What role would the HR function play in developing both a medium and long term strategy to achieve the conflicting goals of reducing costs whilst maintaining the desired level of human capital?
Human Resource Management
CGMS Top management is pondering upon what all they can do for avoiding this economic downturn. They have multiple issues in front of them like laying off employees, staffing them in other departments, reducing expenditures looking at other strategies. Also, other important points came in front in this discussion like employing them in functional roles, proper training and development and implementation of HRIMS system. They were also worried that what will happen when the downturn ends if staff is laid off now as most of the staff is best in the industry in skills.
Answer to Questions
- What role would the HR function play in developing both a medium and long term strategy to achieve the conflicting goals of reducing costs whilst maintaining the desired level of human capital?
HR function plays a very important role in developing both a medium and long term strategy to achieve the ever conflicting goals of reducing costs whilst maintaining the desired level of human capital in CGMS. CGMS is a much respected company in mining arena in Australia. They need to formulate and implement appropriate human resource strategy in the dynamic and complex environment they are facing so that they maintain competitive advantage which they maintain in the Australian market. They should concentrate on their strategic role so that CGMS should maintain a balance between reducing costs while retaining best in class hand-picked talent which they have employed during previous years. HR should plan human resource deployment and activities which will help them to enable CGMS to achieve its strategic long term and medium term goals. HR should help in making decisions on all the intentions as well as plans of CGMS which are regarding employee relationship and work towards better recruitment, training , performance evaluation and management, training , rewards and recognition best practices . HR should become an important cog in the CGMS corporate and business strategy.
The First and Foremost objective of HR in CGMS should be to improve overall organizational effectiveness of Human resource management. HR should help CGMs to plan out what it intends to do about its human resource management policies as well as practices and integrate with overall business strategies. HR should take in account overall technology, uncertainty, economic environment changes, demographic, demand changing, dynamic competition strategies into equation. The global financial and economic crisis has affected their business in a very dramatic way and HR should help in formulating strategies for CGMS so that they can get through this economic down tide without harming much to their human capital (Globenock 2006). Globalization has shaped Australian market with tremendous development taking plan which are both driving force as well as outcomes of this dynamic competitive age. The demand has been cut down by the recent economic crisis with new order being strained but service book growing for CGMS. Also, they need to control expenditure and reshuffle people so that they are adequately staffed in every department and help make up for hiring new people for specific jobs in CGMS which are not occupied. They should be operationally more efficient so as to cut down costs for controlling expenditure as it will lessen pressure for cutting jobs and gives more leeway for people to be properly staffed. They should also look at innovative strategies for focusing more on service book and inflating it more while the order book isn’t growing due to economic issues. Under all of these severe economic issues which have been hampering with business strategy of CGMS they need to maintain a HR strategy for medium and long term predictions so as to have better edge to sustain the downturn but also ride the horse of economic uptrend when good times will be back (Adebayo 2006, pp. 125-141).