CHALLENGES OF HRM TO THE CORPORATE SECTOR IN THE ERA OF GLOBAL RECESSION

CHALLENGES OF HRM TO THE CORPORATEfunctional, and workplace levels.
SECTOR IN THE ERA OF GLOBAL RECESSION            Strategic Level
  
 ¨          Supportive business strategies
Introduction¨          Top management value
            In today’s arena the mostcommitment
common word we come across are recession and¨          Effective voice for Human
downturn. Recession or crisis is the part of the normalResource strategy making and Governance
cycle of business. It is certain that they will sooner or 
later occur. Therefore, it makes just as much sense toFunctional level (HR – Policy)
plan for recession or downturns as it does to plan for 
good, economic times. The management people and¨          Staffing on stabilization
employees may experience anxiety around a number¨          Investment in Training and
of issues during an economic crisis or downturn. In thisDevelopment
recession period HR play an important role to make¨          Contingent compensation
the industry sustain and the entire economy flourish. 
This paper expresses the challenges of humanWork place level
resource management in the global recession situation. 
What can HR do?¨          Selection on high standards
            HR needs to be proactive and¨          Broad task design and team work
come up with early interventions as for any¨          Employee involvement in problem
organization to survive during recession; the ability tosolving
retain its best people is must. During these days, HR¨          Climate of co-operation and
people sometimes even take the harsh decision oftrust  
reducing the numbers and land up at downsizing. TheRole of HR
word downsizing is even taken as rightsizing and            When the corporate is in
optimizing but we may not know or ignore the factturbulence zone, HR can put its categorical best in
that neither the bad situation nor the good conditionsensuring that he guides the corporate successfully. HR
lasts long.needs to be very powerful in such situations because
Downsizing processv     Revised leave structurethey not only have to maintain the people motivation
for all employeesv     Reduction in the differentlevel but has to increase it using non-monetary tools.
component of pay packagesv     Identify theThere are certain points that HR can opt for in such a
non-value added activities and resourcesv    situation where people are insecure about their job. HR
Threats to employee emotional engagementcan pay attention to develop the people on key skills
When the going is tough, it is a must for HRM and itsand enhance competencies.
managers to Challenge the Challenges and the only            HR has to play an active role in
remedy is just not mere downsizing howeverrefrain the top talents, act as a caring mother while top
downsizing the dignified way.performers punished with being rewarded for their
Be Creativeperformances, get people aligned and developed to
            Now is the time to implement newfight with this critical situation, develop people on cross
ideas, to change the HRM processes and to changefunctional skills to balance the surplus and shortage of
the procedures. This has to be done in a way that itworkforce, help the corporate to raise the people
cuts costs and motivates people. HR can focus on theperformance bar, ensure the fair evaluation of people
following things i.e.performance, play an active role in control of
How to increase productivity and efficiency in thecommunication flow, pass the onus of making the
corporate sector?corporate lean, review its minor low cost benefits and
How to reduce the benefits costs?contribute to enhance the value addition per employee
Redesign compensation structure?by maximizing employees inputs.
How to retain and develop high potentials?Sustaining HR’s Role
How to minimize the employee costs so as to avoid            There are many more possibilities
retrenchment?of sustaining HR’s increasing role as not only
            During these uncertain times,growth catalyst but sustaining business through greater
corporate will realize the importance of havingemployee engagement. Therefore, HR professionals
competent skilled workforce which will ensure thatneeds to tighten their belts and get ready for some
focus stays on trainings but there may be a majorchallenging yet meaningful activities which will help to
reduction in training budgets. In this time any decisionchange the perception of HR forever. The economic
taken by the company impacts each individualcrisis is forcing to separate some employee and there
personally rumors float around. Its topis no way around. No problem! Do it, but avoid creating
management’s duty as HR to ensure that thea panic around, in employees, in investors, in market
communication channels are kept open, transparencyand in country by crying loud about the recession.
is maintained. We also need to ensure that accurate            HR’s task is also great, if the
communication happens on time in full, instead ofHR manager creates conducive environment through
employees hearing things with details from thehis professional approach in achieving productivity of
grapevine first.course, with the support of all teams which is the need
            Provide adequate support toof the hour. Business has experienced different
leaders and managers in terms of peopledynamics that pose many challenges. HR and
management processes. Find ways to keep up theenforcement authorities together strive for achieving
motivation levels of employees. If the corporate plansthe common goals like compliance and adherence. HR
to retrench the workforce, counsel not only themakes all efforts to create and sustain an employer
employees who will be staying back but also theand employee friendly atmosphere and responding to
employees who have been asked to leave, be fairthe current needs and challenges.
with them. 
Setting the context 
 HR’s Responsibility
            Human Resource Management            In today’s economic melt
functions are performed in many organisations bydown where job cuts, loss, pay reduction, last come
different functional heads independently. The mostfirst go, insecurity of employment atmosphere prevail,
important challenge in recession period is revolutionizingHR has special responsibility to create ease
the Human Resource systems to identify, maintain,environment to the affected by counseling, displaying
develop and utilize talents across the organization tocare and concern, preparing them for multi skill task,
their fullest capacities.  An organisation may claim thatengaging and deploying in other required areas of
it has the best of the systems to identify talentsfunctions like security, crisis management team, etc. HR
across the organisation.should engage in more positive side, making and helping
            HR has now a chance again toemployees to reform, perform and transform which
prove their value creation role in the corporate only if itwill ultimately make a solid impact on business. This will
understands what it needs to do now. Some of thedisplay the great and real engagement of Human
basic strategies should be followed by the corporateResource Management.
managers i.e. reduce administrative and establishmentConclusion
costs, hold large bonuses and reward payments, 
create participative forums for dealing with the difficult            Human Resource Management
times ahead, retaining top talents should bemust be able to address the right kind of demands
emphasized by the HR managers to the managementrelated to Human Resource functions during the
and HR managers need to network with fellowrecession. Human Resource Management must play a
managers to find out how best to visualise thehighly proactive role in managing the issues of global
problems and try to solve them.recession by helping organization to enhance their
Challengesabilities to learn and collaborates, manage diversity,
¨      No longer living under virtuality but hasambiguity and complexity. Human Resource
started living in realities Management is responsible to manage the human
¨      To pay heavy costs for workforce livingsresource of the corporate to maximize the
¨      Making a paradigm shift towards realityproductivity, efficiency at minimal cost and maximize
¨      A large scale change of the Humanprofit. During this global recession, Human Resource
Resource systemsManagement is facing the many challenges and
¨      Fine tuned to make a shift or ready forchanges in organizational level, workplace and HR
changesdepartment level itself. The challenges can be faced
¨      Continue to out perform, excel and remainby HR Managers effectively if proper strategies are
a leaderimplemented. The recession is the temporary
Present Challenges of Human Resource Managementeconomic climate of the business world. It will be
¨          Corporate reorganizationchanged through more productivity at minimal cost and
¨          Sustaining company’s positionmaximize profit at moderate price of products in
and growthbusiness.
¨          Changing demographic workforceReference:
¨          Knowledgeable and multi skill         Emerging issues in Human Resource
workforceManagement by Pramod Vernia publish
¨          Changing mindset of workforce           and IBH publish (p) Ltd.,
¨           New industrial relation approach         Human Resource Management by by
¨          Society based corporateS.S.Khanka
responsibility         Indian Journal of Industrial Relation
 Vol.35 No.1 July 1999
          Human Resource Development News
 letter July 2006, Vol.22 issue
Human Resources – Perspective         The ICFAI journal of organizational
 behaviour October 2006
            The popular emerging perspective         Management trends
of Human Resource is integrating. Human ResourceVol.2.No.2.April2005- Sept. 2005.
delivery system processes into Human Resource         Role of HR during recession, HRD
enabling system and to achieve high levels of mutualNews Letter Jan’09 Vol.24.iss.10 p.22
commitments.  Mutual commitments is according to         HR has to Challenge the Challenges,
the three tiered institutional framework at strategic,HRDNews Letter Jan’09Vol.24.iss.10 p.