Contents

• Introduction 2
• HRM – Changing Trends 2
• New evolving Labor Market 2
• Changing Demography 3
• Technology focus 3
• Recession and Impact on HRM 3
• Employee Recruitment 3
• Internal Training 3
• Compensation and Benefits 4
• HRM planning during recession 4
• Career Development System 4
• HRM System 4
• Human Capital Management (HCM) 5
• Diversity and Equal Opportunity 5
• Communication and Motivation 5
• HRM – Creation of the Strategy 6
• Alignment with overall Strategy 6
• Recommendation 7
• References 7

Description

Management of human resources is a multidimensional process with multiple effects which is highlighted in recessionary times. Recession in an economy segregates firms which are unhealthy and have business practices that are not generating enough value. This might be because of several factors such as lack of a coherent strategy, inefficient processes, lack of talented manpower, lack of a vision and mission of the organization. During period of high growth, organizations can chose to ignore these challenges as existing market demand still keeps the bottom-line in the green. But in recession, these deficiencies heighten the pressure on the balance sheet, because the setup is unable to cope with new changed realities. This requires that HRM team takes some tough and rational decision on the top and is sensitive of the employee needs. The role of HRM team is a very important one for survival and sustenance in tough times. The HRM team needs to reinvent old processes with a clear vision. A study by HR solutions (2009) has shown that recession heightens employee sense of job security and pushes people to show more commitment and effort. This is evident in decrease of workers who showed slack from 16 to 14% and increase and corresponding increase in motivated workforce from 25 to 27%.