Retrenchment Case Study

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I may not be responding exactly as you intended the question to be responded to, but felt that applying the course to my current organization was the best way to demonstrate my understanding of the course materials. In my opinion, Unit 4 and the discussion of growth strategy was the most critical to the success of my organization. At the corporate level, there are three strategic alternatives that may be employed: growth, stability, and retrenchment (Parnell, 2014). My division had to endure retrenchment a couple of years ago. This strategy did not directly affect my region; however, the long-term effects have manifested a sense of fear for the whole organization. In our industry, we are dependent on having members to take care in order to …show more content…

I am not going to say that the retrenchment strategy was implemented incorrectly because I did not have any part in implementing it. However, the region has suffered immensely since the retrenchment occurred. The management of a region has a huge role in retrenchment decisions. Managers need to be aware that the way the retrenched employee is an essential part of the retrenchment plan. To ensure that all employees are treated fairly and the retrenchment is carried out in an ethical manner; management must be open, honest, and transparent about the process; as well as be cognoscente of how they treat those who will be affected (Morris, 2012). Since I cannot say for certain that the retrenchment was or was not performed in the correct manner, I can only assume based on the end result, reactions of the remaining employees, and statements from those who lost their job, that some of the important processes may have been missed or not considered when the retrenchment was in process. The long term detrimental effect of retrenchment doesn’t simply go away with the terminated employee; it remains in the people who are left to carry on after the retrenchment is finalized. In my division, the employees who remained, have experienced morale problems, communication barriers, and some productivity issues. According to Morris (2012), this can threaten the businesses performance over the long-term. The company has experienced

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