Challenges faced by HR management when significant staff cutbacks occur and how they should be addressed
Downsizing is never easy on the Human Resource department. In fact, if not handled properly, it could be detrimental to the overall organization. Here are some challenges that come along with downsizing: Addressing the shifting morale and needs of the surviving employees, maintaining the productivity and profitability of the organization, and retaining skilled, and qualified employees. Staff cutbacks can leave the surviving employees feeling demoralized, bitter, angry, and in shock. One role of Human Resource Management is to act as an employee advocate. In a time of workforce reduction, communicating with employees as well
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Employee retention efforts may include, constantly communicating with employees, and paying attention to surviving employees. As an example of a strategic Human Resource plan to hold on to skilled employees, an alternative work arrangement such as telecommuting might be offered to a worker. The functionality of Human Resources is always changing to meet the ever evolving needs of an organization. For example, when Xerox decided to downsize, the function of Human Resources became environmental scanning strategic planning. The restructuring goal however, included more than just a reduction in force. It was determined that the Human Resource entity needed to be streamlined and become a more efficient part of the organization. As a result, the use of technology, and maintaining employee retention was the core that developed HR into a more strategic part of the Xerox organization. There are two purposes that HR technology serves in an organization. The first is to improve the efficiency of employee data and HR activities collection. At Xerox, the use of HR technology has been instrumental in making HR services more accessible to their workforce. The second purpose of HR technology is to capture a greater degree of informational data that enables HR planning and managerial decision making. Again, Xerox made use of this aspect by supplying intranet employee surveys and tracking employee views on the company and HR. The
The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an organization by providing functions such as recruitment,
The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an
Human resource departments today have a more distinct, calculated position within organizations, and human resource strategy influences the bottom line. “One of the challenges for HR leaders is convincing executive leadership teams that human capital is one of the most important resources in which the company can invest” (Mayhew, 2014, p.). Subsequently, “this return on investment is an essential part of the argument for including HR as part of an overall business strategy” (Mayhew, 2014, p.). Human resource departments utilize the information given to them from company executives and leaders, coupled with their respective expertise on all things personnel, and they plan and implement staffing concerns for the betterment of the organization. From preparing job analysis, to comparing inventory and forecasting, it is the responsibility of human resources to consider the objectives of an organization and fulfill those goals while operating the specific planning relative to HR.
The effect of mismanaged LAYOFFs on the remaining workforce and the effects, lack of management preparation, the human condition, and lack of mitigation strategies. We think that the problem with this article is that not enough managers or HR personal, know how to let a person go from their employment effectively. They sometimes don't realize the impact that it has on the other employees morals. Also, that sometimes companies don't take a closer look to make sure downsizing will be the answer to cutting costs like they think that it will. Every HR or manager should be let go in their lifetime so
Question 1: What are the challenges faced by Right when the downsizing effort no longer is a popular human resource strategy?
1a. Rio Tinto is a business that operates in many countries. When there was a global recession, Rio Tinto had to fire some of its employees so they could stay in business. Rio Tinto’s HR used their strategic role to revamp their HR, the HR addressed the needs of the company, and how human capital fits into these needs of the company (Mathis, Jackson, & Valentine, 2014, p. 16). Rio Tinto’s HR used a different approach then they would have used previously. Previously, the company used an approach that would analyze every business unit, then managers and HR directors would approach the reduction in force differently. The company adopted a coordinated approach to lay off its employees globally. This approach was an efficient and ethical way to downsize their workforce. The HR department recognized key leaders and managers in the organization and moved them internally, so they would be able to retain them. These leaders
The field of human resources (HR) plays a critical role in the performance and success of organizations. As organizations have become increasingly more complex, the effective management of HR has become even more important. The traditional perception of HR as only an administrative office is no longer valid. Instead, contemporary HR is directly involved with the internal organizational structure, business operations, and variety of functions carried out by employees on a daily basis (Reed & Bogardus, 2012). HR functions impact the organization’s strategic planning, improvement processes, and goal achievement. Six core bodies of knowledge provide the foundation for all of these HR functions. These areas are: strategic
Layoffs, frequently called downsizing, describe the process in which companies remove temporarily or indefinitely a number of employees from their payroll. The reasons why companies downsize are related to dramatic changes occurring in the environment of the organization. Globalization and the breakdown of trade barriers among nations and the emergence of technology and automation have also necessitated companies to downsize. For companies to practice effective downsizing they must follow the following steps: education, reinforcement of company goals and values, honesty and dignity at all time, planning, and communication. Besides the steps described above there are other important points to consider when conducting
Human Resource Management (HRM) plays a strategic role in the survival of an organization. In this time of global financial crisis, Human Resource (HR) managers must not only innovate but must also act as change agents, strategists, mentors, counselors and motivators. They must adopt a people-centered model of management instead of the go-get-them approach. The latter approach will not only push down the morale of your employees but it will also shove your
In an era of organizational flux due to competition and globalization, companies and employees are faced with constant change. Leaders must be able to adapt to change as the environment shifts. HR has been known as the organizational change agent, administrative expert, and employee advocate. More recently they have been regarded as business strategic partners for many organizations. In order to be successful and remain competitive in today’s market, Human Resources (HR) must be considered a strategic partner if an organization wants to flourish. Top executives today commit significant resources to ensure that their company’s functions are capable of rapid change and achieving their
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
Strategic Human Resource Management has been developed to give companies a competitive edge over other companies. Since widespread access to and the use of technology have resulted in tighter margins for maintaining a competitive edge,
The role of the human resources (HR) department can play a significant role in the success and achievements of an organization. The department, which has evolved from the
Even though employee retention starts with attracting potential employees, today’s society has placed a new and greater demand for skilled and educated employees as new hires for their companies. These employees, however, are starting to become harder and harder to find. So
Now-a-days employee attrition is one of the major issues faced by an HR manager. Employees are expecting multiple