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Let us first know the meaning o the word µpolicy¶. Dale yoder says that ³policies
are general statements that guide thinking and action in decision making.´ In other
words, policies are understandings which guide or channel thinking and action.
They delimit an area within which a decision is to be made and assure that the
decision will be consistent with and contributive to objectives.

HRM or personnel policies also guide thinking and action in relation to personnel
functions and issues. They offer general standards or parameters based on which
personnel decisions are reached.They are like road maps or managers on
employment, maintenance and growth o workforce. HRM policies are plans of
action which commit the HR managers to a general course of action.

In the words of Michael Armstrong ³HR policies are continuing guidelines on the
approach the organization intends to adopt in managing its people. They define the
philosophies and values of the organization on how people should be treated, and
from these are derived the principles upon which managers are expected to act
when dealing with HR matters.´

Thus, HRM policies are the guidelines which define how the HR values, principle
and the strategies should be applied and implemented in specific areas of HRM.

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1.‘ HRM or personnel policy is generally derived from the personnel
objectives of an organization.
2.‘ It is a plan of action. It is understanding which guide or channel thinking
and action in personnel decisions.
3.‘ It contains an expression of HRM philosophy and principles as well.
4.‘ It defines µcourse o action¶.
5.‘ It summarises past experience in the form of useful guidelines.
6.‘ It serves as a standing plan that can be put to use repeatedly.
7.‘ It contains corporate and human values.
8.‘ HRM policy may be explicit or implicit.

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These may be classified into the following categories:
1.‘ è 
   :- these are established by top management to guide
HRM managers at various levels.
2.‘

    :- these are formulated to meet the requirements of
certain peculiar situations which have not been covered by the earlier
policies.
3.‘ x     :- these are formulated under pressures from external
agencies such as government, trade associations and unions.
4.‘ è

   :- it defines how the organization fulfils its social
responsibilities for its employees and sets out its attitudes towards them.
It is an expression of organisation¶s values or beliefs about how people
should be treated.
5.‘ -    :- these policies cover specific issues such as hiring,
rewarding, employment, promotion, work-life balance, employee
development, involvement and participation, employee relations, health
and safety, discipline, grievances, redundancy, etc. such policies remain
in line with the basic framework offered by the general policies.
6.‘ x     :- implied policies are inferred from the behaviour o
members. These exist implicitly as a philosophy of management and an
attitude to employees that is expressed in the way in which HR issues are
handled.
7.‘ D
       :- formalized policies spell out
managerial thinking on paper. Hence, they have very little room for loose
interpretation. The advantage of explicit policies in terms of consistency
and understanding is very clear. But written policies can be inflexible,
constrictive and platitudinous. These may be expressed in abstract terms.
Although, written Policies are important, their value is reduced if they are
not backed up by a supportive culture.

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The coverage of HR/personnel policies has been classified on the basis of HRM
function. In brief, the specific policies should cover the following areas as
described below :
1.‘      :- these are related to recruitment and hiring,
selection, placement and work assignment activities. These spell out the
organisation¶s determination to give equal opportunities to all, irrespective
of sex, race creed, disability, age or marital status. These policies also
describe the terms and conditions of employment ± compensation policy,
hours of work, holidays, overtime, transfer, lay-off and the like.
2.‘     : - a promotion policy states the organisation¶s
intention to promote from within to satisfy the growth needs of employees.
It describes the bases of promotion. It reconciles the demands of
employees to go ahead and organization¶s needs for fresh blood from time
if it is not to stagnate. Promotion policy should be fair and just to all.
3.‘    
    :- the employee development policy
expresses the organisation¶s commitment to the continuous development of
skills and abilities of employees in order to maximize their contribution
and to give them the opportunity to enhance their skills, realize their
potential, advance their careers and increase their employability. It covers
the kind of employees to be trained, time span of training programmes,
methods of training, qualifications of the trainer and incentives to be given
to employees for self advancement. It should also mention the areas like
career planning and development, performance appraisal, organizational
change and management development.
4.‘  
  :- the reward policy could cover such matters as ;
a.‘ Providing an equitable pay system ;
b.‘ Equal pay for work of equal value ;
c.‘ Paying for performance, competence, skill or contribution;
d.‘ Gain sharing or profit sharing ;
e.‘ The relationship between levels of pay in the organization and
market rates;
f.‘ The provision of employees benefits;

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 g.‘ The importance attached to the non-financial rewards;

5.‘     
  :- these policies cover different aspects of
human relations like :
a)‘ Motivation, morale and communication,
b)‘ Leadership style,
c)‘ Union recognition and representation,
d)‘ Collective bargaining,
e)‘ Prevention and settlement of industrial disputes,
f)‘ Participative management and employee voice policy,
g)‘ Medical assistance and sickness benefits.
h)‘ Housing, transport, uniform and allowances.
i)‘ Joint consultation and suggestion schemes.
6.‘    

 
  :- the policy on grievances could
state that employees have the right to raise their grievances with their
managers. Employees are also given right to appeal to a higher level I they
eel that their grievance has not been resolved satisfactorily. The
disciplinary policy should state that (a) employees have to right to know
what is expected of them, and (b) what could happen if they infringe the
organisation¶s rules. It should be based on the principles of natural justice.
7.‘   
 
-
 

:- the policies cover how the
organization intends to provide healthy and safe places and systems of
work. The policy on age should take into account these acts :
`‘ Age is poor predictor of job performance.
`‘ It is misleading to equate physical and mental ability with age.
`‘ More of the population are living active, healthy lives as they get
older.

A substance abuse policy could state that ³employees identified as having

substance abuse problems will be offered advice and help. No-smoking
rules will also be required. Sexual harassment will not be tolerate.´

8.‘ 

  

    :- a policy on managing diversity
recognizes that there are differences among employees and that these
differences, if properly managed , will enable work to be done more

^
 efficiently and effectively. This will create a productive environment in
which everyone will feel valued and their talents will be fully utilized. A
new technology policy could state that there will be consultation with
employees about the introduction o new technology. It will also state about
the steps that would be taken by the organization to minimize the risk o
compulsory redundancy. The redundancy policy could state that if
redundancy is unavoidable, those affected will be given fair equitable
treatment, the maximum amount of warning, and every help that can be
provided by the organization to obtain suitable alternative work.

9.‘   

 !"#$ %

 & :- this is an important and new
unction of HRM. Work-Life balance policies define how the organization
intends to allow employees greater flexibility in their working patterns so
that they can balance what they do a work with the responsibilities and
interests they have outside work. The policy will indicate how flexible
work practices can be developed and implemented. (Michael Armstrong) it
will emphasize (a) flexible hours, (b) compressed working week, (c) term-
time working contracts, (d) working at home (e) special leave for parents,
(f) career breaks, and (g) various kinds of child care.








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NEW YORK, July 23 /PRNewswire-USNewswire/ -- How is the economic

downturn affecting the American workplace? A new study released today by the
Families and Work Institute (FWI) finds that in the face of recession, and at a time
of cost cutting, the overwhelming majority of employers (94%) are maintaining or
increasing their workplace flexibility programs. In fact a quarter of the employers
(26%) specifically used flexible workplace options -- from reduced work weeks to
telecommuting -- to minimize the need for layoffs.

The study, based on a May 2009 survey of U.S. employers with 50 or more
employees, measured a number of trends including percentage of employers
reducing labor and operational costs, specific cost reduction strategies, and how
different types of employers are helping employees deal with the recession.

"It is hardly surprising that our survey finds that 77% of employers are cutting and
controlling labor and operational costs during the recession," said Ellen Galinsky,
co-founder and president of FWI. "What is surprising is that that between 34% to
43% of employers are actively helping employees weather the recession, that
employers are largely retaining or increasing workplace flexibility as way to
manage through a difficult economic environment, and that 57% of employers are
giving employees some or a lot of input about the flexibility they use."

Ms. Galinsky is testifying today before the Joint Economic Committee of

Congress, as part of a hearing entitled "Balancing Work and Family in the
Recession: How Employees and Employers are Coping."

The FWI study, which is downloadable in full at www.familiesandwork.org, is

based on a May 2009 survey of a random sample of 400 employers. Among the
more notable findings:

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 `‘ Two-thirds of employers have experienced declining revenues over the past
12 months, another 28% reporting that that revenues have held more or less
steady, and only 6% have experienced growth.
`‘ Most employers (77%) are reducing or controlling costs during the recession
and 90% of those experiencing lower revenues have taken steps to reduce
labor and operational costs.
`‘ The most common strategies to control costs include:
u‘ Decreasing/eliminating bonuses or eliminating salary increases (69%)
u‘ Lay-offs (64%)
u‘ Hiring freeze (61%)
u‘ Eliminating all travel that is not essential to business (57%)
`‘ A large majority of employers are either maintaining the workplace
flexibility options they offer (81%) or increasing them (13%). Only 6% have
reduced such options.
`‘ 26% of employers have specifically used flexible workplace options to
minimize the need for lay-offs.
`‘ 18% of employers with 25% or more union employees are offering buyouts
or other inducements for early retirement versus 6% for other employers.

The FWI report analyzes a number of the survey findings based on size of
employer; proportion of men versus women; proportion of hourly versus salaried
workers; proportion of union employees; and non-profit versus for-profit
employers.

"Employers are increasingly recognizing the value of work-life balance policies to

their bottom lines -- now we see it's true in good times and in tough times," said
Congresswoman Carolyn B. Maloney, Chair of the Joint Economic Committee.
"Offering flexibility to workers is a low-cost way to boost morale, loyalty, and
productivity. This new report by the Families and Work Institute, confirms that
smart employers are working with their employees to avoid layoffs. More
employers should see these policies as an essential element of the 21st century
workplace. Leaders in Washington must work with leaders in the business
community to further increase workplace flexibility that works for both employers
and employees."

The FWI survey was based on a weighted random sample of employers with 50 or
more employees. It was conducted by Harris Interactive and based on 20-minute
telephone interviews with directors of human resources or persons with primary
responsibility for human resources.

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The lead article in today¶s New York Times is titled, ³Black-White Gap in Jobless
Rates Widens in City.´ It describes the impact of the recession on the black
community, and in New York City, in particular. The article notes that while much
attention has been focused on professional services, such as the financial sector and
Wall Street, the impact on other sectors of the City¶s economy has been even
greater.

The article¶s new jobless statistics seem to defy common sense. While it would be
easier for businesses to save money by cutting higher-paying jobs at the top of the
corporate ladder, the impact on lower-paying jobs, especially in the retail sector ²
due to the decline in consumer spending ± has been even greater.

However, the results should come as no surprise to observers of U.S. politics and
economic realities. Despite the fact that we have a black President, there is still
much inequality in our nation. We¶re making progress, but sometimes it appears to
be two steps forward and one step back.

Fortunately, the best approach, to shine a light on the situation, is now occurring
thanks to the article in the Times. Here are the statistics cited in the Times study:
From the first quarter in 2008 to the first quarter in 2009, the national
unemployment rates for blacks rose from 8.9 percent to 13.6 percent, compared to
a rise for whites of 4.8 percent to 8.2 percent. In NYC, it was even worse: from 5.7
percent to 14.7 percent, compared to 3.0 percent to 3.7 percent for whites.

Do the math, and you¶ll see the disparity. If you¶re an employer, please think
carefully about your human resources policy.

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Employee Relations involves the body of work concerned with maintaining
employer-employee relationships that contribute to satisfactory productivity,
motivation, and morale. Essentially, Employee Relations is concerned with
preventing and resolving problems involving individuals who arise out of or affect
work situations.

HR as of today came out of the concern of some very forward-thinking employees

who knew that as the days of field work and apprenticeships would turn into
factory work, etc., there would be a need of a separate entity that would focus on
employees and their needs-fair wages, safety, and job satisfaction. These
employees were involved in maintaining a successful workforce and "looking out
for the little guy." In the HR field, having the soft skills to be able to work with
employees is vital. There are situations that we deal with daily that require a great
deal of strength, ingenuity, and character, goal now is both employee orientated
and company oriented--especially with the new laws and regulations that come
about.

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In order to get through these rough times and keeping the right people actively
engaged, performing well, and keeping them on board requires business owners of
all sizes to use all the tools at their disposal. The assessments, along with the

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company standard hiring and training processes will help in developing a better
understanding of the people employed. The foundation of success is the best use
of assets ³people´. Any management expert will tell that human capital
(employees) is the most valuable asset. The problem is that only a small
percentage of businesses use a pro-active, systematic, analytical process to select,
manage, retain, and plan for succession for employees.

Belief in using the available tools to see results from selection, to coaching and
performance management, will help in achieving greater productivity and
profitability through human talent.

There is a need to invest a little to gain a lot. Recognizing that well µdesigned¶
values help to actualize the µunique goodness¶ of an organization through the
creation of an enabling culture, ensures that people who intend to contribute
meaningfully are not hindered in any way from doing so.

This is the time for HR to get very innovative. Looking at teams getting cross-
training with internal trainers, investing in more team tasks, such as an office 5S,
most organizations keep collecting a list of important but not so urgent tasks.
Pulling a list out and bring it to the table will focus on value creation.

Fighting the µfear of recession¶ is worse than fighting recession. For, fear causes
confusion ² amongst employees as well as the employers. Remember the rumor
about an IT major cutting down salaries? The organization later clarified that it
was only adjusting for a drop in the variable pay earnings which was paid in
advance.
So the first piece of advice is not to react in a way that can cause distrust and
confusion. Cutting quickly the frills ² such as the late-leavers drop facility, team-
parties, outings and sometimes even the birthday cake, etc, ² seem very common
but may not help.

`‘ Supporting lean practices but not to be seen as resorting to knee-jerk

reactions. If there is an overall µLean-Drive¶ and that is done with employee
involvement, they themselves will suggest very good ideas. But one-sided
reactive actions can lead to losing employee confidence and add to

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 cynicism.
`‘ Non-performance should be dealt with seriously. In good times,
organizations tend to be generous. I have come across some companies
suddenly starting to focus on µnon-performance,¶ when the going is not so
good. They use the long-unused performance data for acting on non-
performance, during recession.
`‘ The problem is unless a culture (read µinstitutionalized practice¶) of
promoting high performance and acting on non-performance is there, there
is a danger of losing credibility. Culture confusion can only have a bad
effect on employee morale and business performance.
`‘ This could be the right time to invest to find out what brings value or what
employees value. Is it the brand identity, job challenge, leadership or a
sense of belonging? Discover and invest in the positives. During recession
or bad times, attrition drops and it is time to use it to advantage. So, positive
investments will create an amplified effect on the workforce which is more
stable.
`‘ Also, good communication matters all the time and more so during bad
times. Keep communication channels open (to suggestions) and responsive
(to queries).

It is a mistake not to invest in people¶s motivation and commitment,´ This is a

time when we need people to be creative and innovative and come up with new
solutions. Permanently anxious staff will not come up with new solutions.
Solutions are not found in a bunker.´Creating humor to relieve stress is widely
recognized and supported by research.

³When you¶re asking so much of people, you have to release the tension´.

But the irony is that stress initiatives are axed at a time of heightened need.
Employers have to understand that stress is going up and people are worried about
debt, mortgages and job security. People are watching colleagues being made
redundant and restructuring taking place and their own workload increasing as a
result. ³Staff who stays throughout a recession will be more engaged and have
greater company loyalty than those recruited afterwards´.

³Adversities like these are good teachers if there is an aptitude to learn´. And in
this crisis we will learn how to survive and to innovate. And the future of

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employment will be very different or it could be even a permanent change´.

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NEW YORK - Many small business owners are likely to find a perennial
summertime challenge, keeping their companies staffed during peak vacation
times, even harder this year.

Layoffs and jobs lost to attrition mean that many companies have leaner staffing,
while employees still want to take time off. Owners may find this summer that they
need to change their vacation policies. And those without policies may feel the
need to create them.

Perhaps the biggest issue this summer is how many employees can be off at the
same time. Owners who, for example, let three people be off at once last year may
find that only two can go now.

A further complication is the fact that fewer companies are taking on extra help for
the summer.

"Two years ago, you'd be calling a temporary agency," said Rob Wilson, president
of Employco, a Chicago-based resources outsourcing company. "There's been a
drastic reduction in temps filling in on vacation time."

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Some owners might be tempted to cut staffers' vacation time, but that's something
they should absolutely avoid. Instead, Wilson said, owners should encourage
employees to take their time, let staffers know that they've earned their days off
and that their work is appreciated.

"It's an opportunity for a business owner to build goodwill with employees," he

said. "Let them take it, come back, be energized."

Still, some summer time-off perks like half-days on Fridays may be disappearing.
Wilson suggested that owners forced to make such cuts give something back to
employees, like pizza for lunch, or ice cream.

"It's a good morale booster, people appreciate it and it's not a big expense," he said.

And, in any economy, owners need to know how they're going to resolve the
conflicts that arise when too many people ask for the same time off. In many small
companies, employees are able to sort out among themselves who will take a
particular day or week off. Wilson said vacation scheduling can be an opportunity
for team building ² employees who can figure out their vacations together will
probably be able to collaborate on work-related projects.

But vacation planning shouldn't be left entirely to staffers. An owner should have a
written vacation policy that details for employees how they much vacation they're
entitled to, how they accrue it and how they schedule it. A policy should include
the methods of resolving conflicts, whether it's according to seniority or on a first-
come, first-served basis.

Owners can find sample vacation policies online. The Business Owners Toolkit
has a fairly lengthy sample policy. It also contains policies including sick time,

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jury duty and parental and military leave. You'll need to register with the site to
download the policy.

The Employment Law Information Network has several samples.

You can also get advice from human resources professionals about how to create a
policy. If money is tight, SCORE, an organization of retired executives that advise
small businesses, offers free help on HR and other topics. You can find a SCORE
counselor through.

Wilson advises owners to be flexible in their policies. For example, if a young

staffer has a once-in-a-lifetime opportunity to go to a family reunion, being rigid
and sticking to a policy based on seniority is likely to hurt morale, and not just for
that employee. Some diplomacy may be called for, and that means asking the more
senior staffer to choose another time. Or, figuring out another way for all the work
to be done while both staffers are away.

Meanwhile, many business owners are taking less time off this summer.

"We're seeing a lot more CEOs and presidents of companies in the trenches
working more and cutting back on travel time," Wilson said. Many are probably
concerned about keeping business coming in and also trying to save money, but the
sacrifice they're making is something that employees notice and will appreciate, he
said

 
 
    
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 As the recession has cloaked the world economy at large,
bed closures, layoffs, decline in elective procedures and
patient volume have affected the healthcare industry.
Experts agree that this is one of the tougher times when
human resources professionals get sleepless nights as the
companies get tougher on its employees. Recession thus
changes the world of work culture where cost-cutting
plays a predominant part. The first affected are the
salaries, perks and employee welfare initiatives. All the
luxuries enjoyed by the employees are either reduced or
may come to a standstill. Understandbly, this does not go
down with any employee, in spite of them understanding the recession or shift in
economics of the organisation. However, an interesting approach is that a careful
approach and planning on welfare initiatives in the slump period can actually earn
great laurels for the organisation. "It is extremely important to practice employee
welfare initiatives at every level. Issues like employee engagement, grievance
redressal, counseling, and learning and development on a continuous basis are
crucial to hospitals today," shares Sharabani Basu, Management Consultant,
Sharabani Basu Associates, Bangaluru.


    
 

Apart from a good team, good work environment and a great boss, what motivate
the employees 'secretly' is the welfare schemes an organisation offers. "Employee
welfare initiatives, in its wider sense therefore, are a key driver for motivating and
engaging employees," quips Pankaj Mittal, Vice President - Human Resources and
Chief People Officer, Fortis Healthcare Limited.

Apparently, recession seems like a big dent on 'expenses' perceived in the above
welfare activities. However, according to experts, it is not so. "It is important for
administrators to realise that employees make organisations. Hard-working and
content employees make a loyal and efficient work force. This would translate into
satisfied customers and goodwill for the healthcare institution. Time and money
spent on employee welfare is an important and fruitful investment that any
organisation should seriously consider," shares Dr Sanjeev Singh, Senior Hospital
Administrator, AIMS, Kochi.

 
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It is important to think before deciding on obligatory
cost cutting, whether it helps the company and its
reputation in the long run. Will the organisation be
able to attract talent when troubled times are over?

During tough times, employee welfare measures

should at least be maintained, if not increased to
give a sense of confidence to the employees. The
reason is logical-when the employee is already under financial hardship because of
the adverse effects of the recession, if the hospital resorts to cost cutting measures
directed at employees' welfare, it would de-motivate him further.

"The organisation has to look beyond short-term profits and ensure continuation of
employee welfare to build real loyalty," shares Col Manesh Masand, CEO, Jaslok
Hospital, Mumbai. Experts feel that when cost cutting is obligatory, it is always
best to get the consensus of the employees. Employees must be made to understand
that the decisions taken are temporary and to participate in good spirits. At such
times, organisations must listen to employees and involve them in the process.
"Employees also must be made to understand that recession is a learning time and
that it helps to redesign work and work culture positively," believes C Shobhana,
General Manager-HR, BGS Global Hospitals, Bangaluru. Recession is also a time
when employees assess the security levels offered by the organisation. Business
may demand adopting cost effective measure to operate but pink slips are not the
right answers. An approach of caring, looking after, mentoring and coaching from
the organisation to the employee works best in adverse times.

x 
 


More than the recession it is the fear that bothers the employees. If a hospital
decides to cut down the employee welfare activities, it might send a wrong signal
to the employees that it has started facing issues related to recession. According to
Ankush Gupta, Senior Manager, HR, PD Hinduja Hospital, Mumbai, this might
lead to employees becoming distressful and full of worries which in turn would
divert their concentration from service to finding mechanism for self defense, in
case, if they face crisis. This may lead to dip in the quality of service delivery. "It
is better for the organisations to be prudent in better times, so that problems are not
faced during difficult times like this," shares Shobhana

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oo often news coverage focuses on discreet current events at the expense of a
more synthetic approach to notable happenings. While it is important that the
public learns of major incidents in the world as they take place, sometimes this can
lead to some observers "not seeing the forest for the trees."

On account, it might be easy to miss the connection between the global recession
(and possible future depression) with the ongoing decline of environmental well-
being and increase in human population. All the same, these three areas are deeply
intertwined. Here are a few details concerning the relationship.

Let's start with the present economic decline: Part of the reasons that there are
global jitters involving the weakening of the $ USD is that it provides a means to
assess worth of other holdings. In short, many countries and individuals, directly
and indirectly, assign their own fiscal strength based on the dollar's standard. This
is especially the case when they are carrying the US public debt, which is currently
well over $9 Trillion dollars.

In addition, practically all of the US national debt owned by foreigners is held by

private investors except for central banks, which hold 64%. Further, the size of the
foreign-owned portion of this amount owed is practically three times the total
amount of currency in circulation! Indeed, the numbers given by the Federal
Reserve for June 2007 put its amount at US $755 billion.

In tandem, the average US family's credit card balance is now almost 5% of its
annual income (with a median U.S. household income presently at $43,200), more
that 40 % of American families spend more than they earn, personal bankruptcies
in US have doubled in the last decade and the overall consumer debt has reached
$2.46 Trillion as of June 2007 (excluding the $440 billion of revolving home
equity loans, $600 Billion owed for second mortgages and an overall $9 Trillion in
mortgage debt). As such, the total US consumer revolving debt grew to $904
Billion last summer.

Why has this happened? In part, it is because real wages of most workers
languished or declined since 1975. So, many Americans reacted by taking on loans
to maintain or raise their living standards.

As Polonius, Shakespeare character in Hamlet cautioned, "neither a borrower, nor

a lender be" and, certainly, there is trouble with being either. However, everyone,

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even an individual with neither role, can be in trouble when the value of the
currency that he maintains plummets.

So, why is the American money losing clout? The answer is partly dependent upon
the way that it gained worth in the first place and, indeed, its relative merit is
created by any number of factors. These include the country issuing it having a
robust economy (a trade surplus rather than being a debtor nation), having
something of universal worth tied to it for which it stands, such as precious metal
from which the $ USD was effectively severed in 1971 when the US government
refused to exchange a relative small sum of dollars held by several other
governments for gold, or some other coveted resource for which the currency alone
must be traded, something like OPEC petroleum. (The latter contingency is the
reason that some dollar holders find the Iran Bourse, with its plans to reject the $
USD as payment for oil, threatening and suspect that the recent cable failures were
a deliberate attempt to postpone its arrangements being set in place.) In short,
without a monetary standard having it¶s worth assigned by being attached to
something deemed of unquestionable worth, it tends to have uncertain value.

Meanwhile, the US economy, itself, can't grow. Partly, this is due to globalization
of industry, which has created jobs in second and third world countries by taking
many of them away from Americans, who cannot continue their high rates of
consumption of products due to the increasing deficit of employment opportunities,
diminished fiscal returns, raising prices for goods (including staples) and
advancing inflation. So, it is no wonder that, while oil and food prices are rising, so
are the number of home foreclosures while home worth, in general, is depreciating
across the board.

Simultaneously, it is no surprise that US wages are kept depressed by the existence

of a proliferation of out-of-work laborers relative to the smaller amount of jobs in
existence. At the same time, the already huge homeless population, as would be
expected, is skyrocketing. In fact, the number of persistently homeless Americans,
ones with repeated episodes or who have been homeless for long periods, involves
between 847,000 to 3,470,000 individuals, many of whom are children and
unemployed veterans. Posed another way, close to 3.5 million people, of whom
roughly 1.35 million are minors, are likely to experience homelessness in any
given year in the US (National Law Center on Homelessness and Poverty, 2007).
At the same time, further outsourcing of labor guarantees that more jobs will be cut
with the outcome that US citizens will possess even less money to buy either
locally manufactured or imported goods. In relation, economic growth in other
countries is, also, due to slow down, as exports are no longer quickly snapped up in

co
the US. However, this consequence was long set to develop, given that, since 2000,
a total of 3.2 million ² one in six factory jobs ² have disappeared from the
American shores and the lowest rate of US job growth in four years occurred as
recently as December 2007 when, simultaneously, the unemployment rate shot up
0.3 percentage points to almost 5 %. By factoring in huge losses in other work
positions -- such as the ones related to construction, fiscal services and retail sales -
- it is easy to see that American spending, even for relatively inexpensive foreign
made goods, was bound to take a nosedive. How could it not do so when adequate
job provision and reasonable salaries have, in effect, largely disappeared?

All the same, this overall arrangement has not been bad for those in the top
economic tier as their capacity to pay meager second and third world wages,
coupled with receipt of high income from finished products acquired by first world
customers, has created an economic boon. Indeed, by mechanisms such as these,
the ranks of millionaires and billionaires, during the past few years, has greatly
expanded. (The number of millionaires in the world swelled to 8.7 million and the
number of billionaires around the world rose to a record 793, the latter of which
hold $2.6 trillion in assets and personally garner an extraordinary amount of
resources.) So have the overall profit margins of many transnational companies,
such as the pharmaceutical, oil and other industrial giants.

All considered, there is no way that many Americans, even with the minimum
wage set at a measly $5.85/ hour, can compete with overseas $1/ day wages, nor
subsume the fundamental costs associated with their rents, mortgages, the increase
in food and oil prices, rising medical insurance payments and other basic expenses.
On account, an overall decline in purchases has, recently, taken place in the US
and, while this is not good for suppliers, it does give the environment a break.

The reason that it does is that the slow down in business, while ominous from an
economic standpoint, is good for the environment, that cannot continue to be
assaulted at an ever higher level in order to make an ever higher financial gain off
of its largely finite resources. As it is, ecologists anticipate that, if present rates of
deforestation continue, rainforests will disappear from the planet within this
century, which would kill off an inordinate amount of the world's animal and plant
species while effecting global climate in unpredictable ways. (Presently, the global
annual rate of deforestation is .8 percent.)

The outlook for the ocean life is just as grim with currently 71-78 % of it being
'fully exploited', 'over exploited' or 'significantly depleted' according to the United

0

Nations. In addition, many types of aquatic plants and animals are on the verge of
total extermination and 90 % of all big fish are already gone.

Add to this that, according to recent UN studies, arid lands prone to desertification
cover more than one third of the planet's landmass, which supports more than
twenty percent of the human population. While requirements from these delicate
environments grow, they increasingly become incapable of supporting life. As
such, the global rate of desertification is rapidly escalating, although the actual
rates vary by locality.

All of this in mind, we cannot keep expecting ever greater economic growth, nor
an ever enlarging human population. Instead, we collectively need to drastically
cut back on personal resource use, curtail manufacturing (due to stresses on the
environment caused by global warming and other industrial impingements) and
face a world that is likely to provide a dwindling supply of jobs.

In actuality, we cannot even endure a 5.5 to 7 degree F. (3 to four degree C.) rise in
temperature due to carbon loading from industry and transportation of goods. This
is because our doing so would all but ensure that human life would be
unsupportable over much of the globe and likely prevent pollination for many
major crops. Along with the resultant changed rainfall patterns, the lack of
pollination would prompt a tremendous decrease in food production.

Regardless of whether this extreme heat occurs or not, the global population,
according to the International Data Base, is expected to increase from 6 billion in
1999 to 9 billion by 2042, an increase of 50 percent that will require a mere 43
years. This, of course, has alarming implications for the maxed out natural world
(including its water supplies), the labor market, food availability, product price and
ever higher global warming.

So, just how are we to cope with these assorted dismal factors? First, we need to
recognize the absolute need to stymie growth of GDP in every country, proactively
delimit population and reduce general consumption. Put another way, we cannot
have any positive outcomes from expecting myriad environments to yield up an
unlimited cornucopia of goods, especially as our very lives depend on our severely
lowering greenhouse gases and maintaining a large diversity of healthy intact
natural environments. Second, we must, quickly, develop a wide array of "green
jobs" to make up for the scarcity of ones that will come to pass on account of
policies mandating deliberate curtailment of energy intensive manufacturing.
Third, we need to quickly create business capable of providing, on an extensive

0c
basis, electricity derived from benign alternatives to fossil fuels.

Further, it would be helpful for people to form into small scale, self-sustaining
communities to ride through the recession. Indeed, their establishment would,
without doubt, help with the transition away from transnational sweatshops,
provide regional employment and curb reliance on oil as less goods, including
necessities, would require extensive transportation if produced locally.

The coalescence of a recession, mounting population, peak oil, mass extinction,

urgent water shortages, climate change and other disastrous environmental impacts
challenge us to take immediate action. Our doing so need not be disastrous if we
collectively begin to make the essential changes on the scale needed. If we do not,
the results could likely be catastrophic on a scope barely imagined by any of us.
With firm resolve, let us all begin to undertake the critical modifications at once.

 -  is a progressive living in Massachusetts. She has spent many years
involved with assorted types of human rights, environmental and social service
efforts.





  &x 
"
D ‘

00
All of us know coworkers and friends who¶ve lost jobs. This recession has been
remarkably egalitarian. An interesting piece in -
 01
takes a different
sort of look at the recession¶s impact on work and friendships.

Workplaces are where people associate across economic lines. Work fixes different
classes of people into the same place every day. When the recession terminates
work for some or places others in a near-broke condition, friendships are altered.

Where do you take someone to dinner? What if a friend or coworker has lost her
house to foreclosure and doesn¶t feel comfortable asking you over (as in the past)
in the smaller, not-as-well-located apartment? Do you invite her over,
perhaps making her feel even worse?

What do you do when a friend or coworker¶s spouse loses his job, diminishing
savings; causing the cancellation of the Internet at home or a scale back of cable
channels; making the annual trip to see a ballgame, a play, a concert problematic?
Do you talk about your upcoming vacation when some of those around you can¶t
take one? Is it best not to talk about your life and just wait for others to talk about
theirs?

As the -
article says: ³Maybe this kind of unease is not a bad thing for people
who live in comfort. Watching someone you care about fall apart, one unpaid bill
at a time, should breed empathy. It should take you out of your new sandals and
into the frayed flip-flops of someone else.´ It should and sometimes does.

But it¶s not always that simple. Bitterness can seep into a relationship. Good
intentions can be misplaced. It¶s easy to feel damned if you do and damned if you
don¶t. In such difficult times, a good friend or coworker is sensitive, supportive,
and silent when necessary. That can be a tough job.

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-
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-
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The recession is an opportunity for HR professionals to step and contribute
strategically. In the classical strategy paradigm, we begin by looking at the macro
economic environment. Then we look at the micro-environment - what affects us
and our competitors. Next, we establish which strategic factors HR influences
directly. Finally, we drop down to our tacticsThe recession is about the creative
Human Resources Management. The HRM Function is asked to bring new ideas,
to change the HRM Processes and to develop or change the procedures. And this
effort has to be cheap or it has to cut the costs of the organization. The HRM
Innovation is easy in times of the business growth, but the recession is not good for
big innovative HRM Initiatives.

The HR Management has to focus on unpopular innovations during the recession

as the role of HR during the recession is to save money to the organization. The
senior management expects all the support functions to bring innovative ideas and
solutions which will lead to stronger organization, when the next growth era
comes.

The point has to be focused by HR management during recession are as follows:

`‘ To optimize the manpower strength.

`‘ To take strategic initiatives to increase the productivity and efficiency of the
entire organization.
`‘ To work on compensation benefits.
`‘ Redesign training and development programs.
`‘ Ensure your organization¶s policies and handbooks are up to date.
Remember that an annual review of your employee handbook for
compliance by an experienced professional is highly recommended. Also,
each employee having a copy of the employee handbook is not enough.
They have to be able to read and understand the content. Be sure that you
provide employees a handbook in a language they can read and understand.
`‘ Layoffs are never easy. Ensure you are familiar with your legal
responsibilities in a lay off to minimize your organization's risk. Be sure that
you have properly defined the criteria you are using to determine who will
be let go.

0^
 `‘ Alternative Workweek Schedules and Flexible Scheduling can maximize
production and cut-back on overhead costs for organizations. Be sure you
follow all of the DLSE rules when deciding if an Alternative Workweek
Schedule or Flexible Scheduling is right for your organization.
`‘ Cutting Pay may be an option to consider to save on today¶s costs. Is this
really an option for your organization? How are your pay scales as related to
the market? Are you willing to risk losing key employees whose talents may
be needed by other organizations, because you chose to reduce their pay at
this time? Remember, you should not cut pay without a recovering strategy
of how you will re-adjust when the economy has turned.
`‘ Downsizing does require internal document maintenance for your
organization. As jobs are modified and responsibilities are increased changes
also must be made to your job descriptions.
`‘ On the other hand the HR Management has to find some innovative
solutions during the recession like,

`‘ To identify the real key employees and to intact them in the organization
`‘ To identify the real top potentials and to strengthen their development
program

The HR Management has to have priorities in mind and the strategic impact of the
HRM Innovations in the recession time. The role of the HR Management is not to
minimize the costs for the time being, but to make the organization stronger and
ready for the future growth.

Recommendations while your employer facing negative challenges during

recession:

1. Top management should know the  



2. Do the brainstorming session with your top management and contribute in their
strategic planning.

3. A complete or partial5-  , however, communicate to the workforce that

the company many continue to recruit key individuals even in difficult times

4. Review the    

 


 to determine the key people
that company cannot afford to lose.

0u
5. D  Ê 
   - from top to down that will help in making
conducive atmosphere within the organization

6. Make prepare yourself for 



    therefore there
should be a proper counseling session.

7. To



 
  

8. Review all   *   

    to ensure that they are
purposeful and contribute directly to the success of the company.

9. Suppose the company has to lay-off staffs ensure that there are no other
opportunities for them in other functions or divisions of the organization.

10. Advise managers to deal the  


 
 .

Managing Human Resources (HR) in a difficult economic environment is even

more demanding than working in times of rapid growth. Therefore the

task of HR is very important to maintain equilibrium throughout the hierarchy.



     1
Here is how to keep your employees with you and away from your competitors
during tough economic times.

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The above steps will enable the employer to hold its team together during a
recession, and will even make bond between all of you stronger. Employees should

0Œ
be motivated enough to stick to the employer during tough times and put in the
extra effort required for the organization growth.

è$èD 4xX Ê--xèX

The most recent survey, which was conducted among 117 employers in early
December, found that other popular cost-cutting measures included:

`‘ Downgrading/canceling holiday party (35 percent)

`‘ Increasing benefits communication (32 percent)
`‘ Eliminating/reducing seasonal workers (28 percent)
`‘ Organization-wide restructuring (23 percent)
`‘ Raising employee contribution to healthcare premiums (20 percent)
`‘ Increasing pay communication (16 percent)
`‘ Restructuring HR function (14 percent)
`‘ Implementing a salary freeze (13 percent)
`‘ Having a mandatory holiday shutdown (13 percent)
`‘ Reducing/eliminating other employee programs (12 percent)

The percentage of employers that have already implemented salary freezes jumped
from 4 percent in October to 13 percent in December. Sixty-one percent of
employers reported that they reduced their planned merit increase for next year
from 3.8 percent to 2.5 percent.

 
   


HR is still more focused on transactional activities and HR operating efficiencies
than on high level strategic people issues.

However, the executives' concern about people is not translated into increasing
importance for HR. In fact, the HR function, which executives believe is concerned
with activities such as reward and benefits, performance evaluations and HR
operating efficiencies is often seen as being unconnected with how a business will
deal with key strategic HCM challenges such as talent management, workforce
productivity and leadership development.

x

  
The recession is about the 

 
  

. The HRM
Function is asked to bring new ideas, to change the HRM Processes and to develop

0£
or change the procedures. And this effort has to be cheap or it has to cut the costs
of the organization. The HRM Innovation is easy in times of the business growth,
but the recession is not good for big innovative HRM Initiatives.

On the other hand, the top management understands the effort to innovate the
HRM Processes better. The top management is in the search for the potential cost
savings and they count every single penny brought by the line management. The
HRM Costs are usually a very significant cost to the organization and the HRM
Function has to be proactive.

The HRM Function has to focus on unpopular innovations during the recession as
the role of Human Resources during the recession is to save money to the
organization. The top management expects all the support functions to bring
innovative solutions, which will have to make the organization stronger, when the
next growth era comes.

The HRM Innovation during the recession has to focus on the following topics:

1. Reduce the number of employees in the organization

2. Strategic initiatives to increase the productivity and efficiency of the whole

organization

3. Redesign of the compensation scheme

4. Cancellation of several benefit schemes

On the other hand the HRM Function has to find innovative solutions for the
following topics:

1. Identifying the real key employees and to keep them in the organization

2. Identifying the real top potentials and to strengthen their development

program

The second two topics have to be done with the minimum additional costs and it is
a really hard task to accomplish. The HRM Function has to have priorities in mind
and the strategic impact of the HRM Innovations in the recession time. The role of
the HRM Function is not to cut the costs for the time being, but to make the
organization stronger and ready for the future growth.

0º
As a leader and strategic partner in your organization, you have the tools to assist
your company in surviving and thriving through these difficult times. First you
need to start thinking strategically«

` How can the organization make effective and economical changes that will help
through these difficult times?

` What can I do to minimize our organization¶s risk for fines, violations and/or
unnecessary legal proceedings?

Following area should be looked upon:

`‘ Ensure your organization¶s policies and handbooks are up to date.

Remember that an annual review of your employee handbook for
compliance by an experienced professional is highly recommended. Also,
each employee having a copy of the employee handbook is not enough.
They have to be able to read and understand the content. Be sure that you
provide employees a handbook in a language they can read and understand.

`‘ Layoffs are never easy. Ensure you are familiar with your legal
responsibilities in a lay off to minimize your organization's risk. Be sure that
you have properly defined the criteria you are using to determine who will
be let go.

`‘ Alternative Workweek Schedules and Flexible Scheduling can maximize

production and cut-back on overhead costs for organizations.

`‘ Cutting Pay may be an option to consider saving on today¶s costs. Is this

really an option for your organization? How are your pay scales as related to
the market? Are you willing to risk losing key employees whose talents may
be needed by other organizations, because you chose to reduce their pay at
this time? Remember, you should not cut pay without a recovering strategy
of how you will re-adjust when the economy has turned.

`‘ Offer Professional Development as a reward or incentive to employees for

performance and hitting goals. Professional Development courses are an
economical way to reward employees with the gift of education and skills
they will use throughout their lifetime.

0o
 `‘ Downsizing does require internal document maintenance for your
organization. As jobs are modified and responsibilities are increased changes
also must be made to your job descriptions.

`‘ Remember that the law is very specific on what positions can be considered
Salaried ± Exempt and what constitutes an Independent Contractor. Looking
at adjusting your staff to fit into one of these two categories is NEVER the
answer when trying to save money.

ÊèX
xèX

  
      
  

 
  
   1

1.‘ Top management should know the contingency plan.

2.‘ Do the brainstorming session with your top management and contribute
in their strategic planning.
3.‘ A complete or partial job freeze, however, communicate to the
workforce that the company many continue to recruit key individuals
even in difficult times
4.‘ Review the employee performance evaluations to determine the key
people that company cannot afford to lose.
5.‘ Flow of Communicate should be from top to down that will help in
making conducive atmosphere within the organization
6.‘ Make prepare yourself for individual and group concerns therefore there
should be a proper counseling session.
7.‘ To maintain a calm atmosphere
8.‘ Review all HR policies, processes and procedures to ensure that they
are purposeful and contribute directly to the success of the company.
9.‘ Suppose the company has to lay-off staffs ensure that there are no other
opportunities for them in other functions or divisions of the organization.

Ê
7
8
(-èxXxx x
ÊèÊ--xèX

G

Having survived two recessions and read about many more, I know that this
industry is one of the most cyclical.

Typically, we all become depressive as sales slow and costs increase, then we toast
our amazing foresight when residual values improve and interest rates fall.

So why not use the current financial situation to your advantage and enjoy the
benefits of good fleet management?

x 
# 
As a simple rule of thumb, the lower the emissions of a car the lower its wholelife
cost will be.

So if ever there was a time to introduce a low-emission fleet policy, it has to be

now.

From an HR perspective, employees who may have fled from a greener vehicle a
year ago may see the light today when living costs are rising.

Even if they don¶t, the opportunity to easily switch employers is reduced in the
current climate.

"
- 9   # 

Falling residual values and uncertain interest rates mean lease rates will almost
certainly go up.

So it can make sense to extend existing contracts instead of taking out new ones
now.

Many lease providers accept this practice as it avoids a distressed sale on their
bottom line.

When normality returns, new contracts will be more realistically priced and you
won¶t be locked into recession-based pricing.

Ê "   
  

Gc
All lease providers borrow funds, take risks and have demanding shareholders.

A tough economy sees attitudes towards risk alter and larger than average rental
differences are seen.

If your lease provider is finding borrowing tough and suffering from residual
losses, you may find its pricing becomes less attractive than an alternative
provider.

'&
  

Wholelife cost has never been so important.

As manufacturers start to see sales fall, some great deals will begin to appear.

But after a few months that great deal can look totally different when the tax effect
is felt, increased running costs become apparent, and the driver¶s tax bill hits
home.

Always look beyond the headline price.

3%
 
  
Many companies refuse to consider removing free fuel, even when faced with big
savings.

This madness must stop.

If the employee¶s tax cost is equal to the fuel cost, you and the employee together
are paying twice.

If the cost of the tax is half the fuel cost, together you¶re worse off.

The solution is: do the sums, share the savings, save money.

7
 


 

G0
It¶s hard to believe how many fleet cars are now privately owned. Most cash
allowances were calculated when times weren¶t tough.

With incomes stretched and loan defaults rising, how many drivers will have cars
repossessed or ignore service and maintenance?

It will be bad enough coping with a car-less salesman but a dangerous car has dire
consequences for all.

£  
 ,


 .
This isn¶t madness.

It¶s using tax to its best effect.

Low- emission cars and big fleet discounts equal savings.

An expanded car scheme for all employees with the employer¶s cost covered by
the driver can be achieved as employees who pay tax at 40% could then pay as
little as 10% benefit-in-kind.

Forward- thinking leasing companies will do the administration.

:
"

 
Over the next few weekends, most car dealerships will look like Wild West ghost
towns.

Unfortunately for manufacturers and dealers, cars are still being built, resulting in
massive over-supply.

Manufacturers who would have laughed at some fleet deals a year ago may soon
be beating a path to your door.

Now is the time to negotiate.

GG
o
   
Running a business requires serious management of capital.

When an economy is stagnant, companies face an array of issues.

Car contracts usually run for years and decisions taken today will have long-term
consequences.

The sensible solution is some serious financial modelling with lots of analysis.

Most service providers can arrange this, but you need to be sure that their advice is
truly independent.

8 

There will always be a place for face-to-face meetings, but how many can be
avoided.

The phrase µis your journey really necessary?¶ should be asked regularly until
sensible use of time and travel becomes second nature.

ÊèXÊ$4-xèX
Developing and maintaining the right communication process is essential in these
trying times. Any slight negligence or lack of communication might result in a
situation that might lead to total deterioration of the work culture and employee
morale. Every organisation therefore has to avoid it. In such trying times an
organisation should avoid layoffs and cutbacks. Nothing will reduce employee
morale more than wondering whether they will have a job tomorrow. If you must
cutback as a last resort to survive, communicate the reasons why and the depth of
the layoffs upfront. Clarify what steps you are taking to safeguard the employment
of the remaining employees and when the bad time is over, they might be called
back to rejoin.

G^
Obviously, the impact of the recession on employers is a moving target, subject to
continual change.
It is our intention that this ³snapshot in time´²May 2009²of a representative
group of employers
will provide a picture of the trends, both the negatives and the positives. This study
makes it clear
that employers are reducing labor and operational costs. This study also indicates
that employers
recognize that retaining and engaging employees are critical strategies to
organizational strength
during the recession and beyond.







Gu
%x%$xè 
 (
1.‘ Ibid., for review of these studies.
2.‘ Khandwalla, P.N. (1992). ?-

 ,
 p. New Delhi:
Sage.
3.‘ Schein, E.H. (1985). è1 ,
  2

 , p.9. San
Francisco: Jossey-Bass.
4.‘ Sathe, V. and E.J. Davidson (2000). µTowards a new conceptualization of
culture change¶, in N.M. Ashkanasy, P.M. Celeste, and M.F.Peterson (eds),
'
è1 ,
,
, pp. 279-296. New Delhi:
Sage.
5.‘ wuinn, R.E. and M.R. McGrath (1985). µThe transformation of
organizational cultures: A competing values perspective¶, P.J. Frost et al
(eds), è1,
. London: Sage.
6.‘ Pareek, U. (2002). p  

 '(# 3 è#. New Delhi: Tata
McGraw-Hill.
7.‘ Kluckohn, F. and F.L. Strodtbeck (1961). ±   ±
è
.
Evanston, IL: Rowe Peterson.
8.‘ Pareek, U. (2002). p 

'(# 3 è#, Chapter 100. New
Delhi: Tata McGraw-Hill.

GŒ
G£