Growth is always regarded as the underlying essence of any organization. The organizational life cycle is so complex that it has to go through various stages which involve growth, stability or retrenchment for overcoming the bad phases of the business cycle. The retrenchment strategy is the one which is used by corporations and organizations for reducing the diversity and the overall size of the working procedures of the company. This strategy is mostly applied for cutting down expenses with the goal of becoming financially stable in the business. This strategy also involves withdrawing certain markets from the discontinuation of selling certain services or products for achieving a better turnaround time. It is evident that growth and retrenchment holds their specific importance and their incorporation into any business impact the financial performance both high and low. The employees also have to go through terrible phase of changes but still they have to face the struggle and continue work with complete sincerity and devotion (Rasheed, 2013).
Imbalances created in workforce are a point of concern both in developed and developing countries. It is all about planning the workforce requirements properly in accordance with the strategic business objectives. Any change which is required in the human resources must be kept aligned with the strategic business plan and goals of the business. It is observed that small and medium sized companies usually prefer qualitative approach for determining their workforce requirements such as Delphi Technique and the Nominal Group Method (businessblogshub.com, 2012).
One of the earliest theorists was Frederick Taylor who along with his associated studies the work processes and the productivity an individual worker can attain for completing a certain task. Hence Taylor proposed a scientific management principle in which he proposed that it is not an efficient manner to pressurize an individual for attaining an optimized and better result from the work assigned. He was of the opinion that manager and the workers must cooperate with each other and work along for optimizing and simplifying the work requirements for increasing productivity(mindtools.com, 2015).
The principles and procedures defined by scientific management have made the powerful impact both on employees and on the company’s management which has increased the efficiency of the organizations. One of such application is done mostly in fast food restaurants where bonus system is introduced for encouraging employees for better performance and work smartly for attaining the standards defined internationally.