Effective Management of Training and Development in an Economic Essay

Effective Management of Training and Development in an Economic Downturn - Essay Example Layoffs are among the most common and popular measures that have been taken up by firms as a part of their cost cutting activities. Recessionary periods are also characterised by unavailability of credit to firms as governments are forced to reduce liquidity in the market owning to high levels of inflation. Banks are forced to cut down on their lending activities which lead to unavailability of credit. In such situations firms are forced to cut down on production which leads to job cuts. The preset financial crisis saw the downfall of many corporate giants like Lehman Brothers and Bear Sterns and also saw large scale job cuts which left numerous employees jobless. In this aspect it becomes important for firms and employees alike to analyse and formulate effective measures that seek to help employees prepare survival strategies during such crisis periods. It has also been observed that employees who perform below the benchmark standards are first ones to get the pink slips. Hence it b ecomes essential for employees to have greater efficiencies so as to ensure job security. This aspect assumes significance for organizations as well as human resources are the most important and valuable assets for any organization. Presence of a talented pool of employees is very essential for organizations because it determines the competitive advantage for the firms. Recessionary periods are characterised by large scale competition leading to price wars. In this context it becomes significant for organizations to have a talented pool of employees which would help in generating better product features and greater efficiency in the product and services of the firm which would help organizations to maintain their competitive edge in the tough market situation. Training and development therefore assumes a major importance for both employees and organizations. The present study focuses on the aspect of training and development in