Resultant effect of crisis-driven HR strategies applied during current economic crisis in Oman: An HR manager's perspective

Abstract

During an economic crisis, companies redesign their functional strategies for survival and growth. This paper aims at identifying HR practices adopted during the current economic crisis in Oman, and explains the resultant effect of crisis-driven HR strategies from an HR managers' perspective. Primary data was collected online from 112 HR managers representing various manufacturing and service organizations in Muscat, Oman. It was found that HR managers perceive a greater impact of economic crisis on their businesses rather than other types of crises such as natural and technology crises. They think that managing employees during an economic crisis is relatively easier than managing other resources and other stakeholders. Changing HR practices during economic crises include, abeyance of employee benefits and cutting costs on employee recreation. Knowledge management activities have been increased and non-monetary motivation techniques are being adopted as a part of crisis-driven HR management. Increased employee engagement and enhanced corporate image among employees were identified as the resultant effect. Testing the hypothesis revealed that cost cutting on employee recreation is significantly higher in large organizations, job redesign activity is significantly higher in small organizations, while large organizations find it difficult to deal with employees during periods of crisis more so than small and medium sized organizations do. (English) [ABSTRACT FROM AUTHOR] Tokom ekonomske krize, kompanije nastoje da preoblikuju svoj način rada, a sa ciljem opstanka i napretka. Ovaj rad teži da osvetli praksu iz okvira ljudskih resursa koja je primenjena za vreme trenutne ekonom-ske krize u Omanu, istovremeno ilustrujući efekte kriznih strategija, iz ugla jednog menažera za ljudske resurse. Osnovni pođaci dobijeni su posredstvom interneta, od strane 112 HR menadžera, iz različitih organizacija koje se bave proizvodnjom i uslugama u Muskatu, Oman. Utvrđeno je da HR menadžeri ekonomsku krizu doživljavaju kao činioca koji ostavlja značajnije efekte na njihovo poslovanje od efekata krize druge prirode, kao što su prirodna ili tehnološka. Oni veruju da je, tokom kriznog perioda, relativno jednostavnije upravljati zaposlenima nego drugim izvorima i ostalim zainteresovanim stranama. Izmene u HR praksi tokom perioda ekonomske krize uključuju ukidanje povlastica namenjenih zaposlenima, kao i smanjenje troškova u vezi sa njihovim rekreativnim aktivnostima. Umesto toga, krizni HR menadžment dovodi do umnožavanja aktivnosti u vezi sa menadžmentom znanja, ali i usvajanja tehnika motivacije koja ne uključuje novčana sredstva. Kao rezultat, primećeno je značajnije učešće zaposlenih u aktivnostima, te unapređena korporativna shka među njima. Proveravanje polazne hipoteze dovelo je do zaključka da je smanjivanje troškova, a u vezi sa rekreativnim aktivnostima zaposlenih, značajno više u velikim orga-nizacijama, da je preoblikovanje aktivnosti značajno više u manjim organizacijama, ali i da velike organizacije imaju poteškoće u odnosu i radu sa zaposlenima tokom perioda krize, u većoj meri u odnosu na male i organizacije srednje veličine. (Serbian) [ABSTRACT FROM AUTHOR] Copyright of European Journal of Applied Economics is the property of Singidunum University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)