Economic Turmoil and Human Resource Management

Every day we open our eyes in the morning with the news of the Economic Break-down. This is a fact and cannot be denied. In economics parlance it is a cyclic thing and bound to repeat many times. There are attendant problems, hardships, rethinking, re-alignment and so on and so forth. When the bottom lines are at stake, no other thinking has any place but to think of survival and when it becomes a question of survival – it is natural to fight back all-out.
In such a scenario – the HR processes definitely are under extreme pressure. The most common solutions – as is evident from the actions of many Global Corporations – large scale retrenchments of the work force.
Is this the only solution? This question has made me think about the whole HR process and Employee- Employer relationship. Are we the same people who in the flourishing times call employees as the most important asset of an organisation? By mass lay-offs – we are safeguarding the physical assets and laying-off the Human Assets, can this be considered prudent by any line of sane thinking? And who is to blame for this line of thinking? Probably – The HR Advisors have to take the majority of the blame. Why cannot we think beyond the easy alternatives? It may be difficult to take the alternative routes – agreed – but looking beyond the crisis – the results will be something un-imaginable.
Both the Top Management and the HR experts have to sit down and think of possibilities of saving both the physical as well as Human Resources – then only we can say we have learned and mastered the art and science of HR management.
There are n numbers of top notch experts in the field and they definitely must be working overtime to tide over the situation. Compared to them – I’m a non entity to even ponder over the issue, leave alone daring to even think on the issue, but the state of affairs do agitate me to the core to at least voice what I feel.
As written in my earlier articles on HR – I belong to a typical Marwari Businessmen Family and my school and college starts at home first, then beyond. Over the years, my education and attitude towards life has compelled me to think and rethink on issues beyond my professional capabilities. Everytime I delve inside, something new seems possible. In the present case also, the traditional Marwari System of HR management holds a lot of promises. I won’t get in to the details here as, I’m not trying to provide a solution for the issue at hand but instead the attempt is to initiate an alternative line of thinking. In the Marwari system of Management, though it was devoid of any modern day professionalism, it had solutions for almost every situation and especially HR management was probably the best part of the system. Retrenchment never had a place in the system. Still they could tide over a lot of storms.
I feel a very similar approach in the Japanese system, various discussions with peers and family members have indicated – How the Japanese Corporations value their Human Resources and the ways of overcoming the hurdles by both the Employees and the Employers. In case of Germany also, I feel their systems should also be very good, as, though laid-back, their performance and results are any day commendable. I’m not sure of the actions and policies of the Japanese in times of Turmoil, but in normal times, on firsthand experience, I can say they work very much parallel to the Marwari system. In case of economic difficulties faced by companies, there are instances of voluntary acceptance of LOWER WAGES by employees by mutual consent between the Employees and Employers. This is just one example – the modalities may be difficult – but the end result is definitely something to be emulated. It is a question of trust and care. Commanding and building confidences. Measures based on Humane considerations.
First we have to identify the problems, sit down and think and rethink, decide the priorities and at the core believe in what we say – Employees are the Biggest and most Valuable Assets of an Organisation. If so then an attempt to save it should be the TOP PRIORTY of the organisation.
The other way round, if retrenchment is taken recourse to – just imagine the fall-out, psychological pressures on the employees and their families, the after effects and the overall impact on the system. As such the situation is grim and in such circumstances a lay-off notice definitely cannot be considered Humane by any standard, leave aside justified. The Government should also contribute its two bits in tiding over the situation. A small example of the Government’s role – in case of adjustments of financial aspects – a prorata effect should temporarily be considered by Government in Taxes – both direct and in-direct. Making the government understand is not an easy task, but then for what do we have the Trade Associations and Chambers of Commerce. This is just an example and not as easy as it is said, but the time we are talking about is also not easy either. We need highly innovative solutions for extraordinary situation and looking to the present scenario – what more extraordinary situation can be imagined. We are fighting with our backs to the wall and facing a Break-down of the system. A situation where the Survival is at Stake.