Organisational responses to economic challenge

The current economic crisis has no equal in history for us to compare against. However, experience over the last 40 years suggests that as the economy recovers it will necessitate yet more change and adaptation from business as a new set of demands and attitudes from both customers and employees is forged.

The emphasis for the future is likely to be on sustainability and performance in the medium to long term rather than short-term gain and as a result will require a significant shift in management style and behaviour. This represents a huge challenge and an opportunity for HR to be at the forefront in orchestrating these changes

Innovation and the ability to cope with fast-paced change are acknowledged as the key capabilities for organisational survival and growth, much of which is driven by people and their willingness to perform and develop their expertise to deliver.

This report draws on a range of CIPD sources and others, where appropriate, to map the economic climate and the organisational and employee responses to the challenges it presents.

Published September 2009