A practical approach of hrm in downturn

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HETAC BA (HONOURS) DEGREE ASSIGNEMENT

Human Resource Management:

2773 Words

By : Florent GRIS & Coline FLORY Student N°: 1544751/1544749

Module Leader: Enda Murphy

March 2010

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CONTENTS
Introduction ..................................................................... p 3 I. HR Planning
a. Downsizing .................................................................. p 4 b.Recruitment ................................................................ p 5

II.

Training and development
a. Needs analysis & design........................................... p 7 b. Evaluation & management development ........... p 7 c. Succession planning ................................................. p 8

III.

Performance and pay
a. Engagement.............................................................. p 9 b. Performance management .................................... p 10 c. Motivation ................................................................... p 10 d. Retention ..................................................................... p 11

IV.

Employee relations
a. Industrial relations & collective bargaining .......... p 12 b. Grievance &disciplinary .......................................... p12 c. Social responsibility.................................................... p 13

Conclusion ....................................................................... p 13 Bibliography ..................................................................... p 14.15
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Introduction:
With the actual economic downturn, in many companies, HumanResources are the first department that the top managers approach to cut coasts. Indeed, the human capital is often the one which costs the most to the company. That’s why the recent years were those of the strict limitation of recruitment, of the increasing in departures, and of lower pay. But reacting like this isn’t always the best choice, because it’s often slows down the future development of theorganisation and affect its competitiveness. Therefore, it will be interesting to study all the aspects of HRM to discover the other solutions that some companies choose, to face this crisis while limiting the risks of lack of performance.

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I.

HR Planning

HR Planning is an unavoidable step in a period of cost reduction. Downsizing is often the first solution used by a company inorder to avoid too much loss. Furthermore, all the choices that will be made by the HR department are critical, that’s why it is paramount to plan them. Although, that in that kind of period, companies are more used to dismiss, it’s sometimes needed to recruit for particulars jobs. In that case, the company has to forecast the right number of people, in the right place, with the right knowledge,skills, and attitudes. a. Downsizing Downsizing is define as “A reduction in the size of an organization, especially by reducing the number of direct employees in order to save costs and increase the flexibility and adaptability of the organization.” Oxford Business Dictionary In an economic downturn, the expenditures of the company stay the priority. That’s why the past few years, we saw so manycompanies which suggest to their employees to leave. Even the large organisations as PSA Peugeot Citroën, Renault, Continental, Valeo, ArcelorMittal, Natixis, Sanofi Aventis, Hewlett-Packard, have been forced to use that kind of methods to face the crisis. But some studies had showed that downsizing is not always a good solution: For instance, Professors James Guthrie, from the University of Kansas,and Deepak Datta, from the University of Texas at Arlington, examined data on 122 firms that had engaged in downsizing and statistically analyzed whether the program had improved their profitability. The result was that the average company did not benefit from a downsizing effort, no matter what situation and industry they were in. Actually, the main problem in that kind of program is to lose more...
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