Transparent HRM Strategies: Minimizing Market Risks During Crisis

This presentation outlines HRM strategies to minimize market risks during crisis situations by emphasizing transparency and accountability. It highlights the importance of honest communication with employees about the company's financial situation and market threats. Key strategies include openly sharing information, ensuring equality in information dissemination, using appropriate communication channels, and admitting mistakes. By implementing these practices, HR professionals can foster trust, prepare employees for crises, and mitigate the impact of market volatility. The presentation references recent research articles to support its arguments, emphasizing the role of HRM in navigating economic challenges and promoting organizational resilience. Desklib provides access to similar student-contributed documents.

HRM STRATEGIES TO
MINIMIZE MARKET
RISKS
YOUR NAME

HONESTY DURING CRISIS
SITUATIONS
• EMPLOYEES WORK ACCORDING TO THE FINANCIAL SITUATIONS OF
THE COMPANY.
• HRM’s MUST CONSIDER DELIVERING BAD EWS TO THE EMPLOYEES,
TO MAKE THEM UNDERSTAND THE LEVEL OF URGENCY OF A GIVEN
SITUATION.
• WRAPPING A CRISIS SITUATION IN A LIGHT MANNER WOULD ONLY
KEEP THE EMPLOYEES MISINFORMED, AND THEREFORE, MIGHT
LEAD THEM TO MAKE BAD DECISIONS IN THE WORKPLACE, AS
WELL AS IN THEIR PERSONAL LIFE IN FINANCIAL ASPECTS (Hecklau
et al., 2016).

LETTING THE INFORMATION OUT
• EMPLOYEES MUST UNNDERSTAND WHAT IS WRONG IN THE MARKET
TO IDENTIFY THE SUITABLE WAYS IN WHICH A PARTICULAR
PROBLEM COULD BE MITIGATED.
• NO MATTER HOW BAD A THREAT A MARKET MIGHT BE FACING,
HRM’s SHOULD ALWAYS CONSIDER CONVEYING THAT TO THE
WORKFORCE.
• HRM’s SHOULD NOT FEAR LOSING TRUST OF EMPLOYEES AND
MAKING THEM FEEL INSECURE, BUT RATHER WARN THEM OF THE
EMERGENCIES IN THE MARKET, TO PREPARE THEM FOR CRISIS
SITUATIONS, TO AVOID PUTTING THEM INTO SITUATIONS LIKE THE
GLOBAL FINANCIAL CRISIS OF 2009.

EQUALITY IN SHARING
INFORMATION
• EQUALITY IN INFORMATION SHARING WOULD ONLY MEAN THAT THE
COMPANY WOULD ENSURE THAT ALL OF ITS EMPLOYEES ARE IN
THE SAME PLATFROM DURING THE TIME OF A CRISIS.
• THIS WOULD HELP THEM MAKE A DECISION IN MAKING THE RIGHT
CHOICES FOR THE COMPANY, AN FOR THEMSELVES, TO AVOID A
FURTHER AND BIGGER CRISIS SITUATION.
• THIS ALSO HELPS IN AVOIDING A COMMUNICATION GAP AND HELPS
IN EFFECTIVE COMMUNICATION IN THE WORKPLACE (Diaz-Carrion,
Lopez-Fernandez & Romero-Fernandez, 2017).

IDENTIFYING THE APPROPRIATE
CHANNEL
• CHANNELS PLAY THE MOST IMPORTANT PART IN LETTING A MESSAGE
REACH OUT TO THE APPROPRIATE AND INTENDED AUDIENCE OF THE
MESSAGE.
• HRM’s MUST ADOPT THE PERFECT AND MOST APPROPRIATE
COMMUNICATION CHANNEL TO MAKE SURE THAT EACH OF THE
MESSAGES REACH OUT TO THE APPROPRIATE AND INTENDED AUDIENCE,
WHILE AT THE SAME TIME, INFORMING THEM ABOUT THE URGENCY OF
THE SITUATION EQUALLY.
• HRM’s SHOULD KNOW THAT IF THE CORRECT INFORMATION DOES NOT
REACH OUT TO THE APPRPRIATE RECIPIENTS OF THE MESSAGE, A
COMMUNICATION MISHAP CAN INCREASE THE IMPACT OF THE CRISIS.

ADMITTING MISTAKES
• HRM’s ALSO TELL THE EMPLOYEES OF THE COMPANY ABOUT WHAT HAS
GONE WRONG WHICH AHS LED TO THE URGENCY OF A SITUATION IN THE
FIRST PACE.
• THIS WOULD BE HIGHLY BENEFICIAL TO THE EMPLOYEES SINCE IT WOULD
ENSURE THAT THEY WOULD BE ABLE TO WORK ON THOSE MISTAKES AND
BE ABLE TO MITIGATE THE RISKS OF SUCH CRISES ARISING AGAIN DUE TO
SUCH MISTAKES.
• THE MOST IMPORTANT THING TO NOTE IS THAT IF EVERY HRM FOLLOWS
THIS RULE, MITIGATION OF A MARKET CRISIS WOULD SIGNIFICANTLY
BECOME MORE PLAUSIBLE ACROSS ALL INDUSTRIES, GLOBALLY
(Demchenko, 2016).

REFERENCES
• Hecklau, F., Galeitzke, M., Flachs, S., & Kohl, H. (2016). Holistic approach
for human resource management in Industry 4.0. Procedia Cirp, 54, 1-6.
• Diaz-Carrion, R., Lopez-Fernandez, M., & Romero-Fernandez, P. M. (2017).
Social human resource management transparency in Europe: A cross-
country analysis. Universia Business Review, (54).
• Demchenko, T. S., Makushkin, S. A., Vinichenko, M. V., & Melnichuk, A. V.
(2016). Human Resource Management in the Context of the Global
Economic Crisis. International Journal of Economics and Financial Issues,
6(8S).

THANK YOU!