Alternatives to Retrenchment in HRM

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

HRM1
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).

HRM2
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.