recession enforced hrm to change
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Name of Authors:
Jayesh Vilas Chaudhari. ([email protected] , 9823382400)
Ketan Chaudhari. ([email protected], 9271599825)
MBA II Year,
G. H. Raisoni Institute of Engineering and Management, Jalgaon
Paper Title:
Recession: Enforced HRM to change!
Introduction:
Zeal without knowledge is a runaway horse. Knowledge is the part of skill and through
integration of various skills with knowledge valuable technologies were developed continually.
Many times technology developed was not utilized properly. It also a skill that how where when
and which technology should be used.
Research and Development take these skills and technologies at very pinnacle stage. With
development of information there had been a rise in need for managing these knowledge, skill
and technology to implement it where ever these were necessary. Many times we have difficulty
that how we can overcome from any situation with managing and implementing skills and
technologies. Likewise Recession is the biggest lesson to everyone in this world. Many
organizations brought to a halt due to current recession. Human Resource Management also
changed and developed in this tough situation. Human Resource Professionals had integrated
Skills and Technologies fruitfully to combat recession and geared up industry to survive in this
hard-hitting state.
Recession:-
As there is slowdown in the United Status due to which global recession arrived. It
caused industries to change their strategies and policies to overcome from it and survive in this
hard-hitting situation. Recession is a general slowdown in economic activity over a long period
of time, or abusiness cycle contraction.
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Skills:-
Skill is an ability that has been acquired by training. In other words a skill is the learned
capacity to carry out pre-determined results often with the minimum outlay of time, energy, or
both.
Here we are going to analyze skill as per human resource point of view. According to us
everyone has various abilities but only few can utilize these fully. We have differentiated abilities
of employees according to their utilization of these abilities (skills) as follows.
1. Physical (0 - 10 % utilization of skills)
2. Physical + Mental (Brain) (25 % utilization of skills)
3. Physical + Mental + Heart Feeling (50 % utilization of skills)
4. Physical + Mental + Heart Feeling + Direction (80 - 90 % utilization of skills)
5. Physical + Mental + Heart Feeling + Direction + Ability that How to deal with Situation?
(Full utilization of skills)
Technology:
Technology means the application of science especially to industrial or commercial
objective. Science is what? It is a systematic study, analysis, and research for particular thing. As
we know that there is great progress in Research and Development. As human being man always
tried to change according to situation and develop himself along with resources being used by
him. Many new technologies were originated. Technology is the part of this development.
Technology refers to the application of Science used in industries and commerce. Some times
there was a trouble while using and implementing technology successfully.
Before this recession we have skills and technologies too. But no one has thought that
how we can integrate these both to get optimum output. Current economic slowdown imposed
everyone to think on it and work according to it. Here we will see how this economic slowdown
changed Human Resource Management.
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Human Resource Management is the soul of any organization. And HRM have to suffer
mainly if there is any problem. In current recession Human Resource Managers applied this
concept to combat this current recession. They just integrated various skills along with
technologies fruitfully which helped industries to gear up from this downturn.
Following are the Skills which are used to combat Recession:-
Diversification of Skills:
Diversification means the condition of being varied and if an employee have more
than one skill will be helpful to increase productivity and minimize the cost.
Human Resource Professional acquired this skill and provided various training to
existing employees to variegate them in different working skills. This is helped to
delegate more responsibilities to one person and minimize labor cost by not appointing
extra employees for same responsibilities.
Recruitment of Multi Skilled Employee:
This is the most significant change in HRM processes. Human Resource
Professional always tried to search right person for right job. But now it is changed
Recession enforced them to minimize cost and search for One person who consist ofvaried skills to perform more task with perfection. It is very beneficial to industry as
well as employee also. When a person is doing more than one work with accuracy it is
helpful to organization in reducing their labor cost. On the other hand employee is
working with his full capability which enables him to develop on his own and become
more successful in his career.
Recruiting multi skilled employee facilitates industry to reduce various cost which
are directly or indirectly related to employee. Like Salary, Wages, Incentives, Cost ofproviding welfare facilities, Cost of resources being used by every another employee.
Recruiting multi skilled employee serve up organization in direction of reducing cost and
which is the most essential weapon to combat recession.
Training Programs:
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Training means activity leading to skilled behavior. The term training refers to the
acquisition ofknowledge,skills, and competencies as a result of the teaching
ofvocational or practical skills and knowledge that relate to specific useful competencies.
This is what required to combat recession when employee learns skill it will be beneficial
to get optimum utilization of employee and results in reducing labor cost and other
expenses incurred for employee, because if one employee is performing more than one
task, organization need not recruit extra employee for the same work.
Organize Team Meetings to improve efficiency:
Efficiency directly depends on ration of input to output. To improve efficiency
there is need of team work. Also Team meetings should be well organized. Every team
member should know importance of meeting and task given to him. Due to it every
member gets informed about working of every other colleague and hence if there is need
of any cooperation it will be easy to everyone. Team meeting should be organized which
will result in better performance with optimum utilization of resources.
Delegate More Responsibility:
As we know that if an employee has to do particular task then He will not ask for
the extra work. And if already he has been delegated more responsibility then it will behelpful to get more work done by that person. Due to this organization get more labor
productivity. It is helpful to minimize labor cost. Human Resource Professional now
implementing this to cope up with recession.
Develop Marketing Strategy:
Current economic slowdown sales decreased and decreasing sales become another
cause of economic slowdown. Therefore there is need to increase sales. To increase sales
there should be effective marketing. Marketing is continuous process and if it is planned
earlier turn into fruitful decision for organizational development. Marketing people took
countless efforts to determine good marketing strategy and implemented it successfully.
They just did few additions in marketing strategies:
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1. Changed promotional appeal
2. Added more distribution channels
3. Increased market segmentation efforts
4. Diversified into other products and businesses
5. Spent relatively more on radio and print ads
Following are the Technologies which are used to combat Recession:-
Go Slow:
Go slow is the most important technique had been used to combat this hard
hitting state of recession. As there is reduction in demand for product it is necessary to
slow down production also. Instantly shifting production from large volume to low
volume this technique is necessary. We personally visited to BOSCH CHASSIS
SYSTEM INDIA LTD. BAMBHORI JALGAON and got very useful information over
there about this technique. There are three important steps should be followed:
i. Reducing number of Shifts:
Reducing no. of shifts means convert working from 3 shifts to 2 shifts
and 2 shifts to 1 shift. This helped to minimize labor cost as well as other cost
required for operating one shift. This has been practiced in BOSCH, Jalgaon
during the period of October 2008 to December 2008. Many other industries
also practiced same in that period and continuously practicing till date.
ii. Reduction in overtime:
Recession enforced to minimize cost and as we know according to law
there is provision to pay double wages to employee when they are working
extra than their schedule work. It directly effects as more labor cost. Due to
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this many organizations reduced allowing overtime to their employees. At
BOSCH, Jalgaon they directly stopped allowing overtime to employees.
iii. Temporary leave:
Temporary leave means force employee to take leave for few days i.e.
15-20 days because of no need of production. Another type of temporary leave
is organization restructure week from 6 days week to 5 days week and
allowing employees to take 2 leave in a week. BOSCH also allowed few
employees such temporary leave.
iv. Controlling Inventory Level:
Many organizations used this technique to minimize cost of
investment as well as expenses needed to store inventories. In this they
restructured inventory control system technique and maintained minimum
inventory level.
v. Increasing Credit Limit:
It is important to spend few and earn more to survive in recession. For
this many industries had increased their credit limit i. e. increasing credit limit
from 30 days to 60 days. This was helpful to sustain cash for any unforeseen
expenses if any.
Improve Operational Efficiency:
Operational Efficiency means what occurs when the right combination of people,
process, and technology come together to enhance the productivity and value of anybusiness operation, while driving down the cost of routine operations to a desired level.
The end result is that resources previously needed to manage operational tasks can be
redirected to new, high value initiatives that bring additional capabilities to the
organization.
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We learned new technique which is being practiced in BOSCH, Jalgaon named as
Maynard Operation Sequence Technique (MOST) which is helpful to improve
operational efficiency. According to this technique every employee has to keep record of
his work. This is the technique due to which idle time of employee can be reduced. This
is helpful to increase productivity and minimize cost of production through utilizing
standard time of each worker.
SAP:
SAP stands for Systems Applications and Products. SAP is the application which
provides the capability to manage financial, asset, and cost accounting, production
operations and materials, personnel, plants, and archived documents with its optimum
utilization to minimize the cost and maximize the benefits.
Outsourcing:
Outsourcing refers to obtain goods or services from an outside supplier; to
contract work out. It is helped to minimize labor cost and other expenses too. Many
industries outsourced their work to other who is providing them same work at minimum
cost.
Lay Off:
According to Industrial Disputes Act, 1947 lay off means the failure, refusal or
inability of an employer to give employment to workmen whose name is on muster role
of his industrial establishment because of unavoidable circumstances beyond his limit.
Recession is also one of such circumstance that forced many organizations to lay off their
employees to combat this hard hitting state.
These are the various skills and technologies used by Human ResourceManagement Professionals. They just integrated various skills along with technologies
fruitfully which helped industries to gear up from this downturn.
Conclusion:
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To further catalyze Human Resource Management Professionals integrated skills and
technologies productively to combat this recession and imposed industries to gear up from this
downturn.
References:
Websites:-
www.google.com
www.wikipedia.com
www.allbusiness.com
www.ensynch.com
Other Than Web sites
Personal visit to BOSCH and interaction with Mr. Hemant Bhide Sir, SeniorOfficer, HR.
News Articles from various newspapers, magazines etc.
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