The Great Recession 2007 Essay

Submitted By JdChillstrong1
Words: 1010
Pages: 5
Open Document
The “Great Recession” 2007

Paper #1
MSB 609: Human Capital Management
By Roy Maleh
We seem to often remember the good times but it is always difficult to forget the bad times. The U.S. has definitively had its share of ups and downs. The "Great Recession" that began in December of 2007, was one that we still find ourselves struggling to recover from. This recession drove many organizations to scale back their operations--especially within the human resources. In this paper, I aim to focus on two human capital areas that have been dramatically affected by the recession and determine if these organizations made the correct decisions.
Following the Great Recession, many organizations decided to down-size various departments within their companies. In the human capital area, Motivation and Retention has been significantly affected. According to the reading, “The 2007-09 Recession And Health Insurance Coverage” by John Holahan, due to the recession there was a loss of employment, followed by a decline of income, which led to millions of Americans that had lost employment-based insurances (Holahan, 2011). I read somewhere that Motivation is one of the most researched topics in management literature. Motivation is reported to lead to high efficiency, when each individual task is studied and perfected. Collectively, organizations have come up with many strategies for motivating the employee. Fortunately, most of the concepts are consistent and relatively simple. I believe that if you want to create a positive employee motivation atmosphere, treat employees as if they matter - because employees matter. Compensation and benefits are both highly effective Motivation elements. Compensation is the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required. Compensation can include payments such as bonuses, profit sharing, overtime pay, recognition rewards and checks, and sales commission. Compensation can also include non-monetary perks such as a company-paid car, stock options in certain instances, company-paid housing, and other non-monetary, but taxable, income items. Deciding to scale down compensation within Human Resources was most likely a decision that was not taken lightly. Compensation motivates employees to work hard and improve their productivity. It also reduces employee turnover and helps in creating a great atmosphere to work in the organization. Unfortunately, we still have not brought the unemployment rate down to pre-recession levels (Schramm, 2010). Benefits are various non-cash compensations provided to employees in addition to their normal wages/salaries. Interestingly, an employee can exchange cash for some other form of benefits too, known as salary packaging. Some examples of benefits include, but are not limited to: health insurance, housing, disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation, social security, profit sharing, funding of education, and other specialized benefits. Retention is an effort by an organization to maintain a working environment which supports current staff in remaining with the company and reduce the substantial costs involved in hiring and training new staff. Many Employee Retention policies are aimed at addressing the various needs of employees to enhance their job satisfaction and reduce the substantial costs involved in hiring and training new staff. Ironically, employers believe that given the rough economy, workers are thrilled just to have a steady paycheck. Meanwhile in reality, employees are frustrated and secretly seeking new opportunities. And most likely which soon could be scooped up by another company as the economy begins to recover (Petrecca, 2009). As we know stakeholders are groups/individuals that are affected by and/or have an interest in the operations and objectives of the business. Most businesses have a variety of stakeholder
Show More

Related Documents: The Great Recession 2007 Essay

What Is The Great Recession

The Recession What is the great recession?The great recession was one of americans biggest downfalls our country has faced since the Great Depression. American businesses were failing tremendously in that time , Unemployment rate were going up in the country having it reach double digits and Also the falling or housing and sales. At the trough of the Great Recession, the level of industrial production was 13% below its previous peak, while world trade fell 20% from its previous peak. World stock…

Words 206 - Pages 1

The 2007-2009 Financial Crisis

done to encourage it. According to Yener Altunbas, Simone Manganeli, and David Marques-Ibanez, "the 2007-2009 financial crisis resulted in the largest realization of bank risk since the Great Depression, producing record levels of unemployment... [because of] banks with large size, low levels of capital, unstable funding and aggressive credit expansion in the years before the crisis." Before 2007, banks kept low interest rates, making it easier for consumers and businesses to borrow money. The problem…

Words 1107 - Pages 5

Essay about Research Topic: Has the Recession Changed the Way Americans Use Credit?

Name Ikponmwosa Jeffrey Enabulele Grade 8th Class period 5thdccc What is your general topic? Has the Recession changed the way Americans use credit? Into which discipline does your topic fall? (circle one) Political Science History Sociology/Psychology GeographyEconomics Anthropology What is your research question? Has the Recession changed the way Americans use credit? Purpose: This section of your paper/project is used to explain the importance of…

Words 981 - Pages 4

Econ resesrch paper

The RV industry has been around for a very long time. Americans, it seems, have been destined to be RVers since the earliest days that explorers set foot on this continent. Adventurers at heart, settlers came in search of freedom and opportunities to grow and discover. And discover they did, first by ship, then by horse, in groups by Conestoga wagon trains and ultimately, by motorized vehicles that ushered in the RVs of today (Gorving.com). A century ago, the popularization of the automobile…

Words 2555 - Pages 11

Essay about Economic Crisis

prepared for English 2010, 12:30, taught by Professor Deeter Abstract The Great Recession has hit most families pretty hard, unemployment is high, wages are low, and most people are struggling to stay afloat. This paper examines how America has gotten into this mess, how America is recovering, and proposes a plan to get out of this depression-like economy. The paper looks at a key component to the cause of the Great Recession, which is the extremely unequal distribution of wealth which has developed…

Words 3586 - Pages 15

The Contributions of Reagan Era Policies to the Recession of 2007 Essay

contributed to if not catalyzed the recession of 2007. The most agreed with post on debate.org regarding the quality of Reagan’s economic policies is as follows: “Reagan provided the method of the greatest economic expansion in American history, built up the military to the strongest force in the world from where Jimmy Carter had it. Did what he said he would do, although didn't have the House of Representatives, lowered taxes, gave the American people that great feeling that we were, and are, the…

Words 2307 - Pages 10

Essay about Internal and External Factors Affecting Uk as a Destination

Youell - 1/12/10 The following graph shows how the British pound has decreased against the Euro since the year 2000. http://news.bbc.co.uk/1/hi/business/7592971.stm 1/12/10 Although visitor numbers have declined from the year 2007 onwards due to the UK recession, the amount of money spent by…

Words 1702 - Pages 7

Federal Reserve Case Study

How successful has the American Government and the Federal Reserve been in running the American economy over the last two years Following the 2007-09 financial crisis that hit the United States, as well as other western economies, the government instituted specific measures to ensure normalcy is retuned. The government has been engaging in various macro and microeconomic practices to boost economic growth (Board of Governors, 2011). The government has to balance between implementing the congressionally…

Words 589 - Pages 3

The Great Recession Vs. Great Depression

Great Recession v. Great Depression Most people would agree that history has a tendency to repeat itself if not remembered; however, if history were to repeat itself there might be some changes. When looking at events that happened 400 years ago and events that happened five years ago, one must take into consideration the changes that occurred between the time periods. First, to contrast the Great Recession--our current economical crisis-- to the Great Depression, what provoked these two crises…

Words 781 - Pages 4

Essay On Changes In America

In the excerpt , of the New Deal speech that Franklin D Roosevelt said to the citizens, I read he wanted the community to fight the Great Depression with the help of the government. Roosevelt hated the traditional that another president has done of letting the community solve the problem and isolating the government with the citizen. This shows me that America needs the government to…

Words 638 - Pages 3