GLOBAL ECONOMY

Graduates in a Volatile Global Economy



Graduates in a Volatile Global Economy

Introduction

In light of the prolonged impact of recent U.S subprime crisis for economic realms, the heated debate is continued. It is obvious the shock brought by the financial crisis influenced different aspects of real world (Archer 2003, p. 6). The sluggish stock market and increase the unemployment rate can be the best illustration of this devastating effect. Murthy and Deb (2008) suppose that it should be better termed as the beginning of “the second great depression” due to the enormous broad area. Multiplicity of factors is figured out by a variety of scholars towards this turmoil because the surprisingly sizeable drawbacks in economical operation are exposed during subprime crisis (Baruch 2006, p. 125).

Discussion

The changing economic and social context of graduates' careers can be summarised as follows. The 1950s to 1970s saw a period of growth in large organisations with established, secure, internal labour markets giving opportunities for steady career progression through a series of organisation levels in hierarchical or bureaucratic structures (Archer 2003, p. 6). The notion of a job for life was not unusual and Whyte's (1958) 'organisation man' typified lifelong employment, security and loyalty to the organisation for white collar workers. When industry suffered recessionary pressures and widespread job losses occurred in the 1970s, blue collar workers were the main target (Baruch 2006, p. 125).

In the 1980s and 1990s, the shift to the knowledge or information economy saw large organisations restructuring, where even managerial work was elided by technology. Downsizing and de-layering affect graduates' careers, through fewer management levels and fewer managers and reducing economic rewards, autonomy, job security and career opportunities (Barnett & Bradley 2007, p. 617). At least half of large organisations in the United States, United Kingdom, New Zealand, South Africa, Canada and Australia downsized (Archer 2003, p. 6). Organisations removed entire layers employees, who were pilloried as deadwood or 'dinosaurs'. One of the key points about the 1980s and 1990s is that restructuring was a strategic initiative rather than a reaction to particular economic shocks or crises. Media attention to this phenomenon was high in the 1990s but waned in the new decade (Baruch 2006, p. 125).

During the period of 2000 to 2007, downsizing was relatively less prevalent or unpublicised, apart from notable instances such as the collapse of leading banking systems. Nonetheless, there has been ongoing organisational restructuring (Barnett & Bradley 2007, p. 617).

Thus, we are once again in an era of downsizing, albeit this time around a reactive response to crisis (Archer 2003, p. 6). Human resource management and development rhetoric about people being the organisation's most important asset and the need for career beneficial organisations has been replaced by statements about the need for the elimination of approximately 5 per cent of our global workforce, to give one example (Archer 2003, p. 6). Employees have been reframed from a strategic and scarce asset to something 'to be got rid ...