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Productivity and not Always Retrenchment
>>thank you for stopping by and please do not forget to leave a comment... It is not unusual for business firms to respond to viability challenges by trimming off employees, even when the affected employees are the highest contributing factor in terms of productivity. For most organisations, cost containment measures first affect the employees especially the lower level employees through retrenchment. At times, the remuneration for a single manager will be equivalent to that of about ten shop floor employees who are prone to be shown the exit door at the slightest signal of a slump in profits. Sounds familiar right? This paradox then leads one to ask: “Is retrenchment always a good idea for cost containment?” Whilst retrenchment as a cost containment measure is a noble idea, experience has shown that it often leads to a decline in organisational performance and product quality. A downward spiral trend in organisational performance is frequently precipitated when due...


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PRODUCTIVITY