Role of HR in the Downturn Phase

Submitted By: Shulagna Sarkar Asst. Prof. IPE, Hyderabad And N. V Ram Anand Sr. Faculty IPE, Hyderabad The yester years of industrializations manifested that Human Resource functions in an organization was synonymous with the ‘establishment’ section with low or negligible involvement to strategic planning. Transition from ‘Establishment Section’ to ‘Labour Department’ to ‘Personnel Department’ and now to HR department was a long journey depicting increased involvement in organizational function. The role of HR departments in now realized to be crucial and acted important for the operation of the organizations. In the year of 2008-09, organizations have undergone marked turbulence not only in the competition, survival but also in managing employees. The focus of HR had shifted from profit centric to employee centric and cost centric. The role of HR in organizations during the slow down phase has been crucial in handling people related issues in companies during the downturn phase. ‘Challenging the Challenges’ is the only strategy used by the HR fraternity during the days of hardship. Many public and private sector organizations attempted to right-sized their organizations during this phase. HR profession and its professionals have faced the tough time, as one of the common phenomenon of organizations was ‘Downsizing’. However ‘downsizing the dignified way’ is the key to the challenge. Behavioral outcomes were drastic,

Influence of others and inability of employees to interpret the actual market scenario causes anxiety and turmoil in the working of organizations. The anxiety of employees had a direct impact on the work. increased in-house competition to secure one’s position. Our action and non understanding of words lead to Economic Depression. The comprehension of human behavior in organizational situation is a complex process and by understanding sensitivity. Analysis of human behavior in organizations has become imperative. suppliers. downsizing. the worst condition one can ever imagine. Anxiety of employees existed as an effect due to invasion of down turn phase. The financial crises influenced employees of the organizations. the economy really tumbles. the organizational and managerial effectiveness improves. clients and customers. We start saving and in whole. Employee anxiety rose high. The key issue posed by the contingency perspective concerns how organizations can effectively match their structures and processes with their confronting environment. relationships between companies. . working environment and relations with the vendors. This includes restructuring the organization with fresh various organizations of manufacturing sector. companies in India have taken this as an opportunity to let go of the nonperformers. Most of us get perplexed and mix the two terms ‘Slowdown and Recession’. or rightsizing. This confusion affects the entire market and makes the situation even worse. suppliers. The ranks of jobless workers worldwide have swelled by an estimated 40 million to 60 million people since the crisis began. Anxiety became common phenomena with most of the employees. We’ve witnessed significant change in terms of competition. and employees during the last slow down phase. Most organizations realized the challenge of handling the changing behavior of employees. Yet. customers. not only externally but also internally. apprehensions of potential job loss and reduced income. inability to handle new demands created by workforce reductions and unpredictability about magnitude and duration of downturn.

Integrity. HR function has been a late entrant into the area of making technology work to its benefit. IT. yet the varied departments of organizations like Finance. Employer Ensuring Branding employee and Cost Engagement: Gaining the ‘Trust’ of Employee. Managing . The HR strategies aligned with corporate strategies and the HR interventions adopted by the companies to overcome the challenges during the downturn phase are Managing Talent. behavior. Ensuring Organizational Citizenship Reduction.The role of HR professionals becomes more active during the downturn scenario. Production has their own importance in the operation of organizations.

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