It's quite some time that we must have got used to the t u m u l t u o u s changes in the global markets. We now hear words such as ' s l o w d o w n ' , ' s t o c k - m a r k e t crash' and 'financial crises' are now used superfluously in daily parlance to what seemed to be an exclusive domain of the qualified financial expert. So much so that even our kids now know about it, as Ma & Pa are curtailing their spends and saving more. The rapidity with which this phenomenon has engulfed every nook and corner of the world, the spiraling uncertainty and untamed volatility have sent shudders across the spines of brave hearts. This brings forth the degree to which nations' economies have become inter-twined. Companies are going bankrupt, people are loosing jobs, projects are being shelved-off and salaries are taking a 'nose-dive'. I wonder what my HR brethren are doing these days. I guess they must be busy 'slashing' jobs and salaries, planning cuts in training budget, making restructuring plans etc etc. Many of us must have come across this news line - "PM asks industry to refrain from "knee-jerk" reaction such as large-scale lay-offs, which might lead to a negative spiral". There was such a panic regarding lay-offs that even PM Mr.Manmohan Singh had to pitch in with words of caution and restraint. These are truly the "Hard Times" for HR.
This is the most undesired but critical phase for any HR team in an organization - showing the door to its employees. Training and development efforts put in over years are going down the drain. Moreover, career aspirations are taking a hit. But what matters most are the HR processes by which these are being done. The socio-cultural context also matters here. In high-context countries like India where values like long-term employment, job security, relationships are cherished and there is an 'emotional investment' in organizations, this can have a more serious and negative impact unlike in western countries where the cultural values are more supportive of hire-fire rules. The psychological impact can be in terms of 'low confidence', 'low level of trust' feelings of 'insecurity' and 'frustration'. Some companies have found innovative ways to deal with this crisis by giving partially paid leave, promise of taking back when 'good' times come, but this may not be possible for every firm. These are the challenging times for HR professionals.
This is the time to contribute more than ever in terms of maintaining the culture of organization, managing relationships with employees and helping them in making transitions in a less painful way. Leadership is what is needed and more so this initiative has to come from HR. Keeping people motivated when you cannot offer lucrative incentives, eliciting commitments when the annual salary hike has been kept aside, is going to be more daunting. Grape vines galore in these times, apprehensions, fear and anxiety sap organization's vitality. It will be difficult to ensure that right communication is propagated. HR has a bigger role to play - to keep the organization's credibility intact. Every action counts and reflects the true values of the organization. It is imperative to face these hard times with a humane touch and compassion. Things will come back to normal for sure but when that happens, there will be lot of effort required for organizations that are on a rampant spree to cut human resources at the tick of a second. Perhaps, it might be impossible for them to re-establish their 'image' once again.
There is lot of stake for HR in terms of its relevance and legitimacy both in the short and long term. The rebuilding exercise can make or mar the fabric of the organization. We cannot lead lives like that of Dickens characters - 'Gradgrind' - a man of facts and calculations or that of 'Bounderby' - a man perfectly devoid of sentiment. Dickens in his novel 'Hard Times', set in the socioeconomic context of the mid-nineteenth century, discounts the assumption that prosperity runs parallel to morality and highlights the importance of imagination in life. The message is that HR must not get bogged down by this 'crisis of figures' but look beyond and develop strategies that provide support to businesses and give direction.
(First published in NHRD Newsletter Jan 2009 Issue)
