Retrenchment And Its Effects On The Morale Of Workers


In this chapter, related literature were reviewed the aims being

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

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Retrenchment of workers I not particularly a rare activity in both public and private sectors of many countries of the world.  Hence, countries have laws that guide the voluntary and compulsory retrenchment of workers.  Mass retrenchment in the country have been attributed to a number of causes like economic recession which caused a wide spread corruption in the country.  Adeleke (1983) wrote about how human resources should be utilized in turbulent periods which are periods of slow down in growth rate of the economy, increasing unemployment and unfavourale balance of payment.  He suggested the following alternatives to retrenchment during turbulent periods:

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

Adeleke’s first alternative redeployment to organizations cannot be applied in Nigeria because the recession is general.  That is, every industry is affected.  So, the question of redeployment does not arise because every organization is looking for what to do with its redundant workers.  This alternative suggestion can only be applied when recession is not general.

Rather than outright retrenchment of workers it could be placed on shorter working days per week.  The employees that are on five days working a week can be placed on three working days a week.

The third alternative action suggested by Adeleke is granting employees leave of absence, study leave without pay.  Also he suggests that qualified managers should be redeployed in the universities to teach these situations are good but not practicable in Nigerian situations, 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 plays for money to maintain himself while at school to suddenly suggest his accepting a study leave for an indefinite period would not work because of financial involvement.

Murkherfee (1973) page 14 was promoted to study systems of dealing with redundancy in Britain France and Germany since the late 1950’s.  In his view, he thinks the alternative to retrenchment and redundancy include

Baming overtime which brings the permissible working week to 40 hours.  This enables the spreading of work amongest a bigger work force as an alternative to make some employees redundant.

Sharing work is another alternative suggested Murkherfee, here work is shared among workers, they do les and earn less.  This is close to Adeleke’s suggestion on reduction of working days per seek.

Murkherfee also agrees with Adeleke that workers should be sent on training so that they can fit into 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 attribute retrenchment and retirement of workers to different causes.  James Umoh attributed it to NECA’s long awaited of having it back on trade unions from 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 the widespread in Nigeria, people tend to be responsible.  The government is of the opinion hat there are lot of old men an women occupying important positions in organizations.  These positions require a stronger and more competent people to manage it.

So the only way to make for effective management I to remove the Deadwood and replace them with younger and stronger people.

In the researchers opinion there is a chance of any of the above reason being correct.  But the governments point of views seems most likely the reasons for retrenching workers.

Adeleke was writing about how to utilize human resources in turbulent period.  He made a number of suggestions that could reduce the effect of retrenchment of workers during a recession but some of the suggestions are not applicable to the Nigerian situation.

In comparing Murkherfees findings in his study of systems of dealing 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 in 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.

Momo in his own view thinks people tend to forget their responsibility in the midst of corruption thus the only way to make for effective management is to remove the “Deadwood” and replace or recruit them with younger and stronger people.

And furthermore, recruitment involves the discovery of potential candidates, persuading them to become candidate by filling in or application forms.  The discovery of potential candidates involves initial screening for intelligence, age, educational and technical preparation.

Flippo (1976) believes that recruitment as a process searches for prospective employees an stimulates them to apply for jobs in the organization. Thus, it is often termed positive int hat its objective is to increase selection ration that is, the number of applicants per job opening.  Because of change that any take place in the employment market, the employing organization or public policy.  It is necessary that an organizations recruitment programme and policy be evaluated from time to time.  This type of evaluation will ensure that the most effective recruitment process is always in operation for the advancement of the organization’s particular objective.

For effective recruitment, an organization must establish a well through policy which must relate to the objectives and unique characteristics of the organization concerned.  As beach, (1975) observed, policies being statement of intention and guides to action can be positive instrument to share the entire recruitment and selection programme.  Job recruitment should be described in detail to ensure that the right personnel e recruited and eventually selected for various jobs.

Therefore, issues such as long term and short term job requirement, the relevance of seniority, general practice in comparable bodies and public policy implications must be given due considerations.  Recruitment therefore, must be given for a purpose such as to utilize the broad educational background of the candidates.

To fill an immediate need arising, say from resignations or to grown for higher positions recruitment especially in Nigerian’s public sector is often to maintain ethnic sectional balance, to surround top executives with reliable eyes and ears are unprofessional subjective and unsound and causes inefficiency.

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

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