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EFFECTS OF RETRENCHMENT ON THE MORALE OF WORKERS

ABSTRACT

This research work was conducted to find out the effect of retrenchment on the moral of workers and productivity of a named organization (FRCN) Enugu zone. This research work on the above topic was deemed necessary by the researcher in view of the conclusion reached by several school of thought on management that the way an organization is operationally structured could make or channel towards achieving its objectives. Retrenchment require that workers should carry out their responsibility in their various organization they well to avoid retrenching them. The researcher in the course of the work administered some structured questionnaire to critical offices of the establishments aimed at eliciting useful information.  This was complemented by view of related literature on the subject including tabular presentation, use of percentage to analyze the data obtained. Arising from the above exercise, the researcher was able to discover among others:  There was poor productivity which came about as a result of poor quality workers, inefficiency of work organization, lack of energy and incompetence of managers as well as bad altitude and behavior regarding work. Redundant workers in various organization have contributed in a small measure to the selecting in question. Technology as enabler.  This leads to displacement of many workers.- the real power of technology. Poor health and bad research contributed to work retrenchments exercise being carried out, being the fact that job of operating heavy research and other agricultural equipment requires a sound person. Organizational re-engineering has been called the fundamental thinking and radical re-design of business processes to achieve dramatic improvement in critical, contemporary measure of performance such as cost, source, and speed In view of the fact that the above lapses never found to be seriously militating like achievement of the organizational goods, it was then recommended thus, The organization management should embark on training of staff rather then retrenchment which well help in modeling the staff to increase his fitness for a specific activity as wanted in on organization. The organization management should enable on retrenchment of old workers instead of placing an automatic retrenchment on them. Finally, motivation should be a tool for managers to influence the behavior of workers thereby increasing productivity.

CHAPTER ONE

INTRODUCTION

1.1   BACKROUND TO THE STUDY

By the year 1960, school leavers secured jobs with relative case, graduates were scarce and hard to come by, and it was employers who looked for them instead of the other way round.  Then, the economy of Nigeria was booming.  Jobs existed if firms and government remained the greatest employer of labour.  However those were the days gone by.  Before this period, the colonial administration was interested and maintained dialogue with worker in terms of employment contracts and productivity.

The elite workforce from the public service maintain moderate working hours and fair income to the bargain and the Nigeria currency backed by the British pound was reliable stable.  At this period also educational emancipation and the little technological advancement dictated the pace in relation between the workers and the employer, controlled considerably by the environment which was monthly as a result of retrenchment. In reality, retrenchment is a term used on workers who are dismissed or terminated from job has never been a great threat to this country.  

The background of this study which is on federal radio corporation of Nigeria Enugu Zone. This research work was prompted by the way workers has been retrenched which also affect productivity for the past few years in media organization. Retrenchment does not merely develop, there  must be reasons for it so the researcher will like to find out what the reasons are and its effects on the workers moral and productivity.

1.2   STATEMENT OF THE PROBLEM

The retrenchment exercise currently taken place in Nigeria poses economic and social problems. Retrenchment can be defined as dismissal or termination of a worker when the job ceases to exist, usually as a result of technology or economic change.  It can also be seen as an act to cut down on expenses. According to “an editorial agency of retrenchment  “News watch Vol 1 No. 2 (February 11 1985). Retrenchment started of economic reasons in the early 80s.  The whole world has been going through a recession but the Nigeria case has been a very peculiar situation because it has resulted in many workers using their jobs.  The most recent workers retrenchment done at the federal radio corporation were 35 workers out of 300 staff were retrenched.

Then another one was last year though it wasn’t serious like that of 1995 because only 5 workers were retrenched.  In summary. This work set out to find out why retrenchment is being embarked upon, who is being retrenched among the workers and the criteria for selecting them.  The researcher will also be interested in finding out the effects this exercise had on the noticeable change in poor directivity and in what direction.

1.3     PURPOSE OF THE STUDY

Firstly, the objective of this research is to know and review the implication of retrenchment on workers moral and productivity as it relate to

(a)  Job insecurity

(b)  Psychological impact

(c)  High cost of production

JOB INSECURITY:    Retrenchment is an act carried out by the management of any organization.  Which leads the present and prospective staff unsecured about their job.  These leads to workers ineffectiveness because it lead their faith in organization scattered. 

PSYCHOLOGICAL IMPACT: The retrenched workers leaves the organization with some psychological and demoralize feelings which not only effects their family but could lead to hypertension and others.

HIGH COST OF PRODUCTION: The employment of more number of workers will cost the organization in terms of payment of salary then when retrenchments take place as it will enable the organization achieve a maximum objective with minimum cost.

1.4   SCOPE OF THE STUDY

The study will survey the effects of retrenchment on workers moral and productivity in federal radio corporation of Nigeria Enugu zone.   It will cover the reasons for retrenchment and it effects on workers moral and producing.  The effort made by the researcher to produce a befitting thesis have been punctuated by certain limitations.  For a researcher topic to be given adequate treatment it requires sufficient theoretical framework.  Literature peculiar to retrenchment of workers is scare, so the researcher has no alternative but to use magazines, article for reviewing retrenchment issues.

1.5     RESEARCH QUESTION

1. Has retrenchment any effect on prospective or present workers ?

2. Has retrenchment any effects on organizational productivity.   ?

3. Has retrenchment any implication on workers attitude to work ?

4. Has retrenchment any significant effect on the performance of growth and survival of the organization ?

5. Has retrenchment any effect or consequence on the society at large ?

1.6   RESEARCH HYPOTHESIS

Ho: Retrenchment has no effect on the reaming workers in the organization.

Hi: Retrenchment has effect on the reaming workers in the organization

Ho: Retrenchments affect the morale of retained workers.

Hi: Retrenchment does not affect the morale of refrained workers

Ho: Retrenchment has no social consequences on the environment

Hi: Retrenchment has social consequences on the environment.

1.7   SIGNIFICANCE OF THE STUDY.

In the past five years, retrenchment of workers has been order of the day.  It has reached a arisen situation since the military lake over of government.  The seriousness of this exercise has made the executives of the Nigerian labour congress cry out on behalf of their members to federal government to stop further retrenchment because it subjecting member of NLC it some very hard situation that this research is being carried out.  Hoping that through the result of this research, the true effect of retrenchment would be known.  Where this is done on basis of efficiency, this work would emphasis the fact that employers do not always retrench just to save cost or meet up with recession but that efficiency on the part of employee is rewarding. Finally, it is hoped that the research paper would be of help to others who would want to explore the area more.

1.7   LIMITATIONS OF THE STUDY

There were a lot of constraints in gathering information for this research work  but the major constraints are as follows:

TIME = In respect of the theoretical and practical work, the time allowed for the project was short.  Beside this was carved over with an academic assignments.

FINANCE AND HIGH COST OF TRASPORTATION: Due to problem posed by limited finances and increase in transport fare, it was not possible fro me to visit many libraries to carryout the needed library research

REFERENCE

Jose H. (2012),     Unemployment and polities London: Oxford University Press.  Ely House.

John G.N. (2017),          Workers sits in and job protection, England: Grover press.  Teak field Ltd.

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