Current Global Economy Deterioration Presents Challenges And Opportunities For the Strategic Human Resource Management

This report declares that while on the one hand the organizations are restricting the HR budgets and placing curbs on the scope and utility of the human resource managers, on the other hand they expect the employees to perform at their maximum and generate unprecedented productivity. This is an added challenge for the HR managers as they have to perform their function under severely restricted budgets and have to get the employee feel motivated enough to perform at their best. In this situation, some of the things that the HR managers can do is to realign the employees attitudes towards the changed organizational goals.
This essay makes a conclusion that strategic human resource management is facing in the event of the global financial crisis reveal that this is a time for the HRM function to reassert itself. It is needed that the HRM be given a more central and decision making position in the organizations vis-à-vis employee’s affairs, and that they be treated as strategic business partners and not merely as business support.
Most of the challenges – like the need to work with immensely limited resources and budgets – are expected to be short term, though HRM can learn several useful lessons for emulating in the future. Further, the crisis offers several opportunities to increase the scope and importance of the HR function and the HR managers should make an active effort towards this.