Downsizing is never easy on the Human Resource department. In fact, if not handled properly, it could be detrimental to the overall organization. Here are some challenges that come along with downsizing: Addressing the shifting morale and needs of the surviving employees, maintaining the productivity and profitability of the organization, and retaining skilled, and qualified employees.
Staff cutbacks can leave the surviving employees feeling demoralized, bitter, angry, and in shock. One role of Human Resource Management is to act as an employee advocate. In a time of workforce reduction, communicating with employees as well as acknowledging their concerns and fears, can work to rebuild the employee’s sense of security in the workplace and help him/her to reengage in the culture of the organization. Through strategic Human Resource Management and planning, the shared values and beliefs of the organization can be reinforced to its employees and the collective value of the capabilities, knowledge, skills, life experiences, and motivation of the organizational workforce can be retained.
Once there has been a major reduction in force within an organization, productivity and profitability becomes a main target of Human Resource management. One HR strategy would be to give more hours and responsibility to existing workers. However, eventually employees will become overworked and productivity will suffer. Utilizing alternative tactics such as hiring contingent or temporary workers is a strategic HR plan to maintain productivity and profitability while not having to pay the cost of benefits.
Reducing turnover of qualified and skilled employees is an ongoing effort of Human Resource Management. Employees who survive workforce cuts tend to disengage the culture of the organization because they have lost faith in the organization being a lifetime...