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:
What Are the Causes of Retrenchment?
Retrenchment normally arises from decisions to change strategic direction, which in turn usually happens because of one or more of the following:
Implications of Retrenchment for Change Management
A decision to adopt a strategy of retrenchment by definition involves change for a business. Can this change be implemented successfully? Much depends on the circumstances, scale and scope of the retrenchment.
Some of the key implications of retrenchment for change management are summarised in the table below:
© 2021 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.