HR Puspendra Singh

8/8/2019 HR Puspendra Singh

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SYNOPSIS OF TERM PAPER

HR

Name² Puspendra kumar singh

Roll no²B 32

Reg. no²10903337

y Global recession

CHALLENGES OF HRM TO THE CORPORATE SECTOR

IN THE ERA OF GLOBAL RECESSION



CHALLENGES OF HRM TO THE CORPORATE

SECTOR IN THE ERA OF GLOBAL RECESSION

Introduction

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 animportant 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 badsituation nor the good conditions lasts long.

Downsizing process

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 toChallenge the Challenges and the only remedy is just not mere

downsizing however downsizing the dignified way.

Be Creative

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 waythat 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 impactseach 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 accuratecommunication 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 Management functions are performed in many

organisations by different functional heads independently. The most

important challenge in recession period is revolutionizing the Human

Resource systems to identify, maintain, develop and utilize talents acrossthe organization to their fullest capacities. An organisation may claim

that it has the best of the systems to identify talents across the

organisation.

HR has now a chance again to prove their value creation role inthe corporate only if it understands what it needs to do now. Some of the

basic strategies should be followed by the corporate managers i.e. reduce

administrative and establishment costs, hold large bonuses and reward payments, create participative forums for dealing with the difficult times

ahead, retaining top talents should be emphasized by the HR managers

to the management and HR managers need to network with fellowmanagers to find out how best to visualise the problems and try to solve

them.



Challenges

¨ No longer living under virtuality but has started living in realities

¨ To pay heavy costs for workforce livings

¨ Making a paradigm shift towards reality

¨ A large scale change of the Human Resource systems

¨ Fine tuned to make a shift or ready for changes

¨ Continue to out perform, excel and remain a leader

Present Challenges of Human R esource Management

¨ Corporate reorganization

¨ Sustaining company¶s position and growth

¨ Changing demographic workforce

¨ Knowledgeable and multi skill workforce

¨ Changing mindset of workforce

¨ New industrial relation approach

¨ Society based corporate responsibility



Human R esources ± Perspective

The popular emerging perspective of Human Resource isintegrating. Human Resource delivery system processes into Human

Resource enabling system and to achieve high levels of mutual

commitments. Mutual commitments is according to the three tiered

institutional framework at strategic, functional, and workplace levels.

Strategic Level

¨ Supportive business strategies

¨ Top management value commitment

¨ Effective voice for Human Resource strategy making and

Governance Functional level (HR ± Policy)

¨ Staffing on stabilization¨ Investment in Training and Development

¨ Contingent compensation

Work place level

¨ Selection on high standards

¨ Broad task design and team work



¨ Employee involvement in problem solving

¨ Climate of co-operation and trust

R ole of HR

When the corporate is in turbulence zone, HR can put its

categorical best in ensuring that he guides the corporate successfully.

HR needs to be very powerful in such situations because they not only

have to maintain the people motivation level but has to increase it using

non-monetary tools. There are certain points that HR can opt for in such

a situation where people are insecure about their job. HR can payattention to develop the people on key skills and enhance competencies.

HR has to play an active role in refrain the top talents, act as a

caring mother while top performers punished with being rewarded for

their performances, get people aligned and developed to fight with this

critical situation, develop people on cross functional skills to balance the

surplus and shortage of workforce, help the corporate to raise the people

performance bar, ensure the fair evaluation of people performance, play

an active role in control of communication flow, pass the onus of

making the corporate lean, review its minor low cost benefits and

contribute to enhance the value addition per employee by maximizingemployees inputs.

Sustaining HR¶s R ole

There are many more possibilities of sustaining HR¶s increasing

role as not only growth catalyst but sustaining business through greater employee engagement. Therefore, HR professionals needs to tighten

their belts and get ready for some challenging yet meaningful activities

which will help to change the perception of HR forever. The economic

crisis is forcing to separate some employee and there is no way around.

No problem! Do it, but avoid creating a panic around, in employees, in



investors, in market and in country by crying loud about the recession.

HR¶s task is also great, if the HR manager creates conducive

environment through his professional approach in achieving productivity

of course, with the support of all teams which is the need of the hour.Business has experienced different dynamics that pose many challenges.

HR and enforcement authorities together strive for achieving the

common goals like compliance and adherence. HR makes all efforts tocreate and sustain an employer and employee friendly atmosphere and

responding to the current needs and challenges.

HR¶s R esponsibility

In today¶s economic melt down where job cuts, loss, payreduction, last come first go, insecurity of employment atmosphere

prevail, HR has special responsibility to create ease environment to the

affected by counseling, displaying care and concern, preparing them for multi skill task, engaging and deploying in other required areas of

functions like security, crisis management team, etc. HR should engage

in more positive side, making and helping employees to reform, performand transform which will ultimately make a solid impact on business.

This will display the great and real engagement of Human Resource

Management.

Conclusion

Human Resource Management must be able to address the right

kind of demands related to Human Resource functions during therecession. Human Resource Management must play a highly proactive

role in managing the issues of global recession by helping organization



to enhance their abilities to learn and collaborates, manage diversity,

ambiguity and complexity. Human Resource Management is responsibleto manage the human resource of the corporate to maximize the

productivity, efficiency at minimal cost and maximize profit. During this

global recession, Human Resource Management is facing the manychallenges and changes in organizational level, workplace and HR

department level itself. The challenges can be faced by HR Managers

effectively if proper strategies are implemented. The recession is thetemporary economic climate of the business world. It will be changed

through more productivity at minimal cost and maximize profit at

moderate price of products in business.

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