Human Resource Management

Human Resource Management

Human Resource Management

Introduction

After reading through the case study, it is clear that the human resource management of GSM is in a dilemma where it must choose either of the two options that are available to it. The first of the two approaches involves devising a strategy that effectively increases the efficiency of the workforce and addresses the issue of under-utilization of existing resources of the business so that the company is able to increase its productivity and improve its cash flows. The second approach involves laying off staff with the aim of downsizing in order to cut costs (Béla, 2010, p. 191).

This option is considered to be an effective corrective strategy mainly because the management acknowledges that the organization is overstaffed and that the salaries and wages of staff and workforce that the company pays on a monthly basis constitute the major expense of the business. Therefore, the management of GSM must decide whether it must retain its staff and retrain them or simply lay them off by adopting a downsizing strategy in order to cut costs and expenses.

This paper reviews the overall scenario that is faced by the business and uses a holistic approach that encourages and utilizes critical thinking and real-time decision making with the purpose of formulating an effective strategy that will help the business in maintaining a wide competitive moat in the industry sector.

Literature Review

The paper cites carious scholarly articles in order to support the argument on whether GSM should consider the option of downsizing its refined workforce in order to balance cash flow or if it should instead opt for an organizational restructuring strategy. According to Zyglidopoulos (2004), GSM's reputation will be severely tarnished if it downsizes its workforce. Love & Kraatz (2009) hold a similar view, iterating why the reputation of a business is at stake if it implements a downsizing strategy. Other references cited in the article present similar ideas and suggest how the business can stand to benefit by downsizing and how it is justifiable if the business does so.

The paper also cites carious sources that belong to a different school of thought that staunchly supports the business' decision to implement an organizational restructuring strategy. For example, Dorey (2009) propagates how an organizational restructuring strategy may present a higher likelihood of benefitting the business in the long run if it is facing the adverse effects of an economic recession. Alkhafaji (2001) holds similar views regarding the matter as he prefers corporate transformation and restructuring over downsizing. Other resources provided in the paper help to support arguments and counter-arguments.

Discussion

The recent economic recession has had an adverse effect on many businesses across the globe. In fact, the severe effects and unprecedented aftereffects of the economic downturn have been felt across entire industries. GSM is among the businesses that have faced the negative effects of the recession. It is for this reason that the company is considering devising a critical strategy that will help it to maintain a wide competitive moat ...