Ms. Fogarty collects this year will be contributed to Girls Hope, a non-profit organization that provides housing assistance and education to disadvantaged young women who have high potential. She has invited some of those young women to join the gathering. "People love [bringing a gift for someone else] because it makes it very easy for them to do something and feel like they are making a contribution."

At Brunner, a Downtown advertising firm, the holiday emphasis will be on assisting those in need rather than the party scheduled for its 150 employees, said Mary Kay Modaffari, managing director of Brunner's Pittsburgh office.

Besides its tradition of giving to Auberle, a non-profit agency that works with troubled children and families, the agency added another volunteer option this year: It has asked employees to provide non-perishable goods to Rainbow Kitchen Community Services. On Dec. 9, Brunner employees will take their donations to the Rainbow Kitchen food pantry in Homestead and help prepare bags for distribution. "If items are still needed for the bags, the agency will make a monetary donation to get them," said Ms. Modaffari.

Instead of giving gifts to its clients, the agency's contribution to Rainbow Kitchen will be made on behalf of its clients.

While Brunner's employees will gather for a holiday party at the Heinz History Center as it did last year, the event will be scaled down.

Instead of a full buffet dinner on a Saturday night, the party will be held on a Friday after work with food stations.

"It will be a more casual atmosphere," said Ms. Modaffari.

Well before the economic collapse, she said, Brunner surveyed its employees and asked if they wanted to hold a party or just donate money or goods to people in need. The answer was, "They wanted to do both."