Retrenchment and Its Effect on the Moral of Workers in Enugu State


In this chapter related literature were reviewed the aims being.

  1. To find out what other authors or writers have done is similar issue in the past
  2. To find out what management principles and theories in their work could be relevant to our studies for testing
  3. To examine the general criteria for retiring and retrenchment of workers.
  4. What possible consequences could result from retrenchment workers in large numbers

Retrenchment of workers is not particularly a case activity in both public and private section of many countries of the world.  Hence countries have laws that guide the voluntary and compulsory retrenchment of workers.  Mass retrenchments in the country have been attributed to a number of causes like economic necessary which caused a wise speed corruption in the country.

Adelka (1983) wrote about how human resource should be utilize in turbulent periods which are periods when such down in growth rate of the economy when such general recession take place, in an economy slow down in growth rate of the economy, increasing unemployment and unfavourable balance of payment.

He suggested the following alternatives to retrenchment during turbulent period


  1. Redeployment
  2. Shorter working days
  3. Leave of absence

adelake’s first alternative redeployment to organizations cannot be applied in Nigeria because the recession is general. That is no industry is affected so the question of redeployment does not arises because every organization look for what to do with its redundant workers this alternative suggestion can be applied only when recession is not general.

Rather then outright retrenchment of workers it could be placed on shorter working day per week. The employees that are five days working week can be placed on three working day a week the third alternative action suggested by Adeleka is granting employees leaves of absence study leave without pay.  Also he suggests that qualified managers should be redeployed in the universities to teach these situation are good but not practicable in Nigeria situation reason being that the recession is general infact is global so which university is better than any company to absorb an extra staff when they are seeking what to do with the seeming excuse they have.

Granting a study leave without pay is not practicable in Nigeria too because the employee would not have made alternate plans for money to militant himself to maintain himself while et school to suddenly suggest him accepting a study leave for an indefinite period would not work because of financial involvement Murkherje (1973) page 14 was promoted to study system or dealing with redundancy in Britain France and Germany since the late 1950’s.  In his view he think the alternative to retrenchment and mendicancy include; banning overtime which brings the permissible working week to 40 hours this enable the speeding of  work among est a bigger workforce as an alternative to make some employees redundant.

Sharing work is another alternative suggested muskerge here work is shared among workers they do less and earn less. This is close to Adeke’s suggestion on reduction of working day per week.

Mukhergee also agrees with Adeleke that workers should be sat on training so that can fit new conditions or be redeployed into other sections.



One of the aims of reviewing literature in a study like this is to find out the relevance in the previous work James Umoh and Momo in their work tried to attributed retrenchment and retirement of workers to difference cause James Umoh attributed it to NECA’S long awaited to having it back on trade unions for winning a 100% increase in wage

Momo in his own view thinks people tend to forget their responsibility in the midst of corruption so as a result of widespread in Nigeria, people tend to be irresponsible the government is of the opinion that there are a lot of old men and women occupying important position in organization these positions require a stranger and more competent people to manage it so the only way to make for effective management is to remove the “deed” and replace them within younger and stronger people. In the researcher opinion there is a chance of any of the above reason being correct. But the governments point of view seems most like the reason for retrenching workers.  It is one of the aims of research work to find out the criteria for the retrenchment of workers.

Adeleke was writing about how to utilize human resources in turbulent period. He made a number of suggestions that would reduce the effect of retrenchment of workers during a recession but some of the suggestions are not applicable to the Nigeria situation.  In comparing Murkcherhee’s finding in his study of system of deeding with redundancy in Britain Germany and France with that of Nigeria could be laws that guide their labour system



To examine the general criteria for retiring and retrenchment of workers.  James Umoh is trying to find out the causes of retrenchment reports that economic recession as claimed by many employees is not the causes of retrenchment.  He claimed that employers merely find the excuse they have been waiting for to have it back on trade union for winning 100% increase in pay through intimidation.

Mono in his own view thinks people tend to forget their responsibility in the midst of corruption this that the only way to make for effective management is to remove the “deed wood” end replace or recruit them with younger and stronger people. And furthermore, recruitment involves the discovery of potential candidates persuading them to become candidates and their filling in of application forms the discovery of potential candidates involve initial screening for intelligence age and educational and technical preparation.

Flippo (1976) believe that recruitment as a process searches for prospective employee and stimulates them to apply for jobs in the organization. Thus it is often termed positive in that is the objective is to increase selection ration that is the number of applicant per jobs opening because of changes that may take place in the employment market the employing organization or public policy it is necessary that an organization’s recruitment programme and policy be evaluated form time of time this type of evaluation process is always in operation for the advancement of the organization particular objectives.

For effective recruitment on organization must establish a well through policy, which must to the objective and unique characteristic of the organization concerned.  As Bench (1975) observed policies being statement of intention and guide to action can be positive instrument to share the entire recruitment and selection programme. Jobs requirement should be described in detail to ensure that the right personnel ate recruited and eventually selected for various therefore issue such as long terms and short terms jobs requirement the relevance of seniority general practice in comparable bodies and public policy implications must be given from purpose such as to utilize the broad educational background of the candidates. To fill an immediate need arising say from resignation or to grown for higher positions recruitment especially in Nigeria’s public sector is often to maintain ethnic/ sectioned balance surround top executive with reliable eye and ears are unprofessional subjective and unsound and causes inefficiency. He research asserts that the most fruitful policy is probably that of filling the majority of vacancies from within but going outside when fully qualified talent are not available in the organization.



There are many ways to collecting data for research purpose the nature of the topic under investigations determines the types of research instruments or method to use



The information needed for the study was collected from both primary and secondary sources of information primary data

This consists mainly of questionnaires and structured as well as unstructured oral interview. In farming the questions in the questionnaires open-ended question, multiple and dichotomous methods of questioning were used. The questionnaires were originally of two kinds one for management and the others for employees because members of management proffered oral interview to the questionnaire the researcher had no choice but to discard questions gotten through questionnaires and oral interview from the employees and through oral interview from the management level.

Secondary data:   Previous works that are related to this research work were reviewed in the literature review of this chapter such works were gathered from the British council library Enugu the university of Nigeria Enugu campus library and some private libraries

Another sources of secondary information were files keep at the personnel office of the institute of management and technology Enugu.

The research asserts that the most fruitful policy is probably that of filling the majority of vacancies from within but going outside when fully qualified talents are not available in the organization



The sources of recruitment are classified into two categories

  1. Inside sources
  2. Outside sources
  3. Inside sources is the process of filling job opening or selecting from the pool of present employees. It can implemented by other the two methods. On involves a review of personnel records and appraisal forms by the personnel direction and he management to help find qualified candidates.
  4. Outside sources the particular sources and means by which workers are recruited varies it depends on management policy the type of job involved the supply of labour relative to demand and the nature of labour market.

Institutions such as employment agencies trade union professional bodies advertising universities colleges and schools etc.  The sources are as below.



Educational institution have long been a major sources for recruitment some of the institution concerned are higher school vocational school colleges and universities recruitment from these institution is an established practice of firms and public agencies


In occupations were employees are represented by trade unions members who are unemployed are given the opportunity to fill job openings. However the researcher feeds that it will not be in the best interest of the company to encourage such policy because it indirectly reduces the chances of recruiting more experienced people or bringing in outsiders with new ideas


Agencies comprises government and private one such as consulting firms and other specialized institutions or professional association like the Nigeria institute of management (N.IM) when advertising the use of agencies is considered the most suitable media or the use of agency must be such as would most effectively reach out potential candidates and appeal to their self image


Funds are made available by government to the state for the provision administration of state programmes however the state must conform to standards and procedures prescribed by the government some employment agencies are located in nearly every major city of the united stated this not practical in Nigeria in the pastes observed by Straus and sagles public employment.


Private operated employment agencies are widespread all over the country they tend to specialize in a particular occupation and skill manual  crafe or employee are quite substantial


Some companies have found other industrialized nation as important sources of high skill technical or professional workers they have developed what some critics referred to as “brain dram” plus sources is said to be used to full foreign jobs in multinational corporate organization.  Gendered companies both private and public in Nigeria do not use this source of recruitment the application form is against collective bargain. The employers according to Umoh did not quite accept the increase of minimum wages to N3, 000 from N 1500 with allowance of N500 for housing and N300 for transportation.  So Nigeria employers consultative association (NECA) is having it back on trade unions by laying off workers to compensate for their expenditure is pay the minimum wages Momo attributed retrenchment to the widespread of corruption in the country people tend to forget their responsibility in the midst of corruption and have become irresponsible. He went further to say that Nigerians are dishonest not devoted and dedicated to their duty.  In this opinion all that Nigeria need to save her is love and consideration for one another. The Nigeria labour and act 1974 page 16 the act expects employers to information the trade union or workers representatives of the reasons for and the extent of the anticipated redundancy since employer would have to conduce the trade unions with acceptable reason it would check rate of unnecessary redundancy of employees.

The act also expect or provides that the minister for labour may make regulations providing for the compulsory payment of compensations or redundancy and where a workers is not protected be law employers would negotiate for such payment.  But this is subject to some exceptions, which include facts factors of relative ness like skill or ability and reliability of the workers involved.  More ever civil service decree No 19 1984 stops any worker retrenched in the exercise from seeking redress in court.



In summary this chapter we have looked at the literature review of this study which showed what other authors said about it the criteria for studying it and the result of the exercise and its effects.

There are both negative and positive consequences, which may arise from the retrenchment exercise according to Onwudiegwu 1984.  On the negative there would be increase in social vices. Juvenil delinquency when the breed winner looses control over proper home for training the bed character stays with them.  Young girls on the other hand would hawking bodies and flooding the brothers in their desire to feed for themselves.

Another negative consequence includes reduction in economic activities.  When the purchasing power of individuals reduce or it is a result of retrenchment the market for a product there is no justification fro producing more because producers capital will be tied up in inventory- workers will tend to loose faith in about union that could not defend their causes property and the government that is retrenching her workers.

The positive consequences include the positive orientation of Nigeria government workers whereby they must disabuse the minds from their past negative conceptions of government and public service every Nigeria government workers should see him/herself as having the special honour by his/her country men and women to be one of the custodians and stewards of the affairs of the government on behalf of the people. Such work should be accountable of people workers who is not deemed to be in office and who is failing in his duties is punished and removed form the office.

Another likely positive consequence of the purge is that he myth of performance and security of tenure would be shattered or it can hold as long as civil servants performs their duties loyally with devotion the mass would create vacancies for employment because of the positions vacated by non challant workers these vacancies would be occupied by competent and qualified hands


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