Strategic Role of HRM During Recession

HRM is a strategic approach of managing the most valuable assets of any Organization, most important asset of any organization are those individuals who contribute or work for achieving the business objectives set by organizations. There are different terms which replaced HRM with the passage of time in managing the peoples in an organization i.e. HR, Personnel management etc HRM is basically all about employing people, managing people, developing resources, marinating and utilizing the services according to the job and requirements set by organization.

HRM has become more important now as economies are slowing down and peoples are losing their jobs in large numbers through out the world. How HRM can play a role in recession is discussed further in the article; one way is to keep the organization running in a smooth way to survive the period of recession. There are several other things which HRM professionals can do, like focusing on cost cutting and most importantly managing the FTEs in organization.

HRM is one of the most important factors that, in any organization play an important role as a change agent during the period of recession; HRM has to assist top management in recession period.  Recession provides an opportunity to HRM and organizations to cancel out old policies and introduce some new and modern techniques with high standard to make their organizations better than before to keep working when economies are slow down.

The main focus in recession of all the organizations is mainly to reduce the cost, which is also one of the main causes of layoff. HRM can play an important role in reducing cost in many processes from recruiting to evaluating the employees.

There two ways to reduce the cost in recession period.