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Human Resource Management Tools and Systems AlignmentAnother fundamental role of human resource leaders during a downsizing initiative is to align human resource programs, systems and polices to support the strategies of the new organization. For example, an organization devoted much of its communication effort during its downsizing to emphasize the purpose of the downsizing; the aim was to create a healthier company in which the surviving employees could look forward to long and rewarding careers. This organization modified their compensation program to include stock option and profit-sharing programs not previously available to emphasize the survivors' stake in the new organization (Serving the American Public: Best Practices in Downsizing, 1997). In this example, the organization used compensation to help demonstrate the degree and quality of employees' efforts after the downsizing initiative.In addition to compensation, HR leaders can help to foster loyalty to the new organization through benefits that help employees balance work and family issues (e.g. flexible work schedules). "The existence of these benefits in the work structure is important because without them, employees either quit their jobs or become unable to handle the responsibilities of their job if they can't arrange for day care or elder care providers" (Solomon, 1992, p. 55). These are some examples of benefits that will help relieve employees' pressure and stress and will likely increase their commitment, energy and creativity.Job design is also an important component in organizational downsizing. Work processes must be adjusted to the smaller size and different goals of the new organization to help alleviate stress and increase motivation and productivity. "Where jobs are designed to be more empowering, and where employees are motivated by the job itself, the effectiveness of the worker may improve in spite of downsizing in the past or the threat of downsizing in the future" (Jalajas & Bommer, 1999, p. 330). Designing jobs that create a greater degree of empowerment will likely increase motivation in the workplace and produce desirable results.6. Training and DevelopmentDownsizing companies expect more out of the remaining employees. Therefore, it is absolutely essential to provide the surviving workforce with the knowledge and skills required to deal with the challenges they will most certainly face going forward. Without the necessary knowledge and skills, employees cannot be productive and will be more likely to fail. "Unfortunately for organizations undergoing significant change, most survivors who lack the necessary skill base will fail by avoiding new challenges, maintaining a low visibility and no risk profile, and resisting change where ever they can" (Jackson, 1996, p. 7). It is, therefore, critical for human resource leaders to develop strategies during downsizing to invest in the surviving workforce.Developing employees after a downsizing is essential to building the skill sets needed to support the new culture and to retain the employees that have stayed. The importance of training and development has been seen in the recent trend of organizations increasing training budgets. The American Society for Training and Development reports that training budgets have risen steadily, from an average of 1.8 percent of payroll in 1997 to 2.0 percent for 1998 for a typical large employer. The Benchmarking Service participants projected a 14 percent jump on average from 1998 to 1999 (McMurrer, Van Buren, & Woodwell, 2000). Companies need to consider employee training and development as a priority to boost performance and profits.One way for organizations to make training and development a priority is by not cutting training and development budgets in areas that will be necessary in providing employees with the knowledge and skills they will need to support the new organization. In addition, organizations need to ensure that employees are equipped with the attitude, language and tools necessary to deal with future change and the flexibility required to meet constantly shifting business demands. Organizations that slash training and development budgets will find a further dysfunctional organization when moving into the new environment after downsizing. Instead of cutting employee development programs for shortterm financial gain, organizations should assess their need of both current and new programs and align them with the new management and/or technical skills that will be required going forward in the new organization (Jackson, 1996).
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