THE ROLE OF HUMAN RESOURCE MANAGEMENT IN CORPORATE CRISES: HOW HR CAN SUCCESSFULLY MAKE A CONTRIBUTION TO TURNAROUND MANAGEMENT

Lothar Alexander Winnen, FOM University of Applied Sciences, Bochum, Germany
Lars van der Leeuw-Holtvoeth, UASE - University of Applied Sciences Europe, Iserlohn, Germany
Andreas Lax, Wei├če Q, Research Institute of UASE - University of Applied Sciences Europe, Iserlohn, Germany
Kurt Morzfeld, UASE - University of Applied Sciences Europe, Iserlohn, Germany
Henning Tirrel, University of Nicosia, Nicosia, Cyprus

Published in

INTERNATIONAL JOURNAL OF STRATEGIC MANAGEMENT
Volume 18, Issue 2, p13-40, December 2018

ABSTRACT

Researchers have demonstrated that strategic human resource management (HRM) explains differences in organizational performance. However, there is still a lack of understanding as to which role strategic human resource management plays in corporate crises. Can HR make a significant strategic contribution to the success of turnarounds besides cost cutting and downsizing? The authors have conducted an exploratory qualitative research study by interviewing ten reorganization and insolvency consultants to work out problems and solutions that occur in corporate crises within the field of Human Resources. The results show that companies have to deal with various problems such as a lack of communication between top management and the workforce, a lack of strategic orientation of HR, inadequate employee development measures and employee motivation, and an increase in voluntary employee turnover. Based on their findings, the authors propose solutions such as intensive communication with and involvement of employees in the process of problem analysis to maintain motivation and provide prospects. Finally, HR has to strategically advance the process of reorganizing the workforce, in other words to retain strategic human capital, dismiss those who were responsible for the crisis, and fight for the possibility to hire new employees where necessary.

Keywords

Strategic Human Resource Management, Corporate Crisis, Strategic Human Capital Management, Change Management, Turnaround Management, Reorganization


About the Article

Abstract, Keywords, Page Numbers, etc

About the Journal

Managing Editors, Indexing, Best Practices

About The Publisher

History, Partners, Conferences

Access the Full Article

Log-in to IABE to access full article

Search IABE

Search IABE's articles by Title, Author, or keyword

Contact Us

Send a message to IABE