Verified Expert

The need for Human Resource management cannot be overlooked by any corporation, especially during times of crises. For an organization to increase its horizon and scope of business, they have to consider their available human capital and weigh their ability to sustain an expanded horizon (Dawson, 2015). Similarly, in an effort of surviving an economic meltdown in a very competitive global market, multinationals depend on effective Human Resource practices for their success. It is a common practice by companies to downsize their human resource or even reduce their salaries for the purpose of sustaining their competence in the market. Across the board pay cuts and reduction in the labor force can impact negatively on the company in the short term. Benefits are usually realized in the long run.