Contribution #12: Managing the Economic Downturn

Chapter 15 is all about managing Human Resources globally. In the brief article I found, I was clueless as to how other countries might perceive their own jobs in society and the implications it has on organizations, especially in India. It talked about the paternalistic nature of the companies and how they are less likely to proceed with layoffs during an economic crisis. This is crucial for businesses from around the world to understand, from an HR point-of-view because if they are looking to expand to India, they must do their homework on the customs and culture of how organizations are run in India. Indian companies resort to HR practices with labor that include: restructuring, slower rates of salary increase, and hiring freezes. In India, the article says that labor issues in an economic crisis are just as much about the social safety net as it is economic. To be laid off in India means that that person was unqualified or incompetent for their job. That puts a lot of pressure on the individual to perform well, and in most cases, that is what leads Indian companies away from the common U.S. human resource practice of layoffs. All in all, HR managers have to be aware of the perception in society of handling the labor force, when looking to expand business operations globally.