- 1. Retrenchment A.Natarajan MBA final year student Dept.of business administration Annamalai university Annamalai nagar.
- 2. Today will cover …… What is retrenchment Retrenchment procedure Selection criteria Present retrenchment rate.
- 3. Retrenchment Retrenchment is something akin to downsizing. when company goes through retrenchment, it reduces expenditures in an attempt to become more financially solvent. Corporate downsizing is the process of Reorganizing a company structure in a manner that brings about layoffs of a potion of the company’s work force. It may be due to economic downturns or business loss
- 4. Toyota’s Operating income/loss
- 5. Establish Procedure From a committee, the role of committee will be to. determine the revised shape of the workforce. Plan in detail. Develop the criteria. Determine budgets.
- 6. Retrenchment Consultation Determine whether Retrenchment Is necessary Look for alternatives Decide how to carry out dismissals Check no discrimination Implement dismissals Seek to reduce impact of retrenchment
- 7. Choosing Whom To Inform Determine whom to inform and consult is the first issue to address. The most obvious group of please will be the workers who are likely to the important. Such as Trade unions and worker representatives Government authorities Community leaders.
- 8. Content Of Information Disclosed The type of information to disclose to worker representatives includes the No of workers likely to be dismissed Proposed timeframe for dismissals Economic and organisational reasons behind the decision. Alternatives to retrenchment that have been considered
- 9. Selection Criteria Once it has been established that there is no alternative to losing jobs, it is important to move on of those employees who will be chosen for dismissal. There are several ways in which selection process can be organized, but it is important to ensure that it is Transparent Based on fair, objective criteria Contains an appeal or grievance procedure
- 10. Typical Selection Criteria Selection criteria involve one or a combination of the following factors Length of service Performance record Disciplinary record Absence record Skills Knowledge
- 11. Non-Discrimination Selection criteria for retrenchment must be based on the principle of non-discrimination. Such as Gender Trade union membership Race or color National origin or ethnicity Religion age
- 12. Some Prestigious Company’s Retrenchment Rate s.no Company Name Rate Of Retrenchment 1 City groups 52000 2 Ford 2600 3 DHL 9500 4 Google.com 10000 5 H.P 24600
- 13. Some Prestigious Company’s Retrenchment Rate s.no Company Name Rate Of Retrenchment 6 Tata 3000 7 Pepsi co 3300 8 Siemens 16750 9 Bank of America 7500 10 Nokia 1820
- 14. Case I run a 30year-old company that comprises 450 employees. The prevailing recession is compelling me to retrench staff. My dilemma is – who do I give the pink slip? There’s a group of senior employees, who have been loyal for years, even during my difficult times; but at the same time, compared to young employees. And the other group comprises young people, who are very buoyant but at the same time, might not be loyal. Please suggest, from which group should I ask employees to leave?
- 15. http:// www.ic.org/ifcext/enviro.nst/attachments by tittle/p-reterenchment/$FILE/retrenchment.pdf http://www.wisegeek.com/what-is-retrenchment.html Thamizhar kannottom,january,2009 Business world, January,2009 Reference
- 16. Thank You
