HR in a Financial Crisis

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 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,

Continually sustaining engagement and motivation levels within the workforce is a challenge for even the most effectively managed organizations; not only in tumultuous times, but also in times of prosper (Catteeuw, Flynn, & Vonderhorst, 2007). The financial crisis and the nation’s unfavorable economic state have placed unprecedented levels of stress on organizations and their workforces (Poglianich & Antonek, 2009). Organizations need to position themselves to be able to sustain employee engagement and productivity during turbulent times by developing a strategic handling approach (Poglianich & Antonek, 2009). This paper will look into potential strategies for sustaining employee engagement, motivation, and productivity in tumultuous times. The focus organization of this paper is the 516th Software Maintenance Squadron (SMXS) which is a sub-unit within the United States Air Force (USAF).

The economic climate surrounding a company can determine many things and can have financial implications as well as affecting the levels productivity. Economic growth can lead to a lack of employees available to fill positions because the labor market is saturated with jobs. A company will look to offer higher wages, more benefits and incentive programs to entice potential candidates and will invest in current employees with training and development to help retain the staff and promote succession planning throughout the company. A downturn in economic growth can have the opposite effect. Companies have a tendency to cut the workforce to maintain profit margins, thus applying extra pressure to the remaining employees, causing extra work loads, poor morale and a high

During times of economic downturn, employees can feel susceptible. Employers may need to reduce contracted hours or change staff job roles to save money. This leads to staff feeling exposed and concerned about possible redundancy, which in turn effects how they relate to the organisation.

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

Job security can simply be defined as the feeling of an employee feeling that he or she belongs to and plays an important role in the success of an organization. According to the U.S. Bureau of Labor Statistics, “layoff measures in 2015 were down from 2014, which shows more stability in the economy.” However, employees under at-will remain cautious about feeling a sense of security in the work place. This is simply due to the fact that their employment can be terminated at any time with or without probable cause. In turn, this creates a culture of fear at times within companies who are struggling financially.

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

I am a shift leader for Walgreens Inc. I work at one of the financially worst stores in the district. The possibility of the store being close is even greater because the store cannot meet sale goals. Naturally, the heaviest burden is places on the team members. For example, team members losing hours, causing team members to lose sales, more responsibility placed on team members, and less chances for team members to recharge and relax. Eventually, these changes in the workplace dynamic could cause severe reductions in team members’ morale, in an otherwise normally positive and happy staff. Therefore, in this paper, I will provide ground breaking research that explains the issues of low staff morale and propose ideas for coping

From the point of the CEO, John Swatridge, there are three overwhelming problems that the company is facing and would like Human Resources help in solving. In Swatridge’s view, the main problem of the company is the issue of privatization. Privatization becomes more of a possibility as a way to increase revenue for the company and cut costs but brings up new issues. Privatization brings up new problems with job responsibilities. This action will create new responsibilities for purchasing that employees are currently not trained for but there is no room left in the training budget for new programs as Human Resources is not on track with the strategic business plan of the company. There was a year spent on creating training programs to improve teamwork and time management and now there is no budget left for training in other

Helping employees cope with stress is not an easy task. In this situation, we have a group whose teamwork is breaking down because of insecurity of layoffs. Initially this stress has increased workloads, but in the long run, these disruptions can cause productivity to decrease. This is where knowing your employees will help you employ emotion-focused coping strategies in order to pull the team together.

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

Rio Tinto, an international London based mining and mineral company was severely impacted by the global recession in 2008. Such an impact forced unprecedented workforce reductions worldwide and decentralized HR management had to be brought in under a single umbrella to insure an orderly and efficient system that would support the organization’s future productivity. This new proactive approach to management, utilization of technology, and preparation of the employees proved to help save the company and set the stage for continued future operations.

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

How well a business manages its assets and resources predicates its overall success. Companies that spend financial resources foolishly are apt to find themselves in bankruptcy. Companies that work capital equipment resources beyond the machine’s capabilities or for other than intended purposes are apt to experience downtime and/or lose the equipment to failure. The same premise holds true for a company’s human assets. However, unlike other company assets, which depreciate over time, human assets appreciate over time when managed properly. The article, Importance of Human Resource Investment for Organizations and Economy: A critical Analysis, explains the importance of managing human assets as follows: