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School of Business | Department of Marketing and Management | Organization and Management | 2010
Thesis number: 12408
The Impact of economic crisis on HRM practices in Estonia
| Author: | Vösa, Helene |
| Title: | The Impact of economic crisis on HRM practices in Estonia |
| Year: | 2010 Language: eng |
| Department: | Department of Marketing and Management |
| Academic subject: | Organization and Management |
| Index terms: | organisaatio; organization; johtaminen; management; Viro; Estonia; henkilöstöhallinto; personnel management; rekrytointi; recruiting; motivaatio; motivation; yritysviestintä; business communication; talouskriisi; economic crisis |
| Pages: | 63 |
| Full text: | |
| Key terms: | Human resource management practices, recruitment, training, performance appraisal, reward systems, emerging market, economic crisis, Estonia |
| Abstract: |
ABSTRACT
Department of Marketing and Management
13.10.2010
Master’s Thesis
Helene Vösa
THE IMPACT OF ECONOMIC CRISIS ON HRM PRACTICES IN ESTONIA Research Objectives The main objective of this study is to gain the overall picture of how the current economic crisis has impacted four areas of Human Resource Management: 1) recruiting and selection, 2) reward systems, 3) training and development, and 4) performance appraisal in Estonia. The case of Estonia is a unique one to study from HR perspective because after a several years of clearly noteworthy economic growth period the country faces now the challenges of a severe economic crisis. Research Methodology The research by nature is a qualitative study. The empirical portion of this research was formed around semi-structured interviews. The interviewees are four HR Mangers and a General Manager of five different companies operating in Estonia, with four of them being of Finnish domicile parent companies. The interview themes were focused on defining the relationship between Estonian HRM and the economic crisis from which conclusion of how the crisis has influenced HRM practices are drawn. Findings Previous studies have shown evidence that economic instability affects both company performance and its HRM activities. The findings of the study show that the current economic crisis has had significant impact on HRM and its practices. After almost a decade of robust economic growth in Estonia, the changes that the crisis has fostered since 2008 have been dramatic. The study indicates that recruiting and selection, and reward systems have been influenced by the crisis the most. A total reversal from the situation only few years back. Training and development has suffered significantly as well, although companies have maintained the basic level on training programs and concentrated on developing internal trainings rather than paying for external training programs. Other than canceling salary negotiations, the function of performance appraisal practice has faced the lowest degree of change. Key Words Human resource management practices, recruitment, training, performance appraisal, reward systems, emerging market, economic crisis, Estonia. |
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