Recession Enforced Hrm To Change

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 a business cycle contraction. September 26, 2009 1 | P a g e

 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.

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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 of varied 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 of providing 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.

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Training Programs:

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Training means activity leading to skilled behavior. The term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational 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.

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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 be helpful 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.

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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.

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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.

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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.

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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.

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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 any business 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.

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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.

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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 Resource Management 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: •

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Websites:•

www.google.com

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www.wikipedia.com

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www.allbusiness.com

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www.ensynch.com

Other Than Web sites •

Personal visit to BOSCH and interaction with Mr. Hemant Bhide Sir, Senior Officer, HR.

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News Articles from various newspapers, magazines etc.

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