All firms in every corner of the globe have been affected in one form or another by the current global economic crisis. It has crippled many countries and even continues to threaten the very existence of the Eurozone. No company has been resistant to the crisis and its effects.
“This is the first time we’ve faced the real implications of globalization-now a sneeze in the US is a sneeze heard around the world…. And the whole world catches a cold”1
Whilst many companies have been devastated by the crisis, nowhere more evident than in our own country, many have adapted and unearthed opportunity amidst the devastation. In order to survive companies have had to adapt and open themselves up to change and innovation. This includes everyone from local business to global giants. With unemployment sky rocketing worldwide, human resource management has become an even more vital component in business strategy. In order to survive, business have looked to HR Management, whether it be to downsize, to selectively hire, to retrain employees or to identify new and more modern ways to run as an efficient organisation.
“Human Resource Management (HRM) is a series of activities which enable achievement of individual and organisiational objectives”2.
These objectives have changed with the times, and now it is all about survival until the economy begins to grow again.
Never before has there been such a wealth of Talent Management Technology available to a firm operating in recession as there is today. There are HR tools available to companies that simply have not been there in the past. Recovery will come at some stage; it’s not a matter of if but when. Human Resource Management offers businesses an opportunity to equip themselves in order to cope with the current downturn and hopefully capitalize and thrive when the recovery eventually occurs.
“We don’t get out of it (the recession) by stifling creativity. And we sure don’t get out of it by killing innovation” 3