The term economics refers to a science of making logical decisions regarding the use of scarce resources, so as to satisfy the most compelling of unlimited wants. It is many times juxtaposed with the term finance. Finance is defined as the study and management of funds for the purpose of wealth maximization. While economics studies how people, maximize gains from limited resources, i.e. select the best alternative with the objective of maximizing the level of satisfaction. Conversely, finance … [Read more...]

The biggest difference between layoff and retrenchment is that layoff is volatile in nature, i.e. employees are recalled, once the period of layoff is over while retrenchment is non-volatile i.e. that involves full and final termination of services. The employment contract is terminated with the employees by the employer, due to three major reasons which are: (i) the organization is going through the lean period, (ii) initial faulty hiring, (iii) employee shows deviant behavior, which affects … [Read more...]