Impacts of Global Financial Crisis on Hrm Policies

Topics: Human resource management, Human resources, Recession Pages: 24 (8272 words) Published: March 23, 2012
What is the role of hr in global crisis to retain the talented employees ?
Article - 1
Employees are not the most important asset of the company but the “right” employees are. Human Resource Management (HRM) plays a strategic role in the survival of an organization. In this time of global financial crisis, Human Resource (HR) managers must not only innovate but must also act as change agents, strategists, mentors, counselors and motivators. They must adopt a people-centered model of management instead of the go-get-them approach. The latter approach will not only push down the morale of your employees but it will also shove your talented workers from leaving your organization. Retaining the right employee is a crucial challenge for any HR manager. In the book of Jim Collins “Good to Great”, he does not agree with the old adage “People are your most important asset”. According to him, employees are not the most important asset of the company but the “right” employees are. In a trouble economic condition, HR managers must develop a strategy that will keep the most talented employees in your organization and at the same time, discourages the “not-so” talented employees from hurting the company’s operations. The global crisis is pushing companies to stretch their financial resources to buffer the effects of limited income as a result of the sharp decline in the demand of their products and services. Efficiency is the key to the survival of any company in this kind of economic condition. Running the company at the least possible cost should be the priority of management. In order to achieve that, companies must keep a pool of competent employees that will help the organization in pushing their sales, expanding their market, innovating new products and in keeping the operations efficient as possible. Employees that are causing too much “wastage” should be encouraged to be more productive and their financial contribution to the company must be at par with the salaries they are receiving. We are not saying that we should put a price tag on every employee, but we should also remember that business organizations are not synonymous to charitable institutions. Income is always their lifeblood, period. With this, HR managers should always find a way to motivate this type of employees, either through training or coaching, before making any drastic actions like transfers, demotion or termination.

This is the front cover art for the book Good to Great written by James C. Collins. The book cover art copyright is believed to belong to the publisher, William Collinsor the cover artist. Read more:

Article - 2

HR’s Identity Crisis - Observations from a roadtrip
01 Aralık 2010 Çarşamba
Just before the Thanksgiving holiday, I was on the road for 5 weeks straight. It started in late October with the HROA summit in Florida, followed by a Saba Global Summit and user conference, a week visiting two global member clients in D.C., then on to an SAP forum on Talent Management in Houston.  And yes, I was ready for the Thanksgiving break.  The good thing about all the traveling is that I get a chance to immerse myself in the conversations of the moment – hearing the topics that seem to be on everyone’s minds: * The consistent reminder that the US is no longer the center of the universe for big business decisions, and as such our corporate HR functions need to adapt quickly, altering workforce planning approaches to meet this change * What to make of all the mergers and acquisitions in the HR systems and HR service offering space * The role of HR in either managing, leveraging, or impacting the use of social media to conduct business * The changing employee...
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