Faculty of Business Environment and Society

Module No: M06HRM MODU E !"! E: eadin#$ Mana#in# and Develo%in# &eo%le

Semester '$ (0')

Dra*in# on +ournal articles and or#anisational e,am%les critically evaluate t-e vie* t-at durin# times of recession and economic do*nturn em%loyee commitment can .e assured *it- a steady income/
1.Identify the issues within the context of the question 2. Apply research skills to examine and analyse the literature appropriate to the issues 3. Discuss the implications of the analysis, supported by practical examples . !rame appropriate conclusions and recommendations based upon the research, analysis and understandin" of the assi"nment. #. $upport your ar"uments throu"h appro%ed academic referencin".

"N!RODU0!"ON
As we all know recession is the time of the economic downturn. It impacts not only organizational employers and employees but also day to day life of a common man. First took a glance about recession ,what is recession? RE E!!I"# #ational $ureau of Economic Research cites that %A significant decline in economic acti&ity spread across the economy lasting more than a few months' called recession. (#ational $ureau of Economic Research $ureau) *he scenario can be e+plained by recent recession , as now a days there are scarcity of ,obs in the market and ,ob shedding in &arious public as well as pri&ate organizations. *his also creates obstacles in indi&idual employee-s personal, financial and professional growth in one organization . #ow the issue is that, the recession influences employee .s commitment, and can it be assured by steady income ."ne can ,ustify this by present economic condition that due to recession employee.s stay commited to the organization because he /she has family to support , and need of security (0arslows moti&ational theory),he works hard and stay commited to meet his ends and he is also ,ob insecured , due to organizational downsizing. 1lus ,ob scarcity in market also moti&ates him to do the same ,ob . !o he/she is getting cut off income or steady income, his commitment remains positi&e towards organisation .$ut there are multiple other factors that influence ,ob satisfaction of an employee like relationship with employers,effecti&e management,psychological contract, trust towards organisation,loyality,well renowned company etc. "ne of the biggest factor which has crucial effect on the issue is type of employee ,whether the employee is working as semi skilled / skilled ,middle/ le&el lower category,in which type of large / small organization. Employee,s moti&ation le&el , needs and goals are also &ital for staying in the same organization .

$ut there is other part of coin too ,if organisational beha&iour is not appropriate towards the employee.s satisfaction le&el ,due downsizing and delaring the climate of fear made harder to an employee in a ,ob ( 1rice,2334) chances of lea&ing the organisation would higher ,when recession is o&er .!o it is reciprocal relationship between organisation and employee.

REVIEW OF LITERATURE
$y some news papers that unemloyment situations in whole of Europe especially in 5reece and !pain there is 637 appo+imately unemployment rate among people of 89 to 26 yrs of age.