Turnaround strategies for companies in crisis: Watch out the causes of decline before firing people

What is it about?

When a company goes into crisis, the first and most typical response is the dismissal of people, even before considering the sources of the decline. By identifying and understanding the sources of decline in time, a company may want to decide on human resource (HR) alternatives to layoffs

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Why is it important?

We propose a model of analysis that links sources of decline, turnaround strategy, and HR strategy (HRS) and practices. This model identifies four basic HRS for organizations in decline, according to its sources: flexibility-oriented, efficiency-oriented, niche-oriented, and maintenance-oriented HRS.