Upload
anand-babu
View
215
Download
0
Embed Size (px)
Citation preview
8/6/2019 OB Term Paper Sem 1
1/18
ORGANIZATIONAL BEHAVIOR
TERM PAPER ON
EMPLOYEE CHALLENGES FACED BY THE
COMPANIES DURING DOWNTURN
8/6/2019 OB Term Paper Sem 1
2/18
INTRODUCTION:
Companiesacrossindustriesandaroundthe worldaredealing withthedecliningstateoftheglobaleconomy,layoffs,unemployment,andthecreditcrunch. Therearemanychallengesfacedbytheemployersandtheemployeesofthecompanyduringdownturnperiod. Theroleofthe
Human Resource Managerisevolving withthechangeincompetitivemarketenvironmentandtherealizationthat Human Resource Managementmustplayamorestrategicroleinthesuccessofanorganization. Organizationsthatdonotputtheiremphasisonattractingandretainingtalentsmayfindthemselvesindireconsequences,astheircompetitorsmaybeoutplayingthem
inthestrategicemploymentoftheirhumanresources.
Withtheincreaseincompetition,locallyorglobally,organizationsmustbecomemoreadaptable,
resilient,agile,andcustomer-focusedtosucceed. And withinthischangeinenvironment,the HRprofessionalhastoevolvetobecomeastrategicpartner,anemployeesponsororadvocate,andachangementorwithintheorganization.
Workplace Diversity
Accordingto Thomas (1992),dimensionsofworkplacediversityinclude,butarenotlimitedto:
age,ethnicity,ancestry,gender,physicalabilities/qualities,race,sexualorientation,educational
background,geographiclocation,income,maritalstatus,militaryexperience,religiousbeliefs,parentalstatus,and workexperience.
The Challenges of Workplace Diversity
Thefuturesuccessofanyorganizationsreliesontheabilitytomanageadiversebodyoftalent
thatcanbringinnovativeideas,perspectivesandviewstotheirwork. Thechallengeand
problemsfacedofworkplacediversitycanbeturnedintoastrategicorganizationalassetifan
organizationisabletocapitalizeonthismeltingpotofdiversetalents.Withthemixtureof
talentsofdiverseculturalbackgrounds,genders,agesandlifestyles,anorganizationcanrespond
tobusinessopportunitiesmorerapidlyandcreatively,especiallyintheglobalarena (Cox, 1993),
8/6/2019 OB Term Paper Sem 1
3/18
whichmustbeoneoftheimportantorganisationalgoalstobeattained. Moreimportantly,ifthe
organizationalenvironmentdoesnotsupportdiversitybroadly,oneriskslosingtalentto
competitors.
Thisisespeciallytrueformultinationalcompanies (MNCs) whohaveoperationsonaglobal
scaleandemploypeopleofdifferentcountries,ethicalandculturalbackgrounds. Thus,a HR
managerneedstobemindfulandmayemploya ThinkGlobal, Act Localapproachinmost
circumstances. Thechallengeofworkplacediversityisalsoprevalentamongst Singapores
Smalland Medium Enterprises (SMEs).Withapopulationofonlyfourmillionpeopleandthe
nationsstrivetowardshightechnologyandknowledge-basedeconomy;foreigntalentsarelured
tosharetheirexpertiseintheseareas. Thus,manylocal HRmanagershavetoundergocultural-
based Human Resource Managementtrainingtofurthertheirabilitiestomotivateagroupofprofessionalthatarehighlyqualifiedbutculturallydiverse. Furthermore,the HRprofessional
mustassurethelocalprofessionalsthattheseforeigntalentsarenotathreattotheircareer
advancement (Toh, 1993). Inmany ways,theeffectivenessofworkplacediversitymanagement
isdependentontheskilfulbalancingactofthe HRmanager.
Oneofthemainreasonsforineffective workplacediversitymanagementisthepredispositionto
pigeonholeemployees,placingtheminadifferentsilobasedontheirdiversityprofile (Thomas,
1992). Inthereal world,diversitycannotbeeasilycategorizedandthoseorganizationsthat
respondtohumancomplexitybyleveragingthetalentsofabroad workforce willbethemost
effectiveingrowingtheirbusinessesandtheircustomerbase.
HRM FUNCTION:
Therecessionisaboutthecreative Human Resources Management. The HRM Functionisasked
tobringnew ideas,tochangethe HRM Processesandtodeveloporchangetheprocedures. And
thisefforthastobecheaporithastocutthecostsoftheorganization. The HRM Innovationiseasyintimesofthebusinessgrowth,buttherecessionisnot
goodforbiginnovative HRM Initiatives.
8/6/2019 OB Term Paper Sem 1
4/18
The HR Managementhastofocusonunpopularinnovationsduringtherecessionastheroleof
HRduringtherecessionistosavemoneytotheorganization. Theseniormanagementexpectsall
thesupportfunctionstobringinnovativeideasandsolutions which willleadtostronger
organization, whenthenextgrowtheracomes.
Thepointhastobefocusedby HRmanagementduringrecessionareasfollows:
y Tooptimizethemanpowerstrength.
y Totakestrategicinitiativestoincreasetheproductivityandefficiencyoftheentireorganization.
y To workoncompensationbenefits.y Redesigntraininganddevelopmentprograms.
Ontheotherhandthe HR Managementhastofindsomeinnovativesolutionsduringthe
recessionlike,
y Toidentifytherealkeyemployeesandtointactthemintheorganization
y Toidentifytherealtoppotentialsandtostrengthentheirdevelopmentprogram
The HR Managementhastohaveprioritiesinmindandthestrategicimpactofthe HRM
Innovationsintherecessiontime. Theroleofthe HR Managementisnottominimizethecosts
forthetimebeing,buttomaketheorganizationstrongerandreadyforthefuturegrowth.
How to intact the employee during recession:
Hereishow tokeeptheemployees withyouandawayfromyourcompetitorsduringtough
economictimes.:
Differentiate Between Your Good and Average Employees
8/6/2019 OB Term Paper Sem 1
5/18
Redirect Your Employees to Other Departments (Job Rotation)
Listen To Your Employees
Keep Them Motivated and Busy (Communicate-Communicate and Communicate)
Show them the long term vision
Theabovesteps willenabletheemployertoholditsteamtogetherduringarecession,and will
evenmakebondbetweenallofyoustronger. Employeesshouldbemotivatedenoughtostickto
theemployerduringtoughtimesandputintheextraeffortrequiredfortheorganizationgrowth.
Theotherworkplacediversitymanagementare:
THEY ARE:-
Planning a Mentoring Program-
Oneofthebest waystohandle workplacediversityissuesisthroughinitiatinga Diversity
Mentoring Program. Thiscouldentailinvolvingdifferentdepartmentalmanagersinamentoring
programtocoachandprovidefeedbacktoemployees whoaredifferentfromthem. Inorderfor
theprogramtorunsuccessfully,itis wisetoprovidepracticaltrainingforthesemanagersorseek
helpfromconsultantsandexpertsinthisfield. Usually,suchaprogram willencourage
organizationsmemberstoairtheiropinionsandlearnhow toresolveconflictsduetotheir
diversity. Moreimportantly,thepurposeofa Diversity Mentoring Programseekstoencourage
memberstomovebeyondtheirownculturalframeofreferencetorecognizeandtakefull
advantageoftheproductivitypotentialinherentinadiversepopulation.
Organizing Talents Strategically-
8/6/2019 OB Term Paper Sem 1
6/18
Manycompaniesarenow realizingtheadvantagesofadiverse workplace. Asmoreandmore
companiesaregoingglobalintheirmarketexpansionseitherphysicallyorvirtually (for
example, E-commerce-relatedcompanies),thereisanecessitytoemploydiversetalentsto
understandthevariousnichesofthemarket. Forexample, whenChina wasopeningupits
marketsandexportingtheirproductsgloballyinthelate 1980s,theChinesecompanies (suchas
Chinaselectronicgiantssuchas Haier) wereseekingthemarketingexpertiseofSingaporeans.
Thisisbecause Singaporesmarketingtalents wereabletounderstandthelocalChinamarkets
relatively well (almost 75% ofSingaporeansareofChinesedescent) andas wellasbeingattuned
tothemarketsintheWestdueto Singaporesopeneconomicpoliciesand Englishlanguage
abilities. (Toh, R, 1993)
Withthistrendinplace,a HR Managermustbeabletoorganizethepoolofdiversetalentsstrategicallyfortheorganization. He/Shemustconsiderhow adiverse workforcecanenablethe
companytoattainnew marketsandotherorganizationalgoalsinordertoharnessthefull
potentialofworkplacediversity.
Anorganizationthatseestheexistenceofadiverse workforceasanorganizationalassetrather
thanaliability wouldindirectlyhelptheorganizationtopositivelytakeinitsstridesomeofthe
lesspositiveaspectsofworkforcediversity.
Leading the Talk-
A HR Managerneedstoadvocateadiverse workforcebymakingdiversityevidentatall
organizationallevels. Otherwise,someemployees willquicklyconcludethatthereisnofuture
fortheminthecompany. Asthe HR Manager,itispertinenttoshow respectfordiversityissues
andpromoteclearandpositiveresponsestothem. He/Shemustalsoshow ahighlevelof
commitmentandbeabletoresolveissuesofworkplacediversityinanethicalandresponsible
manner.
Control and Measure Results-
8/6/2019 OB Term Paper Sem 1
7/18
A HR Managermustconductregularorganizationalassessmentsonissueslikepay,benefits,
workenvironment,managementandpromotionalopportunitiestoassesstheprogressoverthe
longterm. Thereisalsoaneedtodevelopappropriatemeasuringtoolstomeasuretheimpactof
diversityinitiativesattheorganizationthroughorganization-widefeedbacksurveysandother
methods.Withoutpropercontrolandevaluation,someofthesediversityinitiativesmay just
fizzleout, withoutresolvinganyrealproblemsthatmaysurfacedueto workplacediversity.
Motivational Approaches
Workplacemotivationcanbedefinedastheinfluencethatmakesusdothingstoachieve
organizationalgoals:thisisaresultofourindividualneedsbeingsatisfied (ormet) sothat weare
motivatedtocompleteorganizationaltaskseffectively. Astheseneedsvaryfrompersonto
person,anorganizationmustbeabletoutilizedifferentmotivationaltoolstoencouragetheir
employeestoputintherequiredeffortandincreaseproductivityforthecompany.
Whydo weneedmotivatedemployees? Theanswerissurvival (Smith, 1994). Inourchanging
workplaceandcompetitivemarketenvironments,motivatedemployeesandtheircontributions
arethenecessarycurrencyforanorganizationssurvivalandsuccess. Motivationalfactorsinan
organizationalcontextinclude workingenvironment, jobcharacteristics,appropriate
organizationalrewardsystemandsoon.
Thedevelopmentofanappropriateorganizationalrewardsystemisprobablyoneofthestrongest
motivationalfactors. Thiscaninfluenceboth jobsatisfactionandemployeemotivation. The
rewardsystemaffects jobsatisfactionbymakingtheemployeemorecomfortableandcontented
asaresultoftherewardsreceived. Therewardsysteminfluencesmotivationprimarilythrough
theperceivedvalueoftherewardsandtheircontingencyonperformance (Hickins, 1998).
Tobeeffective,anorganizationalrewardsystemshouldbebasedonsoundunderstandingofthe
motivationofpeopleat work. Inthispaper, I willbetouchingontheoneofthemorepopular
methodsofrewardsystems,gain-sharing.
Gain-sharing:
8/6/2019 OB Term Paper Sem 1
8/18
Gain-sharingprogramsgenerallyrefertoincentiveplansthatinvolveemployeesinacommon
efforttoimproveorganizationalperformance,andarebasedontheconceptthattheresulting
incrementaleconomicgainsaresharedamongemployeesandthecompany.
Inmostcases, workersvoluntarilyparticipateinmanagementtoacceptresponsibilityformajor
reforms. Thistypeofpayisbasedonfactorsdirectlyundera workerscontrol (i.e.,productivity
orcosts). Gainsaremeasuredanddistributionsaremadefrequentlythroughapredetermined
formula. Becausethispayisonlyimplemented whengainsareachieved,gain-sharingplansdo
notadverselyaffectcompanycosts (Paulsen, 1991).
Managing Gain-sharing
Inorderforagain-sharingprogramthatmeetstheminimumrequirementsforsuccesstobein
place, Paulsen (1991) and Boyett (1988) havesuggestedafew pointersintheeffective
managementofagain-sharingprogram. Theyareasfollows:
y A HRmanagermustensurethatthepeople who willbeparticipatingintheplanareinfluencingtheperformancemeasuredbythegain-sharingformulainasignificant waybychangesintheirday-to-daybehavior. Themainideaofthegainsharingistomotivate
memberstoincreaseproductivitythroughtheirbehavioralchangesand workingattitudes.
Iftheincreaseintheperformancemeasurement wasduetoexternalfactors,thenit would
havedefeatedthepurposeofhavingagain-sharingprogram.
y Aneffectivemanagermustensurethatthegain-sharingtargetsarechallengingbutlegitimateandattainable. Inaddition,thetargetsshouldbespecificandchallengingbut
reasonableand justifiablegiventhehistoricalperformance,thebusinessstrategyandthe
competitiveenvironment. Ifthegain-sharingparticipantsperceivethetargetasan
impossibilityandarenotmotivatedatall,the wholeprogram willbeadisaster.
y A managermustprovideusefulfeedbackasaguidancetothegain-sharingparticipantsconcerninghow theyneedtochangetheirbehavior(s) torealizegain-sharingpayouts The
8/6/2019 OB Term Paper Sem 1
9/18
feedbackshouldbefrequent,objectiveandclearlybasedonthemembersperformancein
relationtothegain-sharingtarget.
y A managermusthaveaneffectivemechanisminplacetoallow gain-sharingparticipantstoinitiatechangesin workproceduresandmethodsand/orrequestingnew oradditional
resourcessuchasnew technologytoimproveperformanceandrealizegains. Thougha
managermusthaveatightcontrolofcompanysresources,reasonableand justifiable
requestsforadditionalresourcesand/orchangesin workmethodsfromgain-sharing
participantsshouldbeconsidered.
Executive Information Systems
Executive Information System (EIS) isthemostcommontermusedfortheunifiedcollectionsof
computerhardwareandsoftwarethattracktheessentialdataofabusiness'dailyperformance
andpresentittomanagersasanaidtotheirplanninganddecision-making (Choo, 1991).Withan
EIS inplace,acompanycantrackinventory,sales,andreceivables,comparetoday'sdata with
historicalpatterns. Inaddition,an EIS willaidinspottingsignificantvariationsfrom "normal"
trendsalmostassoonasitdevelops,givingthecompanythemaximumamountoftimetomake
decisionsandimplementrequiredchangestoputyourbusinessbackontherighttrack. This
wouldenable EIS tobeausefultoolinanorganizationsstrategicplanning,as wellasday-to-daymanagement (Laudon, Kand Laudon, J, 2003).
Managing EIS
Asinformationisthebasisofdecision-makinginanorganization,thereliesagreatneedfor
effectivemanagerialcontrol. A goodcontrolsystem wouldensurethecommunicationofthe
rightinformationattherighttimeandrelayedtotherightpeopletotakepromptactions.
Whenmanagingan Executive Information System,a HRmanagermustfirstfindoutexactly
whatinformationdecision-makers wouldliketohaveavailableinthefieldofhumanresource
management,andthentoincludeitinthe EIS. Thisisbecausehavingpeoplesimplyusean EIS
thatlackscriticalinformationisofnovalue-addtotheorganization. Inaddition,themanager
8/6/2019 OB Term Paper Sem 1
10/18
mustensurethattheuseofinformationtechnologyhastobebroughtintoalignment with
strategicbusinessgoals (Laudon, Kand Laudon, J, 2003).
Throughopeningupadialogueaboutthechallengingtimethebusinessmaybefacing willenableyoutoensurethatonesteam:
understandsthedecisionsyouaremakingandthereasonsforthem willbeabletoidentify whatthesechangesmeanforthemandtheirroles willbebetterequippedtoexplainanychangestoclientsorbusinesspartners And willundoubtedlybeabletoshareideasandsuggestionstheyhavefor
managingthroughtoughtimes.
Points focused to keep staff engaged during a downturn:
Employeeengagementisascrucialduringtimesofeconomicdownturnasitisduringperiodsofstability. Thefinancialperformanceofcompanies withhighlyengagedemployeesoutstripsothersonthethreekeyfinancialmeasuresofoperatingincome,netincomegrowthandearningsper-share.
Leadership,careeradvancementopportunitiesandcustomerfocusaremorevitalinadownturn,asareinnovativeproductsandservicesandcorporatesocialresponsibility (CSR) policies.
Honestyandanopen-doorpolicy worksbest whentimesaretoughandpreventthespreadingofdamagingrumors.
Employeesshouldcontinuetobegivenaccesstoopportunitiestodeveloptheirskillsviaexternaltrainingorlearnings.
Duringdisturbingtimes,strategicrecognitiontargetseachofthechallenges withmechanismstoacknowledgeandrewardperformance,personalachievement,andteamsuccesses. Therecognitionprogramshouldalsobeusedtoreiteratecorecompanymessagessuchaskeygoalsandthemissiontokeepstafffocusedonachievabletargets. Byusingthetooltoencourageteammembersinastressfultime,companyleaderscommunicateclearlytheircommitmenttothewell-beingandfutureoftheemployees.Strategicallyapplyingemployeerecognitionacrossanorganizationcanaddressthreecommonissues:
Survivorsguilt Thoseremainingonthepayrollafteraroundoflayoffsoftenfeelguiltyaboutsurvivingtheaxe. Theytypicallyneedadditionalreinforcementofthevalueoftheirworktohelpthem justifytheirstatusinthegroup.
8/6/2019 OB Term Paper Sem 1
11/18
More work,lessmotivation Thesurvivorsarealsopayingcloseattentiontohowmanagementhandlesthelayoffandsubsequentredistributionofthe work.Withmoretasksoneachemployeesdesk,managersneeda waytoencouragestrongindividualperformance.
Rampantrumormill Theinevitablerumorsofadditionallayoffsorrestructuringfurthercontributestoproductivityandmotivationchallenges. Teamsoftensufferthemost withrumorsfuelingbackstabbingandprotectionofindividualtasksoverteamgoals.
Moststaffwanttoknow firstandforemostthattheirjobsaresecureandthereisnobetterwaytoreassurethemthanbyaddingorenhancingexistingnon-cashbenefits,involvingthemincompanyproblemsolving,openandhonestcommunicationas wellasrecognizingandrewardingsuccess
Inthesetougheconomictimes,organizationsandemployeesarehighlysusceptibletothemost
common,yetmisunderstoodfeaturesofworkinglife-changeandstress.
Recessionaryeconomiesdemandanorganizationmustadaptquicklytoshiftingmarketsand
customerneeds. Forthistohappenemployeesmustbeequallyresponsiveandadaptabletoeach
fluctuationinthemarketplace.Clearly,ifpersonnelareeitherresistanttothischangeor'stressed
out'fromrecentrestructuring,they willnotbeabletokeeptheorganizationcompetitive,
effectiveandcost-efficient.
Withmanycompaniesdownsizingandrestructuring,theremainingemployeesaresubjecttoan
overwhelmingnumberofadjustments--new jobdescriptions,new procedures,increased
workloads,identifyingnew markets,retainingmarketshareandpossibly,anoverwhelming
concernfortheirfuture. Employeesundertheburdenofexcessivechangefromrestructuringdo
not workaseffectivelyorefficiently. Overtimethestresscancontributetoanincreasein
personnelcosts. Thisoccurs whentheongoingpressureofchangeexceedsanindividualscoping
abilities. Thetypicalresultis:
* Higherabsenteeism * On-the-jobaccidents * Longerandmorefrequentsickleave * Conflicts
between workersand/ormanagement * Inabilitytoadapttonew operatingconditions
StudiesindicatethatthecostofstresstoCanadianbusinessis $13 billionannually. Intoday's
businessclimatecontrollingthesecostsmaybecrucialtosurvival. A recessionarymanagement
8/6/2019 OB Term Paper Sem 1
12/18
strategymustaddressemployeestressbyidentifyingthebestmethodologyforimplementing
changes.
Understandingtherelationshipbetweenstressandchangeisthefirststep.
Themostcommonmisconceptionisthatstressiscompletelybadforyou. Infact,stressisan
essentialcomponentoflifethatmakesusfunctionandperformourbest. Butthestressneedsto
beatalevelthat wecanhandle.Whenourstresslevelisinouroptimumrange wehavealevel
ofstimulationandactivitythathelpsusperformourbest. Positivestressisthecatalystfor
growth,learning,achievementandpersonalcontentment.
Aproblemarises whenstressexceedsapersonscapacitytomanageandcope. Thisisnegative
stressanditdirectlyinhibitsperformanceat work.
Weareallcreaturesofhabitandifweare'jarred'outofourcomfortzone,negativestressiscreated. Itishumannaturetoresistchange--totryandmaintainamethod,approachorattitude
to which we'vegrownaccustomed.Wealltendtoembracethat whichisfamiliarandroutine,
partlybecause weusuallyknow theoutcome. Itisour'pathofleastresistance'because wedon't
havetolearnsomethingnew,makesillymistakesorfeelawkward while wegettoknow anew
system.
Weallremembertheawkwardness,discomfortandstressofbeingnew onthe job.Weare
usuallyimpatienttogettoknow exactly what wearedoingandmastertheday-to-dayroutine.
Laterthroughrepetition,everythingbecomesautomaticand weperformourdutieseasily with
littleconsciouseffort.Wehaveestablishedourcomfortzone. But,ifthatroutineisdisrupted, we
are joltedbacktothatawkwardstage. Ourboss'sexpectationsmaybeunclear,ourrolesless
definedand webecomeunsureofjust whatittakestodoagood job.
Sothedilemmaformanagersistoeasetheimpactofworkplacechangesandlessenthestressit
createsinallpersonnel. Thechallengeofmanaginginthesetimesistwofold:
* How can wemanageandimplementthechangesnecessaryinourorganizationstoreflectthe
needsofcustomersandmaintainamotivated,productive workforce?
* How can weprepareemployeestoadaptandacceptconstantchange,sothattheorganizationis
responsiveandalignedtothemarketplace?
Thisundertakingappliestoalltypesoforganizations. Forexample,thereisincreasingpressure
onourgovernmentadministrationstoprovidebetterserviceatalowercosttotaxpayers.
Communityserviceandhealthorganizationsmustcontinuallyadapttoadecreasingfundingbase
8/6/2019 OB Term Paper Sem 1
13/18
tomeettheiruser'sneeds.Clearly,changeandstressareacommonobstacletoorganizational
andpersonalachievement.
Five part process:
Fororganizations whohaverestructuredorthoseconsideringsuchaction,afivepart
processformanagingtheimplementationchangesandthestressofpersonnel,shouldbe
considered:
1) Communication:
Fearoftheunknownisatthecoreofeveryone'sreactiontochange. Management's
communicationstyleneedstobefactual,open,frequentandclearsothatspeculationandanxiety
isminimized.
2) Participation:
Highstressisrelatedtothefeelingofhavingnocontrolorsayindecisionsthateffectyourlife.
Byassumingaparticipativestyle,personnel willfeelasenseof'ownership'forsomedecisions
andtheresultsthatoccur. Independent,closeddoormanagementpracticeshavebeenprovento
generateresentmentandlowermotivation.
3) Knowledge:
Managementandpersonnelalikeshouldunderstandthecharacteristicsofchangeandstress.
Only whenthesources,causesandsymptomsareknowncancorrectiveactionbetakento
diminishtheimpact. Self-awarenessempowerseachemployeetorecognizebehaviourrelatedto
changeandstressandapplyasoundplanningorproblem-solvingsystem.
4) Goal Setting:
Intimesoforganizationalchangeallpersonnelneedtodevelopclearachievablegoals. This
processclarifiesandmatchesexpectationsandprovidesanoverallguideforallactivities.
Includedintheseobjectivesshouldbespecificgoalsforstafftodevelopchange/stress
managementskillsandattitudes.
5) Recognition:
Sinceemployeesmaybeunsureoftheirnew rolesinachangedorganization (orwonderiftheir
old jobisstillthesame),fullrecognitionofindividualachievementisnecessary. Aspersonnel
8/6/2019 OB Term Paper Sem 1
14/18
and/ordepartmentsreachtheirobjectives,aconcertedefforttoreaffirmtheresultsandapproach
easesfeelingsofdiscomfortandmotivatesadditionalaction.
Toapplytheseprinciplestoyourorganizationyouneednothavegonethroughorbeplanning
dramaticchanges. Even whenthe workenvironmentisfairlyconstant,thesefivestepscanprovideforyourpersonnelan'oasisofcomfort'fromthestruggleoftoday'seconomy.
A successfulchangemanagement/stressreductionplan willenableallpersonneltoperform
betterandgiveyourorganizationtheabilitytorespondandadapttoourchangingeconomic,
socialandpoliticalclimate. Theeffortsarecosteffectivethroughthesavingsinemployeehealth
costs,increasedproductivityandenhancedmotivation. Ifitistruethattheonlyconstantin
today's worldischange,thendevelopingastrategytomanagechangeisintegraltoyour
organizationssuccess.
Job redundancies, layoffs, and harsh messages needsensitive handling. Recession also opens upopportunities.
Everybusinesshasitscycles & sodoeconomies. Jobsarebecomingredundant,businessaregoingbankrupt,lotsoftalenthasno wheretogoandneedlesstosaylifeforHRisnothesameanymore. Letus justsayitisbecomingmoreexiting & challenging.
Thecurrenteconomyisforthestrongheartedandthe HRneedstosupportthebusinesslikeitneverdidbefore. Itiseasiertodothings whenthingsaremovingup. Therearebudgets,therearepeopleandeverythingisshining. But whentheconfidenceineconomiesshake,organizationsneedsarobust HRagendatosavetheday.
The top 10 focus for HR in the troubles times:
1. Retention:Employeesinthesescenariosareconfused & insecured. Theyarenotsureiftheymustcontinue
withtheircurrentemployertoshifttoanotherjob? Theyaremorechancesofthemstickingaround,butthatdoesnotnecessarilymeantheyareengaged. Thekeytohavingthemasproductiveemployeesisbykeepingthemengaged,engrossed,connectedtotheorganization.Usetheirskillstotrainotherteammembers,gettheminvolvedinprocessimprovisation,getthemtrainedandcertified. Sharpeningthesaw isthekeyhere! Findalternateareastheycanbedeployed,runthroughtheirresumes & careeraspiration (thoughmightnotalwaysmeettherightmatch). Theleastmustbecarefulaboutisattritionbecauseyourbusinesscannotaffordtoloosetalent & incurcostsonhiringnew talent.
8/6/2019 OB Term Paper Sem 1
15/18
2. Keeping leadership informed-As HRprofessionalsyoumustbetheeyes & earsofthemanagementintheindustry. Attend HRforms,getthepulseofmarket & feedtheinformationbacktotheleadership,stayconnected.Understanding whatcompetitors & similarorganizationsaredoingcanbringinnew perspective& helpplanstrategies. Notallsolutionsthatmanagementscomeup witharebest. Thatis where
yourperspectiveisneeded. Forexample:helptheleadershipunderstandthecoststhat wouldbeincurredonaccountoflayoffs.3. Innovation-
Insomeeconomieslike Indiaemployeeshavegotusedtomassivehikes,annualpromotionandperks.Continuingtheminthisscenariocanprovetobeexpensiveanddiscontinuingthemcanprovetobeequallyexpensivesinceyou wouldnow haveasetofdisgruntledemployees. Thechallengehereistoensurethat weareabletobalancetheexpectation & thecosts. Timetothinkinnovatively..outofthebox! Insteadoflayingemployeesoffcheckontheoptionofkeepingthemonpay-cuts. Revisethesalarystructuresand makethemmoreincentivebased,increasethepercentageofvariablesalaryintotalcompensation,findcosteffective waysoffun @ work&employeeengagement. Keepinnovating!
4. N
etwork-Now thatthe workismovingslowly,usethisopportunitytogetintouch withouroldcolleagues& friendstounderstandfrothem whattheirorganizationsareupto.Connectbackwiththevendorsandserviceproviderstostayupdatedontheirservicestatus. Youcanavoidsurprisesthis way!
5. Hiring-Now isthetimetofindoutthemostcriticalpositionsthatyouhad which wereneverfilledeitherduetonon-availabilityoftalentorduetohighcompensationexpectations.Withorganisationsputtingupthe ForSaleboard,severalresumesarefloatingonthe jobportalsandsalaryexpectationisnow withinyourreach.Checkifthereisarealdemandforthesepeopleand whetherits worththeinvestment. Ifyes,thereisnobettertimethanthistohire!
6. Saving on costs-everyoneinthemarketisfacingtheslump. Atthisstage,cuttingextracosts & gettingbetterdealsbringsinstantcostsaving withoutcompromisingontheserviceofferings. Getinvolvedinthecostdiscussions withyourserviceproviders. Youaresuretogetbetterdeals with jobportals,recruitmentagencies,screeningvendorsetc. Timeforsomeserviceshoppingatgoodbargains!!
7. Pending projects-While workisslowingdowneverywhere, HRneedstoensuretheyarebusy withproductive
work. Youalwayscomplainedthatyounevergettimetodothe goodprojectsandallyoutrytodoistooutonhold & ispendingcompletionduetootherworkpressure. Sopickupthoseprojects. FinishtheCompetencymappingexercise,thatprocessesdocumentation whichyoulefthalfway,successionplanningsincebusinessleadsnow havetimetospare,andrevamptherecruitmenttestspapers whichareoutdated (ifany). Usethistimetogetthehouseinordersothat whenthescenechangesyouareallchargedup & readytofacethechallenges.
8. Align the HR process to new business needs-Yourbusinessteamsalways wantedyoutore-lookatsomeprocessbutyouneverhadthebandwidth. Takeacloserlookattemnow andgetthoseleadsinvolved.Whileyoudrafttheprocess,remember,theyuseit. Doallyouneedto- Tweakinginductionprocess,exitprocessandhavethestakeholdersbuy-in.
8/6/2019 OB Term Paper Sem 1
16/18
9. Smooth Exits-Bepreparedforsomeexits. Makesurethat whilethetoughcallisbeingtaken,theprocessisnotmessy. Lay-offhasprobablyalreadyearnedyousomebadname,toaddtothis,amessyprocesscanonlydomoredamage. Makesurethepeoplearedealt withsensitively. Ensuresmoothexists,minimaldiscussionsbutdoshareinformation withemployees,providingdetailsofrecruitment
agenciestodetainedemployeesanddoafasterFull & Finalsettlement.10.Keep the spirits high-Thetoughestissavedforthelast. Keepingteamsmotivatedinthissituationisverytough. Thereisanew storyeverydaytosetthemthinking. Sorecognizetheemployees whoaredoingagoodjob,bringinmorenon-monetaryrewards,providechallenging & meaningfultasksliketraining,processimprovements,certificationetc.toemployees which willtellthemthatyoucare & value.
wheneconomictimesgettough,itsnecessaryforsmallandmediumsizebusinessestore
evaluatethebudgetandinsomecasestightentheproverbialbelt. Mostimportantlyitmeans
thinkingstrategicallyabouthow besttospend,andsave,inarecession. Theinformation
technology isthebestparttostart.Continuingtofundthesestrategictechnologiesduringan
economicdownturnisveryimportant.Witharecessiontechnologyplaninplace,your
organizationcansurvive,andeventhrive, withinthisturbulenteconomy.
Three steps to take when putting together your IT strategy for the
slowing economy.:
Step 1: Reevaluating on Needs
Therecessionplanningistreatedlikebudgetplanning.Changingeconomicconditionsrequirea
changeinthinking. Justasyoureevaluateyourexpensesfromthepreviousyearwhenplanning
foranew fiscalyear,youneedtoreevaluateyourcurrentoperatingbudgetduringarecession.
Askyourselfthefollowingquestions:
y What technology must be maintained or implemented that makes you indispensable toyour customers or members? Yourtargetmarkets willbefeelingtherecessiontoo;youwanttomakesuretheirrelationship withyourorganizationcontinuesbyprovidingefficient,affordable,andhigh-shelfservice.
y Do you have technology in place that is instrumental in helping you attract newcustomers and retain current ones? Yourbottomlineiskeyinarecession. Sinceanyadditions willgreatlyimpactthebottomline,considermaintainingtechnologythatsupports
customerretentionthroughouttheeconomicdownturn.y Is your current method of technology and network support working for you? Isitcost-
effective? Efficient? Ifnot,itmaybetimetoconsiderotheroptions. Rebalancetechnologyinvestmentsbylookingatthecomprehensivepicture. Dontfocusonshuttingthemdown;focusonmakingstrategic IT investments.
Step 2: Focus on IT
8/6/2019 OB Term Paper Sem 1
17/18
Hereareafew ways:
y Save on upgrades:Waittomakeanynoncriticalupgradesuntilaftertherecessionisover.y Stretch equipment life cycles:Workstationsusuallyhaveathree-yearlifecycle. Duringa
recessionitis OKtostretchthistofouryears,thoughyoumay wanttoconsiderminor
upgradessuchasincreasing RAM.y Review software licensing and support agreements: Aspartofyourreevaluation,you
shouldtaketimetoreview allofyourorganizationssoftwarelicensingandsupportagreementstomakesureyouarenotpayingforduplicatecoverage.
Step 3: Spend Smart
Inarecession,organizationsoftenpanicandtightentheirbeltstothepointofpassingout;and
thentheyaredownforthecount. So whateveryourIT strategyfordealing withaneconomic
downturn,dontbecheap. GoodspendingdoesexistanditcomesintheformofIT investments
that willaddtoyourorganizationssecurityandproductivity. Herearefive IT investmentsyou
shouldconsider,evenduringarecession:
y Security investments: Protectyourcompany withfirewalls, Microsoftpatching,antivirusandspywareprotection,andsoforth. It'scriticaltomaintainallservicesthatareprotectingyournetworkandkeepingyoursystemsupandrunningbecausenoorganizationcanaffordalossinproductivity,especiallyduringarecession.
y Warranties: Ifyouarestretchingthelifetimeofyourhardware,youshouldnotskimponhardwaremaintenance. Besuretoextendyourwarranties.
y Proactive IT service:Withoutproactivemonitoring,problemsaremuchmorelikely. ThisisevenmoreimportantduringarecessionbecausecallingyourIT serviceprovideronly whensomethinggoes wrongincursmuchhigherservicecosts.
y Backup and disaster recovery mechanisms: Ensureyourbackupanddisasterrecoverysystemsare working well. Youdont wantoperationstostopduringarecessionshouldsomethinghappen withyourfront-linebusinessapplications.
y Line of business applications: Forallbusinesses,thismeanscontinuingtosupporttechnologiessuchastimeandbillingsoftwarethatmaketheoperationmoreefficient.Continuedproductivityiskeyinslow economies.
Conclusion:
Variousproblemsaretobefacedbythecompaniesduringdownturn. HRistheperson whois
mainlyinvolvedduringthisperiod. Theroleofthe HRmanagermustparalleltheneedsofthe
changingorganization. Successfulorganizationsarebecomingmoreadaptable,resilient,quickto
8/6/2019 OB Term Paper Sem 1
18/18
changedirections,andcustomer-centered.Withinthisenvironment,the HRprofessionalmust
learnhow tomanageeffectivelythroughplanning,organizing,leadingandcontrollingthehuman
resourceandbeknowledgeableofemergingtrendsintrainingandemployeedevelopment.
Variousmodelshavebeendemonstratedinthepaperwhichhelpssolvetheproblemsduring
downturnperiod. HRM functionistobefollowed. Thereisafivepartprocessforrestructured
companies. Employeesaretobeengagedduringrecession.Workplacediversitymanagementis
alsoanimportantfactorinthisperiod. Hencemanyotherissuesandmodelstoincreasetheir
productivityarealsodiscussed whichhelptheorganizationsresistthedownturnconditions.