Human Resources Management Essay
The U S is undergoing the worst financial crisis since the great depression a situation made even worse by the fact that the problem has extended beyond our borders and is now an international problem. This being the case translates to reduced exports and more financial problems for multinational corporations based in the U S since efforts for recovery must include their subsidiaries abroad.
This crisis has affected everyone right form the government encompassing the share holders to the employees and executives charged with running these corporations. However there are some sectors that have been ht harder that others and their relative importance in the country, due to their number of employees and lending capacities, have elicited prompt and urgent measures to stabilize them. Banking and Financial sector
It is generally accepted that the financial crisis hereby termed as the recession stated as a result of the collapse of the mortgage sector. Since the beginning of the 90’s whereby growth in the equity market brought increased wealth which resulted in the demand for housing. This demand saw a steady increase in housing prices and a growth in confidence over the stabilization of housing prices led to an increased and careless lending by
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However, tough financial times saw many Americans defaulting on their mortgage leading to foreclosures and generally defaulting on their loans. This in turn led to a credit crunch and the present stimulus is aimed at motivating banks to start lending again in order to stop the recession. The financial sector is probably the most important employing millions of people. Furthermore the government earns huge revenue from these institutions and hence their collapse would mean a loss of livelihood for the employees and loss of revenue for the government.
Moreover, this sector enjoys some of the most hefty pay packages for executives and it is in their self interest including human resource if these institutions are saved from collapse. Therefore a stimulus package translates to hope to the whole human resource department since they will be able to cater for all their employees’ remuneration and safeguard their future. The Auto Industry The auto industry is one of the largest industrial sectors in the United States employing millions of people in America and millions beyond the American borders.
It is a sector that has contributed greatly towards the economic might of this country and has always been considered vital if this prosperity is to be sustained. However, the current economic crisis has threatened to erode all this progress and the crisis has nearly brought the three largest auto giants to their knees. Such a catastrophe would spell doom to millions of employees who are wholly dependent on these companies and million more who are directly or indirectly dependent on the same.
Therefore the government’s intervention to save the industry is a welcome move since it would secure millions of jobs and guarantee a steady flow of revenue to its self in the future (Grabbel and Weaver, 2009). Conclusion It is quite clear that these two sectors represent a significant percentage of American work forces including some of the best paid executives. In this regard it becomes important to invest most of the stimulus package in the sec5tors if only to safeguard the millions of jobs at stake.
Furthermore there are several issues regarding workers pay, pensions and insurance at stake and lack of funds would put these necessities at stake. It is therefore commendable to note the significant effort by this administration to deal with crisis in order to stabilize the economy and create employment. Work Cited Michael Grabell & Christopher Weaver. The Stimulus Plan: A Detailed List of Spending. Viewed March 26, 2009 from <http://www. propublica. org/special/the-stimulus-plan-a-detailed-list-of-spending>.