2 How does the recession have an impact on the role and function of HRM? Ireland currently faces significant economic, fiscal and banking problems. A major research programme funded by several Irish public bodies and conducted by the Smurfit School of Business in University College Dublin and Queen’s University Management School in Belfast found that HRM plays a crucial role in helping Irish firms survive the economic crisis (Roche, 2011). The research study included a quantitative survey of over 450 managers to chart the impact of HR on decision-

making in the recession as well as five focus groups, each composed of 30 HR managers. The study reveals that despite the HR function being subjected to rationalisation, HR’s influence grew as firms needed knowledge and expertise in order to survive and cope with the turbulence in their environment.

The data indicate that the HR department contributes significantly to the firms’

strategic response to economic challenges, such that HR is considered a ‘business partner’

in the recession (Roche, 2011). HR practices and principles, such as good communication mechanisms, now take priority. However, little effort has gone into the issue of strategically aligning HR practices to promote recovery and growth of firms over the medium term.