Asked by : Pragya Kothari, Construction-Heavy, DLF
Industry : Construction
Functional Area : Leadership Styles
Activity: Question posted: 06 11 2009 07:49:46 +0000, 8 answers, 4278 views, last activity 07 26 2010 15:29:22 +0000
Financial crisis is hiting the Construction industry and the fact is to survive in the market construction companies are eliminating HR department and delegating the related tasks of the same to other departments. In my opinion HR department is critical to the success of any firm, but what do you say; how critical is HR for the construction industry?
Yes Mr. Bhavesh Kumar is right. HR sector is very critical for every industry. In construction industry, Human Resource Management develops strategy according to the labor market situation in which it is operating. The practice of the manual labour in the construction industry performs according to the ‘hard models’ of Human Resource Management whereas non-manual employment goes more according to the conditions of 'soft' HRM models. The human resource planning in the decision making process ensures that enough competent people with appropriate skills can be able to perform jobs where and when they will be needed. It defines the organization's need and assessing the available pool of people to determine the best fit.Thus Human Resource Planning in Construction Industry will always work if implemented constructively.
HR sector is very critical for any industry,be it a construction,services,IT or manufacturing industry. An efficient HR deptt will be able to retain the experienced, evitable and critical staff and obviate the situation of scarcity of manpower at crucial stages of the construction. Similarly during the lean phase when the human resource can be spared,their effective usages in imparting training etc to the younger/newly recruited personnel can be done. It is all about the man management for human resource development
Each department has its impotance whether its HR, Planning, Marketing, et all. During good times the HR dept was the most sought after as all the companies were short staffed and professionals had kind of become an extinct species. Its during this time the HR not only got people but also ensured that they succesfully retained their staff, which was a difficult job especially when all other companies were poaching on each others manpower by offering higher salaries, designations, etc. Recession is a tough time for all people involved in the industry, there have been instances where Big Real estate companies have laid off people from their marketing dept, for not performing. I would say these are all lame excuses just to cut budgets. If some dept needs to go then it has to be accounting dept because they never save enough to tide over such crisis, instead they suggest laying off people from all other depts except for their own.
HR Dept, Accounts and Planning depts perform Staff duties for the companies.In particular HR is responcible for manpower planning, recruitment and training.Field staff performs the line duties and is critical, controlling the production of the company.Each department is important and perform unique functions for building the company.
When the down sizing of the company comes axe always falls on the Staff positions because cut on line positions like fields staff has a direct effect on productionof the company.
Even at this time of recession down sizing of the staff in the company is not perceived as final resort in most of the companies with good annual financial turnover.
On contrary to the reduction in staff positions these companies are sustaining them by delegating line duties(Field positions).
A proper HR Dept is essential for the smooth & efficient running of any company. But when you don't see any requirement for hiring or human resource growth in near future because of recession, companies resort to downsizing their HR dept especially by getting rid of people dealing with hiring. So i think its more of a phenomenon having direct market interraction like marketing sector.
Eliminating HR Dept completely, can be a drastic step.
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