Reference no: EM132959455
Read the mini case given below and answer the question.
XY Company Ltd is one of the medium scale garment manufactures in Sri Lanka with more than 10,000 employees. Their main buyers are from the countries of European Union. During last two years, the company has been greatly affected by the economic downturn of the world of due to Covid-19 pandemic and is expected to experience overall revenue deterioration by 50 percent. They will expect this situation will be further exacerbated by the decision of European Union to temporary suspend the GSP+ facility for Sri Lanka.
However, during last couple of months, a significant number of factory employees voluntarily left the company as the Corona Virus rapidly spreading over factory employees. Most of these employees had been with the organization more than 10 years and shown good performance. After a several rounds of discussions, the management of the company came up with a couple of decision to cope up with the prevailing negative economic condition of the company.
The management of the company believes that, they may be able save costs by allowing employees to telecommute three days per week. But, the management has some concerns about productivity if the company allows employees to work from home. Despite these concerns, the management is considering closing down the physical office and making a company a virtual organization. However, they are doubt about how such a major change will affect the ability to communicate and worker motivation. Besides that, the company decided to fire of all the probationary employees (in all categories).
Further, the management thoughts about the costs of health care on the organization. They are considering cutting benefits entirely and having employees to work on a contract basis, instead of being full-time employees. But, the management is still not sure if this would be a good choice.
Based on the above scenario;
Explain your strategies to face the economic downturn of the company (your answer should focus on Human Resource Management practices).