A Manager's Guide To Human Behavior

HR can shed "touch-feely" image
by making tough decisions

PEOPLE MANAGEMENT

This is a problem tailor-made to give the HR discipline a chance to shine.

"PEOPLE are our most important resource," many company executives say, somewhat piously, and then they proceed to show exactly the opposite. They're perhaps unknowingly harsh in times that call for greater understanding, or they're misguidedly generous when they should be firm. And the sad truth is this means that when facing tough times, their human resources decisions often work against their big-picture needs.

Solution? HR directors must take the lead and help their organizations think strategically in this area. They need to help position their organizations to deal with the difficult times we face now, so that employers and employees can enjoy the recovery that is sure to follow. Ironically, because of its unfortunate "touchy- feely" image, HR is actually in the best position to help make the company act with "more head, less heart."

This includes taking a well-considered approach to workplace downsizings, one that considers the reality of financial problems, as well as the company's strategic needs. What happens if companies do not do this?

All too often, one of the first results of a lighter order book is that the best employees, those most vital to the company's future, leave to find work elsewhere. This limits the company's future.

Second, well-intended managers may resist essential cost-cutting steps. This can put the entire company at risk. Managers may want to be compassionate and avoid downsizing, but it may be misplaced if payroll costs sink the entire company, putting everyone out of work.

Eventually, when senior management realizes that costs are strangling the company, too often their reaction is to order line managers to "reduce staff by X per cent" to reach a sustainable payroll cost level. They simply want a company that is less expensive to operate, without thinking much past that objective.

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