The Global Financial and Economic Crisis

Abstract

The Problem The Global Financial and Economic Crisis1 starting in 2007 and its resultant impact has called into question the contribution of Human Resource Development (HRD) strategies and practices to the crisis. With its primary focus on the development of human resources, it could be argued that HRD aligned itself too closely with the strategic goals of organizations, often times profit centric, and failed to provide leaders with the skills, knowledge, and values required to question the decisions made by organizations in the pursuit of profit goals and the development of a culture of risk taking. The Solution Utilizing Cognitive Appraisal Theory (CAT), this article draws on the official reports and public inquiry hearings in the United States, United Kingdom, and Ireland into the financial crisis and finds that HRD strategies, practices, and processes are factors which may have contributed to a culture of excessive risk taking and ineffective decision making. We outline the implications for HRD theory and practice. The Stakeholders The research findings inform a multiplicity of stakeholders including organizational behaviorists, social psychologists, government bodies, educational organizations, and scholars researching strategic HRD in organizations.

Employees’ perspectives on strategic human resource development before and after the global financial crisis: evidence from the Greek banking sector

“…For most organizations, the 2008 global economic crisis brought forward many human resource development (HRD)‐associated concerns. The crisis made them realize the significance of their workforce's development as a means of ensuring business survival and as a way to adapt to ongoing change more effectively (Cascio, ; Felstead et al ., ; Fiksel, ; MacKenzie et al, , ; McCarthy & Sheehan, ; Sung & Choi, ). The aftermath of the economic crisis affected most banking organizations across the globe, with major restructuring taking place and their HR practices dramatically altered (Mitsakis, ).…”

Realizing the critical in CHRD: strategies for research and practice

“…Recent work by MacKenzie, Garavan, and Carbery (2014) suggests that at best HRD was a disinterested profession but they also claim reasonable evidence and cause for use of the label 'co-conspirator'. Our contributors had little to say on that argument and, as indicated, few responses took a direct focus on the economic crisis.…”

Modify the Redefined: Strategic Human Resource Development Maturity at a Crossroads

“…However, employees’ input could also prove valuable (offering insights from a different perspective), a proposition that is missing from existing SHRD models. Having attained all these strategic partnerships, it could allow HRD executives to better demonstrate their value proposition through well-informed suggestions and initiatives based on vital information provided by key stakeholders (MacKenzie, Garavan, & Carbery, 2014, 2012; Phillips, Phillips, Stone, & Burkett, 2007; Shanahan, Garavan, & MacKenzie, 2009).…”