Characteristics of Human Resource Management in Crisis

Abstract

In addition to the constant changes in business environment, caused by technological, economic, demographic, political and social conditions, occasionally there are large socio-economic breakdowns in the modern world, inflation, mass epidemics of new diseases, natural disasters and various other crisis phenomena. In times of crisis, the quality of human resource management - HRM, dedication to ideas and results of an individual, group, department, team, and organization - is particularly significant. The aim of this paper is to examine the role of HRM in maintaining key competencies, loyalty and commitment of employees in times of crisis. The paper will analyze the choice and justification of applied HRM measures, from the perspective of short- and long-term business success. Particular attention will be given to the effects of dismissing employees, reducing or freezing salaries and benefits, reducing or freezing training and development budgets, and other HRM measures. The paper will describe how, and to what extent, HRM measures contribute to organizational stability in times of crisis, what the long-term and strategic consequences are. Based on data analysis and comparison with HRM best practices, the paper will provide recommendations for acute HRM issues, which could have long-lasting consequences for organization, and could provide the sustainability of organization after crisis ends.