HR in a Financial Crisis

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The Role of Human Resources in a Financial Crisis Contents Executive Summary 3 Literature Review 4 Recession and Human Resource Strategies 7 Case Studies 8 Conclusion 12 Works Cited 13 Executive Summary The role of human resources in a financial crisis can be one of the most important roles in preserving the overall health of an organization in times of uncertainty. The role of Human Resources contains such functions as maintaining motivation of the employees and fostering morale. However under some conditions it can be virtually impossible to maintain morale due to high levels of uncertainty surrounding the business, the industry, or the macroeconomic environment in general. During the most recent crisis 2009, which was considered a Global Recession, many companies faced tough choices regarding the workforce levels they maintained. Many companies were forced to implement hiring freezes, pay freezes, and some even had to layoff many of their employees. During times of harsh macroeconomic conditions, it can be extraordinarily challenging to maintain high levels of morale. One way to describe the challenges is that there are massive amounts of uncertainty on all levels. Employees especially often may have job uncertainty that contribute to job-related stress. In such situations employees might become so stressed that it makes it difficult for them to perform their job duties especially when job security is one of the issues that they are concerned

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