HR Role in Recession

HR ROLE IN RECESSION
SHANKAR NARAYAN COLLEGE OF SELF FINANCE COURSES. BHAYANDAR, THANE- 401105
PROJECT ON
BACHELOR OF MANAGEMENT STUDIES
SEMESTER V (2011-2012)
SUBMITTED BY CHANDAN YADAV ROLL NO. 62 PROF. RACHNA NIGAM
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SHANKAR NARAYAN COLLEGE OF SELF FINANCE COURSES. BHAYANDAR, THANE- 401105
DECLARATION
I, MR CHANDAN YADAV OF SHANKAR NARAYAN COLLEGE OF MANAGEMENT STUDIES OF T.Y.BMS (SEM 5) HAVE COMPLETED THE PROJECT ON HR ROLE IN RECESSION IN YEAR 2011-2012. THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF MY KNOWLEDGE. Date: Signature of the Student CHANDAN YADAV Place: Mumbai
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Acknowledgement
During the perseverance of this Project, I Was Supported By Different People, Whose Names If Not Mentioned Would Be Inconsiderate On My Part. I Would Like To Extend My Sincere Gratitude And Appreciation To PROF RACHNA NIGAM Who Initiated Me Into The Study Of HR ROLE IN RECESSION It Has Indeed Been A Great Experience Working Under Her During The Course Of The Project For Her Invaluable Advice And Guidance Provided Through Out This Project. I Also Owe My Sincere Gratitude To D.R V.N YADAV Principal Of Our College. I Would Also Like To Thank The Following People Who Through Their Experience Have Enlightened Me On The Practical Aspects Of This Subject Without Whom The Study Would Not Have Been Carried Out Successfully. 1. PROFESSOR RACHNA NIGAM 2. PROFESSOR VIVEK VANKHADE 3. PROFESSOR PANKAJ PUROHIT I Would Also Like To Give My Sincere Gratitude To All My College Librarian Staff Because Of Whom I Am Able To Complete My Dream Project.
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Synopsis
SPIRITUAL AND PRACTICAL TIPS TO FIND A BETTER FINACIAL FUTURE - IDOWU KOTILA Now is the time for HR to prove their worth. The economy is showing distinct signs of slowing, with reports of construction, manufacturing and consumer-related sectors all weakening. This, coupled with increased food and oil prices means that Australian workers are beginning to feel the pinch. While the recent announcement by the Australian Fair Pay Commission to increase the minimum wage by $22 a week may provide light relief to those on lower incomes, it is only the beginning. The ripples of a weakening US economy are being felt globally. However, although some Australians argue that we won t be affected and can rely on the powerhouse of China to hold us well out of recession s way, the reality is that we will and are being affected. And if it is the case that the economy will slip into recession sometime in the future, people should be equipped with the tools and knowledge of how best to deal with it now. The time to ask the hard questions is now. What will increased interest rates mean to my mortgage? How can I best offset increased utility bills? How can I maximize my salary? How can I save or invest?
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It is at times like this that HR needs to take charge and help both employees and the business work through challenging times through extra advice, training and support. Tesco, the UK s largest supermarket chain is operating in an economy reportedly on the verge of recession. The UK s weakest period of growth in 15 years, falling house prices and the global credit squeeze are reported to be at the heart of the downturn and resulting in low consumer confidence. According to Tesco s HR team (see Putting Store in HR p12) leadership and information sharing are key to survival during an economic downturn. While not citing doom and gloom or an economic Armageddon for Australia, it s a good time for HR to be prepared and look at what has to be done to help both staff and business and use the time to become champions of the business.
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RECESSION
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CONTENT
SN r o.
C hapter
P ages 02 to 4 05 to 22 23 to 25 26 to 46 47 to 51 52 to 55 56 to 57 58 to 62
C hapter 1 Introduction C hapter 2 C onceptual Fram ork ew C hapter 3 R esearchM ethodology C hapter 4 D A ata nalysis C hapter 5 Findings
C hapter 6 R ecom endation m C hapter 7 C onclusion C hapter 8 A nnexure
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Chapter 1 : INTRODUCTION
1.1 Need for working on the context of the topic
Recession is considered to be an one of the most dangerous situation in the world where even the flourishing economy and the flourished
ecomomy adversly get affected and face consequences of it .When such recession reaches out to the global level it is converted into Global Recession and takes entire world into its fist.
During recession the situation is so worse that demand for the products decrease and along with rise in inflation, the situation gets worst. This was exactly the situation faced by world and particularly by india where inflation went upto 12% . The Global recession has ruined the demand and supply equilibrium and impacted adversely.
In such a situation in order to be cost competitive and retaining its postion and to make itself stable, organisations are left with no other option but to have cost cutting measures at all level of the hierarchy and across all functions of t he organisation. As far as all departments are concerned, prodution deparment can do cost cutting by having minimum wastage , Stores function
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can cut costs by maintaining adequate
inventory and
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adopt newer strategies of Inventory control like JIT, but when it come to HUMAN RESOURCES DEPARTMENT, the most apparent cost cutting measures deal with cutting down on manpower requirements.
Actually, while not working on manpower cuts, perhaps HR Department can work on many other areas through which they can help put organizations in competitive position in the given scenario of economic slowdown. But the handling of such a situation by HR Department is strategic in nature and to identify what are the strategies to be adopted by organizations, is an imperative for the budding manager .
Hence the need to understand the Response
of HR Department of
organization with respect to current global meltdown.
1.2
What made me to take up this topic
Global recession is one in which almost all the country have been caught and Government of the countries are constantly providing rescue package by way of bailout as the organizations are getting adversely affected and about to be getting sick .Along with the external assistance through government what the organization can do is to adopt cost cutting strategies so that , rather then becoming insolvent and sick, atleast they be in a position to maintain their standig / existence in the marketplace.
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As a Management student specialising in HR, when I looked at the manpower across hierarchies, in a way , being mishandled by way being asked to leave with no or little notice period, I was led to think whether there could be other ways of dealing with thesituation. It would be fine, for a moment, if organisations were to freeze recruitments, but certainly something better could be thought of for retaining the ones on roll. Also, there was a concern that if so many graduates and post graduate were to roll out of colleges, and if had no place to go, what would be the social impact at large. This thought led me to first understand how organisations as a whole and how the HR department in specific views the current happening of slowdown with respect to the PEOPLE ASSET in terms of numbers as well as their satisfaction levels in organisations. Hence, the desire to first look at the HR responses to Global slowdown in the near future and on a long term strategic basis.
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What is Recession? In economics, the term recession generally describes the reduction of a country's gross domestic product(GDP) for at least two quarters. The usual dictionary definition is "a period of reduced economic activity", a business cycle contraction
The United States-based National Bureau of Economic Research (NBER) defines economic recession as: "a significant decline in [the] economic activity spread across the country, lasting more than a few months, normally visible in real GDP growth, real personal income, employment (non-farm payrolls), industrial production, and wholesale-retail sales.[
Attributes of recessions In macroeconomics a recession is a decline in a country's gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year. Some economists prefer a more robust definition of a 1.5% rise in unemployment within 12 months In a 1974 New York Times article, Julius Shiskin suggested several rules of thumb to identify a recession, which included two successive quarterly declines in gross domestic product (GDP)His other rules are usually ignored.
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An alternative, less accepted, definition of recession is a downward trend in the rate of actual GDP growth as promoted by the business-cycle dating committee of the National Bureau of Economic Research]. That private organization defines a recession more ambiguously as "a significant decline in economic activity spread across the economy, lasting more than a few months." A recession has many attributes that can occur simultaneously and can include declines in coincident measures of activity such as employment, investment, and corporate profits. A severe (GDP down by 10%) or prolonged (three or four years) recession is referred to as an economic depression, although some argue that their causes and cures can be different Predictors of a recession There are no completely reliable predictors. These are regarded to be possible predictors
y
In the U.S. a significant stock market drop has often preceded the beginning of a recession. However about half of the declines of 10% or more since 1946 have not been followed by recessions. In about 50% of the cases a significant stock market decline came only after the recessions had already begun.
Inverted yield curve, the model developed by economist Jonathan H. Wright, uses yields on 10-year and three-month Treasury securities as well as the Fed's overnight funds rate. Another model developed
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by Federal Reserve Bank of New York economists uses only the 10year/three-month spread. It is, however, not a definite indicator; it is sometimes followed by a recession 6 to 18 months later
y
The three-month change in the unemployment rate and initial jobless claim
Index of Leading (Economic) Indicators (includes some of the above indicators)
History of recessions There is no commonly accepted definition of a global recession, IMF regards periods when global growth is less than 3% to be global recessions. The IMF estimates that global recessions seem to occur over a cycle lasting between 8 and 10 years. During what the IMF terms the past three global recessions of the last three decades, global per capita output growth was zero or negative. Economists at the International Monetary Fund (IMF) state that a global recession would take a slowdown in global growth to three percent or less. By this measure, three periods since 1985 qualify: 1990-1993, 1998 and 2001-2002. Global recessions There is no commonly accepted definition of a global recession, IMF regards periods when global growth is less than 3% to be global recessions The IMF estimates that global recessions seem to occur over a cycle
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lasting between 8 and 10 years. During what the IMF terms the past three global recessions of thelast three decades, global per capita output growth was zero or negative Economists at the International Monetary Fund (IMF) state that a global recession would take a slowdown in global growth to three percent or less. By this measure, three periods since 1985 qualify: 1990-1993, 1998 and 2001-2002
Impact of Global Recession on Indian Market The recession in the US market and the global meltdown termed as Global recession have engulfed complete world economy with a varying degree of recessional impact. World over the impact has diversified and its impact can be observed from the very fact of falling Stock market , recession in jobs availability and companies following downsizing in the existing available staff and cutting down of the perks and salary corrections. Globally the financial sector sacking the existing base of employees in high numbers in US the major example being CITI Group same still followed by others in hospitality industry Jet and Kingfisher Airlines too. The cut in salary for the pilots being 90 % can any one imagine such a huge cut in salary. In the globalize market scenario, the impact of recession at one place/ industry/ sector peculate down to all the linked industry and this can be truly interpreted from the current market situation which is faced by the world since approx 2 month and still the situation is not in control inspire of
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various measures taken to fight back the recession in the market. The badly hit sector at present is being the financial sector, and major issue being the "LIQUIDITY Crises" in the market. In-spite of the various measures to subsidies the impact of the recession and cut down the inflation present nothing really sound have been done. Various steps taken by RBI to curb the present recession in the economy and counter act the prevailing situation. The sudden drying-up of capital inflows from the FDI which were invested in Indian stock markets for greater returns visualizing the Potential Higher Returns flying back is continuing to challenge liquidity management. At the heart of the current liquidity tightening is the balance of payments deficit, and this NRI deposit move should help in some small way. To curb the liquidity crises the RBI will continue to initiate liquidity measures as long as the current unusually tight domestic liquidity environment prevails. The current step to curb these being lowering of interest rate and reduction of PLR.However, the big-picture story remains unchanged all countries in the world with current account deficits and strong credit cycles are finding it difficult to bring cost of capital down in the current environment. India is no different. New measures do not change our view on the growth outlook. Indeed, we remain concerned about the banking sector and financial sector. The BOP- Balance of Payment deficit at a time when domestic credit demand is very high is resulting in a
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vicious loop of reduced access to liquidity, slowing growth, and increased risk-aversion in the financial system. In total the recession have turned down the growth process and have set the minds of economists and others for finding out the real solution to sustain the economic growth and stability of the market which is desired for the smooth running of the economy. Complete businesses/ industry is in dolled rum situation and this situation persist for a longer duration will create the small business to vanish as they have lower stability and to run smoothly require continuous flow of liquidity which is derived from the market. In present situation down fall in one sector one day leads to a negative impact on the other sector thus altogether everyone feel the impact of the Financial crises with the result of the current recession which started in US and slowly and gradually due to linked global world have impacted everyone. Solution for the problem still remain at the top of the mind of every one, still everyone facing the impact of recession but how long is the major question which is of great importance ILO Alarmed At Impact Recession
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The International Labour Organization (ILO) has said that the global financial mess will cost the world up to 20 million jobs by the end of next year. Its statistics show that currently there are about 200 million people without jobs around the world. Director general Juan Soma via said while unveiling the report that people who will be affected most are principally those working in the construction, automotive, tourism, finance, services and real estate sectors. "What's more, the number of working poor living on less than a dollar a day could rise by some 40 million and those living on two dollars a day could rise by more than 100 million," he noted. Grim as these numbers are, the ILO chief cautioned, they could prove to be underestimates if the effect of the current economic contraction and looming recession are not quickly confronted. "This message is urgent. The International Labour Organization has completed a first estimate of how this crisis is going to impact the day-today lives of people at all levels of society," he declared. He continued to say that people judge their lives and their futures mainly through their life at work, and as a result the focus now must be to make sure policies and supports are in place to meet people's core demand for a fair chance of a decent job.
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He recommended that in order to keep economies and societies open, relevant international organizations must come together to develop a new multilateral framework for a fair and sustainable globalization. "We have to come back to the basic legitimate function of finance, which is to promote the real economy, to lend so that entrepreneurs can invest, innovate, produce jobs and products," he told the audience. An economic rescue plan for working people is highly needed for the real economy, with rules and policies that deliver decent work and productive enterprises, he stated. They should focus on improving links of productivity to salaries on one hand, and growth to employment on the other hand. The rules must be implemented so that people have trust that the economy is working for them, he said. "Critically, we must address the underlying challenges, as long before the current financial crisis, we were already in a crisis of massive global poverty and growing social inequality, rising informality and precarious work. The issue is a process of globalization that had brought considerable benefits but for many it had become unbalanced, unfair and
unsustainable," he added. Impact of global recession less severe in India: ILO

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International Labor Organization (ILO) said that the impact of the global economic meltdown would be less severe in India and other south Asian countries since they are less exposed to the US economy and financial market.
India should focus on imparting education to continue its growth in future, said Duncan Campbell, director of ILO`s department of economics and labor market analysis. ``The effect of the economic downturn in India and south Asian countries would be less severe as they are less exposed to the US economy and the financial market``, he said. ``Progress could be halted if suitable education is not imparted now. In fact in India, only education can ensure equal distribution, access to economic opportunities and brisk growth path for everyone``, he added further. The ILO in its recent report on global employment trend (GET) had predicted a global job loss to the tune of 1.5 million in 2009 as a direct impact of the global financial meltdown.
``Recession is an opportunity for India to rethink the structure for future and the future for India is in green jobs. We are in consultation with ministries of environment and forest, medium and small industries, labor and employment, agriculture and others to arrive at certain common policy
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platforms
on
this``,
he
added
further.
The official said that the observations about India are based on the fact that the level of stimulus package in the Indian economy had been much less when compared to other South Asian economies like China. Impact on India: The Good, Bad & Ugly
Most of the countries all over the world are going through this phase of economic recession. Many old and big companies have already been brought down on their knees to bite the dust. Many companies as well as
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countries have become bankrupt or are on the verge of it. Millions and millions of people have lost their jobs. Many people have lost millions and billions of dollars. People in general are scared and fearsome. This is not the first time that the global economy is going through recession and this is also not the last time. There is a pattern involved in it. On an average it is happening after every 8-10 years. This article is an attempt to highlight some of the issues involved and some of the possible solutions.
Dynamics Involved In our life, there is a special place for money (be it in any currency). Most of the problems that we are facing in our life and day-to-day living are linked with it. Food, shelter, clothes, life-style, education, comforts and etc and etc, each and everything involves money. Money should be revolving; it comes, it goes and it comes back again. It should always change hands or else it is useless. It is this nature of the money that drives the economy of a country, a company or our life. And when you are going through recession, it means no money is coming in. Money is not coming in but yet you need to live and hence there is a need for cost-cutting. But you never know how long the recession will continue and hence more cost cutting. People drive the economy and when there is recession then it is these very people who suffer.
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and then you are laid off. Now what? What will you do? How will you survive? How will you take care of yourself and your family? Earlier there was less money coming in and now there is no money coming in, what will you do? In such times of global recession when everyone is trying hard to survive and pass through one of the toughest phase of their life, no one thinks about making the profit out of adversity. Everyone is trying to survive and it will be survival of the fittest. Anyone who will be able to pass through this will come out as a stronger entity or person or country. Companies are no exception to this rule. They are also trying hard to survive. With them they are also trying to float and swim through as many people as possible but certainly not all. As a part of cost cutting, some of the employees need to be laid off so that the company and others can survive. Similar things happens in a lift, when it is overloaded; ship, when it is sinking and even airplane, when it is overloaded and etc. Something or someone needs to go out for the rest of them to survive. But, what is the pattern? Who needs to be laid-off? When? How? There are many such questions that need to be addressed. Lets move further and discuss.
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Pattern There is a set process that needs to be followed at the time of laying-off. I am not sure how many companies actually follow it. Let me elaborate. 1. Freezing the recruitment. No new hiring. 2. Fresh graduates or those who are new to the market will find it difficult to get a job. More so, if they are not from A-grade institutes. 3. Last in, First Out. Among the employees who are already inside the company and are employed, the person who has joined recently will be the first one to go out. To be more precise, all those who are on their probation will be shown the door. 4. Average performers or difficult employee will also be shown the door. Performance records of last three years will be re-examined and reanalyzed and those with average or below average performance will be shown the door. 5. Outsourcing to increase. Most of the routine functions will be outsourced and those departments will be closed. What more to expect? 1. Training and Development programs to freeze. No more expenditures on company sponsored training and development programs. 2. Perks, benefits and retention allowances to be withdrawn. The company will freeze all perks and benefits that has been extended to its senior employees.
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3. Bonuses and incentives to be stopped. For the time being the companies will stop all the bonuses and incentives that are due to its employees. 4. Specialists are out and generalists are in. At the time when economy was booming, companies might have hired different people for different role within a function / department or most likely they have hired more than one person for a role, all these arrangements will go away and only those people who are willing to do the work of more than one person or those who can do multiple roles will stay in. Global Meltdown hit hiring in India What is happening with the hiring now that The Global Market Slump has begun? Are there still company who are currently hyring Are companies finding a way to endorse attrition by choice rather then necessity? Find out more in this article from Times of India: The global financial meltdown claimed its first casualty in Los Angeles on Tuesday with a 45-year-old NRI killing five members of his family before taking his own life. Thats an indicator of the turmoil that families are going through owing to economic hardship. In September alone, 169,000 people lost their jobs in the US. This is more than double the tally for the first eight months of the year, with the US economy losing an average of 75,000 jobs each month.
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Employment has diminished for nine consecutive months, eliminating 760,000 jobs, according to the Labor Departments report. Over the last year, the unemployment rolls swelled by 2.2 million to 9.5 million. On Friday, Goldman Sachs forecast that the jobless rate would reach 8% by the end of next year, the highest in 25 years. India has also started feeling the heat. Sandeep Chaudhary, business head at Hewitt Associates says the outlook for the next 12 to 18 months ranges from cautious to pessimistic as the ripple effect of the US financial crisis hits the country. Going forward, the environment looks more difficult as the impact spirals from the financial services, IT/ITeS and export sectors to the manufacturing and consumer goods sectors, agrees Naresh Malhan, MD, Manpower India. According to Malhan, mega projects and expansion plans are being reviewed, with the corporate sector now focused on managing costs and reducing borrowings. We are just at the beginning of the problem in India. I expect January to June 2009 to be the worst period. Early signs are emerging from the way budgets are now being designed, with hiring decisions only passed if the need is critical and travel either completely discouraged or downgraded to economy class only, says Sunit Mehra, managing partner, Hunt Partners India.
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The recent downturn is weighing on the minds of employers. They are not conducting widespread layoffs; yet, there is not much appetite to add staff either, says Jeffrey A Joerres, chairman & CEO of Manpower Inc. RESPONSE BY VARIOUS ORGANIZATION
1: Quark Retrench 250 staff via Resignation 2: DLF Fires 300 People? 3: Reliance Retail to shed 3000 job in Revamp 4: Malco Shut production, Retain manpower 5: Jet Airways Trims Salaries, Freezes Hiring 6: Some Factories in Pune cut number of Shifts 7: PSU Banks go for hiring in recession y State Bank of India: 25000 people y Is hiring over 4200 employees for its six associate banks y 1300 customer relationship executive y b) Punjab National Bank y Is Hiring 377 managers and officers to support its expansion plans
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y Has invited application for the post of Chief security officer, assistant general manager, chief y Manager Treasury and other officers and managers y IDBI Hiring 652 people with 256 manager for its retails banking business and another220 manager in SME financing division
8: IT Cos increasing working hours, ease exit Barriers to reduce number 9: Electrolux cut 3000 jobs 10: M&M slashes 900 jobs 11: Textile cos to axe about 5 lakh employees 12: IT caught in slowdown web70% of budgeting done by the companies is on the
2,2
RESEARCH STUDIES :
A) Despite the global recession, Indian employees still have lots to cheer about. According to a report by the Hong Kong based compensation firm HR Business Solutions (HRBS), compensations in the Asia-Pacific region are
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expected to grow despite the global slowdown. In fact Indian employees are likely to see one of the highest increases in the Asia-Pacific region, with a growth of 16 per cent in 2009. "The forecast pay increase in India averaging 16 per cent is one of the highest among all the countries," the report stated. Labour demand is still robust and there is a lack of sufficient supply of the skills-set required by India's rapidly growing services, manufacturing, construction and retail industries to boot," the HRBS report added. The economic downturn seems to have intensified the fight over the new law. Earlier this month, a group of people claiming to be marketing department staff of Sony Ericsson gathered on a cold day outside the companys headquarters in Beijing, asking for compensation after their labor contracts were terminated, according to local media reports. Not only are famous multinationals and low-wage labor-intensive jobs under threat, but a few Chinese high-tech firms feeling pressure from the public scrutiny.
B) Downsizing Does Not Necessarily Improve Productivity but Lowers Employee Morale, says Dr Ayoub Kazim at GETEX 2009 Dubai: 15 April, 2009 - Human resource strategies need to significantly evolve in order to effectively deal with the impact of the global economic slowdown, according to Dr Ayoub Kazim, Executive Director of Dubai Knowledge Village, the region's premier destination for HR management and a member of TECOM Investments.
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Dr. Kazim said: "Three strategies are essential to this HR evolution maintaining a healthy organization through effective performance
management, implementing a well managed redundancy process to minimize disruption and prevent low employee morale, as well as managing a leaner budget and tackling all related issues it entails. C) Strategies to combat Global recession by HR professional According to Tapomoy Dy.GM HR, Spentex Industries Ltd. In his article in Business manager in March 2009 addition given some strategies to combat Global recession by HR professional 1) Form special task groups for ensuring effective implementation and monitoring of cost saving mechanisms and systems. 2) Withholding leave encashment, performance burnouses and other cash rewards. 3) Control manpower costs. 4) Control Administrative expenses by conducting Why- Why analysis before making any expenses 5) Nurturing accountability oriented work culture.
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D) The global slowdown may be impacting hiring plans of employers in India over the next three months, New Delhi Under embargo until 00:01 December 9, 2008 according to the Manpower Employment Outlook Survey released today. However, employers in India now report the second strongest hiring intentions globally, with a Net Employment Outlook of +19%. This Outlook represents a considerable decrease of 24 percentage points quarter-over-quarter and 27 percentage points year-over-year.
Of the 33 countries and territories surveyed globally this quarter, employers in Peru are the most optimistic with Net Employment Outlook of +24%.
Commenting on the results of the survey, Dr Naresh Malhan, Managing Director, Manpower India, said, Though hiring intentions remain positive, Indian employers are reporting a a much slower hiring pace as compared to the last quarter and year. Employers in all the seven industry sectors and four regions have reported considerable declines in anticipated hiring activity for the first quarter of the new year, reporting the weakest Outlook observed in India since the survey began in Q3 2005.
The times may seem challenging but the employment scenario in the country is not as gloomy as the rest of the world and according to the survey, India will be one of the most actively hiring nations.
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E) According to research conducted Marilyn Elias (2009) , today Americans have become increasingly more stressed and experience worsened mental health due to the economic downturn. Elias based on her conclusions on the land marks Gallup-Health ways poll which came out during the seconds week of March2009. Gallup- Healthwayls survey of 3,55,334 People is the largest , longest and most thorough poll showing how emotional well
beings may shift with economic changes, Gallup Health way research provides an emotional Health index measure that weigh negative attitude such as depression, worry and stress and compares it with the positive feelings respondent experience before the survey. The overall Conclusions were as follows: Stress increased in 2008 due to economic crisis Emotional well-being decreased due to the declines in mental health, especially for the poorest people. Expert agree that depression often increases smoking and excessive drinking among those who are impacted by it and it discourage regular exercise which eventually results in higher risks for heart disease. In regard to age , those between the ages of 30and 55 year old might be suffering most from the economic and financial depression. There are some racial differences and Hispanics demonstrated the worst emotional health for the entire 2008 year.
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CHAPTER 3: RESEARCH METHODOLOGY
Objective of Study: The objective of Research on the topic HR RESPONSE TO GLOBAL MELTDOWN is to identify
1. To identify the strategies adopted by the organization with Response to current Recession 3: What is the HR Managers Role with respect to current Global
meltdown? 4: What are Specific HR Response to current & Future Global Meltdown?
RESEARCH DESIGN : The design which is used in this research is DESCRIPTIVE in nature. The objective of descriptive study is learn who, what, when, where and how.
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SOURCE OF DATA : The sources of data collection method are basically:1. Primary source (first hand information). The collected data is primary in nature. For this purpose a survey research was adopted. It facilitates in understanding, enabling in predicting some aspect of the behavior of the respondent about the purpose of survey. It helps in obtaining many different types of information as knowledge, intention, attitude; opinion of the respondents (Managers) .The data collected from primary source is done by preparing questionnaire. The information of questionnaire is objective in nature, which helps in future to obtain the result. DATA COLLECTION METHOD
I have prepared interview schedule for data collection. A questionnaire was prepared to serve the purpose. It constituted of close-ended questions as well as open-ended questions. Open-ended questions were with an objective to let the respondent free to give his opinion without confining him with limited option. The respondents were interviewed by visiting them personally to their respective department on their respective place.
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Techniques used for sample research There are various techniques which can be used to conduct the research. But the techniques which I have used in my research are as follows. 1. Questionnaire consisting Close-ended questions Open-ended questions 2. Personal interview. 3. Through observation.
SAMPLING PLAN Sample size 10 Manufacturing Company. Sample design Non Probability and Convenient sampling The length of the questionnaire is 22 questions. The no of respondents are 10 out of 10 Respondents have to identify and mark the parameters according to the instructions specified. (Note: For Questionnaire refer to Annexure)
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Scope of the study The study is limited to the industries from where responses to my questionnaire were available. The study is not depictive of the responses from any particular sector / industry. It gives general understanding of responses to the global meltdown for the 10 organizations of Ankleshwar and Bharuch covered under the study. Additionally, the responses are
representative of the HR executives. This may or may not reflect the Top managements views on the subject.
Limitations of the study Time was the biggest constraint in the research conducted. Co-operation from the respondents in terms of responding to all the questions asked, specifically the one which dealt with the overall impact on the organization as a whole. The recommendations/ suggestions that I could have made, had this data be known to me, could differ from what I have presented herein. Personal discussion could not be possible in some part which further limited the scope of learning new things.
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Q:1: What is the degree of overall impact Global meltdown has created on your organization(approximately).
Impact of Meltdown on Orgnization

6 5 F requency 4 3 2 1 0 Low Moderate High Impact Great Series1
Interpretation: The above Graph represent that Out of 10 Respondent 5 has said that Global meltdown has created impacted about(Low extent) 0 to 10% while rest 5 respondent has said that it has impacted about (Moderate extent)11% to 30%
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Q:2: Discuss its impact on following function of your Organization? [HUMAN RESOURCE]
Impact of meltdown on HR function No of R esponse 10 8 6 4 2 0 a b c d e f g h i option Managerial Executive
Clerical
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Sr No Particulars a b c d e f g h i Employee became redundant Moral of employees decrease Ideal time increase Trade union activity increase Work Load or stress decrease Employee relation affected Absenteeism decrease
Managerial 0 6 5 0 2 4 4
Executive Clerical 9 5 5 0 4 5 6 2 0 34 6 3 8 1 5 5 8 4 0 28
ROI on employees dev has decreased 1 Any other please specify Total 0 29
Interpretation: The above diagrams represent that Maximum respondent say that Maximum Employees at executive cadre become redundant, while Morale of Management cadre employees decrease to maximum level, Idle time at all cadre increase, Trade union activities increase are said by only by two respondent, While workload and stress decrease are at all levels, Employee relation also get affected at all level, Absenteeism has decrease, ROI on employee development has decreased more in executive level
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Q: 3 Taking into consideration following aspect with respect to Rising inflation and Global meltdown what HR strategies has your company implemented to cope up with such global turmoil.
[A] Man power planning:
HR Response to Manpower planning

22% 48%
30%
Delayed bt about 6 month the specified planning Abided by the earlier specified manpower planning Revised the entire MPP looking into revised Job satisfaction
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Sr no a b c Total
Particular Delayed bt about 6 month the specified planning Abided by the earlier specified manpower planning Revised the entire MPP looking into revised Job satisfaction
Response 5 7 11 23
Interpretation: The above diagram Shows that 48% of the respondent has revised the entire MPP looking into revised Job specification while rest of 30% Respondents say that they have abided by the earlier specified manpower Planning, and 22% said that it is delayed by about 6 months the specified planning. B) Man power Reduction strategies:
Manpower Reduction strategies

No of Response 10 8 6 4 2 0 a b c d e f option g h i j
Managerial Executive Clerical
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Optio n a b c d e Option Layoff Retrenchment Repatriation Reduce Work Hour Offering VRS to old employees Redeployment in more demanding f g h i j work Stopped Recruitment Slowdown Recruitment Reduction in Budget allocation Any other Please Specify Total
Manageri al 0 0 0 0 0
Executiv Cleric e 2 0 0 0 0 al 5 2 0 3 3
3 6 3 4 0 16
5 7 5 5 0 26
3 8 5 5 0 29
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Interpretation: The above diagram represent the strategies adopted by the organization with respect to manpower reduction as option (a) Shows that organization has undergone Maximum layoff in clerical cadre, while
Retrenchment has also been done in clerical cadre, where no response was there with respect to Repatriation as they might not have foreign employees, VRS is also offered to some clerical cadre employee, While maximum responses show that they have stopped or slowed down recruitment at all level . Also there is a reduction in Budget allocation for recruitment across the organization.
[C] Compensation
HR Strategies with respect to Compensation

14% 5% 14% 33% Cut in incentives and perks Increase in compensation as per policy No Change as it is 5% 19%
10%
Wage cut Performance based Pay Just Complying wilth law Any other please specify
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Sr No a b c d e f g
Particular Wage cut Cut in incentives and perks Performance based Pay Increase in compensation as per policy Just Complying with law No Change as it is Any other please specify Total
Managerial 4 3 7 2 1 3 1 21
Interpretation: The above diagram represents that 33% respondent says that they adopted the strategy of performance base pay while 19% says that they adopted wage cut. 14% say they have retained the compensation as before, While Just complying with law got 5% response.
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[D] Employee development:
HR Strategies with respect to employee development

8% 15% 0% 18%
15% 13% 8% 5%
18%
Using Slack time for employee training in same field Job rotation for developing knowledge in different area Job enrichment to improve task efficency & Human Satisfaction Job Enlargement to increrase challenges in work asssigned Autonomy to enhance creativity Team Building activities / Training Empowerment Training in enhancing managerial skill Any other , Please specify
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Sr No a b c d e f g h i
Particular Using Slack time for employee training in same field Job rotation for developing knowledge in different area Job enrichment to improve task efficiency & Human Satisfaction Job Enlargement to increase challenges in work assigned Autonomy to enhance creativity Team Building activities / Training Empowerment Training in enhancing managerial skill Any other , Please specify Total
Respons e 7 7 2 3 5 6 6 3 0 39
Interpretation: The above diagram represents that maximum 18% ,18% respondent has said that the strategies adopted by them with respect to employee development was Using slack time for employee training in same field, and Job rotation for developing knowledge in different area respectively while Empowerment and Team building activity account for 15% ,15% Respectively. Autonomy to enhance creativity accounts for 13% while Job enlargement and training in enhancing managerial skill got 8%, 8% respectively.
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[E] Retention:
HR Strategies with respect to employee retention

4% 0%
17%
27%
9% 17% 26%
Retained all employee irrespective of performance & Position Retained all loyal employees Retained employees that will be unable to get in future Retained only top management while adopt retrenchment in other Retained only highly skilled & Talented employees Retained only the required number with respect to today business Any other, Please specify
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Sr No a b c d e f g h i
Particular Using Slack time for employee training in same field Job rotation for developing knowledge in different area Job enrichment to improve task efficiency & Human Satisfaction Job Enlargement to increase challenges in work assigned Autonomy to enhance creativity Team Building activities / Training Empowerment Training in enhancing managerial skill Any other , Please specify Total
Response 7 7 2 3 5 6 6 3 0 39
Interpretation: The above diagram represents that 27% of respondent says that they will retain all employees irrespective of performance & Position while 26% Respondent say retain employees that will be unable to get in future. While Retained only highly skilled& talented employees and retain all loyal employees account for 17%, 17%respectively,while retained only top management while adopt retrenchment in other account for 9% and Retained only the required number with respect to todays business account for 4%
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Q:4 What will be the effect of the responses of Q:3
Impact of stragies adpoted by organization 8 6

No of Responses
4 2 0 Positive Negatilve
Sr No Particular a b c d e f g Brand image will be influenced Commitment toward work Job Hopping Loyalty among employee will be influenced Anxiety with respect to job Security will Interpersonal Relation will get Employees attitude toward Org / Work will
Positive Negative 6 8 6 6 5 5 7 2 1 3 2 3 2 0
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Interpretation: The above diagram represents that almost all strategies adopted by the organization has positive effect. Q: 5 What has been the average attrition rate and what is attrition rate after Global recession A: Average Attrition:
General Attrition Rate
Frequency 6 4 2 0 5 3 1 0-3% 3-6% 7-15% 1 16-20% 0 21%&ab ove Series1
Classes
B: After Recession:
Attrition Rate after Global Meltdown 4 3 2 1 0
03%
Frequency
3 2
3 2 Series1 0
21 % &a bo ve
36%
715 %
Classes
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16 -
20 %
Page 53
Interpretation: The above diagram represents there is reduction in attrition level of organization due to global meltdown
Q: 6 Has the Strategic vision of the organization as whole & of HR Department in Specific changed?
Change in Strategic vision of organization & HR Department

30% YES NO 50% 20% Indifferent
A: If Yes, please state change: 1) Focus on cost cutting in all the areas. No Recruitment. 2) To be in 5th Market Position in (Paint Industry) 3) Our Strategy is to Walk with Time So we are following the same. B: If No, Why 1) There wasnt any need 2) Least impacted from Global Recession
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Interpretation : The above diagram represent that 30% of respondent has said that strategic vision of organization and HR department in specific has changed while 20% have said that no such change was made while 50% did not responded.
Q: 7 Taking into consideration answer given in Q3 Do you think that strategies adopted by you are sufficient?
Sufficiency with Respect to Strategies adopted
20% YES NO 80%
Interpretation : The above diagram shows that the strategies adopted by the organization with respect to current Global meltdown is sufficient
enough as 80% of the respondent have said so, While 20% of the respondent are not satisfied with their current strategies as they have said it is still not sufficient .
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Q:8 Do you think large scale layoff can ever be Human?

Is Large scale layoff be Human
30% YES NO 70%
Interpretation: The above represents that 70% of the respondent says that large scale layoff is inhuman while only 30% respondents has given their acceptance. Q:10 What is the methodology of terminating employees used by Organization?
Method of terminating employees of Organizations
Abrupt mass termination 25% 0% 38% Termination in the form of redeployment 6% 31% Pre Planned Termination Abrupt termination only in time of crises Abrupt termination to non Performer
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Q10 a b c d e
Particular Abrupt mass termination Abrupt termination to non Performer Pre Planned Termination Abrupt termination only in time of crises Termination in the form of redeployment Total
Total 1 5 6 0 4 16
Interpretation: The above diagram shows that the method of termination adopted by them is that they adopt pre planned termination i.e. 38% while 31% respondents says that they adopt abrupt termination to non performers only. 25% says Termination is in the form of Redeployment, while only 6% says that they will adopt abrupt mass termination.
Q:11 Do you think the methodology of termination adopted by your organization is ethical?
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Is method of termination is ethical
10% 20% Yes No 70% Indifferent
Interpretation: The above diagram shows that 70 % of the respondents has said that the methodology adopted by them for terminating employee is ethical, while rest of the 20 % Says that it is unethical and rest 10% are indifferent.
Q: 12 HUL has adopted a practice to help its terminated employee to get employment by having contract with consultancy firm. What practice has your company adopted?
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Is practice adopted like HUL

10% 10% Yes No Indifferent 80%
Practices adopted are: 1) Some extra financial benefit. 2) Helping people to get employment 3) We too have contact with consultancy firm known as Data Wise so we too follow the above practice 4) We give prior notice to the employees before termination. 5) While rest of the respondent has either not respondent or has said that no such practice has been adopted.
Interpretation: The above diagram represents that 80% of respondents have said that they have no such Practice as adopted by HUL. 10% have said that the they do follow a similar policy. remained indifferent to the question.
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Remaining 10 % have
Q:13 Other than permanent jobs, one best option is contract Jobs and flexible working hours to reduce long term expenses. Is this strategy adopted?
Has contract job and flexible working hour strategy used
13% 33%
54% Yes No Indifferent
Q13 a b c Total
Particular Yes No Indifferent
Total 5 8 2 15
Interpretation: The above diagram represents that 54% of respondents says that they have not adopted contract jobs and flexible working hours to
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reduce long term expenses while 33% said that they have adopted this strategies while 13 % are indifferent.
Q: 14 What proactive steps are adopted by your organization to cope up with such Global Recession of current and of future? 1) New Recruitment stopped 2) Cost Reduction in all the area
Q: 15 On Improving the situation of business of your organization would you prefer to take back the same employees?
Taking back terminated employees
30%
Yes No Indifferent
0%
70%
Q15 a b c
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Page 61
Interpretation: The above diagram represents that 70% of the respondents will prefer to take back the same terminated employees while rest of the 30% have not responded or are indifferent.
Q: 16 Do you have any alumni network as done by Dr Reddys Lab. Dr Reddys Lab have created website www.sapientallumn.com where alumni can log in to look up from colleague, create profile for themselves or learn about reunion events.
Do you have alumni network
0% Yes No Indifferent 80%
20%
Q16 a b c
Total 0 8 2
Interpretation: The Above diagram represents that 80% of the respondent says that they do not have any such practices while 20% has not given any response to the matter.
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Q: 17 Due to Global Recession, are there any Best or Innovative HR Practices in being adopted by your Organization? Ans:1) The old practices are being carried out by HR department 2) No, but care is taken at some policies and practices. 3) Yes, Innovative method for giving training on the job is done. 4) Five S, RAC etc are being adopted
Q:18 Taking lesson from such situation have your refined or added special clauses in letter of appointment regarding substantial reduction in salary or termination during the slack in the business?
Addition of special clause in LOA
10% 10% Yes No Indifferent 80%
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Q 18 a b c
Total 1 8 1
IF Yes: WHY? 1) If found necessary IF NO: WHY? 1) It will give negative impact of organization to the candidate/ outsiders. 2) Following APQS Policy 3) Sufficient enough 4) Recruitment is almost ceased 5) Doesnt find any need to do so 6) We already have such clauses Interpretation: The above graph shows that 80% of the respondent says that they have not refined or added special clause in letter of appointment regarding substantial reduction in salary or termination during the slack in the business while only 10% of the employee has said yes while rest 10% is indifferent. Q:19 Have you undergone counseling secession for outgoing employees?
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counselling Secessions
40% 60%
Yes No
Interpretation: The above Graph shows that 60% of the respondent organization does not go for counseling session while only 40% under go counseling sessions Q:20 IF Yes, which out of the following aspect are covered in counseling?
Aspects covered in counselling

18% 0% 28%
18% 0% 9% 27%
Explain reason of termination Try to enhance confidence in his skill and ability Ensure him for outbound Redeployment Ask him thinking perception before and after termination Ensure him about intact relationship between both employee& Org Try to identify is there is any grieance exit in terminated employee Any other Please specify
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Q 20 a b c e f g h
Particular Explain reason of termination Try to enhance confidence in his skill and ability Ensure him for outbound Redeployment Ask him thinking perception before and after termination Ensure him about intact relationship between both employee& Org Try to identify is there is any grievance exit in terminated employee Any other Please specify Total 11 3 3 1 0 2 2
Interpretation: The above pai chart shows that in counseling secession of the terminated employees, the aspects which are covered in counseling are i) ii) iii) Explain Reason of termination account for 28%, Try to enhance confidence in his skill and ability 27% Ensuring him about the intact relationship between both employees & organization account for 18%
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iv)
Trying to identify whether any grievances prevail with the terminated employees account for 18%.
Q:21
Have your Organization work out Retrenchment insurance with
General insurance companies? [There is a scheme that offer compensation worth 30% of the average pay drawn by the affected employees for a maximum period of 12 month or till the retrenched employee finds employment.]
Retrenchment insurance
0% Yes No 100%
Interpretation: The above Graph represents that NO organization has worked out Retrenchment Insurance with General Insurance Companies.
Q:22 What is your specific Response to current global turmoil/ Meltdown? No Response from any respondent.
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CHAPTER : 5 FINDINGS
1) Though organizations have been affected by Global meltdown, the impact is not too high. For 50 % of the companies, the impact is about 10 to 30 % whereas in the remaining 50%, the impact is even lesser.
2) In terms of layoffs / job redundancy, it is the executive cadre and the clerical cadre that has been most affected. As a result, management cadre which gets the major blunt, as they share the overall responsibility of running the organizations successfully, is most affected in terms of their work Morales.
3) On the overall, the work output from all employees across all cadres has reduced because there is less work in these market slowdown situations. Hence, idle time across all cadres has increased resulting, obviously into reduced work stresses.
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4) With respect to Man power planning 48% of the respondent has revised the entire MPP looking into revised operations of
organizations,
5) While layoffs have increased more in the executive and clerical cadres, the scenario on fresh recruits is obviously not encouraging. Hence, a fall in Manpower recruitments budgets this year.
6) Organisations have restructures their compensations structures. Performance based pays have been introduced in many
organizations, while wage cuts has also been resorted to in most organizations, though they have not refined or added special clause in letter of appointment regarding substantial reduction in salary or termination during the slack in the business, which otherwise would result into a negative impact of organization to the candidate/ outsiders, which is not advisable for the future, when situations improve.
7) As Training and development would only add up to the costs, organizations have resorted to other means of keeping up the morale of employees. Job rotations, Team building exercises, Creativity
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development exercises, etc are being resorted to for employee development.
8) Downsizing is a compulsion on most organizations if they have to survive. Hence, while retrenchment is on, organizations are equally conscious of not letting go, the skills that are not easily available, or those who are highly skilled and talented and are their assets; otherwise their future would be impaired. This is however, the
response of approximately, 50 % of the organizations, the other approx. 50% are emotionally attached with their employees and have decided not to let go a single employee. Instead, they are working on creative solutions to this issue.
9) However, while resorting to various manpower strategies in the current context, organizations are all strategizing these moves with a focus to :
a) Safeguard Brand image Increase peoples commitment toward work Enhance employee loyalties towards organizations Improve inter personal relations
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b) In spite of all such efforts, it is found that: Anxiety with respect to job security has increased As a result, companies. 10) It is interesting to note that, in spite of slowdown, organizations Job Hopping has increased in quite a few
have continued to strengthen their standing in the market place, some through re-strategizing their vision and actions, some through adopting to practices of contract jobs and flexible working hours to reduce long term expenses, though the pace of movement would have retarded and the costs on actions would have reduced.
11)
Maximum Respondent , as seen earlier, say that Large scale
layoff is inhuman which reveals their concern for human being and humanity
12)
This humanity of organizations is seen in the fact that maximum
organisations have pre planned their termination moves and done so with counseling and also by helping them to get placements at other places wherever possible. Even in cases where companies have gone in for abrupt terminations, this has only been in cases of total
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non performers who were adding up to the overheads and hence the liabilities of the organization. Thus, they have tried to be ethical to the extent possible. 13) There is essentially no place for non performers which indirectly
shows organizations commitment toward professionalism. 14) However, it was prominently found that employee relations
ended with employee termination. 15) Maximum respondents say 60% says that their organization
does not go for counseling secession with the terminated employees. Which shows good HR Practice is lacking in some organizations. Counselling would mean explaining reason of termination, trying to enhance confidence in peoples own skills and abilities , ensuring them about the intact relationship between both employees &
organization and trying to identify if there is any grievances existing between the organization and the terminated employees. 16) NO organizations have work out Retrenchment Insurance with
General Insurance Companies for retrenched employees.
17) Cost Reduction in all the areas are a proactive step adopted by organizations to cope up with such Global Recession of current and of future.
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CHAPTER 6: RECOMMENDATIONS
1) Organization should avoid over emphasis on permanent job and should also go on temporary/Contract Job so as to avoid Redundancy, Idle time and Trade union activity. 2) Temping can also be introduced at the level of white collar employment. 3) A vigilance committee need to be formed which can have a constant look at such environmental factor which can help organization to plan its production ,manpower planning and all other proactively. 4) Managers need to be trained on developing a counseling orientation as a part of everything they do. 5) Innovative and creative measures like helping redeployment at other locations, etc need to be practiced by HR managers. factors, most
6) Freezing recruitment for a while is only viable option in front of Organization to be in Balance of Trade position rather than loss.
7) In order to Reduce idle time either workers or employee should be rotated to more demanding work so that every employee is found
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learning something new. This will save employees from creating grapevine, also help organizations to prepare for the future.
8) Reduction in working hour of worker as per production plan , with proportionate salary disbursements will help organization to give employment and retain employee rather than retrenchment and layoff.
9) Rather than time rate if piece rate system can be used temporarily till demand hikes. This can reduce certain amount of cost. Such a clause needs to be added in the appointment letter of employee or worker.
10)
Reduction in incentives and perks of employee or managers,
and Performance based pay system may reduce cost and help them to work hard to perform well.
11)
Any investment in Human capital will be an asset to
organization. Organization have to use such slack time available for the development of employee by providing training, Job Rotation, Job enrichment , Job enlargement, Team building activities so that in future we have multiskilled workforce and organizations are also able
SEMISTER V Page 76
to cope up in situation of manpower loss on account of death, resignation, etc
12)
Organization should, throw out all non-performers and potential
Non-Performers so that Burden on organization get reduce and retain any how all those who are real asset to the organization.
13)
If it is not possible to achieve desired vision in current Global
Meltdown it is necessary that, necessary changes in strategies and game plan be made.
14)
In era where Employer branding is a new trend, ( e.g Employer
like HUL adopted the practice of helping terminated employees to get employment eith the help of consultancy firms ), practices like the one adopted by HUL will help maintain long term relationship between employer and outgoing employees Also , this will, through a positive word of mouth, create a better Brand Image for the Organization.
15)
Organizations also need to adopt practice like Alumni network
as adopted by Dr.Reddys Lab to maintain long lasting relationship.

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16)
Organizations have to work out Retrenchment insurance with
general insurance companies ( as there are scheme that offer compensation worth 30% of the average pay drawn by the affected employees for maximum period of 12 month or till the retrenched employee find employment.)
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CONCLUSION:
The Global economic slowdown is a reality for most organizations. Therefore, Managers and employees must effectively deal with the impact of recession for them and their organizations to remain in business. This Research conducted by me has offered some reflections and strategies adopted by organization for effectively dealing with the economic slowdown and challenges which mark the economy.
DIRECTION FOR FURTHER RESERCH:
As highlighted above, Counselling and Creativity in dealing with employees that organizations must retrench, by force if not by choice, is a preferred move. This area is not research much, and hence could one such area where management students, in particular the students specializing in Human Resource management, could research and come out with suggestions that will pay off well in the interest of both the organization and the employee under consideration.
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QUESTIONNAIR ON HR RESPONSE TO GLOBAL MELTDOWN
Q:1: What is the degree of overall impact Global meltdown has created on your organization(approximately). (a) 0%--10% (b) 11%--30% (c) 31%--60% (d) 61% & Above.
Q:2: Discuss its impact on HUMAN RESOURCE DEPARTMENT of your Organization? [HUMAN RESOURCE] Management Cadre in % a: Employee became Redundant ___ b: Morale of employee decrease ___ ___ ___ Executive Cadre in % ___ Clerical/workmen Cadre in % ___
c: Ideal time increase
___
___
___
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d: Trade union activity increase e: Work load or Stress decrease f: Employee relation affected g: Absenteeism decrease h: ROI on employees decrease i: Any other plz specify
___ ___ ___ ___ ___ ___
___ ___ ___ ___ ___ ___
___ ___ ___ ___ ___ ___
Q:3 Taking into consideration following aspect with respect to Rising inflation and Global meltdown what HR strategies has your company implemented to cope up with such global turmoil. [A] Man power planning: a: Delayed by about 6 month the specified planning b: Abided by the earlier specified manpower planning c: Revised the entire manpower planning looking into revised job specification & Job description due to situation change [B]Man power reduction strategies: Management Executive Clerical
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a: Layoff b: Retrenchment c: Repatriation d: Reduced work hour e: Offering VRS to old employees f: Redeployment in more demanding work g: Stopped Recruitment h: Slow down Recruitment i: Reduction in budget allocation j: Any other please specify
___ ___ ___ ___ ___ ___ ___ ___ ___ ___
___ ___ ___ ___ ___ ___ ___ ___ ___ ___
___ ___ ___ ___ ___ ___ ___ ___ ___ ___
[C] Compensation a: Wage cut b: Cut in incentive and perk c: Performance based pay d: Increase in compensation as per policy
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e: Just complying with law f: No Change, as it is g: Any other , Plz specify _______________________________________ [D] Employee development: a: Using slack time for employee training in same field b: Job rotation for developing knowledge in different areas c: Job enrichment to improve task efficiency & Human satisfaction d: Job Enlargement to increase challenge in work assigned e: Autonomy to enhance creativity f: Team building activities/ Training g: Empowerment h: Training in enhancing managerial skill i: Any other ,Please specify______________________________________
[G] Retention: a: Retained all employee irrespective of performance & position
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b: Retained all loyal employees c: Retained employee that will be unable to get in future d: Retained only top management while adopt retrenchment in other level e: Retained only highly skilled & Talented employees f: Retained only the required number with respect to today s business Requirement. g: Any other, Plz specify______________________________________________
Q:4 What will be the effect of the responses of Q:3 a: Brand image will be influenced b: Commitment toward work c: Job Hopping Positively Increase Increase Negatively Decrease Decrease Negatively Decrease Bitter Negative
d: Loyalty among employee will be influenced Positively e: Anxiety with respect to Job security will f: Interpersonal Relation will get Increase Better
g: Employees attitude towards Org/ work will Positive
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h: Any other, Please specify:___________________________________________
Q: 5
What is general attrition rate and what is attrition rate after Global
recession A: General Attrition: 0-3% 3%-6% 7%-15% 16%-20% 21% & above
B: After Recession: 0-3% 3%-6% 7%-15% 16%-20% 21% & above
Q: 6 Due to Global Recession, is there is any increase in Best or Innovative HR Practices in your Organization? ___________________________________________________________________ _____________________________________________________________
Q: 7 Have you undergone counseling secession for outgoing employees? Ans: Yes No
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Q:8 Have your Organization work out Retrenchment insurance with General insurance companies?[There are scheme that offer compensation worth 30% of the average pay drawn by the affected employees for a maximum period of 12 month or till the retrenched employee find employment. Ans: Yes No
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BIBILOGRAPHY
y HUMAN RESOURCES MANAGEMENT R. VISWANATHAN. R . KRISHNAMOORTY y HUMAN RESOURCES MANAGEMENT N.G. KALE, VIPUL PRAKASHAN, 2010 y MANAGEMENT INFORMATION SYSTEM KENNETH C. LAUDON, PRENTICE HALL,2003 y INTERNATIONAL HUMAN RESOURCE MANAGEMENT ANNE WIL HARZING,
WEBLIOGRAPHY
www.wikipedia.org/management/humanresource/recruitment&selection www.managementhelp.org www.bettermanagement.com www.businessballs.com www.managementparadise.com www.scribd.com www.google.com
SEMISTER V Page 89

HR Role in Recession

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HR Role in Recession

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HR ROLE IN RECESSION

SHANKAR NARAYAN COLLEGE OF SELF FINANCE COURSES. BHAYANDAR, THANE- 401105

BACHELOR OF MANAGEMENT STUDIES

SUBMITTED BY CHANDAN YADAV ROLL NO. 62 PROF. RACHNA NIGAM

SHANKAR NARAYAN COLLEGE OF SELF FINANCE COURSES. BHAYANDAR, THANE- 401105

C hapter 6 R ecom endation m C hapter 7 C onclusion C hapter 8 A nnexure

can cut costs by maintaining adequate

Hence the need to understand the Response

organization with respect to current global meltdown.

What made me to take up this topic

Index of Leading (Economic) Indicators (includes some of the above indicators)

unsustainable," he added. Impact of global recession less severe in India: ILO

CHAPTER 3: RESEARCH METHODOLOGY

Impact of Meltdown on Orgnization

Impact of meltdown on HR function No of R esponse 10 8 6 4 2 0 a b c d e f g h i option Managerial Executive

[A] Man power planning:

HR Response to Manpower planning

Manpower Reduction strategies

HR Strategies with respect to Compensation

[D] Employee development:

HR Strategies with respect to employee development

HR Strategies with respect to employee retention

Q:4 What will be the effect of the responses of Q:3

Impact of stragies adpoted by organization 8 6

Change in Strategic vision of organization & HR Department

Sufficiency with Respect to Strategies adopted

20% YES NO 80%

Q:8 Do you think large scale layoff can ever be Human?

30% YES NO 70%

Is method of termination is ethical

10% 20% Yes No 70% Indifferent

Is practice adopted like HUL

54% Yes No Indifferent

Particular Yes No Indifferent

Particular Yes No Indifferent

Particular Yes No Indifferent

Particular Yes No Indifferent

Aspects covered in counselling

Have your Organization work out Retrenchment insurance with

development exercises, etc are being resorted to for employee development.

Maximum Respondent , as seen earlier, say that Large scale

This humanity of organizations is seen in the fact that maximum

General Insurance Companies for retrenched employees.

Reduction in incentives and perks of employee or managers,

Any investment in Human capital will be an asset to

to cope up in situation of manpower loss on account of death, resignation, etc

Organization should, throw out all non-performers and potential

If it is not possible to achieve desired vision in current Global

In era where Employer branding is a new trend, ( e.g Employer

Organizations also need to adopt practice like Alumni network

as adopted by Dr.Reddys Lab to maintain long lasting relationship.

Organizations have to work out Retrenchment insurance with

DIRECTION FOR FURTHER RESERCH:

QUESTIONNAIR ON HR RESPONSE TO GLOBAL MELTDOWN

c: Ideal time increase

___ ___ ___ ___ ___ ___

___ ___ ___ ___ ___ ___

___ ___ ___ ___ ___ ___

[G] Retention: a: Retained all employee irrespective of performance & position

g: Employees attitude towards Org/ work will Positive

h: Any other, Please specify:___________________________________________

B: After Recession: 0-3% 3%-6% 7%-15% 16%-20% 21% & above

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