Human resource management is the process of selecting, training, developing and compensating individuals at work. (Rugman and Hodgetts 2000). It is defined as a strategic approach to managing employment relationships that emphasizes that exploiting the capabilities of individuals is essential to achieving competitive advantage (Bratton and Gold 2007). It performs or reviews what can or should be done to effectively and efficiently meet their needs and those of the organization. However, sometimes situational factors can disrupt an organization's approach to finding balance. The current economic downturn, otherwise known as a recession, is an example of this. The National Bureau of Economic Research defines a recession as a significant decline in economic activity lasting more than three months. It is believed that recessions can impact the functions of human resources managers, particularly functions such as recruiting, compensation, training and employee communication. (Sojka, 2012). In this article, we will evaluate the options implemented by organizations in their restructuring exercises as a means. result of the global economic recession and indicate how HRM functions have been affected. Literature Review Extensive research has been conducted on the effects of recessions on HRM functions. Previous publications by various authors were reviewed to indicate how organizations around the world have survived similar economic downturns. In a review by Phillips (2012), Mitchells & Butlers, a UK-based company implemented what the author describes as a coherent strategic plan that resulted in increased sales and profits. The company achieved these results despite the challenges it encountered in the external environment. Some of them... middle of paper ...... labor. According to Theo Haimann, “Staffing concerns the recruitment, selection, development and compensation of subordinates.” Pine Hill Dairy and its expansion have realized that sometimes hiring additional employees is not always the best method of obtaining labor, as in recent years they have made significant investments in machinery, equipment and employee training to become more efficient while reducing costs. When human resource planning indicates the need for additional labor, organizations have a number of choices to make. This may be the first step in a large-scale recruitment and selection process, but sometimes hiring additional employees is not the best method of obtaining manpower. additional. It may be appropriate for an organization to consider alternatives to recruitment, such as outsourcing or contingent work, instead of hiring regular employees..