Human Resource in Recession

Abstract

This paper suggested the New dimensions of HR Role in global recession in the organization through surveys and case studies. Last year the Global economy was grappled with the most severe Financial Shock. Indicative the magnitude of the shock, Equity market volatility is at or unprecedented, corporate Bonds yield are extremely high related to U.S. treasury yield, stocks and equity Prices have plummeted. With the Global Financial System deleveraging and the U.S. Economy in the midst of a severe Recession. The biggest challenge for companies and especially Human Resource in this economy downturn is to survive and to remain competitive, companies reorganized and reengineered to reduce waste. Recession poses the unique challenges to the HR department. Investments in human capital are not likely to be a high priority for companies whose very survival is threatened by the global downturn. Organizations have been buffeted about like leaves in a storm by many trends; recently the recession is one of the major results of it. Each Recession, as it unfolds, create the need for HR Practitioners to take a fresh look on there traditional model. Traditional Model of human resource management focuses on administrative functions: application processing, benefits, compensation benchmarking, dispute resolution, employee grievances, performance review, and rules compliance. It is the time to step back, understand the actual needs of the employees and the employers, strike a balance, redesign and innovate the New Roles of HR policies as per the need of company objective and market Environment.