Managing HR during Economic Crisis
Managing HR during Economic Crisis Economic crises create considerable problems to enterprises, particularly in terms of human resource management. In such circumstances, businesses must make unpleasant decisions such as layoffs, salary cuts, and changes in work arrangements. HR departments are entrusted with combining cost-cutting strategies with employee morale and engagement. Maslow's Hierarchy of Needs provides a useful foundation in such situations. Maslow (1943) postulated that human needs are organized in a hierarchical framework, beginning with fundamental physiological demands and progressing to self-actualization. In the midst of an economic crisis, HR can implement this principle by putting employees' basic requirements first—such as job security and fair compensation—before addressing higher-order demands like career development and personal improvement. This technique enables HR to successfully handle employee demands, ensuring employee retention During times...