Has the recession changed the principles of management?
- Thread starter iamdevesh
- Start date
I think management as a practice has certainly been impacted by the recession and while it is difficult to pinpoint one areas that has been impacted the most, HR management is certainly an area where the effects are perhaps most visible.
In less turbulent times, most companies can provide windows of time to new hires to acclimate and be trained. Today, that luxury isn't available and a major shift across industries in HR management can perhaps best be summarized with the question "what can you do for me on Day 1?" Companies can afford to be selective with the supply demand gap so large between talent and opportunities.
Another shift in HR management has been a more intense focus on determining who form the key personnel with a corporation. With a shrinking budget to contend with when determining salary increases and bonuses, this key group needs to be established so financial reward can disproportionately flow to them. The premise is to ensure you keep your best and diminish the emphasis of retention among the replaceable.
Finally, HR management has to contend with the challenge of acquiring candidates with specific skill sets in a few areas that are actually in short supply. Examples include turnaround management abilities and capital raising professionals.
In less turbulent times, most companies can provide windows of time to new hires to acclimate and be trained. Today, that luxury isn't available and a major shift across industries in HR management can perhaps best be summarized with the question "what can you do for me on Day 1?" Companies can afford to be selective with the supply demand gap so large between talent and opportunities.
Another shift in HR management has been a more intense focus on determining who form the key personnel with a corporation. With a shrinking budget to contend with when determining salary increases and bonuses, this key group needs to be established so financial reward can disproportionately flow to them. The premise is to ensure you keep your best and diminish the emphasis of retention among the replaceable.
Finally, HR management has to contend with the challenge of acquiring candidates with specific skill sets in a few areas that are actually in short supply. Examples include turnaround management abilities and capital raising professionals.
It may have. It has definitely made the management across industries more alert and cautious; and has altered the risk perception. But, the degree and magnitude of such an impact will take time to surface.
aashi.sarang
New member
To some extend, one can say that recession has deeply affected the demand level of the mangers. But this has not brought about any drastic changes in the principles of management. As we all know one of the keen principle of management is the principle of opportunism. In that context good managers will always be those who know to utilize the upcoming opportunities.
