EFFECTS OF THE RETRENCHMENT EXERCISE ON ORGANIZATIONAL PERFORMANCE AND QUALITY OF WORK LIFEAMONG UGANDAN PUBLIC OFFICERS
by: Peter Baguma &Leon Matagi June 2002
Levine (1984) found that retrenchment resulted in fiscal stress and human resource shrinkage that caused many difficult problems for government managers. These problems are caused by methods used by managers to cope with the need to retrench and decrementalism (decrease in budget without loss of visible operating effectiveness). The major problem is decrease of human resource that results from cost cutting measures Which brings loss of skills, energy, morale, commitment, physical and mental health degradation that results from employees withdrawing physically and emotionally. Decrementals also cause reduced co-operative attitudes, greater fear and distrust, poor communication, lowered performance goals, restriction of production and increased turnover.
Retrenchment refers to sudden firing of employees du to change in organisational strategy or bjective
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A retrenchment strategy is a type of strategy a corporation uses to scale back its operations. The company can use this to limit the diversity of their operations or just the size of their processes in general.
Retrenchment is the process of reducing costs, usually by cutting back on expenses, staff, or services. It is often done as a strategy to improve a company's financial situation or to streamline operations in response to economic challenges. Retrenchment decisions can have significant impacts on employees, shareholders, and other stakeholders.
Retrenchment means lay off of employees from the company on account of many reasons like, company going in debt or company's need to cut down the payroll, etc. The compensation given at that time to the employees for firing of them without any notice is called retrenchment compensation.
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The advantage is that the wage bill is reduced, the disadvantage of the retrenchment growth strategy is that a firm may loses employee without reaching their full potential.
Retrenchment refers to the process of reducing costs or expenditures, often in response to financial difficulties or economic downturns. This can involve cutting back on workforce, scaling down operations, or eliminating certain services or departments. Organizations may implement retrenchment strategies to enhance efficiency and improve profitability. It is a strategic decision aimed at ensuring long-term sustainability in challenging economic conditions.
Accepting a job as a human resource manager in a firm undergoing a retrenchment strategy can offer advantages such as the opportunity to shape and implement critical organizational changes and the potential for career growth in crisis management. However, disadvantages include job insecurity due to the firm's financial instability and the emotional toll of managing employee layoffs and morale during a challenging period. Additionally, the role may involve high stress as the manager navigates complex workforce dynamics amid cost-cutting measures.