Question: The South African Post Office is facing significant restructuring challenges, leading to the retrenchment of over 6 , 0 0 0 workers. This drastic measure

The South African Post Office is facing significant restructuring challenges, leading to the retrenchment of over 6,000 workers. This drastic measure comes as a result of increased competition from logistics companies and rapid technological advancements, which have rendered traditional mail services less relevant due to the rise of digital communication methods like e-mail and texting. Unions are also presenting obstacles, resisting management's efforts to remove inefficiencies and implement adaptive new strategies. The situation has devolved into a contentious blame game: management is criticised for failing to anticipate and adapt to the changing business environment, while unions are accused of overstepping their boundaries and hindering effective leadership at the Post Office. Power struggles have become prevalent, with neither side willing to assume responsibility for the ongoing crisis that is impacting numerous livelihoods.
1) Analyse how different bases of power (coercive, reward, legitimate, expert, and referent) could influence both the management's and labour union's strategies in the situation described in the caselet. (15 marks)
2) Discuss the ethical implications of using coercive power in the process of organisational retrenchment. Consider the impact on employees and the organisations social responsibility. (10 marks)

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