Recession.Ppt By Yas

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Recession.Ppt By Yas

  1. 2. What is Recession?
  2. 4. <ul><li>In economics, the term recession describes the reduction of a country's gross domestic product (GDP) for at least two quarters . The usual dictionary definition is &quot;a period of reduced economic activity&quot; </li></ul>
  3. 5. <ul><li>The United States -based National Bureau of Economic Research (NBER) defines economic recession as: &quot;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. </li></ul>
  4. 6. <ul><li>That private organization defines a recession more ambiguously as &quot;a significant decline in economic activity spread across the economy, lasting more than a few months.“ </li></ul><ul><li>In 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 </li></ul>
  5. 7. History of recessions <ul><li>· July 1980 - November 1982 : 2 years total </li></ul><ul><li>· July 1990-March 1991 : 8 months </li></ul><ul><li>· March 2001-November 2001 : 8 months </li></ul><ul><li>· December 2007-current : 15 months as of March 2009 </li></ul>
  6. 8. Causes of recessions <ul><li>Currency crises </li></ul><ul><li>Energy crisis </li></ul><ul><li>Under-consumption </li></ul><ul><li>Overproduction </li></ul><ul><li>Financial crisis </li></ul>
  7. 9. Causes of recessions <ul><li>Currency crises </li></ul><ul><li>A currency crisis , which is also called a balance-of-payments crisis , occurs when the value of a currency changes quickly, undermining its ability to serve as a medium of exchange or a store of value . It is a type of financial crisis and is often associated with a real economic crisis </li></ul><ul><li>Energy crisis </li></ul><ul><li>An energy crisis is any great bottleneck (or price rise ) in the supply of energy resources to an economy . It usually refers to the shortage of oil and additionally to electricity or other natural resources . An energy crisis may be referred to as an oil crisis , petroleum crisis , energy shortage , electricity shortage or electricity crisis </li></ul>
  8. 10. <ul><li>Underconsumption </li></ul><ul><li>In underconsumption , recessions and stagnation arise due to inadequate consumer demand relative to the amount produced </li></ul><ul><li>Overproduction </li></ul><ul><li>In economics , overproduction refers to excess of supply over demand of products being offered to the market . This leads to lower prices and / or unsold goods </li></ul><ul><li>Financial crisis </li></ul><ul><li>The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value </li></ul>
  9. 11. The Impact of Recession on Employment <ul><li>As, the impact of recession is unpredictable and depends entirely on the nature of the recession. The lessons learned on past recessions have somehow helped us trace the patterns and given us ideas on how to solve the problem. </li></ul>
  10. 15. <ul><li>The Center for Economic and Policy Research states that the looming recession will raise unemployment by about 2 to 3 percent depending on the nature of the recession. This means that there will be about 3 to 5 million unemployed Americans in case it happens. </li></ul>
  11. 16. <ul><li>On the other hand unemployment data doesn’t 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 low-skilled workers . </li></ul>
  12. 17. STRATEGIC ROLE OF HRM DURING RECESSION <ul><li>The recession is about the creative Human Resources Management. The HRM Function is asked to bring new ideas, to change the HRM Processes and to develop or change the procedures. And this effort has to be cheap or it has to cut the costs of the organization. The HRM Innovation is easy in times of the business growth, but the recession is not good for big innovative HRM Initiatives. </li></ul>
  13. 18. The point has to be focused by HRM during recession are as follows: <ul><li>To optimize the manpower strength. </li></ul><ul><li>To take strategic initiatives to increase the productivity and efficiency of the entire organization. </li></ul><ul><li>To work on compensation benefits. </li></ul><ul><li>Redesign training and development programs. </li></ul><ul><li>Ensure your organization’s policies and handbooks are up to date. </li></ul><ul><li>To identify the real key employees and to intact them in the organization </li></ul>
  14. 19. <ul><li>Layoffs. Ensure 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. </li></ul><ul><li>Redirect Your Employees to Other Departments (Job Rotation) </li></ul><ul><li>Listen to Your Employees </li></ul><ul><li>Keep Them Motivated and Busy (Communicate-Communicate and Communicate) </li></ul><ul><li>Show them the long term vision </li></ul>
  15. 21. Thank You BY YASSER ARAFATH & NAVEEN KUMAR K

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