You work for an engineering firm in the UK which has recently set up another plant in India

You work for an engineering firm in the UK which has recently set up another plant in India. Given financial pressure as a result of the economic recession, the organisation has to make cuts. The CEO has decided to cut the HRM budget by 30%. The basis for his decision is a view that HRM activity makes little, if any impact on the bottom line.

1. Critically evaluate this view, drawing from academic theory to support your analysis. (Approximately 1,500 words)

2. Imagine that you are the HR Director for the firm and produce a management report outlining key recommendations in response to this decision. The report should set out proposals for activity that will link to organisational performance. (Approximately 1,500 words)