New Dimension of HR Role in the Global Recession

Abstract

This paper suggests the New dimensions of HR Role in global recession in organizations through different cases. Since 2008, the Global economy is grappled with the most severe Financial Shock. Indicative of the magnitude of the shock, Equity market volatility is unprecedented, corporate Bonds yield are extremely high compared to U.S. treasury yield, stocks and equity Prices have plummeted all time high. 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 Department under this economy downturn is to survive and still remain competitive. Companies have been reorganizing and reengineering to reduce waste. 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. Every time as recession 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. Key Words: Human Resource Management, Recession, Compensation Benchmarking, Reengineering.

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