In these tough economic conditions, there are many reasons to suggest that if the human element was responsible for plunging companies and the world into this deep financial crisis, then the human resources of an organisation are also perhaps the best bet to help it emerge out of the same. And this is the reason why experts view this period of economic recession as an opportunity for HR management rather then a crisis.
The recession is an opportunity for HR professionals to step and contribute strategically. In the classical strategy paradigm, we begin by looking at the macro economic environment. Then we look at the micro-environment - what affects us and our competitors. Next, we establish which strategic factors HR influences directly. Finally, we drop down to our tacticsThe recession is about the creative Human Resources Management. The HRM Function is asked to bring new ideas, to change the HRM Processes and to develop or change the procedures. And this effort has to be cheap or it has to cut the costs of the organization. The HRM Innovation is easy in times of the business growth, but the recession is not good for big innovative HRM Initiatives.
The HR Management has to focus on unpopular innovations during the recession as the role of HR during the recession is to save money to the organization. The senior management expects all the support functions to bring innovative ideas and solutions which will lead to stronger organization, when the next growth era comes. The point has to be focused by HR management during recession are as follows: •
To optimize the manpower strength.
To take strategic initiatives to increase the productivity and efficiency of the entire organization. •
To work on compensation benefits.
Redesign training and development programs.
Ensure your organization’s policies and handbooks are up to date. Remember that an annual review of your employee handbook for compliance by an experienced professional is highly...
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