Managing HR in Recession

January 30, 2009 — 4,727 views  
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The 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.

GlobalHunt says that "recession is not the end of the road for recruitment firms but it actually has given us a picture that what kind of profiles floating in the market." Eventually, one can say that go in the market but with utmost care.
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.

On the other hand the HR Management has to find some innovative solutions during the recession like,

  • To identify the real key employees and to intact them in the organization
  • To identify the real top potentials and to strengthen their development program

The HR Management has to have priorities in mind and the strategic impact of the HRM Innovations in the recession time. The role of the HR Management is not to minimize the costs for the time being, but to make the organization stronger and ready for the future growth.
Recommendations while your employer facing negative challenges during recession:
1. Top management should know the contingency plan.
2. Do the brainstorming session with your top management and contribute in their strategic planning.
3. A complete or partial job freeze, however, communicate to the workforce that the company many continue to recruit key individuals even in difficult times
4. Review the employee performance evaluations to determine the key people that company cannot afford to lose.
5. Flow of Communicate should be from top to down that will help in making conducive atmosphere within the organization
6. Make prepare yourself for individual and group concerns therefore there should be a proper counseling session.
7. To maintain a calm atmosphere
8. Review all HR policies, processes and procedures to ensure that they are purposeful and contribute directly to the success of the company.
9. Suppose the company has to lay-off staffs ensure that there are no other opportunities for them in other functions or divisions of the organization.
10. Advise managers to deal the process of managing change. Managing Human Resources (HR) in a difficult economic environment is even more demanding than working in times of rapid growth. Therefore the task of HR is very important to maintain equilibrium throughout the hierarchy.