According to the A–Z Business Studies Handbook, the process of human resource management (HRM) involves ‘using and developing the organisation’s personnel in the most productive way’. Most modern businesses regard their employees as a vital resource. Ensuring that the right people, with the right knowledge and skills are in the right positions at the right time is seen as essential in the struggle to achieve and maintain a competitive edge within the market. Typically, HRM covers a wide range of activities, including recruitment, training and dismissal. Many of these activities are controlled by employment legislation, making it a complex enough process during periods of relative economic stability and growth. However, the purpose of HRM, as with all other strategic functions, is to assist a business in achieving its objectives, and the key objective for all firms, regardless of size or past success, is to survive when times get tough.
Times certainly began to get tough for many businesses during 2008 and continued to so do during the following year. The UK’s first recession since the early 1990s was officially acknowledged after two quarters of negative economic growth in the second half of 2008. From this point, the economy contracted for another three successive quarters, resulting in a fall in UK gross domestic product (GDP) by 5.7% in total. This compares to a total fall of 2.5% during the recession in the early 1990s, and a 6.4% fall during the economic slump of the early 1980s.
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