The paper "Impacts of Economic Recession on International Human Resource Management" is a brilliant example of an essay on business. Globalization has significantly promoted economic interrelations, owing to technological and human resource transfer across various nations. The human resource transfer among nations is significant for economic growth. This is critical in the satisfaction of customers both at local and at international levels (Sitkin & Bowen 2010, p.343). As such, International Human Resource Management serves crucially in the deployment of human resources across nations, thereby providing a skilled workforce to dissimilar nations for technological advancement and economic development. However, the current recent economic recession has had critical impacts on the IHRM, thereby negatively influencing their roles in human resource deployment. These challenges have extended to the point of deeming the IHRM irrelevant, thereby posing key issues in global economic development.
To begin with, the economic recession had serious impacts on numerous business organizations globally. This has posed diverse challenges to such firms, particularly to their capability to employ foreign skilled manpower. This increases the already severe challenges of unemployment across the globe, thereby rendering the role of IHRM extraneous, owing to the fact that IHRM key purpose is to deploy human resources to the diverse nation that need to employ foreign manpower to boost efficiency (Briscoe, Schuler, & Tarique 2012, p.69). Besides, some nations have opted to outsource, thereby eliminating the need for permanent employees. This is in their endeavor to reduce costs, and increase efficiency. This is also a strategic plan to overcome the economic recession.
Besides, owing to the economic recession, some nations have been compelled to implement stringent labor laws that serve to reduce the number of foreign manpower to their nations (Scullion 2011, p.52). Such nations include the UK and US and this has significantly affected the responsibilities of IHRM. Such nations may perceive the role of IHRM to provide skilled manpower for deployment as costly and have opted for the utilization of the local human resources, which seems less costly.
Besides, the economic recession has risen at a time when global technological advancement is at peak. As such, numerous firms have integrated automation in their production thereby displacing numerous employees (Scullion 2011, p.52). However, these technological advancements also create employment opportunities for numerous employees. There is also a significant disparity among nations, owing to technological advancement, and this poses challenges to the IHRM roles.
The economic depression has also influenced the exports within numerous nations. Diverse nations have reduced their exportations, owing to the stringent measures from the importing nations. This results from the fact that these nations have reduced their capacity to import since their products continue to receive reduced consumers (Sitkin & Bowen 2010, p.343). For instance, developed nations have reduced importing agricultural products from the developing African nations, thereby negatively affecting their economic development. As such, these nations have been incapacitated to absorb various foreign human resources. This has direct implications for the IHRM, thereby reducing their workability.
As such, industrial outputs have slowed critically, and this reduces the profitability of diverse firms, thereby reducing their absorption of the skilled workforce (Briscoe, Schuler, & Tarique 2012, p.69). Besides, the unemployment that the economic recession creates negative influences on the purchasing power of individuals, thereby reducing the productivity and profitability of diverse business organizations.