“Does what we do really have any impact on an organization? Can organizations still treat people like shit and make money?”
This is specially true in light of the present crisis, where we see layoffs, job losses and pay cuts become the order of the day. Are organizations still investing on people? When jobs dry up, where do people go? And, after organizations are done with the blood bath, and the economy recovers, where do organizations stand?
Monday, February 02, 2009
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Salary cuts might not necessarily indicate 'treating people like shit'. It might just be the correction of over inflated salaries due to hyper growth experienced over last 5 years. Layoffs are sometimes important to maintain competitiveness. During growth, organizations do not have time to look at optimizing the layers/structures they are putting in place because focus is on delivering numbers. Slow down does provide them with opportunity to rationalize and right size the organization. Good organizations do not do it blindly. They shed the flab while keeping the core capabilities and key talent in place. Infact it is also a good time to hire qualified talent from the market at a 'fair price'. They do invest in people but it is selective. Separation is usually the last resort and if it is managed well with dignity and respect for individuals, it does create some anxiety but no long lasting bitter feelings. This is where HR has to assume leadership and manage the whole situation skillfully balancing interests of the organization as well as affected individuals.This does not happen in every organization hence some gain and some lose. Quality of HR leadership in such times can make or break it for the organization. Thats why they say, every threat comes with an inherent opportunity.
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