Nurturing a Transformational HR Strategy: Financial Crisis Period (Essay Sample)

The paper analyzes the role of the Human Resource (HR) function in transforming businesses during crisis periods such as the 2007/08 economic recession. The paper acknowledges the significance of the HR function in developing business strategy and recommends that instead of implementing quality strategies (e.g. cost minimization, staff layoffs etc.) during economic crisis episodes, it is advisable for corporations to optimize their expenditures by adopting transformational strategies (e.g. skills upgrading, business processes re-engineering, synchronization of HR functions with the overall business strategy etc.) in order to gain a comparative advantage against their worthy competitors; consequently, leveraging their performance during the transition and post-recession periods.