Challenges of Human Resource Management in a Depressed Global Economy



Among the prominent features and effects of the current global economic crises is the   collapse and closures of world leading financial institutions and manufacturing industries;   some of whome are, by the scope of their operations, regarded as multinational corporations.   (MNCs) Local companies, irrespective of their organizational sizes are also affectedas some   of them too either colapse or close-down.   For others, who neither colapse their size and   scope of operations nor close-down, various management and administrative decisions are   taken with a view to significantly reducing their cost of operation.   One of the immediate   reasons often given by such ill-fated organizations (beyound the larger global economic and   financial crises) is their inability to sustain their usually very large work force or their   inability to keep remunerating even the smallest population of labour required to keep them   in business.   The ensuing economic and financial crises has also forced businesses to adopt   very tight operational financial budgets part of which adversely affected staff remuneration   and other related expenditures.

Consequently, colapsing companies; who can still manage to run their organizations   skeletally lay-off a significant percentage of their work force while those who virtually   liquidate or close-down lay-off all their entire staff.   Others who neither reduce labour   force nor lay-off their entire staff have embarked on salary-cuts, reduction or nonpayment   of special allowances, reduction, suspension or outright stopage of various human resource   development programmes and projects like training etc, reduction or stopage in recruitment   of new employees and the overstretchin of existing labour both in time and task.

As the current global economic depression stretches on, HRM scholars and practitioners, and   indeed stakeholders in both the private...