Smith takes a different approach in the strategy, "It is indeed one of the most important considerations, choosing of the balance of strategic thinkers versus tactical executors.
"Depending on what the plans are for the short-term future of the company, there must be an appropriate blend of both skill sets to make sure that the business can meet its current obligations and that there will be a compelling future for the company." The key in this regards is to understand what level of mix is needed for optimal performance of the company in the direction that it is being steered towards.
HR and the layoff direction
As the custodians of the recruitment process and the talent development within a company, the HR must play a huge role in the layoff process. HR needs to help with the process and make it more collaborative, so as to ensure employees do not feel betrayed. HR executives must also play a vital role in both ensuring that the CEO and management make the right choices in terms of deciding to go for the layoff strategy and also in terms of choosing the mix of jobs, people and skill-sets to retain.
Don Herrmann, vice president HR for Pendum a cash machine services provider in the US, observes, "HR's role is to assist management in making decisions about the soon to be laid off population.
This comes in the guise of determining criteria, ensuring an effective resolution to any compliance issues that are identified, such as: discrimination, risk, performance and productivity. Additionally HR should provide alternative solutions to the action intended. Layoff is not always the answer."
HR should indeed be the liaison in the process of re-evaluating company structure, but Herrmann believes that the task of communicating a layoff decision should not simply fall to the HR. "I don't believe HR should break the news about a layoff.
"Management decided to have a layoff and management should communicate that layoff. HR should not solely be the messenger of bad news and management should not solely be the messenger for good news," he adds.
According to Herrmann, the management has a responsibility to take ownership for its decisions, and a passing of unpopular actions off to HR is cowardly.
Another important concern that the HR needs to resolve is the question of gaps that may arise if downsizing occurs. Ideally, if the decision has been made for the right reasons, then a succession plan should be in place, and there will be no gaps. But quite often, unforeseen circumstances might result in a situation where a gap of skill, knowledge or experience may arise due to employees being let go. Herrmann points out that HR need to be in complete control of the change process in order to ensure that such a situation does not arise. "Filling potential gaps should be part of the decision process and not an afterthought once layoffs have been decided upon," he says.
"HR's knowledge of performance measurement, work flow, regulatory issues and the business in general should be a part of their input into the decision process," Herrmann says.
Layoffs and beyond
Planning the process is very important; especially to ensure that the very streamlining efficiency that the layoff process was designed to give actually does materialise. Hastily going through the process could result in terrible consequences for the future of the company.
Given that the road to recovery appears rather long and hard at present, the lay-off decision is something that the CEOs will find themselves struggling with more and more. Needless to say, the management must make the tough decisions if a process of re-evaluation deems it necessary to do so, and the said decision becomes doubly more important when dealing with an evolving market such as Pakistan.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.