Human resource management strategies in declining industries

Abstract

Abstract The conceptualization presented in this article suggests that top management should take into account the role of the human resource function in formulating and implementing strategic responses to decline. Such responses must be formulated within the context of the skills and knowledge available to the organization and according to the type of environmental conditions encountered. These influences will force the human resource manager to focus on sharpening competencies existing within the organization, consolidating competencies so that only those currently required by the organization are retained, adding new competencies, or replacing existing competencies so that the organization can move to a new domain activity. The emphasis on human resource processes such as recruitment and termination, training and development, and evaluation, reward, and retention for purposes of development and maintenance of the competencies needed to implement strategic responses to decline will vary according to the nature of the environmental conditions encountered.