The Economic Crisis Of The Financial Systems Within Developed Countries Affected Economies Across The World

2024 Words Apr 28th, 2015 9 Pages
Task 1
The economic crisis which erupted from the financial systems within developed countries affected all economies across the world. There was a significant amount of job losses, company bankruptcies and cuts in incomes and budgets (McKibben, Stockel 2009). Companies were focusing on sales growth which took urgency over most workplace including learning and development and many trying to decide what was important in terms of return on investment (Dullien et al 2010). Training and development was an easy target and one of the first aspects to be cut; some may argue that this is not the most effective resolution. There is evidence that suggests training and development is a tool which contributes positively to an organisations performance within the economic downturn (Brum 2010).
Companies want to save money; it is a time when they are not expecting to recruit new staff and apprentices need new training. This approach leaves businesses without skilled people required for when the economic circumstances pick up. As suggest by Bosch (2010) investing in your people during a recession enhances the preparedness for recovery. However, in an article posted by Lucy Ellaway for financial times, it stated all management training courses are to be banned in a downturn (Financial times 2009). It is important to maintain investment in training and development because it can contribute to customer satisfaction, employee satisfaction and people performance as stated by Apospori (2008)…
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