OB Term Paper Sem 1

8/6/2019 OB Term Paper Sem 1

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ORGANIZATIONAL BEHAVIOR

TERM PAPER ON

EMPLOYEE CHALLENGES FACED BY THE

COMPANIES DURING DOWNTURN


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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),


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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.


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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


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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-


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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-


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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:


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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


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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


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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.


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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


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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


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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


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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.


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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.


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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


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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


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changedirections,andcustomer-centered.Withinthisenvironment,the HRprofessionalmust

learnhow tomanageeffectivelythroughplanning,organizing,leadingandcontrollingthehuman

resourceandbeknowledgeableofemergingtrendsintrainingandemployeedevelopment.

Variousmodelshavebeendemonstratedinthepaperwhichhelpssolvetheproblemsduring

downturnperiod. HRM functionistobefollowed. Thereisafivepartprocessforrestructured

companies. Employeesaretobeengagedduringrecession.Workplacediversitymanagementis

alsoanimportantfactorinthisperiod. Hencemanyotherissuesandmodelstoincreasetheir

productivityarealsodiscussed whichhelptheorganizationsresistthedownturnconditions.

OB Term Paper Sem 1

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