Weathering the storm? Multinational companies and human resource management through the global financial crisis

Abstract

Purpose -This paper aims to examine the impact of the global financial crisis on human resource management (HRM) in multinational companies (MNCs) in Ireland. It focuses on four key areas of HR, namely staffing, pay and benefits, industrial relations and the HR function. Design/methodology/approach -It uses a mixed methods approach involving four major data sources combining objective information reported on the impact of the GFC on HRM with subjective perspectives on HRM practice within MNCs. Findings -Specific findings are presented in regard to staffing, pay and benefits, industrial relations and role of HR function. The authors find extensive evidence to indicate that MNCs have been in the vanguard of organisations engaging in multidimensional restructuring programmes in response to the GFC, incorporating many initiatives in the domain of HRM. These include job cuts, short-term working, reduction in training and development expenditure, pay cuts and freezes, reduced benefits and changes in industrial relations. While the authors find that HR function has played a central key role in "delivering" responses to the GFC within MNCs, they also find evidence of a reorganisation of, and financial pressure on, the HR function itself. Originality/value -This paper contributes to and develops the extant literature on the impact of economic crisis on human resource management.

A Framework for Work-Life Management in Multinational Corporations

“…For example, in response to security risks, some MNCs have revised their policies and practices related to employees' use of international assignments and travel. Research by Gunnigle et al (2013) found that, in MNCs responding to the global financial crisis that began in 2008, the HRM function plays an important role in organisational change and re-structuring, downsizing, working time reductions, industrial relations negotiations and related changes in reward systems and working conditions. While some of these MNC activities in crisis management might encompass work-life management, there appears to have been little specific analysis of the implications of changes in worklife policies and practices in response to external shocks.…”

Preserving employee capabilities in economic turbulence

“…However, at the same time, uncertainty and resultant austerity provokes ambiguity, complexity, and information overload (Carpenter & Fredrickson, 2002). In this situation, undoubtedly, management choices may become erratic, and this is habitually reflected in decisions that impact investment in employee capabilities (Gunnigle et al, 2013;McCarthy & Sheehan, 2014).…”

“…resource (HR) expenditure is usually the first to be scrutinised and cut back (Bloom, 2014;Gunnigle, Lavelle, & Monaghan, 2013).…”

Multinational Firms’ Motivations and Foreign Direct Investment Decisions: An Analysis of the Software and IT and Financial Services Sectors in the Irish Context

“…To overcome the effects of the financial crisis, multinational enterprises (MNEs) located in Ireland have also restructured their HR practices. In parallel, the drop in unit labor costs has helped the Irish economy to restore investors’ belief and reverse the trend of FDI by attracting substantial investments (Gunnigle, Lavelle, & Monaghan, ). Despite the initial drop in 2007, FDI projects peaked in 2011, with a total of 16,000 jobs and US$7.06 billion in capital invested (Aliouche, ; fDi Markets, ).…”