Hrm-the Present State of Recession in the It Industry – as a Human Resource Manager How Are You Going to Undertake Human Resource Planning at Macro Level to Tide over This Crisis?

The present state of recession in the IT industry – as a Human Resource Manager How are you going to undertake Human Resource Planning at Macro Level to tide over this crisis?

Answer:

In economics sense, recession is a general slowdown in economic activity over a long period of time, or a business cycle contraction. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment, spending, capacity utilization, household incomes, business profits and inflation fall during recessions, bankruptcies and the unemployment rates rises.

Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation. Recession has many attributes that can occur simultaneously and includes declines in coincident measures of activity such as employment, investment, and corporate profits.

Recession has direct impact on profitability of Companies. It impacts the expense power of company. Companies go to an extreme level of cost cutting for its survival. Employees are biggest cost of a company and thus workforce planning becomes a critical issue at the time of recession.

HRM Role in Recession :

At good times of business HRM introduces policy and procedures without much concern on the spending on money. Being able to carry all the costs organizations take the policies as the standard. But In time of the recession, the HRM Role is to make cost cuts and the HRM Function has to provide the list of the policies and the procedures to be cancelled or discontinued. The employees do not like it, but the company has to return to the healthy basis for the future growth.

Main HR Recession Initiatives :

The HR Function has to conduct several HR Recession Initiatives as soon as the recession is recognized in the organization. The organization can grow rapidly, when the recession ruins...