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Throughout modern times, business cycles have contributed to organizational conditions with well-understood implications for the employee-employer relationship. During “boom” periods, qualified employees are scarce and expensive. During these periods, employers express concern about maintaining competitive pay and benefits practices, protecting their “investment” in human resources, creating and maintaining an attractive work environment, and minimizing turnover. During “bust” periods, qualified labor becomes much more easily found, and employers focus on minimizing the cost of human resource “overhead,” downsizing, maximizing operational efficiency, and optimizing the performance of remaining employees. Although macroeconomic conditions are arguably the key driver ...
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