HRM practices during the global recession (2008‐2010)

Purpose – The purpose of this paper is to investigate human resource management (HRM) practices adopted by firms during the recession period of 2008‐2010, their impact on employees' happiness at work, and whether there are any differences by the size of the firm.Design/methodology/approach – Two survey questionnaires were developed for the study, one targeting non‐managerial employees and the other targeting senior managers. Two random samples of non‐managerial employees (n=263) and senior managers (n=76) attached fulltime to globally distributed software development firms in Sri Lanka responded. For the data analysis, descriptive statistics, factor analysis, analysis of variance, and multiple regression were used.Findings – It was found that reduction in financial rewards, reduction in benefits, and training and development provision significantly vary by the size of the firm. Further, the communication of information, performance management, reduction in financial rewards, and reduction in benefits sign...