M. Visveswaraya Institute of Technology, Bangalore.
The effect of economic recession spread across the economy from the last six months and resulted in job cuts, layoffs, investments and corporate profits. This has made lot of impact on our way of life. If recession prolongs it may affect the Industrial economy and the functioning of Human Resources Management also. Few industries like Garment Industry have already announced layoffs and Retrenchment to their employees. The present Global Meltdown has made its effects on real estate, financial sectors and other fields. HRM and staff motivation are keys to success in this crisis period. Innovative HR practices are needed to overcome the current recession to make human life less miserable in Industry to sustain and improve profitability.
This research paper investigates into the challenges that a top level management ofcorporate world faces economic crisis that is reeling the whole world and compelling the industries/organization to have slimming catwalks for survival and growth-compelled to jobcuts and wagecuts.How can the management of industries/organization hold on to their ethical value systems of wage cuts andjob assurance given to employees at the time ofrecruitment is questionable. In this paper an attempt has been made in to bring out the effects ofglobal economy and the great meltdown.
