RETRENCHMENT AND ITS EFFECTS ON THE MORALE OF WORKERS

RETRENCHMENT AND ITS EFFECTS ON THE MORALE OF WORKERS

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

The Background of this study is on the Institute of Management and Technology, Enug, Enugu state which is made up of students.  Academic staff (lectures and non-academic staff.  It is aimed at finding the effect on the morale of the still employed workforce, that is of the moral of the workers is still low or if they feel threatened and if they have become more productive.

This research work was prompted by the way workers have been retrenched for the past years in institutes of higher learning.  Human beings have often been accused of being lazy and having poor attitude to work as shown in McGregor’s assumption theory of X.  In this theory, McGregor assumed that the average human bring doe not like working and would want to avoid it if possible, as a result, he would have to be controlled, threatened with punishment before he can put in effort to achieve some organizational objectives.  McGregor want on to say that a human being wished to be directed and controlled in his now ambition and above all he wants security.

This research work would want to find out if the above claimed reasons for retrenchment of workers were the true reasons for these actions or is McGregor’s assumption (ie laziness and poor attitude t work) were the real reasons or a combination of the two sets of behaviour led to the retrenchment of workers in the institute of Management and Technology, Enugu.

Moreover, people who wee affected by the mass purfe of workers have resulted to a number of ways of survive.  Some who are opportune to have cars turned into taxi drivers others have turned to beggars while others turned to petty trading and other business.

In summary, this work sets out to find out why retrenchment is being embarked upon, who is being retrenched among the workers and the criteria for selecting them.

The research work will also be interested in finding out the effect this exercise has on the remaining staff, that is, has there been any noticeable change in productivity and in what direction.  Government on their own are trying to decrease the work force in government parastatals in order to control excess of workers thus wages and salaries in order to channel such fund to other activities.

1.2     STATEMENT OF THE PROBLEM

The efficiency of running an organization or establishment depends more on the workforce.  In recent times, workers have been under going the dilemma of retrenchment.  The retrenchment exercise currently taking place in Nigeria posses economic and social problems.

Retrenchment is defined as dismissal or termination of workers when the job ceases to exist, usually as a result of technological or economic recession or change.  It can also be seen as an act of cutting down on expenses.  It can also be said as when a worker is subjected to compulsory retirement or forceful removal from his/her designation of work.

It started in Nigeria as a result of economic recession in the early 80’s.  the whole world has been going through a recession but the Nigerian case has been a peculiar situation because it has resulted in many people loosing their jobs.  It can be seen in an Editorial Agony of Retrenchment from the personnel office of the Institute of management and Technology (February 11th, 1989).  A state owned Institute of higher learning about 420 of its workers were retrenched out of the original 1,244 workers before the exercise was carried out, that is about 40% of the workforce.

A lot of factors have brought about the issue of retrenchment of workers in organizations and one of such factors includes the creation of state.  This is a situation where as a result of the creation of a new state, workers (non-indigenes) who are part of the workforce are subjected to compulsory removal from their post or positions in the civil service.  This, normally has an adverse effect on the individual worker because the number of years that has being put into service and other achievement attained during the period of service is not put into consideration thereby having the workers in a state of fobleness.  Although on the other hand, retrenchment in this case is said to allow for people who are indigenes of a particular area to enjoy from the civil service.

Another reason for the high level retrenchment rate could be attributed to gross insubordination on the part of the workers in relation to constituted authority hence, a typical example of this is stated in section 27 of the Institute of management and Technology enugu (IMT) Edit No 2 which is involved when there is an issue of gross insubordination in between a staff and the constituted authority or abscondment from duty.