This has sprung from Foreign Direct Investment (FED) because the government has set the corporation tax so low for companies wanting to set up here in Ireland. Relate this to any other country, we can show that Ireland ranks highly in which ever sectors you look at for example we have 7 out of 10 of top worldwide global Information and communications technology companies In Ireland and 9 out of 10 of the biggest pharmaceutical companies here also. Before the SGF Ireland ranked the 5th most competitive economy in the world this was calculated on sectors such as government, education and technology.
Ireland was the first Euro zone country to it recession on September 2008. The main reason the economy crashed was because of our large reliance on the construction Industry and the uncontrolled handling of loans from the banking sector. Within the first three years we saw huge decreases in the GAP (Gross Domestic Product) which feel by 3% from 2007 to 2008 and a further 8% by 2009. Unemployment was another huge aspect In the SGF with unemployment rates rocketing from 45% in 2007 to 13. 7% by 2010. The one crutch that Ireland had was FED but this also plummeted by In 2008 and a further 37% by 2009.
Don’t waste your time!
Order your assignment!
Ireland needed help so the MIFF and ELI stepped in and lent Ireland 85% billion in 2010. That was what Ireland was like before this downturn In the economy, since then many people are looking to their governments for comfort. A lot of them have responded by setting up active work regimes to up skill people, they have cut taxes and created short time work for those who lost work. 1 OFF increasingly problematic to defend people’s pay and employment security. The public sector has seen a huge fall in pay while the private sector has seen a gradual decrease since 2010.
It was believed that when the downturn came it would have a dictatorship effect on the HRS side. People were saying it was being cut disproportionately compared with other support functions, and like many other FED companies it would be relocated to lower cost countries. But contra to popular belief this down turn has increased the influence that HRS has on all companies in a positive way. Since the beginning of the downturn HRS has been trying to find ways where it is fair and possible to save money for companies. They have tried to adjust wage rates, employment adjustment and work force stabilization.
We can look how different companies offered different paths. In an indigenous company like Are Lingua they offered the “leave and return” plan where you leave they Job with a large pay off but then get rehired by Are Lingua for a lower rate this allowed people who were at risk of losing their Jobs the chance to continue working. An example of a multinational company where the trade unions stepped in was in the Ax company where again there was voluntary redundancies like in so many companies at this time but allowed people the chance of keeping their Job at a new negotiated lower pay and also earlier retirement.
HRS is viewed by many as an asset rather than a cost to be diminished, unlike what I said earlier with the government not aiding to its full potential HRS has helped a lot in the NC, unlike indigenous companies who have a high level of training and development, NC have a low number of part time and temporary workers, instead focusing their cut of the budget on training and development on higher up positions like managers. Having read the two articles, it clearly shows that the indigenous companies are much more interested in the long term future of the employees.
They have introduced pay freezes, cuts, short term work, and redundancy’s to make sure that people do not feel hard done by. They do not remote or undertake “hard” HARM practices including cutting pay and trying to increase efficiency. Instead they focus on trying to reassure and boost employee commitment and faithfulness. They have reward systems which spread across the whole employee base including managers. Alternatively the NC prefer to downsize there work force to cut expenditure and a great deal of them are outsourcing as discussed earlier.
Another major factor that makes the indigenous and NC so different in the SGF is, work time has been cut completely along with rewards which indigenous companies hold in high deference regarding rewarding employees for caching sale targets and so forth. Unions are an important structure to the indigenous companies they hold in high regard the fact of honesty between themselves and management of companies where employees have taken pay cuts.
Employees that have pay cuts have a “claw back” system where when the prosperous times return they will be able to gain back some of the pay they lost from these cuts. In conclusion after studying these articles it has become apparent that HARM is very much important to both ingenious and NC in different ways but always coming back to employee’s satisfaction whether it is in this country or not in terms of NC.