Managing the slowdown
SUNDER RAJAN
Crisis time is the best time to strategically effect good changes in an organisation that improves the working climate. This can reduce pessimism among employees, raise their hopes for improvement and survive the bad time, reduce the sufferings of the lean period and get ready for the future needs of the organisation. The following measures can be examined for implementation, depending on the various internal and external factors that influence the economics of the operat
ion of the organisation.
Strategic management of recession can be seen from three broad guidelines. Improving effective management practices is one of the most important and crucial factor for cost-reduction, effective management of various processes and for improving the operational efficiency. An evaluation of all processes and systems is necessary to improve them wherever required as the situation demands.
Improvement plans
Practical cost-reduction improvement plans covering waste-reduction, efficiency improvement, applying value-engineering and re-engineering practices are some effective project-management practices. This is the best time to do it as during boom time all would become very busy at work to meet customer demands at any cost as during such time any cost reduction plans and the efficiency improvement parameters are not focussed or do not get the desired attention.
The flaws of the past have to be identified either through SWOT and group discussions, formation of task forces and assigning the task team with a schedule for achieving better results. This should necessarily be led by a very senior member of the organisation for direction, mentoring and to give the needed support.
Right sizing
The second area of focus should be managing human capital. Right sizing is the most cost effective and efficient strategy where excess manpower, or improper placement of people not in tune with their competencies are removed. This should be matched with the upgrading of people’s competencies through skill development to improve all round efficiency. Those who do not meet any of the above human capital re-structuring needs or those who cannot be trained in alternate skills/jobs need to be dropped and the exit managed preferably with exit route strategies. Peaceful exit process can be planned with scope for out-placements through the HR net-work which is important to retain the morale of the existing employees.
Talent development
It is also the best time to train potential people on emerging technologies, new domains, set the Management Information Systems (MIS) in a needed design, work on correctional aspects for improving the Project and Office efficiency, train people as per Training Need Analysis, Train many Managers through Train The Trainer Programme to become effective trainers and better managers within the organisation. Management to enhance the profitability will be very much cherished by all in the organisation. Loss of job must be taken as a last priority. If need be, people must be requested to participate in the salary reduction plan to save the situation. This will also build a feeling of ownership among employees.
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