Retrenchment strategy is a strategy used by corporations to reduce the diversity or the. Retrenchment commonly comes up as part of the strategy or solution, which results in hr having to manage one of the leastliked functions of retrenching its people. Pdf does retrenchment strategy induce family firms value. Business strategy strategies used to make decisions regarding the allocation of resources or pursuing an operational strategy are often categorized as stability strategies, expansion growth strategies, retrenchment strategies, or combination strategies. When do we start calculating the 60 day consultation period. For the staff member who complete his probation period, but management does not want to continue his service. Turnaround strategy means backing out, withdrawing or retreating from a decision wrongly.
Organizations go through an inevitable progression from growth through maturity, revival, and eventually decline. Pdf one of the major challenges of business leadership in this millennium is. The scope and level of detail of the retrenchment plan will vary from case to case, depending among others on the number anticipated of job losses and associated socio. Strategic management and finance literatures document retrenchment strategy is one way to keep firms afloat against the roaring tide ung et al, 2018. Scribd is the worlds largest social reading and publishing site. This fact sheet aims to inform and assist the hr professional in the subject matter of retrenchment. Retrenchment free download as powerpoint presentation. Article information, pdf download for retrenchment strategies and. In keeping with the companys human resources philosophy as well as the requirements of the labour relations act 66 of 1995, as amended and the code of good practice on dismissals based on operational requirements, the. Advantages and disadvantages of retrenchment strategy. The king book was easy to download and took less time than a trip to the book store.
Retrenchment strategies, bankruptcy, and stakeholders. Retrenchment and restructuring labour and community. Other possible corporate level strategic responses to decline include growth and stability. Firm performance, retrenchment strategy and different ownership. Entrepreneurship, small business, turnaround strategy, diversification strategy, organizational decline, and resourcebased theory. Retrenchment strategy advantages and disadvantages wisestep. The table in annex b shows typical coverage for larger and smaller collective redundancies. A retrenchment procedure is carried out when the company has squandered a vast amount of money into something irretrievable. Retrenchment strategies market economics business scribd. The 60 day period in any large scale retrenchment commences once a notice in terms of s1893 has been issued. Does retrenchment strategy mitigate earnings management.
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