The concept of managing performance through promoting taken in a constrainedenvironment requires to be a driven by practices which lead to financially sound decisionsrather than decision taken in haste which impact the organization ‘s long termstrategy.Infact, HR practices right from the recruitment to retention stage should bebacked by ways which eliminates waste while still retaining a motivated workforce.The seven –steps strategy to enhance performance during economic slowdown is :STEP 1: ELIMINATE THE FINANCIALLY UNSOUND HUMAN CAPITALPRACTICES
In general ,a large number of companies invest in human capital practices that makefinancial sense, certain practices applauded by conventional wisdom-360 degree review,development training and implementing human resource technologies with “softer” goals inmind-do not always add economic value when implemented in a misguided way. Untilemployers align their human capital management Practices with their, employees needs, theywill continue to waste resources on strategies that diminish, rather than increase, shareholder value. But rather than eliminating or replacing these practices, all other employee relatedexpenses like salaries, bonus or other benefits allowances become the first to be targeted for cutsowing to their visibility in the system. Hence, the process of employee related expense cuttingshould be very well planned and reviewed before implementation. The process should-(i)Review all employee related expenses and assess those that do not make a significantdifference to the employees.(ii)Survey employees to determine the benefits that have greatest value.(iii)Cut those that add least value(iv)Build value by adding small high –impact benefits at a time when the rest of the business world is cutting.The positive emotional response to an “addition”(related to performance) at the time of cutscannot be underestimated ,As it is ,in today’s intellectual era, spending wisely, holdingemployees accountable for performance and building a more positive workplace is the key tosurviving and thriving in a slowdown economy.Also, innovative ways to cut down cost without compromising an employees salaries or learninganddevelopment should be taken up. For instance ,sterlite technologies has stopped all travelrelated to in-house meeting,and all meeting would be conducted via conferencing.