Human Resource in Recession

7/31/2019 Human Resource in Recession

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HUMAN RESOURCE

MANAGEMENT IN RECESSION

Submitted By: Group 08Jayant Gadi (IPMX05021)

Dr. Khushi Ram (IPMX05023)

Medha Gupta (IPMX05030)

Mohit Jain (IPMX05031)

Nidhi Singh (IPMX05035)

Puneet Malik (IPMX05040)

Vivekananda Jha (IPMX05069)

July 2012

Human Resource Management Project


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Key HR Challenges During Turbulent Times

Slashed Budgets

Decimated Departments

Low Employee Morale

Organizational Restructuring

Short Vs Long term Planning


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HR PRACTICES AND PROGRAMS


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Practices and Programs

HR Practices

hard HR practices

Curbs on pay & bonuses

Headcount reductions

Cuts in working time

Curbs on recruitment & promotion

Productivity measures

soft HR practices

Communications

Engagement & involvement

Training, talent management &

staff redeployment

Larger pay cuts for higher-paid

Direct Cost Reduction Maintain Motivation and Commitment

Balance Between Cost Reduction and Maintaining Motivation &

Commitment


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HR BEST PRACTICES IN RECESSION


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Agile Talent Management Policies & Systems

Ensure updated organization policies

Optimization of operational capability

Across the board productivity and efficiency improvements

Flexible workweek scheduling to maximize production and cut overhead costs

In 2010-11, a policy on advance travel bookings for sales teams (unless approved

by head of department) was introduced to reduce travel chares associated with last

moment bookings

Volvo

Cost Controlling policies

Increase in working week from 37.5 to 40 hours

Playing a key role as a strategic partner on line of Ulrich-style business partnermodel

Universal and Transversal Policy approach

Global framework for diversity management based on Innovative thinking and

best practices at subsidiary

Shifting of 300 jobs to China as part of world-wide restructuring programme

announced by Ericsson headquarters

Ericsson, Ireland


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Agile Talent Management - Compensation

Redesign compensation schemes

Cancellation of several benefit schemes

Additional component was added to the salaries to increase net take away

Long term benefits were curtailed, but increased cash in hand for employees

Bonus payments were deferred

Tata Motors, India

Basic-salary component was reduced leading to lesser companys liabilities for

EPF and Gratuity components

Reduction in basic pay was compensated by increase in other components which

were not linked to it

Mindtree, India

Committed 4.5% merit based pay hike in 2007 to trade union, which couldn't be

met in 2009

In 2010, HRD negotiated for 4.5% merit based pay hike in two tranches of 2010

along with appointment 50 temporary workers on permanent rolls

Medtronic, Ireland


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Agile Talent Management Performance Management

Monitor productivity aggressively

Performance linked pay

Focus - key employees

Quick wins

Competency-based management Keeping required present & future

competencies in mind

Performance Managements system that monitors and guides formation of

competencies

Ericsson, Ireland


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Agile Talent Management Training

In 2008-09, all India sales force was trained extensively on the product andprocess at one locationDealer sales force was given product and soft skills training at the manufacturingplant itselfJamshedpur plant was shut down for 4 days and employee were given leave

Tata Motors, India

Initiated the six-sigma based process improvement programs and certification foremployees

Mindtree, India

No budget reductions for peoples skills and competencies developmentEricsson, Ireland

Senior managers interacted informally with all employees on an on-going, day-to-day basis, whether this is over lunch, in the car park or at work stations

Medtronic, Ireland

Cross training of resources for making them employable in different roles during

downturn Late CK Prahlad (Management thinker and guru)


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Agile Talent Management Retain Top Talent

Retain top talentIdentify the real top potentials and to strengthen their development program

Agile Talent Management Reward & Recognition

Make emotional R&R mandatory - Budget part of the day, part of the week, and part

of the month for them to recover from toxic emotions and to restore their sense of

what is good and true, better and possible

Allow frequent walks in the woods


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Agile Talent Management Internal communications

Extensive discussion to devise communication strategy with wider management

team and VP, HR at parent subsidiary in Minneapolis

Managers at all levels were briefed and equipped to cascade relevant information

and curtail grapevinesCommunication based on business rationale, of emerging from crisis as a stronger

and better company, for the pay cuts and promotions freeze

Cooperative and mutual-gains negotiations with the Trade union

Medtronic, Ireland

CXO and HR head participated in meetings to communicate rationale behind

changes

Q&A based discussion with the employees

Medtronic, Ireland

Organizations that are frank in their internal communications about the difficult

times and resulting cost-cutting measures foster credibility with the workforce


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CRISIS AS AN OPPORTUNITY


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Crisis as an Opportunity

Evaluating performance with quantifiable metrics is a priority Systems are in

place, problem is with execution

The senior management expects all the support functions to bring innovative ideas

and solutions which will lead to stronger organization, when the next growth eracomes

having the right policies and practices for the new slimmeddown and

muchchanged world

Chief People Officer at McDonalds aptly summarizes it: theres going to be a lot

of pressure to cut back budgets, but those HR departments (and employers) that

maintain the focus on core, longerterm objectives will emerge as successful in

the long run

Process is perpetual - you help to bind employees emotionally to the

company not only in bad times, but also in good times when there is

a lot of competition


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References

Roche, William K. Human Resources in the Recession: Managing and Representing

People at Work in Ireland 14 July 2012

http://www.ucd.ie/t4cms/Human%20Resources%20in%20the%20Recession%20B

ook%20Manuscript.pdf


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THANK YOU

Human Resource in Recession

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