Ans. Attrition means the reduction in the workforce or employees of the organization through various ways such as resignation, retirements, etc. Attrition helps the employees in reducing the cost of labor in the organization in case the debts of the company are very high. In this case, the positions which are vacant when employees leave the organization are not filled again and the employer freezes the recruitment process so that the workforce will not increase in the organization and labor cost can be decreased. The company should wait for attrition naturally as it will help in boosting the morale of the company and also helps in maintaining the right image of the organization. Promotions, appraisals, rewards, etc. are also not given by the employer to the employees so that the attrition rate can be increased. There are various causes of attrition by the company. The causes of attrition can be changed in the style of management of the company, company structure, or other aspects of the company. The biggest reason for attrition by the company is the debt that the company cannot handle and it has to cut back the workforce. Attrition can also result in case of a merger of the company because in such cases sometimes the workforce is decreased, or several departments are eliminated from the organization.