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What is mecession?
mÚ Ú

 is the economy shrinking for two
consecutive quarters (=6 months) with a
decrease in the GDP (=Gross Domestic
Product).

GDP = Value of all the reported goods and

services
produced by the people operating in the
country.
he United
tates-based ational Bureau
of 6conomic Research (B6R) defines
Ú

 Ú Ú
 as: "a significant
decline in economic activity spread across
the country, lasting more than a few
months, normally visible in real GDP
growth, real personal income,
employment, industrial production, and
wholesale-retail sales.
hat Private organization defines a
recession more ambiguously as Dza
significant decline in economic activity
spread across the economy, lasting more
than a few monthsdz.
n Macroeconomics, a recession is a
decline in a country's gross domestic
product (GDP), or negative real economic
growth, for two or more successive quarters
of a year.
M
m 

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Ú 

Ú

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˜ Ú
 

˜
Ú

 
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Ú 


, which is also called a

m   Ú Ú



, occurs
when the value of a currency changes
quickly, undermining its ability to serve
as a medium of exchange or a store of
value. t is a type of financial crisis and
is often associated with a real economic
crisis.
During recession value of money decreaseǥ
6  

¯n Ú



is any great bottleneck

(or price rise) in the supply of energy
resources to an economy. t usually refers
to the shortage of oil and additionally to
electricity or other natural resources. ¯n
energy crisis may be referred to as an 



, Ú
Ú 


, ÚÚ


 Ú

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During recession
there was rapid
increase in the
Prices of fuels.
p  


n  Ú
 
 , recessions and

stagnation arise due to inadequate
consumer demand relative to the amount
produced.
n recession there was a less consumption
of goodǥ
§ 


n economics,
Ú

  refers to
excess of supply over demand of products
being offered to the market. his leads to
lower prices and / or unsold goods.
Æ  

he term    


is applied

broadly to a variety of situations in which
some financial institutions or assets
suddenly lose a large part of their value.
During recession there was sudden decrease
in sensex ǥ
p  
   m 
 6 

¯s, the impact of recession is unpredictable

and depends entirely on the nature of the
recession. Many people have loss there job as
many of the companies were bankrupt .
he enter for 6conomic and Policy
Research states that the looming
recession will raise unemployment by
about 9  depending on the
nature of the recession. his means that
there will be about  

 ¯mericans.
n the other hand unemployment data
doesnǯt represent the educated workforce.
For them, the truth is there are more
available jobs than there are candidates
and the unemployment rise affects mainly
the .
    M:
t seems obvious that recessions drive up
crime because more people are under severe
financial stress. Have less hope and are less
strongly connected to the mainstream.
hey may therefore turn to crime to forget
their troubles (e.g. drugs), or to reduce stress
(e.g. violence), or to make ends meet (e.g.
robbery).

tress
ëm6
Mm§6§Æm
pm
m6M6ëë§

he recession is about the creative

Human Resources Management(HRM).
he HRM Function is asked to bring new
ideas, to change the HRM Processes and to
develop or change the procedures. ¯nd this
effort has to be cheap or it has to cut the
costs of the organization. he HRM
nnovation is easy in times of the business
growth, but the recession is not good for
big innovative HRM nitiatives.
  
 
m
 

˜o optimize the manpower strength.

˜ o take strategic initiatives to increase
productivity and efficiency of the
entire organization.
˜ o work on compensation benefits.
˜ Redesign training and development
programs.
o create employment
¬6nsure your organizationǯs policies and
handbooks are up to date.
¬o identify the real key employees and to
intact them in the organization.
¬Layoffs. 6nsure you are familiar with your
legal responsibilities in a lay off to minimize
your organization's risk. Be sure that you
have properly defined the criteria you are
using to determine who will be let go.
¬Redirect Your 6mployees to ther
Departments (Job Rotation).
¬Listen to Your 6mployees.
¬ Keep hem Motivated and Busy
( ommunicate- ommunicate and
ommunicate).
¬
how them the long term vision.
How to come out of
recession?
t is unhealthy for any nation to be in
Recession;
o, Government will take certain
countermeasures to eliminate or reduce the
6ffect of recession for turnaround.
 Market 6conomy:

ú
 Ú

 M
Ú



an produce and an decide to
sell at their prices. buy or not.

›
  
 
 
  



  
 
Hence, Government does not have 
Ú 

 on Producersǯ & the
onsumersǯ behavior; But, they can
influence millions of Producers &
onsumers with Governmentǯs policies;
 Government has 2 plans:
Fiscal Policies: Monetary Policies:
Government influences the RB manipulates
economy by changing how the available supply of
it (Government) spends money in the country.
and collects money.
RB increase the available supply of money.
Recession is the opportunity to
work differently:
More efficiency ( and resilience) by
sharing back office functions and by
partnering to learn about what works.
t is said that Dz







  
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By
Rohit Prabhakar Patil.