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.
On the other hand, the top management understands the effort to innovate the HRM Processes better. The top management is in the search for the potential cost savings and they count every single penny brought by the line management. The HRM Costs are usually a very significant cost to the organization and the HRM Function has to be proactive.
The HRM Function has to focus on unpopular innovations during the recession as the role of Human Resources during the recession is to save money to the organization. The top management expects all the support functions to bring innovative solutions, which will have to make the organization stronger, when the next growth era comes.
The HRM Innovation during the recession has to focus on the following topics:
- Reduce the number of employees in the organization
- Strategic initiatives to increase the productivity and efficiency of the whole organization
- Redesign of the compensation scheme
- Cancellation of several benefit schemes
- Training and Development Programs cutting
On the other hand the HRM Function has to find innovative solutions for the following topics:
- Identifying the real key employees and to keep them in the organization
- Identifying the real top potentials and to strengthen their development program
The second two topics have to be done with the minimum additional costs and it is a really hard task to accomplish. The HRM Function has to have priorities in mind and the strategic impact of the HRM Innovations in the recession time. The role of the HRM Function is not to cut the costs for the time being, but to make the organization stronger and ready for the future growth.
3 Comments
You said that HRM should focus on - “Strategic initiatives to increase the productivity and efficiency of the whole organization.”
The best way to survive through a recession is to get rid of the top-down command and control approach to managing people which naturally demeans, disrespects, demotivates, and demoralizes employees. Then adopt its opposite.
To understand all of this and the main elements of a superior leadership strategy, please read these Leadership Articles”
Best regards, Ben
Author “Leading People to be Highly Motivated and Committed”
Hi,
I am planning to conduct research on innovations in HRM in the times of recession and want some guidance on which topics to consider. Your help will be greatly apprecitated.
Regards
Paul
Hi,
I am planning to conduct research on innovations in HRM in the times of recession and want some guidance on which topics to consider. Your help will be greatly appreciated.
Regards
Paul
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HRM Innovations in Recession…
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 ……
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