Alternatives to Retrenchment in HRM

This document discusses the alternatives to retrenchment in HRM and provides insights on how organizations can manage workforce reduction without resorting to layoffs. It covers various options such as redeployment, temporary layoffs, shorter work weeks, and work from home arrangements. Additionally, it explores the importance of providing continued services to retrenched employees, including educational and medical benefits, food coupons, and loan benefits. The document also delves into the significance of fair decision-making processes, counseling plans, and exit interviews in HRM. References are provided for further reading.

Running head: HRM
HRM
Name of the Student
Name of the University
Author Note

1HRM
Task 1
From the case study, it can be rightfully comprehended that, AGRICO is in a dilemma
whereby the organization would be essentially required to come up with a new plan in which it
would be required to let go of some of the employees because the market conditions for the
farming have not been suitable and with reverence to this, the firm needs to retrench these
individuals. However, there are various alternatives to retrenchment for the organization. These
alternatives can be mentioned to be as follows:
Redeployment
In the case of redeployment, the organization can successfully redeploy or rotate the
different employees within the organization so that they are being able to expand the job scope
and restructure their operations. This means that the different employees should be allowed to
undertake a number of alternatives and the employees who are being redeployed must be
provided with a considerable scope of training1. However, the costs to the firm can increase in
this scenario but the advantage includes better opportunity for the employees.
Temporary layoffs
These are better than the retrenchment which was being planned for the firm earlier. In
the case of the temporary layoffs, the organization can ask the different employees to stop
visiting the work just for a short period of time. In this case, they must be paid with half their
salary during the layoff days and they must be managed accordingly even in their layoff period
days. In this scenario, the different employees are being provided with an opportunity to work
for the firm but just take a break for a shorter time frame2. This saves company costs as well as
saved the jobs of the employees.
Shorter work week
A week usually comprises of 5 to 6 days and if the firm plans to retrench the employees,
it can instead come up with a plan whereby, it will be essentially required to ask the different
employees to come for only a few days a week for their work. However, the reduced duration
needs to be limited to 3 days and not last more than 3 months. Hence, this can be stated to be a
1 Berman, Evan M., et al. Human resource management in public service: Paradoxes, processes, and problems. CQ
Press, 2019.
2 Derebus.org.za Retrenchment [online]. Available at: http://www.derebus.org.za/alternatives-retrenchment-
employers-obliged-save-jobs/ (Retrieved on: 06 October. 2019).

2HRM
short term plan. Here the firm would be successfully able to save the different costs and the
employees would still have sufficient work to do3.
Providing alternatives like Work from home
The research and development department can come up with an alternative to see to it
that, they can even engage in work from home activities and initiatives 4. In such a case, these
individuals would be required to report online from their houses and conduct the work from their
places. In regard of this, the company will be saving considerable time and costs and the
employees and work conveniently from the scope of their homes.
Task 2
In a scenario, whereby the different employees would be required to be retrenched, they would
still be required to undergo a certain set of services whereby, these employees would still feel a
part of the organization and thereby not be majorly affected by the loss of the jobs. Hence, the
different services which can be provided to the different employees are as follows:
1. Educational services: For many of the employees who are in the organization for a very
long time, the organization may be providing educational benefits to the different
employees. Once these services are provided to them, the employees are assisted in
managing the educational needs of their children. In such a case, it is integral that the
firm continuous to provide them with the educational services.
2. Medical services: Additionally, many organizations also tend to provide medical services
to the different employees and hence, it is in this scenario, that the firm is advised to
continue providing these services to the different employees even after retrenchment.
3. Food coupons and others: The organizations generally provide the different facilities
relating to the food coupons and other related services to the different employees and
thereby it is advised that the firm continues to engage in this act5.
4. Loan benefits: The loan benefits need to be provided to the different employees even
after retrenchment because it is due to the shortcoming of the organization that the
employees cannot continue their work.
3 Sparrow, Paul, Chris Brewster, and Chul Chung. Globalizing human resource management. Routledge, 2016
4 Labourlawadvice.com.za. Retrenchment [online]. Available at: https://www.labourlawadvice.co.za/there-are-
alternatives-to-retrenchment/ (Retrieved on: 06 October. 2019).
5 Noe, Raymond A., et al. Human resource management: Gaining a competitive advantage. New York, NY:
McGraw-Hill Education, 2017.

3HRM
Task 3
The case highlights the manner in which MS M has been highlighted for her misconduct.
In regard to this, it is important to consider that Geoff is indeed taking various hasty decisions. In
this case, it needs to be rightfully mentioned that, there has been no proper investigation
regarding the whole matter and simply on the basis of the recordings of the camera, no solution
can be undertaken. Hence, in order to undertake a fair decision, it is integral that the Ms M is
allowed to give her justification. It may be a case that Ms. M is just chatty and takes long time to
interact with the clients6. Moreover, the bars are often rushed up and in regard to this, it is
integral for the business owner to see to it that he is successfully able to cater to the needs of all
the individuals in order to ensure that their needs can be met with successfully. Here, the case of
$50 can be related to some other persona client of Ms M and hence, hasty decisions should be
avoided in order to result in a fair outcome.
6 Mom.gov.sg Retrenchment [online]. Available at:
https://www.mom.gov.sg/employment-practices/retrenchment/alternatives-to-retrenchment (Retrieved on: 06
October. 2019).

4HRM
Task 4
The counselling Plan
In order to set down requisite standards of performance, it is important to note that, the
counselling from needs to be prepared accordingly which would thereby ensure that the different
employees are being trained according so that they are able to manage their performance and
help the company in seeing to it that the different needs of the business can be met with
accordingly. Therefore, the counselling plan is as follows:
1. A proper training will be provided to the different employees in order to ensure that they
are able to gain an understanding of the performance which is required of them with
respect to the training7. Through this, they will be successfully able to perform well in the
long run.
2. A one to one session will be held with the different employees so that the individual
issues can be discussed in a sound manner. In addition to this, the firm would be required
to provide them with recommendations related to the manner in which they would be
essentially required to deal with the issues being faced by them8.
3. A feedback system needs to be developed accordingly which would provide the different
employees with an opportunity to let the firm now about the different issues which they
have been facing personally and with reverence to this, they would also be required to
assure the firm that they are being able to resolve them.
Hence, through this counselling plan, the organization will be able to communicate
effectively with the different employees and advise them regarding the different issues which
might be faced by them. Additionally, they will also be advised about the consequences of their
actions in the long run9. In line with this, the firm would inform them about the warnings which
they would receive so that no issues arise in the long run.
7 Chelladurai, Packianathan, and Shannon Kerwin. Human resource management in sport and recreation. Human
Kinetics, 2018.
8 Cascio, Wayne F. Managing human resources. McGraw-Hill, 2015.
9 Cascio, Wayne F. "Costing human resources." Wiley Encyclopedia of Management (2015): 1-1.

5HRM
Task 5
An exit interview can be considered to be a type of interview whereby the employees are
asked a set of questions during the time they leave the organization. The questions in an exit
interview generally comprise of the information about their reason for leaving and describe the
areas where the company needs to improve its operations. The benefits are as follows:
 The improve the overall recruitment procedure as they contribute to shortening the
overall recruitment procedure and contribute towards seeing to it that the firm can
improve its operations.
 It also assists in reducing employee absenteeism which will assist in seeing to it that, the
turnover can be improved accordingly10.
 Additionally, knowing about the shortcomings of the firm help in raising the
organizational performance which would contribute towards better productivity
 Lastly, the exit interviews improve engagement of the employees.
The different limitations of the exit interviews are as follows:
 The exit interviews may not be useful as some employees might not be comfortable in
opening themselves and hence, the exit interview as a procedure may turn out to be a
waste of time.
 Secondly, the exit interview may turn out to be too tense in nature as the exit of the
employee may be much tensed11.
 Thirdly, if the employees who are leaving give a recommendation which will not be
executed, it may demoralize the other employees as well.
 Lastly, some employees may just take out their frustration and anger and may not provide
any fruitful feedback.
These shortcomings may be minimized as follows:
 The HR department may provide an incentive to the different employees who may enable
them to perform well and provide honest answers
10 Bratton, John, and Jeff Gold. Human resource management: theory and practice. Palgrave, 2017.
11 DeCenzo, David A., Stephen P. Robbins, and Susan L. Verhulst. Fundamentals of Human Resource Management,
Binder Ready Version. John Wiley & Sons, 2016.

6HRM
 The employees may be taken in confidence while answering the questions and the survey
which will enable the firm to see to it that they are successfully able to gain the reviews
about the firm12.
 The negatives which they receive out of the frustration may be matched against the real
outcomes of the organization and this may assist in gaining the right kind of response
 Lastly, for the tense exit interviews, the firm may take feedback in writing.

12 Noe, Raymond A., et al. "Human resources management." Instructor 2015 (2015).

7HRM
References
Berman, Evan M., et al. Human resource management in public service: Paradoxes, processes,
and problems. CQ Press, 2019.
Bratton, John, and Jeff Gold. Human resource management: theory and practice. Palgrave,
2017.
Cascio, Wayne F. "Costing human resources." Wiley Encyclopedia of Management (2015): 1-1.
Cascio, Wayne F. Managing human resources. McGraw-Hill, 2015.
Chelladurai, Packianathan, and Shannon Kerwin. Human resource management in sport and
recreation. Human Kinetics, 2018.
DeCenzo, David A., Stephen P. Robbins, and Susan L. Verhulst. Fundamentals of Human
Resource Management, Binder Ready Version. John Wiley & Sons, 2016.
Derebus.org.za Retrenchment [online]. Available at: http://www.derebus.org.za/alternatives-
retrenchment-employers-obliged-save-jobs/ (Retrieved on: 06 October. 2019).
Labourlawadvice.com.za. Retrenchment [online]. Available at:
https://www.labourlawadvice.co.za/there-are-alternatives-to-retrenchment/ (Retrieved on: 06
October. 2019).
Mom.gov.sg Retrenchment [online]. Available at: https://www.mom.gov.sg/employment-
practices/retrenchment/alternatives-to-retrenchment (Retrieved on: 06 October. 2019).
Noe, Raymond A., et al. "Human resources management." Instructor 2015 (2015).
Noe, Raymond A., et al. Human resource management: Gaining a competitive advantage. New
York, NY: McGraw-Hill Education, 2017.
Sparrow, Paul, Chris Brewster, and Chul Chung. Globalizing human resource management.
Routledge, 2016.