Impact of the Current Global Financial Crisis on Human Resource Management

Impact of the Current Global Financial Crisis on Human Resource Management

Length: 2218 words (6.3 double-spaced pages)

Rating: Term Papers

Open Document

Essay Preview

Current economic downturn has enormous influence on businesses. The field of Human Resource Management (HRM) is not an exception. The common practices in these periods in HR departments are not hiring new employees, layoffs, not paying for overwork hours, cost cutting including wages and bonuses, less training and early retirement programs and so on. What has been happening in my country, Japan, since this financial crisis began was much different from former recessions such as 1990s. For example, the TOYOTA started reducing workings days from five days a week to three or four days a week in most factories instead of firing people. Finally, they decided to close some of them temporarily. It was a very shocking event for Japanese since the TOYOTA is a world famous and a major motor vehicle company. This essay will first provide downsizing as a HRM common practice in recession from the point of view of cost-cutting and alternatives of layoffs. Then, it will also show the role of training during the economic downturn. Finally, it will discuss how financial crisis affects equity in HRM using examples of gender wage gaps, age discriminations and transition of equity perception in Thailand case. The essay also argues what should be carried out as reduction and training strategies in recessionary time. It also discusses about how HR departments can consider equity in such a difficult time for layoffs and salary since “equity” is a key words in current HRM such as equal pay and equal opportunity.

Downsizing – cost reduction
The cost cutting is the first effort which is considered in every department when an economic downturn hits. Aycan and Kabasakal(2006, pp. 492-493) argue that focusing on cost reduction on HRM shoul...

... middle of paper ...

Pudolowski, E.M. (2009). Managing Human Resource Cost in a Declining Economic Environment Benefits Quarterly, Forth Wuarter, 25(4), 37-44

Rao, M.S. (2009). Is cutting development and training in a recession a good idea? Looking at the IT and ITeS sector in India, DEVELOPMENT AND LEARNING IN ORGANIZATIONS, 23(5), 7-9

Robertson, S. R. & Dayal, V. (2009). When Less Is More: Managing Human Resources With Reduced Staff, Compensation Benefits Review, 41, 21-26

Rowey, C & Bae, J. (2004). Human Resource management in South Korea After the Asian Financial Crisis:Emerging Patterns from the Labyrinth, Institution Studies of Management & Organisation, 34(1), 2-82

Tzafrir, S.S & Eitam-Meilik, M. (2005). The impact of downsizing on trust and employee practices in high tech firms: A longitudinal analysis, Journal of High Technology Management Research, 16, 193-207

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Human Resource Challenges: Current and Future Issues Essay

- Human Resources Challenges: Current and Future Issues According to the author, Human Resource is the “practices and policies needed to perform the personnel aspects of a managerial job” (Dessler, 2011, p. 2). Generally, HR focuses on state and federal laws as well as company responsibilities such as staff benefits and payroll and the hiring or termination of employees. In addition to concentrating on the workforce of a company, the HR manager works cohesively with other members of management....   [tags: job responsibilities, hiring, termination]

Term Papers
1189 words (3.4 pages)

Reexamining Crisis Management Philosophy Essay

- Personal Experience with Organizational Crises In this paper, I present two riveting case scenarios containing the unadulterated recollection of my direct personal experiences in crisis management. Both cases provide authoritative details of life threatening events and the quick response by key individuals with direct corporate responsibility for managing the pre-crisis, in-crisis and post-crisis events. Crisis management is a highly complex field. Therefore, a plausible approach to managing crises would require simplifying the functional relationship of key variables....   [tags: personal experience, organizational crises]

Term Papers
1705 words (4.9 pages)

Performance Management Essays

- Executive Summary Strong performance management plays main role in managing companies during the financial crisis. This report will detail the need for implementing a performance management system during the current global financial crisis. The report will discuss the principles and aspects of performance management and detail several challenges that are presented when implementing a performance management system, or adjusting a current system already in place. In addition, it will analyze the company, DMG World Media, who will be used as a basis for best practices as they are known for their successful positive performance system....   [tags: Business Management ]

Term Papers
2869 words (8.2 pages)

Change in Management and Human Resources Essay

- There are numerous changes that are happening to the competitive environment of organizations, now human resource managers are expected to be strategic. Ulrich (1998) put down 5 competitive challenges that companies and their Human Resources(HR) face today, he quoted change as one of the greatest competitive challenges. According to Ulrich (1998), Organizations must be able to "innovate ceaselessly, learn rapidly and continuously and take on new strategies comfortably." This constant change in the organization might lead to a healthy discomfort with others in industry....   [tags: business strategies]

Term Papers
1788 words (5.1 pages)

The Effect of Recent Financial Crisis and Regulatory Implications in Asia

- Abstract The essay is a critique about the effect of financial crisis in Asia and its implications on macroeconomic perspective. The first theme of financial crisis is about financial regulation and supervision. The main issues in this concept are related to impact of crisis in East Asia. The down turn in Asia was larger than expected in the history of Asia and this resulted to various implications on individual and institutional level. Another area of concern is the implication of the recent financial crisis in the banking sector and stock market....   [tags: Economics ]

Term Papers
1192 words (3.4 pages)

Crisis Management Response Plan Essay

- An effective crisis management response plan outlines specific procedures for administrator, teachers, and students during evacuation emergencies. Administrators work with teachers, students, parents, law enforcement officers, business and community members, to develop an effective emergency and crises plan. The administrator provides leadership in developing and monitoring the school safety plan and also establishes procedures for emergency evacuation and crisis management at different stages of the plan....   [tags: Crisis Management ]

Term Papers
1424 words (4.1 pages)

Essay on Strategic Human Resource Management

- Armstrong ( 2010) defined Strategic Human Resource Management (SHRM) as “an approach to making decisions on the intentions and plans of the organisation in the shape of the policies, programmes and practices concerning the employment relationship, resourcing, learning and development, performance management , rewards and employee relationships,” ( p. 115). There is a paradigm shift from a functional role to a tactical one through the strategic management process. SHRM is very important to the effectiveness of my learning organisation because it ensures that the needs of the learning community are met and provides the opportunity for instructional leaders to “add value to the learning...   [tags: Human Resource Management ]

Term Papers
1221 words (3.5 pages)

Changing Roles of Human Resource Management Essay

- Human Resource profession has faced numerous challenges in the past, which has forced HR managers to try and implement various strategies in the work environment all in the aim of survival and prosperity of the business. The National Institute of Personnel Management (NIPM) in India recently organized the 37th annual conference of HRs to discuss the various challenges in the work place and ways of mitigating them. It was unanimously concluded that HR managers needed to revise its roles and create new roles for organizations....   [tags: Human Resource Management]

Term Papers
1292 words (3.7 pages)

Human Resource Management of Essay

- Human Resource Management of Introduction Human Resource management has a high impact on the overall organization being managed. HR management makes certain that human talent is used successfully and resourcefully to accomplish organizational goals. As an organization core competency, human resources has distinctive competencies that generates high value and sets apart an organization from competitors in areas such as productivity, quality and service, employee skills, and innovative changes....   [tags: Human Resource Management ]

Term Papers
1401 words (4 pages)

Human Resource Managementa Case Study Essay

- Human Resource Managementa Case Study Management of Human Resources-Assignment Introduction: In order to critically assess and recommend alternatives, I would like firstly to give a brief description of the business crisis the company was facing and the subsequent need for change in the company’s overall business strategy. I would then like to focus on the key aspects of the firm’s human resources strategy and the changes that were made in order to supplement the overall changes in the business strategy....   [tags: Personnel Management]

Term Papers
2081 words (5.9 pages)