Human Resource Management for Massive Layoffs- myassignmenthelp

Question: Discuss about theHuman Resource Management for Massive Layoffs. Answer: Summary The recruitment market of the GCC has been affected by the unpredictable economy which has caused massive layoffs in many organizations. However, the falling oil prices in my HR department have become an opening to restructure and refocus. A loss of $340 billion in revenue in 2015 Manama (2016) was experienced by the oil exporting countries from the MENA area even though the market is in the process of stabilizing with sluggish investment in the workforce. To respond to such a shift, 40 per cent of organizations in the Middle East is focusing on a restructuring exercise in three main areas namely nationalization, efficiency and budget optimization. Contrariwise, the rapid adjustment in the oil prices in 2014 University of East Anglia (2016) has led to reduced liquidity and a decrease in the demand. The restructuring of the organizational structures has been accompanied with many remarkable implications such as recruitment of middle to senior managers and re-educating the existing emp loyees and reducing the size of some teams. According to Munoz et al. (2011), The HR can assist by reducing the time it takes to the development of managers by empowering the low-level ones. The GDP of Abu Dhabi has also been affected by the disruption of the macro economic; however, the governments are refocusing with the aim of strategizing their response such as Saudi Arabia (Mottaghi, 2015). Challenges The unpredictable economy due to the fall in oil prices will affect my business both internally and externally. The falling in oil prices will lead to massive layoffs due to the decline in GDP within the organization which will have a ripple effect (Iverson and Zatzick, 2011). The business will also face challenges due to the restructuring of the organizational structure as a response to the shaky economy. The restructuring will impact on the overall budget and efficiency of service delivery. Additionally, the reduction in the GDP will directly lower the investment in the workforce. Effects of the challenges on HR Strategies The decision of massive layoffs will result in direct costs which will be incurred as a result, and this can be in the form of severance pay to the outgoing worker and the overtime payment to the remaining employees and the costs incurred for temporary services. Also, the predicted massive layoffs will lead to increased turnover from the senior employees for fear of job security. This will affect the HR strategy of training of employees on customer service because the employee already invested in will be gone. The restructuring have physiological and psychological effect at the individual level of the workers such as uncertainty, identity loss, changes in reporting associations and recruits, all of which affect the performance of the employee and the business as a whole (University of East Anglia, 2016). This will influence the traditional HR strategy of recruitment practice which aims at recruiting the appropriate and qualified employees in respective departments. Such a change may affect the quality of the hired employees which in turn will influence the quality of service delivery (Armstrong and Taylor, 2014). The training and organizational development of the business are likely to be affected by the restructuring.(Ashkenas et al., 2015) HR strategies HR strategy for Massive Layoffs Layoff planning and Strategy Identify the issues commonly associated with layoffs through research or previous company experience. Then determine the ways in which the layoff will contribute to the goals of the business in addition to the particular department that require a low-cost structure for profitability. Which personnel should be involved? To determine the employees to be affected by the layoff plan, the considerations should include; inclusion of the line managers in the process, notification of the union leadership of the issue at hand (in situations it exists). Pre-layoff step Necessary prevention of violence guidelines and dispute resolution should be in place, initiate a process of escort of laid off workers. The layoff process and after-math Identify the exact number of employees to be laid off, identify and train the people to respond and monitor the progress, set up clear and accessible communication channels to calm rumours, hire appropriate counsellors, and develop process of informing the affected workers. Initiate an immediate process of discussion with the remaining employees regarding their job safety and organizational commitment towards their work. HR strategy for organizational restructure Restructuring strategies After the business has decided reduce the number of employees due to the nature of the economic market, current labour market and the goals of the company, the HR can achieve this by reducing the number of staff by layoffs, rearranging roles to develop well designed jobs, regrouping work units for the purpose of efficiency. Training and development strategies This includes equipping the remaining employees with skills to undertake the new roles and providing them with opportunities for development in readiness for the future positions in the organization. Recruitment strategies This plan includes the hiring of new workers with multitasking abilities not in the former employees in consideration of the cost benefit analysis. Outsourcing strategies The organization uses external agencies or persons to complete specific tasks which do not require a full time employee Collaboration strategies The business can decide to collaborate with other organization with the aim of sharing the training costs of workers and for exposing their employees to other companies to acquire skills and insight. The primary aim of this strategy is to reduce costs while maximizing benefits. The fluctuations in the market prices of oil directly affect the organizational process and practices which necessitate changes majorly in the areas of nationalization, efficiency and budget optimization. The human resource department is central to such changes for it must act immediately to the evolution while at the same time safeguarding goals of the organization and its competitive position in the market. References Armstrong, M., Taylor, S. (2014).Armstrong's handbook of human resource management practice. London: Kogan Page Publishers. Retrieved from: https://www.academia.edu/download/31856253/Human_resource_managment_practices.pdf Ashkenas, R., Ulrich, D., Jick, T., Kerr, S. (2015).The boundaryless organization: Breaking the chains of organizational structure. New Jersey: John Wiley Sons. Retrieved from: https://www.ccsenet.org/journal/index.php/ijbm/article/download/11576/8189 Iverson, R. D., Zatzick, C. D. (2011). The effects of downsizing on labor productivity: The value of showing consideration for employees' morale and welfare in high?performance work systems.Human Resource Management,50(1), 29-44. Manama, B. (2016, April). Economic Diversification in Oil-Exporting Arab Countries. InAnnual Meeting of Arab Ministers of Finance. Retrieved from: https://www.imf.org/~/media/Websites/IMF/imported-legacy sidebar/external/np/pp/eng/2016/_042916.ashx Mottaghi, L. (2015). MENA Economies Hit by Conflicts, Civil Wars, and Lower Oil Prices. Munoz Castellanos, R. M., Salinero Martn, M. Y. (2011). Training as a source of competitive advantage: performance impact and the role of firm strategy, the Spanish case.The International Journal of Human Resource Management,22(03), 574-594. University of East Anglia. (2016). Restructuring affects staff well-being regardless of job cuts.ScienceDaily. Retrieved from: www.sciencedaily.com/releases/2016/02/160201220120.htm