CHALLENGES OF HRM TO THE CORPORATE SECTOR IN THE ERA OF GLOBAL RECESSION
In today’s arena the most common word we come across are recession and downturn. Recession or crisis is the part of the normal cycle of business. It is certain that they will sooner or later occur. Therefore, it makes just as much sense to plan for recession or downturns as it does to plan for good, economic times. The management people and employees may experience anxiety around a number of issues during an economic crisis or downturn. In this recession period HR play an important role to make the industry sustain and the entire economy flourish. This paper expresses the challenges of human resource management in the global recession situation.
What can HR do?
HR needs to be proactive and come up with early interventions as for any organization to survive during recession; the ability to retain its best people is must. During these days, HR people sometimes even take the harsh decision of reducing the numbers and land up at downsizing. The word downsizing is even taken as rightsizing and optimizing but we may not know or ignore the fact that neither the bad situation nor the good conditions lasts long.
v Revised leave structure for all employees
v Reduction in the different component of pay packages
v Identify the non-value added activities and resources
v Threats to employee emotional engagement
When the going is tough, it is a must for HRM and its managers to Challenge the Challenges and the only remedy is just not mere downsizing however downsizing the dignified way.
Now is the time to implement new ideas, to change the HRM processes and to change the procedures. This has to be done in a way that it cuts costs and motivates people. HR can focus on the following things i.e.
How to increase productivity and efficiency in the corporate sector?
How to reduce the benefits costs?
Redesign compensation structure?
How to retain and develop high potentials?
How to minimize the employee costs so as to avoid retrenchment?
During these uncertain times, corporate will realize the importance of having competent skilled workforce which will ensure that focus stays on trainings but there may be a major reduction in training budgets. In this time any decision taken by the company impacts each individual personally rumors float around. Its top management’s duty as HR to ensure that the communication channels are kept open, transparency is maintained. We also need to ensure that accurate communication happens on time in full, instead of employees hearing things with details from the grapevine first.
Provide adequate support to leaders and managers in terms of people management processes. Find ways to keep up the motivation levels of employees. If the corporate plans to retrench the workforce, counsel not only the employees who will be staying back but also the employees who have been asked to leave, be fair with them.
Setting the context
Human Resource …