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Impact of Organisational Retrenchment Strategies on Job Satisfaction

This mixed-methods analysis conducted a survey and a follow-up concentration group with employees of the Uganda General public Service to be able to ascertain the impact of advantage retrenchment on job satisfaction. The Uganda General public Service has made a number of organizational goes, especially in recent years, to make non-productive and/or corrupt employees redundant and to bring increased efficiencies to the general public sector by directing workers to where they can fit best in the business. In a natural way, these retrenchment insurance policies have created a great deal of change. However, this research learned that retrenched staff who remained in the Uganda Public Service had not been less inclined to be satisfied or motivated than non-affected acquaintances. Furthermore, job satisfaction for retrenched staff remained constant even when controlling for factors of age, gender, and education. The Uganda People Service likely erred in pressing through retrenchment without a formal change management strategy, as this research found that employees who had not been properly enlightened and/or well prepared for the change were substantially less likely to be satisfied than those workers who was simply well prepared. One plausible reason that retrenched personnel were not dissatisfied by the changes as a result of resentment may need to do with Herzberg's (1966) Two-Factor theory, which posits that personnel who are laboring for psychological satisfaction are more satisfied than those who strive for money alone. As the qualitative aspect of this study disclosed, employees of the Uganda People Service are highly apt to be providers for others, and therefore prize their jobs for giving them this ability to aid others, even though retrenchment may bring change and stress. The conclusion is that UNDER-DEVELOPED workforces might need to be approached via different theoretical means that are usually more delicate to the non-hygienic areas of Two-Factor Theory.

Declaration of Originality

I hereby declare that this thesis has been composed without any help and has not been provided or accepted in any previous request for a qualification. The work, which this is an archive, has been completed by myself unless otherwise stated and where in fact the work is mine, it shows personal views and principles. All quotations have been distinguished by quotation markings and all resources of information have been acknowledged by means of recommendations including those of the web.

I agree that the University gets the right to submit might work to the plagiarism detection service TurnitinUK for originality assessments.

Nastasia Michail Feb 10, 2011



5. 0 Release 50

5. 1KEY Conclusions 50

5. 2 Talk OF FINDINGS 51


5. 4 Restrictions OF THE STUDY 53





I would like to take this chance to share my deepest appreciation to my consultant Teacher Paul Tosey, for his advice and critical eye during the dissertation process. Teacher Tosey challenged me to think outside the container and placed me focused on the specific subject matter. Furthermore, I would like to say thanks to my mom and dad, Shah and Nazir, and my brother Nabeel for only being truly a phone call away and being able to cheer me up and inspire me when it counted the most. Finally, I'd like to thank my friends who backed me and who listened to me whatever period.

This dissertation has allowed me to incorporate the concepts I gained from my Undergraduate and Masters Degree and can be an insight into the learning that has occurred during the last five years. Although a daunting task, this dissertation has helped me find out more on myself and my anticipation is my research will make a important contribution to the existing literature.




5. 1 Introduction: This section will discuss the results of the studies of the study study

( as offered in Section four), in relation to past literature as assessed in section two; for the purpose of evaluating whether our research has achieved its collection objectives. It will make tips on areas in which future research can be centered and lay out limitations encountered in the course of the research.

5. 2. 0 Talk of Findings

Analysis of results completed in section four mentioned that the entire substitute hypothesis should be accepted. This section will therefore attempt to relate our research results with previous research work.

5. 2. 1 Hypothesis One: Relationship Between Retrenchment and Job Satisfaction

The two hypotheses to be tested here is whether any marriage is present between retrenchment and job satisfaction or whether you can find none by any means. Results as analysed in Table 4. 7 clearly shows that the null hypothesis should be turned down which means that we are taking the choice hypothesis that there is a marriage between retrenchment and job satisfaction

Figure 4. 5 demonstrating a scatter diagram of the partnership between retrenchment and job satisfaction also demonstrate that retrenchment has a negative effect on satisfaction.

The results from our qualitative research didn't however agree with that of the quantitative; its own result advised that the job satisfaction of majority of the retrenched personnel remained constant both before retrenchment and after retrenchment; this may be because of the fact that survivors were already appreciative of the fact that they even experienced employment to keep both body and spirit together also to manage some dependents; this in itself is a satisfaction to them.

Quantitive results was in line with Herzberg's (1966) Two-Factor theory, Maslow (1993) and Vroom's (1964) ideas of worker satisfaction, each of them forecasted that retrenchment hurts job satisfaction. Make meals and War (1979) also validated the result of our survey tool, that individuals asset retrenchment influences job satisfaction amidst the remaining staff leading to insecurity feelings amidst a few of the staff and identified over-burdening of the remaining ones

This result for this research which is in line with past research as cited for the above mentioned literatures shows that the retrenchment strategies embarked after by the Uganda Consumer Service as studied with regards to those re-deployed or with changed job description as a measure to curtail the rising problem level has adversely impacted the job satisfaction of both the workers who have been re-deployed and the remaining workers in service.

5. 2. 2 Hypothesis Two: Physical Impact of Retrenchment on Survivors in the Short -term

The null hypothesis here's that retrenchment has negative physical impact as the alternative hypothesis is that retrenchment has positive physical impact in the short-term on survivors. Results as observed in table 4. 8 and fig 4. 6 suggests that retrenchment only averagely bodily impacted the survivors of the exercise; as also shown in the desk. Qualitative results of study for this variable illustrated that employees whose pay were reduced because their job responsibility also reduced acquired to consider additional sources of income to meet up with the needs; this also put more stress on them in physical form and sometimes have an effect on their health.

Denga (1987) had also earlier reported that retrenching workers led to group of psycho-social problems for the retrenched and Burke (1998) discovered that stress could be induced in survivors by organisational retrenchment and a decline in job security.

5. 2. 3 Hypothesis three: Emotional Impact of Retrenchment on Survivors in the Brief Term

There are two hypotheses here also: which is that retrenchment does not have any effect on the emotional position of survivors and that retrenchment affects the emotional status of survivors. This is assessed in the questionnaire research tool and examination of ends up with stand 4. 9 suggests that the emotional status of remaining employees were afflicted by the retrenchment as carried out by the Ugandan Public service. Despite the fact that, what's known as survivor's syndrome that collections in after every retrenchment had not been seen in this case study has recently reported by numerous creators (Kandula 2004 and Kupec 2010. This may be because staff in Uganda are suffering from a thick epidermis already to hard situations and are also not easily intimidated by quick changes or hard situations.

The qualitative results added another aspect to the mental impact of retrenchment as a few of the workers were not emotionally affected due to the fact that they were just re-deployed and they perceived this as a "lesser bad" than been fired or creating a pay decrease. This factor made this collection of men and women appreciate their careers the more keeping track of themselves as lucky and therefore working harder. While those workers of the Ugandan Consumer Service whose gives were reduced because their tasks too were reduced accepted to been emotionally affected for they have to look for means of altering to the new pay; this calls for either lowering their bills, looking for another job or extra jobs to complement existing ones or engaging in money for those ones who cannot just manage.

The findings however still uncover that survivors of the retrenchment strategy embarked on by the Uganda Public Service still felt insecure knowing completely well that it can be their change too someday or soon, some also mentioned that work that ought to be shared between many now became the burden of the rest of the survivors therefore affecting them both literally and emotionally.

Figure 4. 6: which is also a scatter diagram representation of the relationship between emotional position of retrenchment survivors consent to the hypothesis that retrenchment affects the emotional health of the population

5. 2. 4. Hypothesis Four: Effect of Retrenchment on Motivation level in the Short Term

The two hypotheses here's that retrenchment didn't affect workers motivation level for a while or that retrenchment influenced workers desire level in the short-term.

Results as analysed in table 5. 0 show that there is a negative relationship between retrenchment and desire level in the short term, i. e. as retrenchment level in the Uganda Open public Service boosts, the motivation level lessens in the short-term. This shows that retrenchment triggers apathy within the public service under research, leading to a decrease in morale and determination; subsequently reducing performance. The short-term here may be the two months or thereabout period when the incident just took place.

This agrees with the results of Make meals and Warr (1979) who had reported that retrenchment makes staff apathetical and so reduces their morale and drive. This majorly influences on the job satisfaction of the survivors who either consider it could be their own flip any day soon or feel they'll be overburdened by needing to also manage the careers of the retrenched or the redeployed. Individuals commitment does not improve after retrenchment as they will be de-motivated by recent occurrences.

Tolkman 1991 also reported that "Retrenchment may create demoralization, dampen organizational efficiency and increase voluntary retrenchment, discourage the organizations' most talented and productive members who will end up giving the organizations"

Hertzbert (1966) and Maslow (1993) asserted that "desire is directly linked to job satisfaction and that motivators include; a feeling of achievement, work recognition, the type of the task itself, and the desire for responsibility; in addition they both arranged that money or pay is down in the list". They both agreed that Job satisfaction is one major factor to determine among other factors the employees' inspiration which impacts heavily on development capacities as well as employees turnover. Employers whose corporations have little or no job satisfaction will usually experience high turnovers as employees seek occupation in other areas in pursuit of job satisfaction.

Qualitative results of the experiment for this particular adjustable however suggests that the retrenchment effect of reduced desire was only temporal and that workers morale was not permanently depressed; this is because their motivation in the beginning derived from the actual fact that that they had a job that will appeal to the needs of the family and since this craving hasn't reduced, their drive will have a tendency to be constant as long as they are not delivered home.

5. 2. 5 Hypothesis Five: Aftereffect of Retrenchment on Satisfaction level in the Brief- Term

The two tested hypothesis here is whether retrenchment of workers in the Uganda Community Service affects the amount of their job satisfaction in the short-term or whether it generally does not affect satisfaction for a while. Results as analysed in Stand 5. 10 clearly signifies that the null hypothesis should be turned down this means that we are taking the alternative hypothesis that there surely is a romantic relationship between retrenchment and job satisfaction in the short term

Figure 4. 8 showing a scatter diagram of the partnership between retrenchment and job satisfaction in the short-term also shows that retrenchment has a poor impact on job satisfaction degree of the Ugandan Open public Service only on the short-term; as one increases, the other decreases just a little as retrenchment strategies increases, on the short-term, job satisfaction level decreases slightly.

This is consistent with Herzberg's (1966) Two-Factor theory, Maslow (1993) and Vroom's (1964) ideas of employee satisfaction, each of them expected that retrenchment hurts job satisfaction along two independent but complementary axes. Make meals and Warfare (1979) also affirmed that human advantage retrenchment impacts job satisfaction amongst the remaining personnel resulting in insecurity feelings among some of the workers and perceived over-burdening of the remaining ones.

This result of this review which is in line with past research as cited for the aforementioned literatures shows that the retrenchment strategies embarked upon by the Uganda People Service as analyzed in relation to those re-deployed or with altered job description as a strategy to curtail the increasing problem level has negatively impacted the work satisfaction of both workers who have been re-deployed and the remaining workers in service.

5. 2. 6 Hypothesis Six: Relationship between Survivor's Symptoms and Job Satisfaction

Null hypothesis here's that there is no romance between survivor's syndrome and job satisfaction while the alternative hypothesis is that there surely is a relationship between both. Results as analysed in desk 5. 20 favours agreeing to the choice hypothesis. Effect illustrated in fig 4. 10 also recommended that retrenchment may lead to survivor's syndrome

This is consistent with past research completed by Kandular (2004). Although, as previous said the survivor's syndrome was not seen in the case study. It could be because the Ugandan staff are suffering from a "thick epidermis" by reason of experience to harsh social and economical circumstances encountered since labor and birth, and aren't as physically prone as Western personnel as it pertains to certain types of work-related stress; after all, the truth is that many of the workers experience all forms of stress as a regular condition of their lives in Uganda. Thus, survivor's syndrome might become more apt to summarize the experience of employees in more developed economies and even more stable public climates rather than in producing countries.

Qualitative diagnosis of responses from research study however, confirmed that many of the afflicted people arranged that retrenchment in whatever form - either as re-deployment, or reduced pay credited to reduced job responsibilities can be traumatic and even decidedly more when it is un-expected or much time is not allowed for victims to prepare for it.

5. 2. 7 Qualitative Data

The use of qualitative approach to research in this study assisted in reaching or projecting a good picture of the impact of the retrenchment strategies of the Uganda General public Service. Respondents perception of the retrenchment exercise and effect were adjudged through relevant questions as highlighted in Appendix 3 using the qualitative concentration group questions to access get older gender and educational status effect on the factors of drive, satisfaction, physical and emotional health and survivors syndrome of retrenched staff in the general public Service.

It was uncovered using the qualitative research method that age of workers afflicted the way in which they looked at the retrenchment strategies; that is, different age ranges possessed different impressions of the exercise. Younger generation found the exercise as good since it pressured the older generations from the system. This is because the more mature ones were not working maximally therefore of reduced energy or power or because they felt their even being in the positioning in the first place was not totally predicated on merit. The More mature ones on the other hands did not appear in your thoughts the strategies very much and sensed that

Opportunities should get to those to hand-over their skills to the technology behind them before been "ushered" from the system.

Similarly, gender also got its twist to the replies; it was detected that the factors acquired more effect on female staff than male employees. Females with additional responsibility scheduled to redeployment or retrenchment experienced more bodily and psychologically as in addition they got more responsibility on the house front together with their office jobs.

Effect on the guys was also pronounced where in fact the new situation enforced on them female bosses and majority whose ego cannot adjust to such welcomed the retrenchment exercise as a way out; for they might rather be retrenched than to be submitting to female bosses.

Lastly, majority of respondents arranged that retrenchment as carried out by the Ugandan General public Service had not been on the basis of education; as their level of education was not considered as one factor in the process. Although, there have been some isolated causes of faster advertising or older position attainment after the leave of some workers as reported by some of the respondents, this however had not been the guideline or norm; it was only a adobe flash in the skillet.

The qualitative results generally, suggested that determination and satisfaction of the retrenched workers that survived the retrenchment exercise was only damaged on the short-term because things returned to status quo. The major reason for this can be attributed to the fact that workers determination and satisfaction in Uganda produced majorly from the actual fact that they even have a job that will help them in meeting their daily family needs.

All this studies is reinforced by Maslow (1993) hierarchy of needs and assertion where basic needs such as food, normal water, e. t. c. are necessary and the first intuition that people try to protect before any other activities will observe.

However, Hertzberg (1966) known that people can only just be truly and honestly satisfied and determined when they climb up to the highest height of the Maslow's pyramid which is the elevation of self-actualisation and that huge satisfaction does not are based on hygienic needs alone.

5. 2. 8. Research targets and aims

Going by the results, examination of the results and conversation of the results of the study work, it can be seen that the major aim of the study has been completed. The purpose of this analysis was to access the effect of the retrenchment strategies of the Uganda General public Service on the Job satisfaction of its employees. By using questionnaires, studies and interviews, we've effectively assessed this and therefore can make useful advice to its management in the future

5. 3 Implications for Management

Organisations have different reasons for getting into retrenchment; it could be to downsize to be able to trim cost if it's having inside crises or maybe to remove inactive weight and increase the quality of service. Whichever reason, management makes a decision to retrench; a very important factor they should retain in mind is the fact that retrenchment will not appear as a "standalone event", it drags along whether reluctantly or not but surely various other outcomes.

This research work has established a clear marriage between job satisfaction, drive and retrenchment, no matter how little or brief - termed it appears to be and this will definitely have an effect on the organisational goals and goals if not well - checked.

The clear implication of the studies of this study for the management of the organisation understudy or even for many management hierarchies is diverse and adjustable. Retrenchment exercises should be performed with great extreme care and planning as its impacts the morale of personnel and whatever impacts a work force's morale, if not sorted out fast, will definitely influence performance. Unplanned and poorly put in place retrenchment strategies can lead to physical and emotional unbalance for damaged and non-affected staff, poor innovation, self-control and efficiency problems, bring demoralization, donate to other personnel retiring or resigning voluntarily, dispirit the most proficient staffs which can result in their exit; each one of these will together hinder the organisation from attaining its goal.

Retrenching undisciplined, inefficient and incorrigible workers can serve as a warning to other workers; alerting them to sit down up and face their work squarely or else they know the implication of not doing often; nevertheless extreme caution and planning should be strenuous so as never to send wrong alerts to truly committed and skilled staff

5. 4 Research Limitations

Problems that were encountered in this research that offered as limits were that of

Scheduling: Research could not evaluate long- term effect of retrenchments on personnel and even the short- termed impact measured were not carried out soon after the retrenchment experience. The impacts of the retrenchment exercise therefore depended on the timing of the test to the period of the incidence

Research could not measure the impact on staff that were sent home, accessing them would be difficult

Time constraints: research required a longer time period credited to time taken to obtain the acceptance and consent of the relevant get-togethers; this affected the length of the task and increased the budget.

Another limitation recognized or experienced in the analysis is that which pertains to respondents assessing or reporting on their own selves; this is biased rather than entirely exact; therefore impacting results of the research.

5. 5 Recommendations for Management

Behn, (1980) advised that organisations should have a corporate strategy for the successful execution of its retrenchment activities. This newspaper would also prefer to adopt such recommendations among others; which include

Retrenchment basis or rationale should be communicated obviously to staff/affected workers in order to reduce negative impact of the exercise or even to avoid sending incorrect alerts of job insecurity to individuals.

Objectivity should be used in making use of this basis and retrenchment should not be prompted as a punitive measure majorly.

Measures such as prep of the heads of affected employee, training and counselling programs and seminars on entrepreneurship and life after retirement especially by the government, are good ways of preparing staff for uncertainties of the future.

Generally speaking, organisations should choose a culture of good welfare techniques such as loan assistance, various allowances, good pay, good profession potential customers and opportunities, compulsory job trainings, good working environment and working tools e. t. c to their staff, in a way that when retrenchment works which is inescapable occurs; it might be understandable to the fair minds

5. 6 Suggestion for even more research

Errors scheduled to incapability of individuals to vividly bear in mind occurrences usually trait the retrospective research method that was used because of this work, therefore for future studies a better design can be considered in planning the experiment. A time series design will much more likely to be appropriate.

It is also advised for future research that arranging of this kind of analysis can be controlled for by planning studies to coincide with retrenchment time and also observing the constructs for a longer time period; so as to measure the long-term and short-term impacts of retrenchment in general


The implication of Retrenchment is quite substantial for everyone related functions; the management, the survivors and the retrenched, all do feel the fantastic impact of this exercise; but the impact can be minimised if better designed for and strategically executed.

Retrenchment affect job satisfaction, motivation to work, either on short-term or long-term basis, physical health insurance and mental health of workers; therefore planning and preparation because of this exercise is essential to minimising its effect on all stakeholders.

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