Organizational Exit

Posted in Human Resources Terms, Total Reads: 6768

Definition: Organizational Exit

Organizational Exit or decruitment refers to the process of handling the circumstances under which an employee leaves the organization. This can be of two types namely voluntary and involuntary Organizational Exit.

Voluntary Exit or turnover is said to occur when the employees choose to leave the organization on their own and it’s said to be involuntary when the employees are forced to leave due to layoffs or poor performance.

If the organization becomes more effective and efficient after an exit it is said to be a functional exit and if it results in a significant decline in human capital and organizational capacity, it is termed as a dysfunctional exit.

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