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CHAPTERS
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PG NO.
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PREFACE
EXECUTIVE SUMMARY
INDUSTRY PROFILE
OBJECTIVE OF STUDY
SCOPE AND PURPOSE
CONCLUSON
RECOMMENDATION
INDEX
PREFACE
As employee Retrenchment has become increasing everywhere in recent years, the
study of this phenomenon has assumed greater significance. This article develops an
integrative framework that incorporates environmental and organizational antecedents
as well as the implications of Retrenchment for individuals and organizations. Key
empirical studies are reviewed and major patterns and contradictions are identified. The
authors identify and discuss theoretical and methodological concerns related to the
extant literature and provide recommendations for future research aimed at developing
a better understanding of employee Retrenchment.
The thing that people need to remember is that Retrenchment may be back on the front
pages, but the Retrenchment never slowed down. Retrenchment has been a constant
and regular feature of the new working world, and it will continue to be.
EXECUTIVE SUMMARY
Meaning of retrenchment
Retrenchment is something akin to downsizing. When a company or government goes through
retrenchment, it reduces outgoing money or expenditures or redirects focus in an attempt to become
more financially solvent. Many companies that are being pressured by stockholders or have had flagging
profit reports may resort to retrenchment to shore up their operations and make them more profitable.
Although retrenchment is most often used in countries throughout the world to refer to layoffs, it can also
label the more general tactic of cutting back and downsizing.
Companies can employ this tactic in two different ways. One way is to slash expenditures by laying off
employees, closing superfluous offices or branches, reducing benefits such as medical coverage or
retirement plans, freezing hiring or salaries, or even cutting salaries. There are numerous other ways in
which a company can employ retrenchment. These can be non-employee related, such as reducing the
quality of the materials used in a product, streamlining the process in which a product is manufactured or
produced, or moving headquarters to a location where operating costs are lower.
The second way in which a company may practice retrenchment is to downsize in one market that is
proving unprofitable and build up the company in a more profitable market. If one market has become
obsolete due to modernization or technology, then a company may decide to change with the times to
remain profitable.
States or governments may also use retrenchment as a means to become more financially stable. In
capitalist nations, retrenchment is effected by lowering taxes in the hopes of pumping more money into
the economy. This tactic is always healthily debated throughout all levels of government. When applied to
governments, retrenchment may also refer to a state cutting costs by making jobs obsolete, closing
governmental offices, and cutting government programs and services. However, this is not a classic
example of retrenchment, because when expenses are cut in one area, politicians tend to re-direct them
to other areas.
Employees are often the casualty of retrenchment, as the tactic does not take their interests into account.
They are often considered simply as commodities that are either profiting or costing the company, and are
therefore either a necessary expense or a financial liability.
Definition of retrenchment
Retrenchment (French: retrenchment, an old form of retranchement, from retrancher, to
cut down, cut short) is an act of cutting down or reduction, particularly of public
expenditure.
According to the Industrial Disputes Act, 1947, retrenchment is the termination by the
employer of the service of the work- man for any reason whatsoever, otherwise than as a
punish- ment inflicted by way of disciplinary action, but does not include (a) voluntary
retirement of the workman, (b) retire- ment of the workman on reaching the retirement
age of superannuation, or (bb) termination of the service of the workman as a result of the
non renewal of his contract of employment, or (c) termination of the service on the
ground of continued ill health.
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Meaning of recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity.
During recessions, many macroeconomic indicators vary in a similar way. Production, as measured by
Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household
incomes, business profits and inflation all fall during recessions; while bankruptcies and the
unemployment rate rise.
Recessions generally occur when there is a widespread drop in spending often following an adverse
supply shock or the bursting of an economic bubble. Governments usually respond to recessions by
adopting expansionary macroeconomic policies, such as increasing money supply, increasing
government spending and decreasing taxation.
Negative Profits
Miss management
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The existing chief executive and management team handles the entire
turnaround strategy with the advisory support of a external consultant.
The last method involves the replacement of the existing team specially the chief
executive, or merging the sick organization with a healthy one.
Before a turn around can be formulated for an Indian company, it has to be first
declared as a sick company. The declaration is done on the basis of the Sick Industrial
Companies Act (SICA), 1985, which provides for a quasi judicial body called the Board
of Industrial and Financial Reconstruction (BIFR) which acts as the corporate doctor
whenever companies fall sick.
2. Divestment Strategies
A divestment strategy involves the sale or liquidation of a portion of business, or a major
division. Profit centre or SBU. Divestment is usually a part of rehabilitation or
restructuring plan and is adopted when a turnaround has been attempted but has
proved to be unsuccessful. Harvesting strategies a variant of the divestment strategies,
involve a process of gradually letting a company business wither away in a carefully
controlled manner
Reasons for Divestment
The business that has been acquired proves to be a mismatch and cannot be
integrated within the company. Similarly a project that proves to be in viable in the long
term is divested
Severity of competition and the inability of a firm to cope with it may cause it to
divest.
Divestment may be done because by selling off a part of a business the company
may be in a position to survive
Divestment by one firm may be a part of merger plan executed with another firm,
where mutual exchange of unprofitable divisions may take place.
Lastly a firm may divest in order to attract the provisions of the MRTP Act or
owing to oversize and the resultant inability to manage a large business.
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3. Liquidation Strategies
A retrenchment strategy which is considered the most extreme and unattractive is the
liquidation strategy, which involves closing down a firm and selling its assets. It is
considered as the last resort because it leads to serious consequences such as loss of
employment for workers and other employees, termination of opportunities where a firm
could pursue any future activities and the stigma of failure
The psychological implications
For many executives who are closely associated firms, liquidation may be a
traumatic experience.
Legal aspects of liquidation: Under the Companies Act 1956, liquidation is termed as
winding up. The Act defines winding up of a company as the process whereby its life is
ended and its property administered for the benefit of its creditors and members. The
Act provides for a liquidator who takes control of the company, collect its assets, pay it
debts, and finally distributes any surplus among the members according to their rights.
4. Bankruptcy
This may also be a viable legal protective strategy. Bankruptcy without a customer
base is truly a bad place. However, if one declares bankruptcy with loyal customers,
there is at least a possibility of a turnaround.
IMPACT OF RECESSION ON BPO SECTOR
The impact of global slowdown on Indias economy is impacting the employment
scenario in India. In fact the rising joblessness in India has assumed worrisome
proportions. With overall economic growth sharply slowing down, the ranks of those
without work are growing by the day. Five hundred thousand people were rendered
jobless between October and December 2008, according to a first of its kind survey
conducted by the Ministry of Labour and Employment.
It is often said that when the U.S sneezes the rest of the world catches a cold.
Those sectors whose fortunes are closely linked to the fate of the global economy are
feeling the heat.
Consequences of US recession on India job market
Worst affected because of US recession will be the service industry of India. Under
service industries come BPO, KPO, IT, ITeS etc. Service industry contributes about 52%
to India's GDP growth. Now if that is going to get hurt then it will also hurt India's overall
growth but very slightly. India is not going to face a major impact due to US recession.
People may say that there is going to be a huge job loss due to recession. and will cite
the example of TCS firing about 500 employees but these were employees who didnt
perform and for cost cutting one have to reduce Non performing asset and that exactly
what has been done. There is no threat to the skilled people. According to NASSCOM
India will have a shortage of about 5 million skilled people in IT/ITeS. So there are lots of
12
opportunities.75 per cent of its revenues come from the US. Low demand for services
may force most Indian Fortune 500 companies to slash their IT budgets. Zinnov
Consulting, a research and offshore advisory, says that besides companies from ITeS
and BPO, automotive components will be affected. During a full recession, US
companies in health care, financial services and all consumers demand driven firms are
likely to cut down on their spending. Among other sectors, manufacturing and financial
institutions are moderately vulnerable. If the service sector takes a serious hit, India
may have to revise its GDP to about 8 to 8.5 per cent or even less.
As per Raman Roy, Father of Indian BPO industry, recession is not a decrease in
consumption. it is just that the rate of growth has changed. Recession actually provides
the opportunity to create value for customers at different price points.
According to Lokendra Tomar, senior vice-president, Integreon, a BPO firm, says
recession is likely to have a dual impact on the outsourcing industry. Appreciating rupee
along with poor performance of US companies will affect the bottom line of the
outsourcing industry. Small BPOs, which are operating at a net margin of 7-8 per cent,
will find it difficult to survive. According to Dharmakirti Joshi, director and principal
economist of CRISIL, along and severe recession will seriously affect the portfolio and
fixed investment flows. Corporates will also suffer from volatility in foreign exchange
rates. The export sector will have to devise new strategies to enhance productivity.
EFFECT OF INTEREST RATES ON BPO INDUSTRIE
Because of the slowdown of Indian economy and BPO industries the interest rates have
also gone down. Bank has reduced their interest rates due to lack of business.
REVENUE GENERATION IN BPO SECTOR
Revenue is generated on the basis of volume / seats a BPO has or is required for any
process. For eg. if a process is outsourced to a vendor, client provides the data on the
volume and a charge per unit is defined in the agreement. Then the vendor is paid on
the basis of volume (no. of calls*price per call). The average revenue earned by BPO
industry in 2007 in India was $ 13,811 million.
EFECT OF RECCESSION ON THE MARKET LEADERS IN
BPO SECTOR
In a year when outsourcing of application development and maintenance projects has
slowed down, top customers such as Bank of America, JPMorgan and Citibank continue
to send more back office projects to India, as they seek to lower their cost of operations
by up to 40 percent. According to Nasscom, Indias back office outsourcing industry will
grow at 18.4 percent this year to reach $14.8 billion. Outsourcing of IT services will
clock a lower growth at around 13.5 percent this year, and could even decline to single
digit growth if the situation does not improve.The Indian BPO industry is likely to
maintain double digit growth rate as most of the work done by them is keeping the
lights on or non-discretionary, said Everest Group principal & country head Gaurav
Gupta. The current recession is forcing companies from other verticals such as media,
13
Counter strategies:
14
Economic times said that Many companies have started reworking their hiring
mandate. Infosys technologies, which previously planned to hire 18,000 persons this
year, has said it will hire an additional 2000 during the third and fourth quarters of the
current fiscal. A large number of product firms, R& D companies and mid tier MNCs
have also started hiring.
A survey that Manpower Inc. released, covering 71,000 interviewees across 35
nations and 5,109 companies in India, showed that Indian companies are the most
optimistic in the world about hiring this January to March quarter.
Most companies are coming out of their shell, said Cherian kuruvila, director
operations at Manpower Services India Pvt. Ltd 2009 has been a year of restructuring.
2010 will see a mix of replacement hiring, to fill up vacant positions and hiring for new
positions, signifying expansion.
Fresh jobs are being created in most sectors that depend on domestic
consumption.
FMCG, Retail, Media and entertainment in particular are seeing aggressive
recruitment.
Robust increments are being given to retain talent across sectors.
IT and ITES companies have pared recruitment, but are still doling out (decent)
hikes.
REASON OF RETRENCHMENT
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Acquisition:
If one organization purchases another one, there is a definite change in the
management and the acquired company staff has to face unemployment. The reason
for this is the same as the earlier case, viz to cut costs and and increase the revenues.
Change in management:
The change in the top brass of a company can also result in Retrenchment. The
working methods and procedures vary with the management. Therefore, a significant
change in the management roles may drastically affect the employee size to suit a
particular style of working.
Economic crisis:
This is the single biggest cause of Retrenchment. Often, it consists of huge lay-offs by
a number of organizations across various domains. The recent economic
recession facing the world, has triggered a number of lay-offs in many reputed and
popular firms in the world. According to a survey conducted by the US Bureau of the
Census, organizations consisting of higher percentage of managerial staff downsize
more than the ones with higher percentage of production process employees.
Strategy changes:
Some companies may reduce certain areas of operation and focus on other areas. For
example, if a company is working on a project in which there are no assured returns, it
may downsize it's employees working on that particular project. It focuses its resources
on specific projects, which could be profitable ventures.
Excessive workforce:
In a period of high growth, a company hires excess staff, to meet the needs of a
growing business. However, in times of recession the business opportunities dwindle,
leading to Retrenchment of the surplus staff that was hired.
Outsourcing practice:
Organizations catering to international markets require a huge and efficient employee
base. If this labor can be obtained by 'exporting' the job to other countries, a huge
Retrenchment takes place in the parent country. For instance, if a certain job can be
16
done more effectively in India and is more viable economically there, than in the United
States, the business is operated from that country.
The hindu business line Recession impact: BPO industry sees dip in attrition
rates
12 May 2009 ... Mumbai/New Delhi, May 11 Fewer employees are jumping jobs in
the BPO industry, courtesy the ongoing global recession. ...
Quarterly attrition
Genpact was down by 5 percentage points to 21%
EXL reported a record 12.8 percentage-point dip
WNS fell to 22%, down from 29% last quarter
Wipro BPO has come down to 13% from 18%
Moumita Bakshi Chatterjee
Adith Charlie
Mumbai/New Delhi, May 11 Fewer employees are jumping jobs in the BPO industry, courtesy the ongoing
global recession. As a result, attrition rates (the number of people quitting per 100 employees) for several
listed BPO firms have come down by 5-13 percentage points on a sequential basis.
Genpacts employee attrition rate for the quarter, measured from day one of employment was down by 5
percentage points to 21 per cent from 26 per cent in the preceding quarter and 24 per cent for JanuaryMarch 2008. If the attrition rate, were to be measured after employees completing six months of
employment (as many of its competitors do), Genpacts attrition rate would be 18 per cent.
EXL reported a record 12.8 percentage points dip in attrition for billable employees at 21 per cent from
33.8 per cent reported in the previous sequential quarter. Operationally, our attrition management and
employee engagement programme, in combination with the weaker economy, has resulted in record low
attrition levels, the company said in its earnings statement.
WNS too posted a reduction in its attrition numbers this quarter. Attrition declined by 7 percentage points
to 22 per cent, down from 29 per cent last quarter and 38 per cent in quarter ended March 2008. The
employment market in India is softer compared with this time last year, WNS said.
For Firstsource, the offshore attrition (India, Argentina and the Philippines) remained unchanged at 35.8
per cent during the just ended quarter. The onshore (the US and the UK) attrition was 38.4 per cent
compared with 38.8 per cent in third quarter.
(While Genpact and EXL run a January to December fiscal, Firstsource and WNS follow an April to March
fiscal).
For Wipro BPO, the quarterly attrition has come down by 500 basis points to 13 per cent from 18 per cent
in the previous sequential quarter.
Headcount
BPO firms seem to be hiring in smaller numbers as they prefer to work with on-board employees in a bid
to cut costs.
WNS ended the quarter with an employee base of 21,356, higher only by some 28 employees over the
quarter ended December 2008. WNS smaller rival EXL posted a net increment of 32 employees during
January-March quarter. We continue to hire about 200-300 employees each month spread across India
and the Philippines, a company spokesperson said without going into details.
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EXL, which runs a January-December fiscal, had 9,563 employees on its rolls against 9,531 in the
previous quarter.
An HR head of a large BPO player pointed out that while the industry was hiring fewer numbers,
companies were also cleaning up their bench. Companies are not retaining non-performers. Also, one
has to see the employee count in the backdrop of growth of these companies, the official said.
Mumbai-based Firstsource saw a net reduction of 950 employees in the just-ended quarter compared
with net addition of 2,944 employees in the preceding quarter (October-December), and a net addition of
279 in the year-ago period.
Reduction in headcount in the fourth quarter is due to large ramp up in previous quarter getting in to
production mode and headcount stabilising, its CEO, Mr Ananda Mukerji, said in a recent interaction with
analysts.
The quarterly gross hiring numbers for both WNS and Firstsource for the fourth quarter were not
available. The sole exception to this pack was Genpact, where growth remained more or less intact on a
sequential basis. The companys net addition stood at 300 employees against 200 employees in the last
quarter.
However, the gross addition for January-March quarter stood at 2,200 employees, with hiring largely
focused on BFSI and India-to-India business, sources said.
In fact its gross hiring in the first quarter of 2009 is a tad higher than the gross hiring in the fourth quarter
of 2008 at 2,100 employees.
Genpact had about 36,500 employees globally, as on March 31, 2009.
Could the recession in the United States affect the Indian BPO sector badly?
The possible recession in US has, both, positive and negative effects for the BPO
sector in India. On the positive side, the need to cut-costs and enhance margins will
accelerate the off-shoring of outsourcing of business process which will have a
beneficial effect.
However, the uncertain economic climate in the US may delay the decision process on outsourcing which
may have a negative impact on the growth of the Indian BPO sector. In sum, the BPO industry in India will
continue to grow, though at a marginally reduced rate.
How much does the industry suffer every time the rupee gets stronger against the dollar?
It has been estimated that every one percent appreciation in the value of the rupee impacts the
profitability of the BPO industry by 35 basis points (0.35 per cent). Similarly, every percentage of
depreciation in the value of rupee will enhance the profitability by 35 basis points.
The change in the value of rupee is one of the many parameters that are factored into the business model
of companies.
Outsourcing Chak De (Lift Them) or Chuck Them BPO India (By Ajay
Ohri)
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1)Outsourcing Chak De (Lift Them) or Chuck Them BPO India (By Ajay Ohri) The
Business Process Outsourcing (BPO) Industry is one of the largest providers of
employment in India. They employ an estimated half-a-million Indians, mostly in the 2035 age groups, and these numbers are only increasing. Thus, the number of people
who are directly affected by the Indian call centre industry is nearly 1.5 million Indians
including dependents. For a vast majority of them, the BPO industry is considered a
boon as it enables them to earn wages much more than was possible previously. The
industry is by large un-regulated compared to other industries and has grown rapidly
unchecked over the few past years. It has had systematic issues, especially related to
coping with human resource management, in times of rapid growth .Indeed most BPO
Human resource personnel are either recruiting or trying to control attrition.
A Few Issues The BPO industry is marked with some operational issues and they are
enumerated as follows: -Lack of Labor Guidelines: There is very little over-time pay and
it, thus, leads to systematic overworking or understaffing of resources in both small and
big BPOs. The understaffing is also responsible for the erratic quality or projects due to
rush jobs. Labor regulation has been avoided because historically Indian regulations
have been misused to offer hassles to industry rather than relief or solutions. Recently,
a committee headed by Arjun Sengupta had submitted a draft of the Unorganized
Sector Workers Bill to cover the workers in this sector. Lack of Health Guidelines: There
can be medical counseling (without too much expenses) to cope with effects of
prolonged night-shifts, or sitting in chairs, especially chronic back-aches, and
personality counseling. This shall help especially when there are project requirements
for extended over times.
Employee Retrainabilty: There can be career counseling to help young employees plan
a career in a still turbulent sector (Not everyone will be a team leader). There is no
provision for re-training for workers being laid off and there is little chance of
unemployment benefits in India. Retrenchment in this sector happens at a larger scale
usually when companies lose a few big clients as in the recent mortgage subprime crisis
or even earlier when a big computer maker of American-origin shifted. The insecurity of
being laid off leads to further attrition. In this scenario, companies that offer skill
enhancement and re-training are likely to have a sustainable edge in human resource
management Attrition - An urban legend: Despite the noise about attrition by industry
players, most of the attrition is actually and subtly encouraged to keep operating
margins down. This is because attrition enables middle managers to cut down costs
temporarily by making other team members stretch, and replacing them by unexperienced younger members. It is also very easily explained as due to market
conditions or poaching by other companies. The solution for having an industry wide
database lacks sensitivity to individual personal rights and seems to point the finger
almost entirely on employees for attrition.
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In spite of tough competition, India has emerged as a global leader in the Business
Process Outsourcing (BPO) industry. India has the advantage of having large English
speaking and computer literate workforce, which are considered as important
perquisites for the success of BPO sector. It explores the factors that have contributed
to the success of BPO industry in India. Sound infrastructure is crucial for the success
of any industry including BPO. The author throws light on the improvements achieved in
the
telecom,
aviation,
power,
offices,
hotels
and
road facilities that have facilitated the growth of the BPO industry. He examines the role
played by the human resource in making India a BPO hub. The article also discusses
the initiatives taken by the government including policy concessions, tax exemptions
and removal of procedural hurdles to enable the growth of the BPO sector. In the last
section the article throws light on the future of BPO industry in India, especially its
contribution towards GDP, exports and employment generation. The author observes
that BPO industry has witnessed transformation from back office service operations to
handling core functions and is playing a significant role towards growth of the economy.
The
author
emphasizes
the
need
for
continued
efforts to maintain the lead in this industry.
Recession impacts salaries, attrition in Indian BPO sector
March 30th, 2011
Earlier this month, the association that supports and promotes Indias business process
outsourcing predicted a bright future for the sector. While the past year has presented
challenges, there is undoubtedly strong growth ahead, NASSCOM said at the CEO
Summit 2009.In fact, Som Mittal, the president of NASSCOM, forecast that outsourcing
to India is likely to increase threefold by 2020, earning aggregate revenues of 5 billion.
While the short-term challenges exist, the potential for this industry is tremendous and
the industry will not be demand constrained, he said.These are optimistic words for a
sector that is accustomed to robust growth, with many graduates aspiring to work for
one of the countrys top outsourcing companies. In recent years, salaries in the sector
have grown in the double digits on an annual basis, while employees have had their
pick of open positions. However, the recession has changed business as usual at
Indias top BPO firms.Rethinking salariesThere are plenty of signs indicating that
Indian outsourcing providers may be rethinking their hiring and salary strategies in the
wake of the global downturn.The recession has resulted in declining revenues for the
countrys major outsourcing providers and also had a knock-on effect with regard to
employees pay. According to a BusinessWeek article, salaries are flagging in the
sector. After years of continually strong salary growth, IDC noted that this year the
average wage increase for outsourcing industry employees was only 1.4 percent.
21
Title name
23
close to two million jobs in the U.S. were lost in 2001. The firm reported an additional 255,000 job cuts in
first quarter of 2002. And it's not over.
Specifically, whereas Budros (2002), Conyon, Girma, Thompson, and Wright (2002),
and Lehto and Bockerman (2008) observed significant employment declines following
M&As, studies by Budros (1997, 2004), and Wagar (1997) did not. In examining the
relationship between M&As and Retrenchment, OShaughnessy and Flanagan (1998)
24
observed that the relationship between the two was contingent on M&A type, with the
likelihood of employee reductions being greater in the context of related transactions.
25
Much of the research belonging to this stream is geared toward addressing the basic
question, Does employee Retrenchment result in improved organizational
performance?
Proponents of employee Retrenchment have long argued that Retrenchment represents
a rational tool that managers can use to improve organizational productivity and
efficiency (Cascio & Young, 2003). Improved firm performance can come from reduction
of labor costs (which, in many organizations, is the largest component of the cost
structure), provided reductions result in the remaining employees working at higher
productivity levels.
27
Industry Profile
Genpact: A global leader in business process and technology management
OVERVIEW
The Company traces its beginnings to 1997, where under the name of GECIS, it was
established as an independent business unit of GE Capital. The organization was
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CORPORATE FACTS
Established: 1997
Headcount: 42,500+
Stock Symbol: NYSE: G
Revenues: $1.12 Billion (2009)
CLIENTS
Genpact manages over 3000 processes for 400+ clients across a breadth of industries.
The Companys client base is diverse in terms of industry, business size and process
need. This diversity serves both the Company and client base in bringing broad,
practical process expertise. Genpacts proven strategy has been to grow with its
clients with revenues coming from both new and existing clients. Clients include:
AstraZeneca, BUPA, Ceridian, Diebold, eBay, GE, Halifax Bank of Scotland, Hertz,
Hyatt, Ashland, Kimberly Clark, Miami Childrens Hospital, National Australia Bank,
Nissan, Serco, Walgreens, Wells Fargo, Wellpoint/Wellchoice among others.
TELEPERFORMANCE
Founded in 1978
Employees 120000+
29
OBJECTIVE OF STUDY
The main objective of the study is to evaluate the Retrenchment strategies followed by
the BPO sector during the time of recession. The study has aim to cover following
objectives.
30
1. To study the Retrenchment strategies followed by BPO sector during the time of
recession.
2. To study the HR issues arises due to Retrenchment strategies.
3. To study the ethical v/s unethical Retrenchment strategies.
4. To study the limitation of Retrenchment strategies.
RESEARCH METHODOLOGY
The data for the study will by collected by using secondary sources. The data will collect
by using various techniques and sources which are briefly described below. This study
31
will be primarily focused on what were the retrenchment strategies of BPO sector during
the time of recession.
HR reviews
Journals
Magazines
Websites
News paper
CONCLUSON
In todays economy job security isnt going to be the same as
employment security. When the economy predominantly consisted of government
and other public sector jobs, job security(not getting sacked) was high, but
employment security (finding a new job if you were sacked) was low. In the new
economy, the reverse will be true people will get sacked more easily than
before, but they will also find a new job more easily than before. It is just that living
between the two stages will take some getting used to. For the moment, the job market
appears expanding and market watchers expect momentum to sustain in the short to
medium term even if economic growth tapers off marginally.
It was a lesson learnt the hard way. We should concentrate and analyze the
failure of economic reforms globally to be able to put a finger on the exact causes
leading up the recession. That painting was never meant to be. The botched up job has
already added permanent morbid shades in varying depths to the canvas. There is no
magic sponge to clean in every blot of the culprit paint. But certainly a thinner can be
applied to lessen further damage and brighten further vistas. New prospects can be
sown into the recovering panorama. Lets hope for their blossoming into fruit bearing
healthy economy in the near future. World over!
"Next to the death of a relative or friend, there's nothing more traumatic than losing a
job. Corporate cutbacks threaten the security and self-esteem of survivors and victims
alike. They cause turmoil and shatter morale inside organizations and they confirm the
view that profits always come before people."
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RECOMMENDATION
Universal social protection to workers need to ensure legal, institutional and financial
support.
Ensure employment services to all workers.
Use employment guarantee to address such crisis.
Skill training and skill up-gradation.
Problems of small producers need to be addressed.
LIMITATION
The study might be limited by following factors:
1. Personal limitation whole interpretation is depend on my knowledge so there may be a
chance of error.
2. Only secondary data is used in my research so validity of research is not sure.
3. Since the topic is current thats why appropriate data is not available.
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