Impact of the Current Global Financial Crisis on Human...

Introduction 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†¦show more content†¦However, it is still the first common step to deal with financial difficulties. For example, Robertson and Dayal(2009, p.22) suggest that training jobs is a traditional area of first cost reduction. They also indicate that some HR departm ents shift to â€Å"the employee self-service model† (Robertson Dayal, 2009, p. 23), which is a system the employees themselves update their personal information or apply insurance benefits on the internet instead of the HR officers in the firm do them for the workers, to reduce both costs and HR daily tasks. Another example about cost reductions showed by the research of Pudlowski who recommends three steps called â€Å"audit-like review† (Pudlowski, 2009, p39). The first step is reviewing all programs offered in the HR department; such as paid-leave program, compensations and parental leave. Then, employees should examine further information in rapid pace like four to six weeks. The last step is coordination of skills provided by key leaders or stakeholders outside of the HRM to give insights (Pudlowski, 2009, pp. 39-40). Downsizing – not equal to redundancies Meanwhile, downsizing does not always mean layoffs. It is a way to decrease the budget rapidly. Fodor and Poor’s study carried in Hungary and Slovakia shows that most companies prefer to freeze salaries rather than redundancies (Fodor Poor, 2009, p. 81). There are other approaches to work effectivelyShow MoreRelatedImpact of the Economic Global Crisis: Current Situation and Prospects in the Philippines1677 Words   |  7 PagesImpact of the Economic Global Crisis: Current Situation and Prospects in the Philippines Asia in general was not affected by the current global financial crisis (1). The source of the crisis did not come from the developing countries as seen in the 1990s during the Asian crisis. In 2008 - 2009, the developed world initiated the global financial crisis with the sub prime lending implosion; thus, affected the rest of the world. The Philippines in particular did not fall into a recession since theRead MoreThe Demand For Health Care Personnel And The Supply Of Their Services1323 Words   |  6 Pagescountries to developed countries to being over-worked to inadequate healthcare management. The reasons for migration range vary from lack of stability and safety of living conditions to a dearth of adequate training opportunities for healthcare personnel. Incentives are important levers used by policy makers and managers to lure and retain qualified health care professionals. Retain, motivate , satisfy and improve Non- financial incentives require a lot of time and energy investment. They are exceptionallyRead MoreImpacts of Global Financial Crisis on Hrm Policies8256 Words   |  34 PagesWhat is the role of hr in global crisis to retain the talented employees ? http://www.edalys.fr/documents/Stakeholders%20theory.pdf http://lexicon.ft.com/Term?term=stakeholder-theory Article - 1 Employees are not the most important asset of the company but the â€Å"right† employees are. Human Resource Management (HRM) plays a strategic role in the survival of an  organization. In this time of global financial crisis, Human Resource (HR) managers must not only innovate but must also act as change agentsRead MoreClimate Change : Causes And Effects1113 Words   |  5 PagesEffects According to Adger (2010), the combined effect of climate change and limitations of resources is serving as a threat to the sustainability of the current social-economic systems and is poised to affect our way of life. Climatic change is more than global warming. The rise in temperatures is but part of the broader changes leading to extreme temperatures, drought, flooding, storms, rising sea levels, impacts on food production and a range of infectious diseases. Despite the awareness of the situationRead MoreSWOT Analysis of GE1033 Words   |  5 PagesSTRENGTHS Global recognition: General Electric has ventured into the world market thus gaining global recognition for its unique goods and services. In the year 2009, Forbes magazine ranked GE as the world s largest company. Hurbert (2007) notes that General Electric s brand is the world s most recognized brand. This kind of recognition has given it a competitive edge over other companies due to its ability to attract more customers. Global strength and competitiveness:The Company’s productsRead MoreEvolution Of Human Resource Management Essay974 Words   |  4 PagesEvolution of Human Resource Management Administrative Functions The objective of the Human Resource Department is to design management systems to ensure human talent is maximized to effectively and efficiently achieve organizational goals. HR has seven functions that are intertwined. These functions are global, environmental, cultural geographic, political, social, legal, economic, and technological. Human resource management has the potential to drastically impact the success and effectivenessRead MoreMicrosoft’s Partnership with Unhcr – Pro Bono Publico Essay1089 Words   |  5 Pages The corporate social responsibility (CSR) initiative was created back in 1999 as an endeavor at a point in time when Microsoft employees engaged to assist to aid the victims of the Kosovo crisis. The emotional undertaking is referred to as the spark created during a lunchtime viewing of a consuming crisis in Kosovo. By supporting the fundamentals in standing with the UNHCR, Microsoft embraced a strategic partnership and alliance that goes well beyond satisfying simple shareholder expectations;Read MoreThe Mistaken Truth: Global Warming Essay1726 Words   |  7 Pages Beyond the shadow of a doubt, Global Warming is real and mostly man-made. During last two decades, saving the earth has become a global movement. Despite of all the recent strenuous efforts for global awareness, there are people who believe â€Å"Global Warming† is just another propaganda campaign; people who confuse money with the well-being of the earth and its inhabitants. As a result, our current solutions, legislations, and policies are far away from a practical and effective solution in the longRead MoreThe Competitive Worlds Growth Of A Business1456 Words   |  6 Pages(%) Figure 1 (Source: The World Bank - http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG (Accessed on 3rd Nov 2015) Japan: 2010 – 4.65% - With increase in Global growth rate Japan also started recovery from 2008 financial crisis credited to rise in International Demand 2011 – -0.45% - The reconstruction from 2008 financial crisis was interrupted by natural calamities which forced many companies in Japan to halt their productions and incurred redevelopment cost. 2012 – 1.75% - While JapanRead MoreSupply Chain Risk Management Profile of the Hyundai Motor Company2738 Words   |  11 PagesSupply Chain Risk Management Profile of the Hyundai Motor Company A. Strategic/ macro risks A first category of risk facing the management of Hyundais supply chain is represented by the features of the external environment, outside not only the firm, but also outside the automobile industry. These risks can be divided into four specific categories, as follows: Business cycle risks Social/ demographic risks Environmental/ eco-disruption risks, and last Political/ regulatory regime risks