Question 1: What are the challenges faced by Right when the downsizing effort no longer is a popular human resource strategy?
One of the main challenges that the Right company will have to face when downsizing effort is no longer a popular human resource strategy is quite simply finding a new strategy that will work. In finding a new strategy one must take the strategic approach to HRM. In the strategic approach to HRM there are six key elements that are essential for HR managers to consider:
- recognize the impact of the outside environment
- recognize the impact of competition and the dynamics of the labor market
- has a long range focus
- focuses on the issue of choice and decision making
- considers all personnel
- is integrated with overall corporate strategy and functional strategies
Taking these elements into consideration when formulating a new company strategy takes a lot of work and a lot of time, which will be a challenge.
Another challenge to consider when downsizing is no longer an option is bringing talent and innovation to the company. Human Resources’ main goal may have been to get employees to as low a number as possible, but bringing in talented and innovative workers can really bring a company’s freefall to a halt. Apple is an excellent example as to the good things that can come out of focusing on hiring talented individuals rather than simply dumping employees. Apple was struggling to keep afloat in mid-1980’s and consequently began to downsize. After a while Apple decided to bring some talent onto their team, and the decision brought new inventions to the table, which ultimately became extremely favorable for the company. “It wasn’t until Apple hired creative and innovative people who introduced the new Mac Notebooks, the iPod, and the iPhone that Apple was able to finally resurrect itself” (Human Resource Management pg 10)
Question 2: What