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HR’s response to
Turbulent Times
Harish Devarajan

12TH National Conf., NHRD Network
Chennai, 29 Nov. 2008
copyright-people unlimted 2008
Turbulent Times
• Financial crisis

• Industrial action

• Business downturn

• Social unrest

• War times

• Natural calamity

• Epidemic

• Resource shortage

• Political turmoil
copyright-people unlimted 2008
Risk Matrix

High

Impact

Low
Unlikely

Certain

Likelihood
copyright-people unlimted 2008
Where should HR focus ?
• Supporting Leadership to take the right calls
• Championing the communication strategy
• Engaging the employees in the solution space
• Not lose sight of strategic imperatives
copyright-people unlimted 2008
Supporting leadership
• Ensuring in-depth awareness of the context
• Sufficiently robust contingency planning
• Standing up for your beliefs / convictions
• Ensuring commitment/capability
copyright-people unlimted 2008
Communication
• Do not attempt to shield people from reality
• Send a singular communication across the organisation
(preferably from CEO)
• Honestly share the likely direction of the crisis
• Keep forums open for continuous two way
communication
• Openly discuss the rumours and clarify the facts.
copyright-people unlimted 2008
Engaging the employees
• State the milestones to cross in our revival
journey
• Invite employee participation in idea generation
to reach milestones
• Keep them informed of decisions and progress
copyright-people unlimted 2008
Strategically Aligned
• Purpose - Going concern concept
• In sync with our values / philosophy
• Residual impact of action - internal
• Organisational character / reputation
copyright-people unlimted 2008
Main Employee concerns
• Negative impact on business
• Insecurity – Jobs / Career
• Cash flow issues – Bonus/incentives/salary
• High stress levels – personally and amongst team
members
• What next ?
copyright-people unlimted 2008
Responses to current crisis
Opportunities
Productivity improvements

Leadership Development

Cost rationalisation

Strategic Hiring

Traditional

Novel

Employment Engagement

Hiring freeze

Leveraging talent for CSR

Layoffs
Threats

copyright-people unlimted 2008
Decision points
• Cost rationalisation – Symbolic vs. Impactful
• Salary cuts – Differential vs. Uniform
• Job losses – Image vs. Reality

copyright-people unlimted 2008
Coming to terms ….
• In the interest of Larger Good
• There are emotions too
• Softening the blow
• Commitment to their future
copyright-people unlimted 2008
Lessons for Good times
• Avoid Fasting or Feasting approach
• Check for Long term - Commercial sense
• Build flexibility in line with business model
• Trust and Credibility are not built in a day but can be
lost in one.
• Appreciation gap wrt to concepts
copyright-people unlimted 2008
Contextual
Capabilities/Characteristics
• Change management
• Crisis handling
• Competence based thinking /action
• Caring – sensitive/engaging/genuine
• Commitment
• Credibility

copyright-people unlimted 2008
Developmental Building Blocks
• Understand the business model/environment ?
• Awareness - Geo/Pol/Eco/Soc changes
• Learn from past experiences
• Understand the why and not just the what
• Strong commercial orientation
copyright-people unlimted 2008
Professional postures?
• Team player : Do what I am told or stand up for
what I believe in ?
• Management : Focus on Shareholder or Employee ?
• Effectiveness : Focus on the Means or the End ?
copyright-people unlimted 2008
Who ever said living your
convictions was easy ?
THANK YOU
copyright-people unlimted 2008

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HR’s response to turbulent times

  • 1. HR’s response to Turbulent Times Harish Devarajan 12TH National Conf., NHRD Network Chennai, 29 Nov. 2008 copyright-people unlimted 2008
  • 2. Turbulent Times • Financial crisis • Industrial action • Business downturn • Social unrest • War times • Natural calamity • Epidemic • Resource shortage • Political turmoil copyright-people unlimted 2008
  • 4. Where should HR focus ? • Supporting Leadership to take the right calls • Championing the communication strategy • Engaging the employees in the solution space • Not lose sight of strategic imperatives copyright-people unlimted 2008
  • 5. Supporting leadership • Ensuring in-depth awareness of the context • Sufficiently robust contingency planning • Standing up for your beliefs / convictions • Ensuring commitment/capability copyright-people unlimted 2008
  • 6. Communication • Do not attempt to shield people from reality • Send a singular communication across the organisation (preferably from CEO) • Honestly share the likely direction of the crisis • Keep forums open for continuous two way communication • Openly discuss the rumours and clarify the facts. copyright-people unlimted 2008
  • 7. Engaging the employees • State the milestones to cross in our revival journey • Invite employee participation in idea generation to reach milestones • Keep them informed of decisions and progress copyright-people unlimted 2008
  • 8. Strategically Aligned • Purpose - Going concern concept • In sync with our values / philosophy • Residual impact of action - internal • Organisational character / reputation copyright-people unlimted 2008
  • 9. Main Employee concerns • Negative impact on business • Insecurity – Jobs / Career • Cash flow issues – Bonus/incentives/salary • High stress levels – personally and amongst team members • What next ? copyright-people unlimted 2008
  • 10. Responses to current crisis Opportunities Productivity improvements Leadership Development Cost rationalisation Strategic Hiring Traditional Novel Employment Engagement Hiring freeze Leveraging talent for CSR Layoffs Threats copyright-people unlimted 2008
  • 11. Decision points • Cost rationalisation – Symbolic vs. Impactful • Salary cuts – Differential vs. Uniform • Job losses – Image vs. Reality copyright-people unlimted 2008
  • 12. Coming to terms …. • In the interest of Larger Good • There are emotions too • Softening the blow • Commitment to their future copyright-people unlimted 2008
  • 13. Lessons for Good times • Avoid Fasting or Feasting approach • Check for Long term - Commercial sense • Build flexibility in line with business model • Trust and Credibility are not built in a day but can be lost in one. • Appreciation gap wrt to concepts copyright-people unlimted 2008
  • 14. Contextual Capabilities/Characteristics • Change management • Crisis handling • Competence based thinking /action • Caring – sensitive/engaging/genuine • Commitment • Credibility copyright-people unlimted 2008
  • 15. Developmental Building Blocks • Understand the business model/environment ? • Awareness - Geo/Pol/Eco/Soc changes • Learn from past experiences • Understand the why and not just the what • Strong commercial orientation copyright-people unlimted 2008
  • 16. Professional postures? • Team player : Do what I am told or stand up for what I believe in ? • Management : Focus on Shareholder or Employee ? • Effectiveness : Focus on the Means or the End ? copyright-people unlimted 2008
  • 17. Who ever said living your convictions was easy ? THANK YOU copyright-people unlimted 2008