Global Economic Crisis: Organizational and Employee Responses

Abstract

Organizations are complex adaptive systems in symbiosis with increasingly challenging, competitive and demanding environments. As a result, they face developments and demands based on increasingly information-based, knowledge-driven and service intensive economies. This requires speed, flexibility and continuous renewal. In addition to the already constantly changing environment and pressures to remain competitive, the global economic crisis created major insecurity necessitating immediate responses through rapid change. The authors conducted a case analysis including Western Australian organizations affected by the global economic crisis and the contribution of this research is twofold. Firstly, it provides insights and a deeper understanding of both organizational and employee responses. Secondly, emerged insights can inform effective processes and employee management during times of uncertainty and change, thereby making a practical contribution.Feedback provided three key findings. The first key finding elucidated that organizations responded through strategic, improvisation and HR related strategies. Furthermore, these responses were based on both internal and external pressures and standard management practices. A second key finding indicated that employees experienced a range of responses from limited to major uncertainty and effects. A third key finding highlighted that employees voiced both negative and positive responses regarding the way in which the organization managed their responses.