Asked by: Llarina Luddecke
Asked in category: personal finance, retirement planning
Last Updated: 19th May 2024
How can you implement a retrenchment plan?
6 Steps for Implementing Retrenchment in an aResponsible and Sensitive Mannera
- Selection criteria. When deciding who to layoff, be fair.
- Select the most appropriate time.
- Face-to-face.
- Accept All Results.
- Give accurate facts and figures.
- Career coaching
Many people also wonder what retrenchment strategies are available.
Definition. The Retrenchment strategy is used when an organization wants to reduce its business operations in order to lower expenses and achieve a better financial position.
Also, learn how to announce a resignation. These are some helpful tips to make the retrenchment meeting more respectful and understanding:
- Keep calm no matter what happens
- Respect and preserve the dignity of your employee
- Be direct and concise in communicating the decision. Don't try to be kind.
Also, learn how to retrenchment strategy?
Retrenchment strategy. A strategy used by corporations in order to decrease the diversity or overall size of company operations. The strategy typically involves withdrawing from certain markets, or discontinuing sales of certain products or services in order to achieve a positive turnaround.
What is a combination strategy?
Definition: A Combination Strategy is a strategy that uses other grand strategies (stability expansion or retrenchment), simultaneously. This strategy is used when an organization is complex and large, and includes many businesses in different industries that serve different purposes.
17 Related Question Answers Found
What is retrenchment strategy example?
Vodafone was acquired by hutch is a good example of divestment strategy. A retrenchment strategy which is considered the most extreme and unattractive is the liquidation strategy which involves closing down a firm and selling its assets. It is consider as a last resort because of its serious consequences.
What are the benefits of retrenchment?
While being retrenched is a financial blow, it legally allows you to access many benefits. This includes better tax rates, waivers on premiums and even debt repayments. If you are retrenched, you can take up to R500 000 tax free from a combination of your retrenchment package and pension.
What does Labour law say about retrenchment?
Retrenchment is the process by which staff is reduced to cull redundant employees and reduce the wage bill. The Labour Relations Act 1 , permits employers to dismiss employees for operational requirements. These are defined as requirements based on economic, technological, structural or similar needs of the Employer.
Is retrenchment good or bad?
The Good side of Retrenchment is that it offers the company and staff an opportunity to part company on good terms. The company gets to reduce its staff levels and the staff leave with a redundancy package. For those staff that have been with the company for a long period it would be a sizable sum of money.)
What are the 4 grand strategies?
There are four grand strategic alternatives that can be followed by the organization to realize its long-term objectives:
- Stability Strategy.
- Expansion Strategy.
- Retrenchment Strategy.
- Combination Strategy.
What are the four grand strategies?
There are four grand strategic alternatives that can be followed by the organization to realize its long-term objectives:
- Stability Strategy.
- Expansion Strategy.
- Retrenchment Strategy.
- Combination Strategy.
What are the turnaround strategies?
The Turnaround Strategy is a retrenchment strategy followed by an organization when it feels that the decision made earlier is wrong and needs to be undone before it damages the profitability of the company. Example: Dell is the best example of a turnaround strategy.
What does retrenched mean in business?
Retrenchment is a term used to describe when a business decides to significantly cut or scale-back its activities. Retrenchment might occur when one or more of the following happen to a business: Reduce output & capacity. Job losses / redundancy programmes. Product / market withdrawal.
What is expansion strategy?
Expansion Strategy. Definition: The Expansion Strategy is adopted by an organization when it attempts to achieve a high growth as compared to its past achievements. The expansion strategy is adopted by those firms who have managers with a high degree of achievement and recognition.
What is divestiture in strategic management?
A divestiture is the partial or full disposal of a business unit through sale, exchange, closure, or bankruptcy. A divestiture most commonly results from a management decision to cease operating a business unit because it is not part of a core competency.
What is cost leadership strategy?
Cost leadership. From Wikipedia, the free encyclopedia. In business strategy, cost leadership is establishing a competitive advantage by having the lowest cost of operation in the industry. Cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience (learning curve).
What is differentiation strategy?
It's an approach that a business takes to develop a unique product or service that customers will find better than or in another way distinctive from products or services offered by competitors. Differentiation strategy is a way for a business to distinguish itself from the competition.
What are the strategic alternatives?
The four strategic alternatives from least to most risky are market penetration, market development, product development and diversification. Companies can pursue one or all of the options in order to reach maximum sales and profits.
What is focus strategy?
A marketing strategy in which a company concentrates its resources on entering or expanding in a narrow market or industry segment. A focus strategy is usually employed where the comopany knows its segment and has products to competitively satisfy its needs. Focus strategy is one of three generic marketing strategies.
What is scenario planning in strategic management?
From Wikipedia, the free encyclopedia. Scenario planning, also called scenario thinking or scenario analysis, is a strategic planning method that some organizations use to make flexible long-term plans. It is in large part an adaptation and generalization of classic methods used by military intelligence.
What is layoff and retrenchment?
Layoff. Retrenchment. Meaning. Lay-off refers to the provisional termination of the employee, at the instance of the employer. Retrenchment means involuntary separation of an employee due to the replacement of labor by machines or the close of the department.
How long does retrenchment process take?
Normally on average such a process takes between two and three weeks. We employee more than 50 employees and contemplate dismissing at least 10 employees based on the company's operational requirements. In such instances the employer will have to follow the steps outlined in section 189A of the Labour Relations Act.
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