National Institute of Business Management

Ist Floor, Swathandrya Samara Smrithi Bhavan, Nandavanam Road

Palayam P.O. Trivandrum 695 033
E-mail: admin@nibmglobal.com
0471- 4014294, 4014298

2.) Human Resources Management

Question: The present state of recession in the IT Industry as a Human Resource
Manager, how are you going to undertake Human Resource Planning at Macro Level to
tide over this crisis?
According to the National Bureau of Economic Research (NBER), recession is defined as "a
significant decline in economic activity spread across the economy, lasting more than a few
months, normally visible in real gross domestic product (GDP), real income, employment,
industrial production and wholesale-retail sales". More specifically, recession is defined as when
businesses cease to expand, the GDP diminishes for two consecutive quarters, the rate of
unemployment rises and housing prices decline.
http://www.investopedia.com/ask/answers/08/cause-of-recession.asp
According to a UN report, the current economic crisis could "overturn the established order" in
the global IT industry. A report from the UN's International Telecommunications Union (ITU)
says the recession will challenge many firms, but will also revitalise the industry and allow "new
entrants with new technologies to thrive". While there will be challenges for many, the report
predicts opportunities for "disruptive technologies and/or business plans", which are "unlikely to
come from traditional players". http://www.computerweekly.com/news/2240088479/The-bigpicture-of-how-recession-will-affect-IT-industry
Wikipedia describes Human resources management (HRM, or simply HR) is a function in
organizations designed to maximize employee performance in service of an employer's strategic
objectives.[1] HR is primarily concerned with the management of people within organizations, focusing
on policies and on systems.[2] HR departments and units in organizations typically undertake a
number of activities, including employee benefits design employee recruitment, "training and
development", performance appraisal, and rewarding (e.g., managing pay and benefit systems).
[3]
HR also concerns itself with industrial relations, that is, the balancing of organizational practices
with requirements arising from collective bargaining and from governmental laws. [4]
https://en.wikipedia.org/wiki/Human_Resources_Management
As a HR manager Planning is one of the most important tools that can be used to counteract the
economic recession and contribute to economic growth. The corporate HR Plan and the
Organizations Purpose will be the top priority. As HRM is about humans as a resource, a manager
has to retain and obtain pure quality of human resources always at the right time, place and price.
The manager has to insure that all the resources are utilized optimally.
HR Planning is the formal process of linking organizational strategy with HR practices. It is about
perceiving organizational practices as a whole and not just a piecemeal. To overcome the adverse
effects of the recession, the HR department must plan an effective HR Policy at Macro level. This
HR plan will be designed to pay close attention to shaping the priorities of the HR function and not
on the activities relating to the organizational function as a whole.

National Institute of Business Management

Ist Floor, Swathandrya Samara Smrithi Bhavan, Nandavanam Road
Palayam P.O. Trivandrum 695 033
E-mail: admin@nibmglobal.com
0471- 4014294, 4014298

The Human Resource Planning is one of the most critical, complex and ongoing fuctions of a HR
manager. It involves a multiplicity of functions with a variety of issues. Some of the most important
issues include: To decide on the Goal and Objectives; To estimate the future man-power
requirements; Auditing the current human resources; Analyzing the current jobs; and then develop a
final HR Plan

1) To decide Objective and Goal: As an IT organization, it should have a long-term goal with
matching objectives. The company must have a good communication plan to let employees
know about the recession and the long-term plans it has. Instead of cutting back on employees, it
should
should match employees salary with estimated income. Employees must be motivated to expand
the market to launch new product to increase income from extended market coverage. The
company cannot lay off staff and recruit new ones. This will demoralise the workers. It could
recruit quality employee by short out process, this will help rapid growth of company.
2) Estimate the Future Man Power Requirement: To prevent over employment during economic
boom, the manager must estimate future requirements of man power. This will avoid unnecessary
appointments and recession.
Proper balance between investment and outcome is must to gain profit without affecting quality
of product. - Forecasting also based on factor of economic cycle such as inflation, raw material
cost etc. - It should be done periodically.
3) Auditing Human Resources: In order to make quality decisions about future growth and
prevent future recessions, the human resource manager must audit the current staff according to
what benefits they bring to the company. Their qualifications, experiences, current job, salary,
added value, etc. These criteria must be analysed and the data must be used to prepare workers
for future needs. Employees can either be trained to suit future needs, or replaced by suitably
qualified individuals.
4) Job Analysis: The data gathered during the auditing of the employees can now be analysed. It
can determine what each employee is doing, how much they invest in the company, how much
they earn, how experienced they are, their current qualifications and their need for updated
training, are they an asset of burden to the company, etc.
The answers to these questions will determine the status quo of the company, and work out the
future requirements that will be needed.
The HR manager can then ascertain what particular skill or qualification is lacking and to be
recruited on priority basis like software maintenance, software development, antivirus, cyber
security, hardware maintenance, service delivery to customer etc.
5) Develop final HR plan: The last step in this process will be to use the information to develop
the final HR Plan to either:
upgrade the existing staffs training or to recruit qualified, experienced staff that would be
an asset during economic recessions.

National Institute of Business Management

Ist Floor, Swathandrya Samara Smrithi Bhavan, Nandavanam Road
Palayam P.O. Trivandrum 695 033
E-mail: admin@nibmglobal.com
0471- 4014294, 4014298

decide to utilize local man power to reduced High pay burden for service delivery to
customer for particular product.
check availability of part time labour
plan good recruitment process to get best and deserving candidate.
The HR team can conduct primary research among HR and recruitment professionals to
come out with a picture of how companies have acted and reacted, as well as
recommendations on how leaders can take a proactive approach to staffing for the future.