The recession is not just about daily depressions from the headcount reduction, cost cutting and constant changes in the goals. The recession is also a good opportunity for the HRM Function in the organization.
The recession is about a tough competition on the market. The HRM Function has to be a participant in such a competition. Each recession has at least three phases from the HRM perspective:
- Cost Cutting
- Stabilization
- HRM Growth Initiatives
Currently, we are in the first phase and the newspapers are full of many cost cutting initiatives all around the world. The organization needs to decrease their costs to stay competitive on the market. The HRM Function has to decrease the number of employees in the organization.
The stabilization is about the intensive care and helping the management to stabilize the organization after cost cutting. As the organization needs to cut costs quickly, the mistakes and damages are done and the organization has to repair its processes and procedures again. The HRM Function has to support the management in aligning new agendas and setting new organizational structures.
The HRM Growth Initiatives are about giving the organization in the shape to win the battles on the market. As the employees are usually de-motivated after the stabilization phase, the HRM Function has to introduce new growth initiatives as the employees can renew their positive relationship with the organization.
