PROJECT TOPIC: ANALYSIS OF SUDDEN RETRENCHMENT ON CIVIL SERVANT IN ANAMBRA STATE
TABLE OF CONTENTS
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVES OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 RESEARCH HYPOTHESIS
1.6 SIGNIFICANCE OF THE STUDY
1.7 SCOPE OF THE STUDY
1.8 LIMITATION OF THE STUDY
1.9 DEFINITION OF TERMS
2.1 REASONS FOR RETRENCHMENT OF WORKERS
2.2 IMPLEMENTATION OF RETRENCHMENT
2.3 ADVANTAGE AND DISADVANTAGES OF RETRENCHMENT
2.4 COST AND BENEFITS OF RETRENCHMENT
2.5 EFFECTS OF RETRENCHMENT ON MORALE OF WORKERS
2.6 QUALITY OF WORKING LIFE AND RETRENCHMENT
2.7 ALTERNATIVE TO RETRENCHMENT
3.2 RESEARCH DESIGN
3.3 STUDY POPULATION
3.4 SAMPLE AND SAMPLING TECHNIQUE
3.5 DATA FOR THE STUDY: INSTRUMENTATION
3.5.2 VALIDITY OF INSTRUMENT
3.6 METHOD OF DATA ANALYSIS
4.0 DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.2 DATA ANALYSIS (QUESTIONNAIRE)
SUMMARY CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS
1.1 BACKGROUND OF THE STUDY
Retrenchment is a government-initiated policy, ministry-wise to cut down the number of employees and subsequently, reduce costs incurred (Hansen and Twaddle, 2002:78).
The retrenchment of employees in Nigeria has become common in the administrative routines of high/medium performing and distressed companies. It is often the natural thing to do whenever a company wishes to reduce costs and when profit margins plummet. More often than not, little effort is deployed in order to ascertain if the problems are attributed to employees’ skill deficiencies or other compelling administrative issues, such as ineffective processes and procedures that the organization needs to consider. In Nigeria, the "typical business day" is Monday to Friday with 8 am to 5 pm as regular working hours. The majority of the employees, whose residences are far from their places of work, commute two to three hours daily to get to their offices on time. They also return home late at night, around 9 pm or later on a daily basis. Invariably, they are grossly constrained by time and are unable to acquire new skills or manage other businesses to augment their income.
After retrenchment, they are often confronted with financial burdens as a result of trying to sustain previous lifestyles (Anaf, Newmorn, Baum, Zersch & Jolley, 2012). They are barely able to afford basic family needs and as such began to deplete any savings that they had (Bamwonjobora, 1995; Fashakin, Odumade & Goran, 2007).
As organizations venture in new markets or pursue improved performance, the possible strategies taken is to review their business plan as well as their overall process. This means that such organizations must be restructured and reorganized to perfectly fit in the new strategy. For some organizations, to fit perfectly in the new strategy, ownership may change and in most cases some job loses occur. In this case job losses occur due to several factors that relate to change: abolition of office or job enlargement. Despite the fact that some staffs have to lose their jobs, International Finance Corporation (2005) provides that retrenchment need to be managed effectively so that negative effect are minimized. In this case, proper procedure and processes of retrenchment must be implemented effectively to manage the change for both those to be retrenched and retained.
Even though improved performance is among the factors that make it unbearable for organization to continue having some staff, there are other several factors that may result to staff retrenchment. Huka (2003) explain that as a result to continued economic decline, in most cases profit making organization find it difficult to maintain a large pool of workforce as poor economic performance need to be controlled through minimizing costs if the firm must remain competitive. According to Huka (2003) staff retrenchment, reduced hiring, and reviewing salary downward are common strategies adopted by organizations.
According to Armstrong and Murlis (1998) retrenchment decision is one of the cost consuming processes to most ethical organizations. In most cases, staff presumed to be retrenched must be compensated as trade unions become greatly concerned with both personal and social impact of individuals retrenched. Moreover, retrenchment best explained in relation to human accounting refers to redundancies of one valuable resource and transferring it to a community pool in which other employers can withdraw and utilize such resource. However, with this understanding it’s worth noting that before such resource is withdrawn compensation need to be made by former user.
In 1988, the then President and Commander-in-Chief of the Armed Forces of Nigeria, General Ibriahim Badomasi Babagida carried our some fundamental change in the Civil Service, which is the major structural Civil service Reform in the country. This Civil Service Reform had specific objectives, which included to improve the general services delivery to the government and public, improve financial viability in the short and medium term, strengthen capacity and reverse the progressive decline in public service efficiency and effectiveness (Vanguard, 1988:21). In motion to attain these objective, some organization set several strategies in motion, such as disengagement/retrenchment or downsizing. The main objection of this retrenchment was to reduce the size of the workers and thereby cut down the emolument costs. This supposes to be in anticipation to improve salaries and allowance, increasing motivation and morale of workers, and improve quality of work life and performance of workers.
Nyaberi and Kiriago (2013) in their analysis on the post retrenchment life of the surviving staff at Telkom Nigeria identified that indeed, there existed a negative effect on staff retrenchment and employees morale. Most employees become traumatized at the workplace as they feel their job security being at risk. Their study recommended that organization should ensure effective retrenchment policies are in place, internalized and disseminated clearly to employees to ensure minimal effect on employees when it occurs.
As demonstrated above, retrenchment is a global problem as business swings occur everywhere in the world. In some cases, retrenchment is justified while in some cases it’s not justified however whether justified or not proper procedures and processes need to be implemented in order to ensure both the retrenched staff as well as survivors remain with minimal effect. It can be well identified that most studies done in Nigeria (Nyaberi and Kiriago, 2013 and Okibo, 2012) in relation to retrenchment focused on effect of employees’ retrenchment on staff morale, job security and service delivery. Few of these scholars evaluated the process of staff retrenchment from the point of decision making to the implementation. Therefore, this study focuses on the analysis of sudden retrenchment on civil servant in Anambra state, a case study of Awka south LGA.
1.2 STATEMENT OF THE PROBLEM
The persistent economic depression in the world which increasingly bewildering Nigeria for some years now has compelled citizens, industries, banks and other business contemporaries, big and small to take extensive far reaching measures in the struggle for survival by cutting costs (Adebayo, 2003).
Many Nigerians are retrenched every year while others are forced to work under stressed conditions as a way of forcing them resign for their job (Adebayo, 2003). For some, coping with such organization decision can be very difficult while others seek a counselor to manage the decision. Recently, several NGO, governmental organizations and parastatals retrenched some of their staff as a way of helping organization fit for their strategic vision or reduce fixed costs (Casccio, 2002).
Retrenchment, which is, a recent phenomenon in the Nigerian Civil Service started in 1970s by the Military Head of State as a result of recession after the civil war. According to (Adebayo, 1999:32), there was services in which, though the intention was laudable, the execution left much to be desired, the active servants were thrown out with the inactive ones, an unfortunate situation, and many lost their jobs. This could be seen in an editorial, “Agony of Retrenchment” (Agbese, 2001:11), where some public servants were laid off. These problems make it glaring that there is a need to carry out a study on the analysis of sudden retrenchment on civil servant in Anambra state, a case study of Awka south LGA.
1.3 OBJECTIVES OF THE STUDY
The general objective of this study is to carry out the analysis of sudden retrenchment on civil servant in Anambra state, a case study of Awka south LGA. The specific objectives of this study include the following:
1. To find out the prevalence of retrenchment among workers in Anambra state.
2. To ascertain the causes of workers’ retrenchment in Anambra state.
3. To assess the effects of retrenchment on morals of workers in Anambra state.
4. To investigate the alternative to workers’ retrenchment in Anambra state.
5. To examine the advantages and disadvantages of workers’ retrenchment in Anambra state.
1.4 RESEARCH QUESTIONS
The relevant research questions related to this study include the following:
1. Is there prevalence of retrenchment among workers in Anambra state?
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