International Journal of Financial Management and Economics
Vol. 4, Issue 2 (2021)
Implication of COVID-19 crisis for small scale industries on human resource management practices
For any industry/organization to work properly, it should have human resource i.e. employees, money, raw material and Plant & Machines. Only Employees i.e. Human Resource Management (HRM) can use other resources to put everything else into operations, as they can’t work themselves. That is why it is one of the biggest departments in any organization. It is a function that deals with hiring, training of the employees, safety, salary payment, performance, guidance, and various other areas. Coronavirus disease which is also known as COVID-19 is an infectious disease caused by the SARS-CoV-2 virus. People who are infected with this virus will have mild to moderate breathing problem and will recover without medical treatment. Small scale industries are those which provide products and services at small/micro level. They make an investment in plant, machinery and equipment where investment doesn’t exceed Rs. 10 crore and their annual turnover fall below Rs. 50 crores. Objective of the study: To identify HR practices followed by management in small scale industries after COVID-19 and how it impacted management and employees within organization. Problem statement: I have observed that after COVID, small organizations faced major financial crunch and it changed the way they operated in the market. HR department became more analytical while analyzing employee’s performance, distributing bonuses and annual increments. They have taken harsh measures to keep their organization going. Why organizations shut down? Why operations go low? Why salary reduced? Study area: I have analyzed around 50 food outlets and restaurants in my area with 5 different categories of outlets, over the course of one month. I have tried to identify; How different outlets operation/customer foot fall reduced after first wave of COVID? How much salary reduced after COVID? Why they have reduced number of staffs on the outlet? Conclusion: During my study and analysis, I interpreted that after first lock-down during this pandemic, it was very scary situation for all the food outlets i.e. small-scale industries to survive in the market. So, they had to make necessary changes within the organization and one of the major departments was HR. They had pressure to keep business running, keep their employees working for them and perform with utmost quality. So most of the organizations made changes by reducing salaries of employees, keeping only necessary staffs and kept those who were performing well and trained them for better performances.