HRM practices during the global recession (2008‐2010): Evidence from globally distributed software development firms in Sri Lanka
Strategic Outsourcing: An International Journal
ISSN: 1753-8297
Article publication date: 16 November 2012
Abstract
Purpose
The purpose of this paper is to investigate human resource management (HRM) practices adopted by firms during the recession period of 2008‐2010, their impact on employees' happiness at work, and whether there are any differences by the size of the firm.
Design/methodology/approach
Two survey questionnaires were developed for the study, one targeting non‐managerial employees and the other targeting senior managers. Two random samples of non‐managerial employees (n=263) and senior managers (n=76) attached fulltime to globally distributed software development firms in Sri Lanka responded. For the data analysis, descriptive statistics, factor analysis, analysis of variance, and multiple regression were used.
Findings
It was found that reduction in financial rewards, reduction in benefits, and training and development provision significantly vary by the size of the firm. Further, the communication of information, performance management, reduction in financial rewards, and reduction in benefits significantly predict employees' happiness at work during recession.
Research limitations/implications
The research was designed as a cross‐sectional study employing survey methodology. Respondent senior managers were reluctant to provide actual data on layoffs and quits during the recession period.
Practical implications
The findings of this study would contribute for practitioners to better understand the HRM practices adopted by the firms during recession and effects of these HRM practices on employees' level of happiness at work.
Social implications
Employees' happiness by doing what is worth doing, pursing important goals, and using one's skills and talents during the economic recession could be affected by the HRM practices adopted during the recession.
Originality/value
It is evident that firms facing economic recession launch cost reduction initiatives such as pay cuts and freeze in new hires. From the academic and practical standpoint it is important to identify the influence of such HRM practices adopted during the recession on employees' happiness at work. However, available research does not provide sufficient understanding about the influence of HRM practices on employees' happiness at work during recession as empirical research on this area is presently lacking.
Keywords
Citation
Wickramasinghe, V. and Perera, G. (2012), "HRM practices during the global recession (2008‐2010): Evidence from globally distributed software development firms in Sri Lanka", Strategic Outsourcing: An International Journal, Vol. 5 No. 3, pp. 188-212. https://doi.org/10.1108/17538291211291747
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited