It Recession

Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise. Recession presents a very difficult time for any existing organization in today’s corporate world and no company is exempted from this truth. The biggest challenge for companies and especially Human Resource in this economy downturn is to survive and to remain competitive, companies reorganized and reengineered to reduce waste. Recession poses unique challenges to the HR department. Human resources professionals often struggle to obtain the resources they need to effectively manage people in the workplace, and the difficulties that they face are augmented when economic conditions worsen. It is essential for every company to know how to implement the right metric set for this very trying period.

I. Introduction

In today's arena the most common word we come across is recession. Recession is a general slowdown in economic activity over a long period of time. A recession normally takes place when consumers lose confidence in the growth of the economy and spend less. This leads to a decreased demand for goods and services, which in turn leads to a decrease in production, lay-offs and rise in unemployment. Investors also show less interest which affects the capital and financial flows, import - export and overall Gross Domestic Product (GDP) of an economy. Human resource management is defined as a strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives.

Human Resource Management is one of the most essential responsibilities of each and every manager in an organization. It purely involves people for getting things done through them in an organized manner. This comprises a...