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POVERTY POLICY PERSPECTIVES

EFFECTS OF THE RETRENCHMENT EXERCISE ON ORGANIZATIONALPERFORMANCE AND QUALITY OF WORK LIFE

AMONG UGANDAN PUBLIC OFFICERS

Peter Baguma

Leon Matagi

Working Paper # 7Published by NURRU Publications

June 2002

2002


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TABLE OF CONTENTS

TABLE OF CONTENTS .............................................................................................................2

LIST OF TABLES ........................................................................................................................3Table 11: Present Salary Package 22 ...............................................................................................................3Table 12: Satisfaction with Salary 22 ............................................................................................................. .3

Table 15: Reasons For Feeling Insecure 23 ........................................................................3

Executive Summary .....................................................................................................................41.0 Introduction .............................................................................................................................5

1.1 Implementation of Retrenchment ................................................................................................................... .51.2 Costs and Benefits of Retrenchment ................................................................................................................61.3 Disadvantages of Retrenchment .......................................................................................................................71.4 Advantages of Retrenchment ...........................................................................................................................81.5 Quality of Working Life and Retrenchment .....................................................................................................81.6 Research Objectives .................................................................................................................................. .......91.7 Operational Definitions ....................................................................................................................................9

2.0 METHODOLOGY ...............................................................................................................112.1 Design ..................................................................................................................................................... .......112.2 Sample .................................................................................................................................................... .......112.3 Instruments ....................................................................................................................................... ......... ....112.4 Research Procedure ........................................................................................................................................112.5 Data Analysis ............................................................................................................................................... ..12

3.0 RESULTS ..............................................................................................................................133.1 Employee Perceptions Regarding Retrenchment...........................................................................................143.2 Effect of Retrenchment on Individual Performance .............................................................................. ........153.3 Factors Hindering Employee Performance after Retrenchment .....................................................................163.4 Ways of Improving Performance of Employees after Retrenchment .............................................................173.5 The Impact of Retrenchment on Organizational Performance .......................................................................183.6 Retrenchment and Quality of Working Life ......................................................................................... ........ .19

3.6.1 Effect of Retrenchment on Employee Work Attitudes ............................................................. ......... .....19Table 10: Effect of Retrenchment on Organizational Commitment .................................................................203.6.2 Salary Package and Meeting Financial Obligations ........................................................................ ........203.6.3 Feelings of Job Insecurity ........................................................................................................................21

Table 14: Job Insecurity among Participants ....................................................................................................21Table 15: Reasons For Feeling Insecure ...............................................................................................................22

3.6.4 The Predictors of Job Insecurity in the Public Service after Retrenchment ............................... ......... ....223.6.5 Effects of Job Insecurity ..........................................................................................................................23

4.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS ................................254.1 Employee Perceptions Regarding Retrenchment...........................................................................................254.2 Individual and Organizational Performance ........................................................................................... .......264.3 Organizational Performance Issues ............................................................................................................ ....274.4 Management of Physical Resources like Retooling .............................................................................. .........274.5 Quality of Working Life .................................................................................................................................284.6 Critique and Suggestions for Further Research ..............................................................................................294.7 External Validity Problems ............................................................................................................................304.8 Time Constraints ........................................................................................................................................ ....30

5.0 REFERENCES .....................................................................................................................32

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LIST OF TABLES

Page

Table 1: Demographic Information about the Sample 14Table 2: Meaning of Retrenchment to the Survivors 15Table 3: The Impact of Retrenchment on Individual Performance (N = 247) 16Table 4: Factors that Impede Performance of the Survivors 17Table 5: How to Improve the Performance of the Survivors 18Table 6: Effects of Retrenchment on Organizational Wide Factors (N = 247) 19Table 7: Impact of Retrenchment on Organizational Goals, Mission

and Values (N = 247) 20Table 8: The Effect of Retrenchment on Motivation and Morale of Survivors

(N = 247) 21Table 9: Effect of Retrenchment on Job Satisfaction of Survivors 21Table 10: Effect of Retrenchment on Organizational Commitment 22Table 11: Present Salary Package 22Table 12: Satisfaction with Salary 22Table 13: Ability to Meet Financial Obligations 23Table 14: Job Insecurity among Participants 23Table 15: Reasons For Feeling Insecure 23Table 16: Discriminant Analysis Regarding Predictors of Job Insecurity 24Table 17: Effects of Job Insecurity on Public Officers 25

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Executive Summary

This study set out to; assess employee perceptions regarding retrenchment, find out the effectsof retrenchment on individual and organizational performance and quality of work life in theUganda Public Service. In all, 247 public officers filled in a questionnaire that measuredemployee perceptions about retrenchment, individual and organizational performance and

quality of working life. Results showed that the positive/expected perceptions regardingretrenchment included reducing the number of employees, removing deadwood, drunkards,poor performers, firing excess staff, and establishment of effective management structure forservice delivery. Negative perceptions included premature layoff/retirement of work force,creation of poverty to those affected and random dismissal of employees for various reasons.Positive effects of retrenchment on individual performance included improved performance,

punctuality, reduced absenteeism, reduced tardiness, reduction in the number of employeeshaving two, or more jobs and reduction in alcoholism, employee efficiency and effectiveness,employee responsibility, and employee accountability, loyalty and discipline.

The majority of participants did not know the effect of retrenchment on corruption and other

unprofessional behaviour.

Factors hindering employee performance after retrenchment were inadequate pay, lack ofmotivation, work overload, lack of tools, poor transport, and lack of job security and training.The most popular reported ways of improving performance after retrenchment included:

provision of living wage, improvement in welfare and incentives, training of workers,improvement of motivation, conditions of living, and provision of transport. At theorganizational level, retrenchment was associated with increased sensitivity to the needs ofcustomers, and increased teamwork, improvements in joint decision-making, qualityleadership, employee supervision, creative management, information management, anddepartmental performance.

Furthermore, the majority of the participants reported that retrenchment neither had effect onthe way performance feedback was given, nor on job design, training opportunities, selection

procedures and chances of promotion.

However, retrenchment was associated with implementation of achievable goals, increasedknowledge of organizational goals, meeting of organizational goals and increased knowledgeof organizational mission and organizational values. Regarding the quality of work life, themajority participants reported no change in motivation, job satisfaction, organizationalcommitment, but reported improved participation in decision-making. Unsatisfactory salarieswere also reported. A high percentage reported feelings of job insecurity, mainly because

retrenchment had not been completed, so, every time it was used as a threat by managers, andthe criteria used in retrenchment was not clear/known. The best predictor of insecurity washow performance evaluation was done. Effects of job insecurity included reduced

performance and increased commitment.

We recommend early involvement of all stakeholders, proper planning and implementation ofretrenchment, effective public relations work and managers tuning in on the negative

perceptions of workers. Strategies to fight corruption and unprofessional behaviour, increasedfunding, paying a living wage, improved welfare, training of workers, motivation and morale

boosting of workers, improved conditions of living, improving chances of promotion andcapacity building, reduction of job insecurity, computerization, and timely reshuffles wererecommended. Effective management of physical resources for example, retooling; jobanalysis, job redesign, job evaluation and counselling were also recommended.

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Chapter One

Introduction and Background to the Study

1.0 IntroductionRetrenchment is agovernment-initiated policy, ministry-wide to cut down the number ofemployees and subsequently, reduce costs incurred by government. This policy is within

the Civil Service Reform Programs that have been implemented in Uganda. Civil ServiceReform in Uganda was necessary because the civil service had problems including lowpay and benefits, poor management skills, dysfunctional organisation, and inadequatepersonnel management and training. These led to abuse of office and misuse ofgovernment property, moonlighting and corruption, indiscipline, erosion of rules andregulations, obsolete procedures, in appropriate systems, thin managerial and technicalskills, poor public service attitudes and massive bureaucratic red tape (Hansen andTwaddle, 1989; Uganda Manpower Survey Report, 1989; Ministry of Public Service,1989/90; Standing & Tolkman, 1991).

The Civil Service Reform had specific objectives. These included to improve the general

service delivery to the public, improve financial viability in the short and medium term,strengthen capacity and reverse the progressive decline in public service efficiency andeffectiveness (Ministry of Public Service, 1993).

In order to attain the above objectives, several strategies were devised, one of which wasretrenchment. The main objective of retrenchment was to reduce the size of the civilservice and thereby cut down on Civil Service employment costs. This was anticipated toimprove salaries, quality of work life and performance of workers. In part, improvementof service delivery was a long-term objective of retrenchment.

1.1 Implementation of Retrenchment

Management set-up that included the Implementation and Monitoring Board, thePlanning and implementation committee-and the Permanent Secretarys AdministrativeReform Commission were formed to facilitate the planning and implementation of thereform. Retrenchment was implemented in phases. Martin Orech (1995), the then head ofthe Civil Service and Permanent Secretary in the Ministry of Public Service, in a seminarfor Permanent Secretaries on 6th, December, 1995 said that the Civil Service which had320,000 personnel in 1990 was then 150,000. This implies that about 170,000 civilservants have been retrenched.

Appropriate skills, strategies and tactics are needed in implementing and managing

retrenchment. This is partly because, retrenchment implies organizational change andchange is normally resisted. Biller (1980) highlights some of the tactics used in carryingout retrenchment as: indicating that there are no losers or winners not favouritism forspecial categories of people who will win all the time, advancing general reasons forcutbacks (that are difficult to challenge, preference of some acrossthe-board cuts thatincrease fairness and legitimacy, concentrating on incentives especially for those whoremain; having open minded management which is innovative, and involving customersin the search for ideas and problems to solutions. In short, having a corporate strategy isimportant for successful implementation of retrenchment (Behn, 1980).

Having corporate strategy for example, ensured successful retrenchment and restructuring

of the shipping and ship building industry in Sweden during the crisis of the1970s. In1988, Behn indicated that to make retrenchment work, there are basic responsibilities of

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cutback management which include deciding what to cut, maintaining morale, avoidingmistakes, developing support of key constituencies or stake holders, creating opportunitiesfor innovation, attracting and keeping quality people. According to him, retrenchmenthas stages. These are: assessing economies needed to carry out retrenchment, taking along term view, development of performance criteria, creating incentives for co-operation,and being compassionate to the stake-holders.

Behn (1988) says that managers should maintain productivity. Retrenchment isdependent on leadership and management. Behn (1980) says leaders must explain thereality, take a long term view, develop a corporate strategy, develop measures of

performance, and be passionate or considerate.

Burke (1988) suggests that the manager or consultant should do the following: set goals,participate in decision-making, redesign jobs to improve person-environment fit, andorientation programs and programs to manage staff reductions. On a general note,Bentley (1986) listed 3 issues which in effect summarize what has been discussed aboveto include: redefining the organizations mission, reorganizing the structure, and re-

staffing/adjusting personnel. These improve retrenchment management. Furthermore,Bennett, Fadil and Greenwood (1994) highlights on the importance of organizationalculture during the retrenchment period and recommend the designing and implementationof a cultural intervention strategy before and after retrenchment. The conclusion here isthat retrenchment must be effectively implemented and managers should have therequired skills to do this.

1.2 Costs and Benefits of Retrenchment

Retrenchment has attracted different interpretations and effects (Standing and Tolkman,1991). It has costs and benefits depending on how it is managed (see the Figure 1 for the

conceptual frame work of the study). The conceptual model shows that the need forretrenchment, its planning, implementation and impact are related. It also shows that theneed for retrenchment (for example, of an oversized civil service) leads to planning andthen implementation of the exercise. Implementation may result in positive or negativeconsequences and this has implications for employees who are retrenched and those whostay on their jobs. Retrenchment has implications for both organizations, and the country.Feedback about retrenchment effects is necessary whether the effects are positive ornegative. Particularly, corrective feedback on consequences is necessary to improvesubsequent steps and future retrenchment exercises.

Positive impact implies that the retrenchment exercise is likely to achieve its main

objective which is improved quality of service delivery. Baron and Greenberg (1990)argues that for retrenchment to be effective, it needs to follow the sequential steps ofidentifying the need for change, planning for the change, implementation, evaluation andfeedback.

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Figure 1: The conceptual model of the study.

1.3 Disadvantages of Retrenchment

Levine (1984) found that retrenchment resulted in fiscal stress and human resourceshrinkage that caused many difficult problems for government managers. These problems

are caused by methods used by managers to cope with the need to retrench anddecrementalism (decrease in budget without loss of visible operating effectiveness). Themajor problem is decrease of human resource that results from cost cutting measuresWhich brings loss of skills, energy, morale, commitment, physical and mental healthdegradation that results from employees withdrawing physically and emotionally.Decrementals also cause reduced co-operative attitudes, greater fear and distrust, poorcommunication, lowered performance goals, restriction of production and increasedturnover.

Biller (1976) is of the view that organizational costs increase as a result of retrenchmentdue to the package granted on retrenchment and catering for the needs of re-training those

retained by the organization. Cascio (1986) supports this view. He says that although lay-offs are intended to reduce the costs, some costs like the severance package, out-of-placement benefit, pension and administrative processing costs may increase. It seemsthus likely that the cost bill reduction as an advantage of retrenchment is not attainable inthe short run. But even in the long run, its achievement may be bleak. The retainedworkers become more productive and if the Productivity Theory of wages rules, the wagesgo up pushing the wage bill up (Levine, 1978).

Retrenchment may create demoralization, dampen organizational productivity andincrease voluntary retrenchment, discourage the organizations most talented and

productive members who will end up leaving the organizations (Behn, 1980) and

Standing and Tolkman (1991) warn that the introduction of voluntary retrenchmentarrangements may impose considerable financial burdens on the organisation. Wilburnand Worman (1980) say that retrenchment threatens ones faith in the value of hiscontribution to the organisation and sense of control over the future.

Retrenchment causes industrial unrest. Biller (1980) notes that people whose status,income, and future are dependent on the programs that employ them will inevitably resistthe change. This is further enhanced by trade unions, which resist un-called-for layoffs.Wilburn and Worman (1980) says that further resistance may come from members ofmanagement who have spent time developing policies and programs and whose end maynot be seen. Innovation might be dampened because of retrenchment (Biller, 1980).

Feedback

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Need for change:issues, rationale for

retrenchmentPlanning

implementationofretrenchment

loss of skills, poor physical and mentalhealth, reduced performance, increasedindustrial and political unrest,centralization, innovation, discipline,efficiency, training, performance & salary


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Denga (1987) states retrenchment of workers, inflamed psycho-social problems, forexample, reduced self-esteem, general irritability, stomach ulcers, tendency to commitcrimes, high blood pressure, heart disease, financial emaciation and depression. Suchstressful events are not limited to low cadre employees; managers are equally adverselyaffected. For example, Burke (1988) found that contemporary sources of stress bothmanagerial and professional included organizational retrenchment and decline and future

job ambiguity and insecurity.

The above findings support the work of Curtis Russell, (1989) who investigated responsesof administrators and lower personnel to retrenchment in the western culture andconcluded that administrators responses about events leading to cutbacks have beenreactive activities that centralize, formalize and increase downward communication anddirectiveness. These responses exacerbate the existing problems connected to employeemorale, trust, depression and productivity. Cutbacks and cutback management canintroduce threatening environments that engage individual, and psycho-social actions tointervene between environmental change and pressures and internal organizationalresponse.

Levine (1984) found that organizations facing crises, for example, reduced resources byimplementing cutbacks in personnel and retrenchment, cope with and adapt to theirenvironment by unwittingly exhibiting certain crisis-syndrome characteristics. In hardtimes, most of them tighten controls of expenditure, centralize authority, and decision-making, pursue inappropriate strategies that worked in the past, and distort information.These responses affect members and create secondary crises as members try to cope withanxiety. Their working habits may deteriorate, filled with resentment, hostility, anger andmay develop a sense of dependence and search for a leader to save them. Such crisescause physical and psychological problems in the employees.

1.4 Advantages of Retrenchment

On the other side, retrenchment could have positive aspects. An effective adjustmentpolicy, therefore, should be associated with high organizational productivity and notstrikes (Cascio, 1986). It should also be associated with high quality of working life of theemployees.

Many retrenchment programs have been implemented in Africa. For example, in theGambia, Guinea, Guinea-Bissau, Ghana, Equatorial Guinea, Cameroon, Tanzania,Zimbabwe, and Lesotho. Reports on these Programs have not indicated how theimmediate impact of retrenchment, especially in terms of immediate work and

organizational outcomes have been addressed (United Nations, 1991).

Some Ugandan experts have said that organizational performance and innovationincrease as a result of retrenchment. This is reflected in improved service delivery (Ssezi,Director, Public Service, 1999, personal communication). Namatovu (1993) isolatedsome of the advantages of retrenchment to include restructuring of jobs and departments,reducing of over-staffing, redundancy and overcrowding, improved performance,discipline, efficiency, training and salary enhancement. This research, therefore, is thefirst of its kind and more supportive evidence is needed.

1.5 Quality of Working Life and Retrenchment

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Quality of working life is a neglected issue in organizations in the developing countries.Quality of work life is defined by Lawler (1973) as the employee perceptions of their

physical and mental well being at work. These perceptions can be favourable orunfavourable.

Quality of working life has been identified by other researchers to have the following

components: pay, employee benefits, job security, alternative work schedules, job stress,participation in decision making, workplace democracy, profit sharing, pension rights,working hours, programs that enhance workers welfare and overall job satisfaction.Most of the above variables were isolated by the Work in America Institute Surveys as themost important quality of work life issues of the 1980s and beyond. Therefore,retrenchment programs which have positive effects must address these components.

Productivity and quality of work life are important because where they have beenaddressed, monetary benefits, improved labour relations, fewer grievances, lowerabsenteeism, reduced turnover and strikes have been achieved (Casio, 1986). Where itexists, high quality of work life has been associated with high job performance (Cascio,

1986). In summary, retrenchment has positive, and negative effects on individual, andorganizational performance, as well as quality of work life. However, in Uganda, itseffects are not well known.

1.6 Research Objectives

The research had the following objectives to:

1. Assess the Ugandan public officers perceptions regarding retrenchment.2. Assess the impact of retrenchment on the performance of the public officers.3. Identify factors hindering the effective performance of employees

after retrenchment.4. Identify ways of how to improve the performance of the public officers.5. Assess how retrenchment has influenced organizational performance.6. Assess the effect of retrenchment on the quality of work life of the public officers in

Uganda.

1.7 Operational Definitions

Individual performance: This means self-ratings regarding 12 indicators of individualperformance.

Organizational performance: This means ratings regarding 13 indicators oforganizational performance and attainment of organizational goals.

Quality of work life: Quality of work life is multi-factorial and meant satisfaction withsalary and ability to meet financial obligations, presence of job security, participation indecision making, overall job satisfaction, job motivation and increased organizationalcommitment.

Survivors: These are the employees in the Uganda Civil Service who were notretrenched.

Retrenchment: A government initiated, ministry-wide exercise of cutting down thenumber of employees aimed at cost reduction. This cutback of the employees is

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determined by various reasons and is aimed, in the long term, at improving the quality ofservices delivered.

Trouble makers/shooters: Employees perceived by managers or supervisors asdisobedient

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2.0 METHODOLOGY

2.1 Design

A retrospective survey design was used. In this design, participants were asked to

describe the perceptions about retrenchment, assess individual and organizationalperformance and quality of work life before and after retrenchment.

2.2 Sample

Purposive sampling was used to get a list of ministries that had implementedretrenchment. Ministry of Public Service gave a list of 49 organizations and ministriesthat had implemented the exercise by 1992. The selected organizations and ministrieswere assessed to make sure that they had adequate participants respecting gender balance.Thereafter, a stratified random sample of equal number of male and female employeeswas picked from the payroll. The sample collected comprised of 247 participants from

the ministries of Public Service, Local Government, Education, Internal Affairs, andGender and Community Development. The study was done in Kampala district. This is

because Kampala had a relatively higher percentage of organizations that hadimplemented retrenchment.

2.3 Instruments

A questionnaire was used to gather data since all respondents could read and write verywell. The questionnaire requested performance ratings on 25 key different performanceindicators that reflected individual and organizational level performance and had areliability of 0.70. Participants indicated the effect of retrenchment on each factor by

stating whether the indicator had: improved, reduced, no idea, no change being scoredfrom 1 to 4 respectively. In some cases, this response format was reversed to stop thedevelopment of a response set.

The next section assessed the perceptions regarding retrenchment, factors affectingindividual performance and how performance could be improved after retrenchment. Thefollowing sections assessed views about quality of work life indexed by salary package,ability to meet financial obligations after retrenchment, feelings of job insecurity, its

predictors and impact, and occupational attitudes

2.4 Research Procedure

Permission to do the research was obtained from the Uganda National Research Councilof Science and Technology. Thereafter, managers and senior civil servants/officers of theconcerned ministries were approached for permission to conduct the research. In mostcases, access was granted and the relevant personnel managers and or officials in chargeof retrenchment were also approached to fill in questionnaire and identify other selectedemployees. The participants were then requested to fill in the questionnaire. The

participants who did not have enough time out work were allowed to complete thequestionnaire at home.

The research assistants were trained. Female research assistants assessed female

participants in case more information was needed. The instrument used in the researchwas pre-tested to improve their validity and reliability. Questionnaires were edited as

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soon as they were received to ensure completeness. Filling in questionnaires wasvoluntary and participants were assured of anonymity and confidentiality.

2.5 Data Analysis

Preliminary analysis procedures of cleaning, frequencies, consistency checks, and

debugging were done on the data obtained. This further improved the quality of the datacollected. Further and detailed analysis was done using discriminant analysis. The nextsection shows the results.

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3.0 RESULTS

The results are presented beginning with the presentation of sample characteristics asshown in Table 1.

Table 1: Demographic Information about the Sample

Factors Category No. %

Sex Male 142 57.5Female 105 42.5

Seniority Less or equal to 3 years 51 20.64-10 years 103 41.711-20 years 59 23.921-30 years 18 7.3

Not indicated 16 6.5Ministry Gender 56 22.7

Internal Affairs 61 24.7Education 43 17.4Local Government 25 10.1Public Service 42 17.0Finance 18 7.3

Not indicated 2 0.8Age 20-29 57 23

30-39 109 44.140-49 65 26.350-59 12 4.8

Not indicated 4 1.6

Terms of Service Confirmed 199 80.6Probation 19 7.7Temporary 6 2.4Contract 15 6.1

Non-response 8 3.2Education Primary 7 3 1.2

O Level only 87 35.2O Level + certificate 10 4A Level only 22 8.9A level + certificate+diploma 24 9.7Degree only 71 28.7

Degree+diploma+certificate 12 4.9Masters level 17 6.9Not indicated 1 0.4

Economicdependants

1-3 people 30 124-9 people 109 4410-30 people 77 31Above 30 people 31 13

Table 1 shows that the sample was almost evenly constituted in terms of sex (males

comprised 57.5% and females comprised 42.5%). Regarding seniority on the job, 20.5%hard served less than 3 years, 49% had served 4-10 years, 24% had served 11-20 years,

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7.3% had served 21-30 years and 6.5% did not indicate their length of service. Out of thesample, 22.7% were from the ministry of Gender, 24.7% from the ministry of InternalAffairs, 17.4% from the ministry of Education, 10.1% from the ministry of Localgovernment, 17.0% were from the Ministry of Public Service, and 7.3% were fromministry of Finance. 0.8 per cent indicated their ministry.

Regarding age, 23% of the participants were 20-29 years of age, 44.1% were 30-39 yearsof age, 26.3% were 40-49 years of age, 4.8% were 50-59 years of age. Of all theparticipants, 1.6% did not indicate their age. Of the sample, 80.6% were on confirmed inthe Service, 7.7% were on probation, 2.4% were on temporary and 6.1% were on contractterms of employment. 3.2% was non-response.

The majority of the participants had O Level Certificate 35.2%, 1.25% had primaryeducation, 4% had O plus a certificate, 8.9% had A Level only, 9.7% had degrees. 4.9

per cent had, in addition to a degree, diploma or certificate; 6.9% had masters degrees,and 0.4% did not indicate their educational level. The majority of the sample, 44% had 4- 9 economic dependants, 12% had 1-3 dependants, 31% had 10-30 dependants and 13%

had more than 30 economic dependants. The data given in Table 1 shows that the sampleused was representative of the Uganda Civil Service.

3.1 Employee Perceptions Regarding Retrenchment

The perceptions of participants regarding retrenchment were interesting because theycould influence the performance of the survivors, hence influence the success of theretrenchment exercise. Results on how the participants perceived retrenchment (themeaning of retrenchment) appear in Table 2. The results are presented in terms offrequencies.

Table 2: Meaning of Retrenchment to the Survivors

Positive/expected perceptions No. %

Reducing the number of employees 107 47Removing deadwood for performance improvement(drunkards, poor performers) 13 6Firing excess staff 10 4Establishment of effective management structure forservice delivery

5 2

Make less or cut down expenses 4 2Creating employment 2 1

Removing unqualified old people due to retire (nottechnically fit)

2 1

To lessen/ arrange ones expenditure/operation 1 0.4Create room for better working conditions 1 0.4Hard work and dedication to duty 1 0.4Negative perceptions No. %Premature layoff/retirement of work force 26 11Creation of poverty to those affected 8 3Ransom dismissal of employees for various reasons 2 1Laying off workers without any cause 2 1Punishment 2 1

Malicious methods to provide efficient, well paidemployees under limited resources 2 1

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The concept was not grasped correctly and workers werevictimised

1 0.4

Has made no change to workers 1 0.4Disorganization of employees 1 0.4Abolishment of jobs 1 0.4Reduction in strength 1 0.4

Remaining with a skeleton ministry 1 0.4Non response 35 15.3Total response 229 100

Table 2 shows that the majority of the responses (47%) on retrenchment were in theexpected direction, that is, reducing the number of employees. Other perceptionsregarding retrenchment included, removing dead wood to improve performance (6%),firing excess staff (4%), establishing of an effective management structure for servicedelivery (2%), and cutting down expenses (2%). Creating employment, and removingunqualified people about to retire comprised 1% of the responses each. Lesseningexpenditure, creating room for better working conditions, hard work and dedication to

duty comprised of 0.4% of the responses.

The negative perceptions that could threaten the successful implementation of theretrenchment exercise were also considered. Premature layoff of workers was the most

popular reported response (11%). 3% of the respondents perceived retrenchment ascreation of poverty. Ransom dismissal of employees for various reasons, laying offworkers without cause, punishment, and malicious methods to provide efficient well paidemployees with came next in popularity with 1% each. The concept of retrenchment

being grasped incorrectly leading to victimization of employees, retrenchment notbringing any change to workers, disorganization of employees, abolition of jobs,reduction in strength and remaining with a skeleton staff were each reported once (0.4%).

Non-response comprised 15.3% of the total responses, which is a quite high.

3.2 Effect of Retrenchment on Individual Performance

The participants were asked to report on the effect of retrenchment on several factorsconcerning individual performance. The responses were scored as either negative impact,no impact, positive impact, no idea and non-response. The results appear in Table 3

below.

Table 3: The Impact of Retrenchment on Individual Performance (N = 247)

Effect Reduced(%)

Noeffect(%)

Improved(%)

Noidea(%)

Employee job performance generally 9* 28 55 5Punctuality 7 32 59 1Absenteeism in your department 55 19 17 5

Number of employees remaining onduty all the time

7 23 61 5

Having two or more jobs 37 15 8 35Number of alcoholics in your dept. 48 7 7 35Efficiency and effectiveness 8 26 59 4

Personal responsibility 6 28 64 0.4Employee accountability 7 30 38 21

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Corruption & unprofessionalbehaviour

31 23 7 35

Loyalty to your boss 3 30 61 3Employee discipline 3 27 62 7

* the remainder to 100% indicates missing cases

Table 3 shows that the majority of the participants reported that the retrenchment exercisehad a positive effect on employee performance generally (55%), the number of employeesreporting to work on time (punctuality) (59%); absenteeism (55%); number of employeesremaining on duty most of the time (61%); reduction in the number of employees having 2or more jobs or moonlighting (37%) and reduction in alcoholism (48%); employeeefficiency and effectiveness (59%), employee responsibility (64%), and employeeaccountability (38%). The majority of the participants reported that retrenchment hadimproved employee loyalty and discipline (61% and 62%, respectively).

The majority of the participants did not know the effect retrenchment had on corruptionand other unprofessional behaviour (35%). These results show that retrenchment was

associated with increased individual performance in some respects, reduced performanceand had unknown effects on other respects. Some of its effects are yet to be determined.There was no reason for social desirability bias to operate in these responses. In someinstances, the response format was reversed to avoid the development of response biases.

3.3 Factors Hindering Employee Performance after Retrenchment

An open-ended question was put to the participants to report factors that hindered theirperformance after retrenchment. Table 4 shows the results.

Table 4: Factors that Impede Performance of the Survivors

Factor No. %

Inadequate funding 101 32Lack of motivation 47 15Too much work being done by a few 23 7lack of tools (equipment) 23 7Poor transport 13 4.2

No job security 13 4.2Poor training 10 3Financial constraints, bureaucracy, lack oftransparency

9 3

No change (in performance) 6 2Poor management style 5 2Low morale 4 1Poor chances of promotion and poor workenvironment

3 1

Only working for survival 2 1Long delays of salary 1 0.3Loss of confidence 1 0.3

Non-response 52 17Total response 313* 100

* The total is more than 247 because more than one response was permitted

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Table 4 indicates that inadequate funding was the main problem impeding theperformance of the survivors (32%). Other responses included lack of motivation (15%),work overload (7%), lack of tools (7%), poor transport (4.2%) and lack of job security(4.2%). Poor training, financial constraints, bureaucracy and lack of transparency wereother reasons suggested by 3% each, respectively. Management style (2%), low morale(1%) poor chances of promotion and poor work environment (1%), long salary delays

(0.3%), loss of confidence (0.3%) were also suggested. Out of the total sample, 17% didnot respond to this question. This is a quite high

3.4 Ways of Improving Performance of Employees after Retrenchment

The participants suggested ways of how to improve performance of employees. Thesesuggestions were tallied and percentages used to analyse the data. Results are presentedin Table 5.

Table 5: How to Improve the Performance of the Survivors

Factors No. %Provide a living wage 175 49Improvement on social welfare/incentives 36 10Train the workers 34 10Motivate the workers 33 9Improved conditions of living 11 3Provide transport 11 3Promotions, increase capacity building 7 2Assurance of job security 6 1.7Computerisation 2 1Timely reshuffles 2 1

Morale boost 2 1By assigning lesser or more specific work to employees 1 0.28It has improved generally 1 0.28Competitively filling their positions 1 0.28Government knows better 1 0.28Involve survivors in high level decision making 1 0.28Turn to good use or grow better and value 1 0.28Employ more workers 1 0.28Clearly defined jobs to indicate their out put 1 0.28By change in management style of leaders/administrators

1 0.28

Non - response 26 7Total response 354 100

* The total is more than 247 because more than one response was permitted

From Table 5, the most popular reported ways of improving performance as suggested bysurvivors included: Provision of living wage (49%), improvement in welfare andincentives, and training of workers, each suggested by 10%, respectively, andimprovement of motivation (9%). Improved conditions of living (3%), provision oftransport (3%); promotions and increased capacity building (2%), assurance of jobsecurity (1.7%); computerization (1%), timely reshuffles (1%) and morale boosting (1%)were also suggested.

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Less popular responses that emerged included: Assignment of more specific work tasks,competitive employee selection, involvement in decision making, and improvement ofmanagement styles, each suggested by (0.28%). Non - response accounted for 7%.

3.5 The Impact of Retrenchment on Organizational Performance

The participants were requested to indicate how retrenchment had impacted on 13 factorsof organizational performance. The response format used was: reduced, no effect,improved and no idea. Percentages were used to analyze the results (see Table 6).

Table 6: Effects of Retrenchment on Organizational Wide Factors (N = 247)

Effect Reduced(%)

Noeffect(%)

Improved(%)

No idea (%)

Awareness of the needs of the public 5* 32

44 15

Team work 11 31

51 5

Constructive feedback aboutperformance

7 40

39 11

Joint decision making 11 32

45 10

Quality leadership 6 29

49 11

Employee supervision 10 34

48 4

Creative management in your

organisation

5 2

6

50 15

Information gathering, storage &dissemination.

8 29

36 21

Selection procedures 4 39

20 32

The way jobs are designed 5 39

33 20

Training opportunities 20 45

29 3

Chances of promotion 26 41

22 8

Departmental performance 7 29

57 3

* the remainder are missing cases

The frequency distributions in Table 6 show that the majority of the participants reportedthat retrenchment was associated with increased sensitivity to the needs of the public(customers) (44%), and increased teamwork (51%). The majority of the participantsreported improvements in joint decision-making (45%), quality leadership (49%),employee supervision (48%), creative management (50%), information management intheir organizations (36%), and departmental performance (57%).

Furthermore, the majority of the participants reported that retrenchment had no effect onthe way performance feedback was given (40%), job design (39%), and training

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opportunities (45%). The majority of the participants reported that retrenchment had noeffect on selection procedures (39%) and chances of promotion (41%). The above resultsshow that retrenchment had positive, negative as well as no effects on some aspects oforganizational performance. There was no reason for social desirability bias to operate inthese responses. In some cases, the response format was reversed to avoid thedevelopment of response biases.

Organizational performance after retrenchment was also assessed by presence andachievement of organizational goals and knowledge of organizational mission. The

participants had to use the terms reduced, no effect, improved, or no idea. Non - responsewas also an alternative (see Table 7).

Table 7: Impact of Retrenchment on Organizational Goals, Mission and Values(N = 247)

Factor Reduced

(%)

Noeffect

(%)

Improved

(%)

Noidea

(%)

Non-response

(%)Presence of achievable. goals 3 30 44 17 6Knowledge of organizationalgoals

3 25 49 17 6

Meeting of organizationalgoals

7 29 57 3 4

Knowledge of organisationsmission

4 23 44 19 10

Knowledge of organizationalvalues

4 28 43 20 5

Table 7 show that the majority of the participants reported that their organizations hadimplemented achievable goals (44%). Retrenchment was also reported to be associatedwith increased knowledge of organizational goals (49%), retrenchment and meeting oforganizational goals (57%). Retrenchment was also associated with increased knowledgeof the organisations mission (44%) and increased knowledge of organizational values(43%).

3.6 Retrenchment and Quality of Working Life

3.6.1 Effect of Retrenchment on Employee Work Attitudes

The three work attitudes assessed quantitatively were: job motivation, job satisfaction andorganizational commitment (Warr, Cook and Wall, 1979). These attitudes wereconsidered because they influence employee performance and mental well-being. The

participants had to indicate the impact of retrenchment on the work attitudes using theresponse format: no idea, reduced, no change, or improved, being scored 1 to 4,respectively. Table 8 shows the result.

Table 8: The Effect of Retrenchment on Motivation and Morale of Survivors(N = 247)

Variable Category n %

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Motivation and moraleNo idea 11 5Reduced 62 25

No change 124 50Improved 50 20Total 247 100

Table 8 shows that the majority of the participants reported motivation and morale did notchange as a result of retrenchment (50%). 25% reported that motivation and morale hadreduced due to retrenchment and 20 % reported that motivation and morale had improveddue to retrenchment. 5% had no idea. Results on the effect of retrenchment on jobsatisfaction are presented (see below Table 9).

Table 9: Effect of Retrenchment on Job Satisfaction of Survivors

Variable Category No. %

Job

satisfactionImproved 58 23Reduced 41 17

No change 120 49No idea 28 11Total 247 100

Table 9 shows that the majority of the participants reported that job satisfaction did notchange as a result of retrenchment (49%). 23% reported that job satisfaction hadimproved and 17% reported that motivation and morale had improved due to

retrenchment. 11% had no idea. Table 10 shows the results on the effect of retrenchmenton organizational commitment.

Table 10: Effect of Retrenchment on Organizational Commitment

Variable Category No. %

Organisationcommitment

Improved 81 32.8Reduced 41 16.6

No change 84 34.0

No idea 41 16.6Total 247 100

Table 10 shows that the majority of the participants reported that organizationalcommitment did not change as a result of retrenchment (34.0%). 32.8% reported thatorganizational commitment had improved after retrenchment and 16.6% percent reportedthat organizational commitment had reduced after retrenchment. 16.6% had no idea.

3.6.2 Salary Package and Meeting Financial Obligations

Satisfaction with the total salary package and the extent the salary can assist the employee

to meet his or her financial obligations, is the cornerstone of employee quality of life. Theranges of the total salary package are shown in Table 11.

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Table 11: Present Salary Package

Salary Range (Ugandashillings)*

No. Percentage

20,000-50,000 56 22.7

50,001-100,000 104 42.3100,001-200000 78 31.4200,001-1000000 9 3.6Totals 247 100

1050 Ugandan shillings = 1 US $ by the time of research.

Table 11 show that the majority of the participants were getting a total salary package ofbetween US $ 50-100 (42.3%). This was followed by 100,001-200,000; 20,000-50,000; and200,001-1000,000; each being reported by 31.4%, 22.7% and 3.65, respectively. Satisfactionwith salary packages is shown in Table 12.

Table 12: Satisfaction with Salary

Satisfaction with present salary No. %Satisfied 4 1.6Unsatisfied 231 93.5

Non-response 12 4.9

With respect to satisfaction with present salary package other factors being equal, 1.6%said they were satisfied, 93.5% said they were unsatisfied and 4.9% were non responses(see Table 12). In fact, over 50% reported that their salary package had not improvedsince retrenchment was implemented. Ability to meet financial obligations after

retrenchment was assessed and results appear in Table 13.

Table 13: Ability to Meet Financial Obligations

Ability to meet financialobligations

No. %

Able 4 1.6Unable 227 91.9

Non-response 16 6.5

The majority of the participants (91.9%) reported that they were still unable to meet mostfinancial obligations after retrenchment, 1.6% said they were able, and 6.5% comprised non-response (see Table 13).

3.6.3 Feelings of Job Insecurity

Participants were asked to indicate whether or not they felt insecure on the job as a resultof the retrenchment exercise. Table 14 shows the results.

Table 14: Job Insecurity among Participants

Response No. %Felt job insecurity 111 44.9

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Reported no job insecurity 121 49.0Non-response 15 6.1

Table 14 shows that out of the sample, 44.9% reported feelings of job insecurity. This is alarge percentage. 49.0% reported no such feelings and 6.1% said gave no response. Forthose participants who felt job insecurity, the reasons for feeling insecure are given in

Table 15.

Table 15: Reasons For Feeling Insecure

Factors No. %

The process of retrenchment has not ended 34 14Every time we are threatened with retrenchment by managers 21 9The criteria used not clear/known 18 7

No job insecurity 16 6Because the retrenchment package is too little 4 2Influenced assessment can easily earn one a sack 3 1.2

I am not confirmed in civil service 2 1.0By pegging civil servants in one ministry without change(transfer)

1 0.4

Due to scarcity of job opportunities 1 0.4Victimization for various reasons 1 0.4There are qualified employees who were retrenched 1 0.4

No assurance of continued performance on the job 1 0.4No qualifications 1 0.4No promotion 1 0.4Non - response 142 57Total response 247 100

Consider Table 15 above. The most common reasons why the survivors felt insecure werebecause the process of retrenchment was not yet complete (14%), retrenchment was usedas a threat (9%), the criteria used was not clear (7%); 6% of the responses indicated nofeelings of job insecurity by the time of these research, 2% of the responses indicatedworry because the retrenchment package was little. Unfair decisions (that is, regardingassessment) was suggested by 1.2% and lack of confirmation were suggested by 1%. Lackof timely transfers, scarcity of jobs, victimization, presence of qualified employees whowere retrenched, no assurance of continued performance on the job, no qualifications andno promotions were suggested by 0.4% each.

The biggest percentage comprised non-response (57%). This shows that some employeeswere anxious about filling in the scale regarding job insecurity. The participants thoughttheir responses would be used in subsequent retrenchment decisions.

3.6.4 The Predictors of Job Insecurity in the Public Service after Retrenchment

The stepwise discriminant analysis was done to distinguish the most discriminatingvariables between the group that felt insecure (scored as 1) from the one that felt no jobinsecurity (scored as 2). The stepwise procedure enters variables into the analysisindependently on the basis of their discriminating power. The next best discriminator is

selected at each step until the addition of further variables fails to improve discrimination

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between groups. All the variables assessed were entered as independent and jobinsecurity entered as dependent variable.

The canonical correlation reported in the Table 16, is the square of which refers to the %of variance due to the independent variable in question. The chi-square tests indicate howsignificantly the function discriminates between these two groups.

Table 16: Discriminant Analysis Regarding Predictors of Job Insecurity

Step Factor Wilkss lambda Significance

1 The way jobperformance isappraised

0.92 0.01

Eigen value = 0.08; canonical correlation = 0.28; Wilkss lambda = 0.92, X2 = 6.56; p =0.01

Table 16 shows that the chi-square of 6.56 was significant (p = 0.01) and the canonical

correlation between job insecurity and performance evaluation was 0.28, indicating thatperformance evaluation accounted for approximately 8% of the variance in job insecurity.The factor of performance evaluation, therefore, accounted for little variance in jobinsecurity. The factor of performance evaluation came up probably because of itsimplication for personnel decisions.

3.6.5 Effects of Job Insecurity

Next, the effect of job insecurity was assessed and the results appear in Table 17.

Table 17: Effects of Job Insecurity on Public Officers

Factor No. %

Reduced performance 29 12Increased commitment 26 10.5

No influence 22 8.9No job security 8 3.2Confident to remain 8 3.2Bad effects 6 2.4I am not contented, I keep job searching for better

jobs4 1.6

Pressure to perform 3 1.2

Job consciousness 3 1.2Adopted a wait and see attitude 2 0.8At times lack of concentration 2 0.8Rather indifferent 2 0.8Ever behind deadline 1 0.4Moderate job performance 1 0.4I am free 1 0.4Fear but need to improve 1 0.4Short term future planning 1 0.4Psychological torture 1 0.4It discourages my interest 1 0.4

Non-response 125 50.6Total response 247 100

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Table 17 shows that the most common response, i.e., reduced performance represented12% of all responses. Other popular responses were: Increased commitment (10.5%), noinfluence of job insecurity (8.9%), no job insecurity (3.2%), confident to remain (3.2%),

bad effects (2.4%), and involvement in job search (1.6%).

Other effects reported included pressure to perform, and job consciousness, each having afrequency of 1.2%; adoption of wait and see attitude, at times lack of job concentrationand indifference each comprised of 0.8%. Ever behind deadline, moderate job

performance, I am free, fear but no need to improve, short term planning, psychologicaltorture and discouragement of interest were least popular, each comprising 0.4% of theresponses. The largest percentage (50.6%) comprised non-response. This confirms thatthe participants were not willing to give information probably because they fearedmanagerial reprisals. This could be true since by the time this study was doneretrenchment was still going on.

In summary, retrenchment had differential effects on factors of quality of working life. It

was associated with increased participation in decision-making. The majority of theparticipants reported no change in job attitudes, and a reasonable number of participantsreported it had brought job insecurity. Participants reported that they were not satisfiedwith present salary packages and their ability to meet financial obligations had notimproved. Some factors of quality of work life were influenced positively, othersnegatively.

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4.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

This research was done to establish public officers perceptions on retrenchment, theeffects of the exercise on the factors of individual and organizational performance andquality of work life in the Uganda Civil Service. The results indicated that retrenchment

had both positive and negative effects on the factors in question. The results tend to showthat the effects of retrenchment depend of the factors under consideration. In addition,present research considered short-term effects of retrenchment. These findings are in linewith research conducted elsewhere (Behn, 1980; Cascio, 1986) and are discussed below.

4.1 Employee Perceptions Regarding Retrenchment

The discovery that retrenchment had negative as well as positive effects among publicofficers was supported by employee perceptions of the retrenchment process. Thisresearch found out that retrenchment was perceived differently by the respondents. Somesaw it as negative, while others had positive perceptions about it. These findings support

literature on reactions to organizational change. For example, Wilburn, Worman (1980)found that organizational change is usually resisted due to the uncertainty it comes with.This can be true in Uganda as well. Sometimes, managers resist such changes too (Behn,1980). These findings also support Furniss (1974) when he cites a case of courts inAmerica, which used the chance of cutbacks to get rid of the trouble makers." It is likelythat a similar situation happened in Uganda.

The fact that negative perceptions stem from the way retrenchment was designed andimplemented is unquestionable. The first phase of retrenchment 1992/1993 was based onsubjective criteria. Many managers did not know the implications of the questionnaireinformation gathered yet it was on this information that decisions to retrench or not were

based. Some of the managers saw retrenchment as a chance to victimize some employees.The worries and negative perceptions must be understood in this light. However,subsequent retrenchment (after 1993) was based on objective criteria.

In some instances, there were delays in severance caused by poor record keeping hencedelaying verification by auditors, when the employees to retrench were already identified.The need to consult and ensure fairness by implementing and monitoring board also tookmore time. Delays in releasing funds by the Ministry of Finance and Auditor Generalsoffices because, of combining normal pension work with ex East African Communityemployees compensation and normal retirement exercise led to work overload. Delaysin retrenchment could have caused a shift in perceptions regarding the intentions, and

fairness of retrenchment. The recommendation here is that it is better not to retrench untilfunds are ready.

Since such negative perceptions about retrenchment are likely to have a serious impact onthe early stages of implementation of the exercise. Managers of retrenchment should besensitive to employee perceptions and work on them through seminars, counselling and

public relations. Managers should study the negative perceptions with the view ofchanging them. These perceptions should also be noted by those who want to implementretrenchment. Normally, tactics in handling organizational change are important here.These include the involvement of the stakeholders early in the process of change, andgiving information. Participation in decision-making at an early stage ensures

commitment to the process of change. The stakeholders should be given a chance tosuggest how retrenchment should be implemented (in fact union leaders complained of

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being excluded from the planning and implementing of retrenchment. This should beavoided in future exercises). They should be involved in all the stages of retrenchment.The rationale and criteria of retrenchment should be explained early in the processthrough improved public relations. This is how organizational change can be bettermanaged.

These perceptions could influence the performance of employees who stayed at their jobs.If they see that retrenchment was not fairly done, they may develop job insecurity. Thismight have happened since retrenchment was ongoing by the time this study was done. Insome cases, and for some reasons, those to be retrenched were identified and not paid

packages to leave. This can cause industrial unrest, which may cause more damage andthus increasing costs of retrenchment.

For the retrenchees, the situation could be worse. The retrenchees with negativeperceptions, which stem from poor retrenchment criteria, could cause political and socialunrest (Biller, 1980). This was the case in Uganda, among the veterans and otheremployees who were retrenched without packages (R. Yombo, The Monitor, 28th July

1997). Still, government had promised to pay a living wage after retrenchment but thispromise has taken time without being fulfilled. This has caused many strikes amongteachers, lecturers, doctors and other civil servants. Some of these problems stem frommisunderstanding the rationale of retrenchment.

4.2 Individual and Organizational Performance

The majority of the respondents agreed that retrenchment has been associated with improvedgeneral employee performance, punctuality, reduced absenteeism, reduced tardiness, reducedmoonlighting, reduced alcoholism, increased efficiency and effectiveness, employeeresponsibility, accountability, loyalty and discipline. Reduced performance, withdrawal

behaviours, moonlighting, lack of accountability, alcoholism, reduced employee effectivenessand efficiency, irresponsibility, and lack of loyalty had been some of the problems with theUganda civil service (Hansen and Twaddle, 1989). These had seriously affected the

performance of the Service and hampered service delivery. Their reduction is welcome and isin line with the visions, goals and objectives of the Civil Service Reform Program (includingretrenchment) (Uganda Civil Service Reform, Vision, Objectives, Strategy and Plan, 1993).

Besides, a reasonable majority of the participants agreed that retrenchment had no impact oncorruption and unprofessional behaviour. However, 31% of participants agreed thatretrenchment had reduced corruption and unprofessional behaviour. This is not a smallnumber. Reports from retrenchment managers also confirmed that corruption and indiscipline

among others remain a challenge (Lagara, 1996). Corruption and unprofessional behaviourhave plagued the civil service and efforts to rout them must continue (Hansen and Twaddle,1989). Government has already set up a Directorate of Ethics and Integrity headed by aminister. This is a step in the right direction and should be supported. Together with theInspector General of Government and other anti-corruption agencies, the problem ofcorruption will be reduced. Furthermore, government is fighting corruption in the civil service

by encouraging the public to speak about it openly. It has also put in place a Code of Conductto check corruption among government senior personnel. This Code stipulates how civilservants behave in public office. More information on the Code of Conduct can be obtainedfrom the Ministry of Public Service or the office of the Inspector General of

Government. However, the latter has complained of insufficient resources to fight corruption.Government should equip the Inspector Generals office so as to enable it do its work.

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The majority of the respondents identified some factors that hindered their performance afterretrenchment. These factors include: inadequate funding, low motivation and morale, workoverload, lack of tools, poor transport, job insecurity, and poor training. These factors seem to

be real problems. For example, Levine (1984) found that retrenchment was associated withdampened motivation and morale. Government has set up Programs to address some of the

problems or hindrances in the civil service review and reorganization exercise, which isongoing (Ministry of Public Service, 1993).

Respondents suggested more ways of how such hindrances could be reduced so as to improveperformance among the survivors. Suggested ways included paying a living wage,improvingwelfare, training of workers, motivation and morale boosting workers, improvedconditions of living, improving chances of promotion and capacity building, reduction of jobinsecurity, computerization, and timely reshuffle. Again some of these suggestions havealready been identified by government and appear in the strategies government is using toimprove the performance of civil servants (Ministry of Public Service, 1993).

4.3 Organizational Performance Issues

Retrenchment had positive effects on some aspects of organizational performance. Forexample, retrenchment has led to increased sensitivity to the public. This relates well with theoverall goal of the Civil Service Reform Program, which is the provision of quality service tothe public. Retrenchment has been associated with increased teamwork, participation indecision-making, quality leadership and supervision, creative management, and informationmanagement. Improved information management is among the vision of the civil servicereform Program (Ministry of Public Service, 1993). Retrenchment was also associated withincreased departmental performance.

On the other hand, a majority of the participants reported that retrenchment had no effect onjob design, training opportunities, feedback on performance, chances of promotion andselection procedures. Burke (1988) had already found that job design and participation indecision making are some of the factors that need to be addressed after retrenchment. Some ofthese factors like offering well designed jobs, training opportunities and human resourcemanagement are part of the objectives of the Civil Service Reform Program, which is already

being implemented. This implies, in part, that retrenchment as a strategy has not assisted inachieving some of the objectives of the civil service reform. However, this may be a rushedconclusion since this study was done soon after the retrenchment exercise was started.

4.4 Management of Physical Resources like Retooling

This has to do with the supply of tools and equipment to improve work performance, forexample, computers. Retooling is one of the strategies of the Civil Service Reform Programand has already been started by the Ministry of Public Service. Retooling should continue but

be done carefully so as to avoid damping of obsolete technology in the ministries.

The Ministry of Public Service has hired consultants to do job analysis and job evaluations.This is a welcome exercise that should continue. The Ministry should also start on job re-design. These exercises should offer jobs that are enriched, with appropriate load, and thathave chances of promotion built into them. These will be motivating to the workers. Thecurrent retrenchment exercise was done without a clear policy on job analysis. Normally, job

analysis and evaluation exercises should have been done first, followed by restructuring andthen retrenchment.

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The Ministry of Public Service should embark on operative and management training.Particularly, the managers should be trained in selection procedures, performance appraisaland other aspects of human resource management. When this is done, managers will not againrecruit and select unqualified personnel and will do an effective evaluation of the survivors

performance and take correct decisions.

Results regarding organizational goals, mission and values were also supportive ofretrenchment. A majority of the public officers reported that after retrenchment wasassociated with presence of achievable goals, increased knowledge about the goals andmeeting of such goals had improved. Additionally, knowledge of the mission andorganizational (corporate) values in the public service had improved. This is attributableto increased sensitisation that the Ministry of Public Service had undertaken. Thesensitisation of officers about organizational goals, mission and values has been anobjective under the restructuring, re-organizational and retrenchment exercises (Ministryof Public Service, 1993). The improvement in knowledge about these factors is likely to

be translated into improved service delivery, so the exercise of educating the public

officers about organizational goals, mission and values should continue.

4.5 Quality of Working Life

Regarding occupational attitudes, the majority of the respondents reported no change inmotivation and morale, job satisfaction and organizational commitment. A majority of

participants reported these attitudes to be poor. This implies that, regarding these attitudes,the situation in the Civil Service is still bad, as described by Hansen and Twaddle (1989). It ishoped that if the recommendations of this study are implemented, positive changes in theseattitudes will result.

Most of the participants reported as still poor. Furthermore, a majority reporteddissatisfaction with current salary packages and their inability to meet most of theirfinancial needs. In order to improve individual performance, government should providea living wage. Government is already tackling this problem through phased increment ofsalaries depending on the recovery of the economy and through monetisation of most

benefits. If this exercise is completed, it is hoped that employee welfare, living conditionsand employee motivation will improve. However, the effect of inflation should beconsidered when determining salaries.

The government has broadened the tax base so that it can get money it can use improvethe welfare of workers. In some cases, salaries have already been increased up to 50%.

However, employees are complaining that the increments are not proportional. Forexample, the ratio of the new to the old salary for senior officers, for instance, permanentsecretaries was 20 times while that of junior officers was only 7 times, at the time of thisresearch. Improving economic conditions and improving tax collection might not beenough conditions to pay a living wage. The allocation of the collected funds anddecision-making seem to be more important. The following examples clarifies this point:The wage bill in billions of shillings was 65 in 192/93 when retrenchment started. In1998/99 it is estimated to be Shs 250 billion. This is when the civil service will havereduced by less than a half it used to be in 1992. Revenue collection has risen from 50 to900 billion in the same period. Why then is a living wage not possible? Political andadministrative decisions are to blame. For example, the recruitment of security personnel

is not under Civil Service and policies like the Universal Primary Education (though

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good) were not considered to be part of the wage bill. This hampers the payment of aliving wage.

With the fund it has mobilised, government is addressing the distortion in the salarystructure through beefing up from U5 salary scale and above. There will be a continuousimprovement until a reasonable ratio is reached. Provision of a living wage therefore

remains a challenge to government.

The lack of the living wage was always cited as a major issue in industrial strikes.However, Uganda is undergoing a political transformation and commentators have voicedthe role of political forces/factors in these strikes.

Another aspect of quality of work life assessed was job insecurity. A high percentage ofrespondents reported job insecurity. This was due to the fact that retrenchment was notyet over and was badly implemented. The rationale and criteria for retrenchment werenot clear. Personnel decisions were largely subjective. This is true with respect to the first

phase of retrenchment (Lagara, 1996). However, this problem was rectified but the effect

on the survivors had taken root.

A counselling section should be created as a structure to deal with the psychosocial andemotional issues that arise in the process of retrenchment including job insecurity. Thisstructure can service the survivors and the retrenchees as well as providing generalinformation about retrenchment. In addition, the public relations function, as suggestedearlier, should be improved to explain the meaning of retrenchment to the concerned

parties.

The rationale and criteria for retrenchment should be made clear right at the beginning.Managers should take caution not to use retrenchment, as an opportunity to punish

employees they think are uncooperative or disobedient. Rather they should be objectivein applying the criteria for retrenchment. An attractive severance package will also serveas an attractor for those employees who want to separate with the organization voluntarilyor involuntarily. The process of retrenchment should be made as transparent as possible.The above measures coupled with increased skills in performance evaluation shouldreduce the problem of job insecurity. Existence of these problems further shows thatsome of the strategies for retrenchment did not work as hoped.

The majority of the participants reported that after retrenchment, participation in decision-making had increased. This is a welcome development, which should be encouraged by allstakeholders. Participation in decision-making causes the parties to be committed to the

decisions taken.

Retrenchment had positive effects on some indicators of quality of work life and hadnegative effects on others. These findings support prior research on retrenchment inUganda and elsewhere (Behn, 1980; Biller, 1980; Burgsdorff, 1989; Levine, 1984; Cascio,11986; Denga, 1987; Gelles, 1991; Lawler, 1973; Namatovu, 1993; Singer, 1987; andWilburn, et al 1980).

4.6 Critique and Suggestions for Further Research

Some problems hindered the validity of these findings. A Retrospective Survey Design

was used in this research. This is not a strong design. Retrospective measures are floutedwith recall errors since participants cannot remember vividly what was happening before

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retrenchment was implemented. So, a before and after design should have yielded betterresults and is recommended for further researches on retrenchment. The other criticismconcerns the problems with the self-report, in general. These can be flouted with biasesand inclusion of objective measures like records and behavioural observation insubsequent retrenchment researches is recommended. The influence of third variablescannot be ruled out in such designs. These should be controlled in further research.

The timing of measures is also important. This is because retrenchment has short and longterm impacts. The effects of retrenchment obtained depend on when the measurements weretaken. So a time series design is much better for the long term effects of retrenchment.

4.7 External Validity Problems

Generalisation of present findings is limited to Kampala or at least to city and urban workersin Uganda. Retrenchment was also done at the district level. Research focusing onretrenchment at the district level is recommended.

4.8 Time Constraints

More time was needed to get the required information from the sample. Getting access insome ministries takes time because suspicions about the researcher have to be dispelled first.Some organizations (like Kampala City Council which is part of the local government)rejected the exercise as a whole. Research undertaken during the retrenchment period arelikely to be resented because employees mistake them as evaluation tools on whichretrenchment decisions may be based. Lack of co-operation from managers is also likely.Because of anxiety about the process, employees may not be willing to give information

because they fear rebuke from managers. They thought the data collected would be usedagainst them. This is understandable because retrenchment is a new thing and at the time this

research was undertaken, employees were not sure whether retrenchment was over andgovernment had interest in the exercise. Detailed explanation about the importance ofresearch, assurance of anonymity and confidentiality were given. Rejections and non-responseare likely to be high.

Environmental stability at the time of research is also important. Events like election fever setin and made people anxious and suspicious about the intentions of research. The researchermust be able to sense effects that are caused by retrenchment per se from those that happendue to other processes like political events.

Present research gave a limited consideration to the objectives of retrenchment. To widen the

scope, further research should consider whether the objective of reducing costs has been met.

Retrenchment is significant for all the stakeholders. It has different meanings to the variousstakeholders. Retrenchment can be a harm or loss, threat or challenge. Harm or loss wouldconcern those employees who were retrenched and lost jobs prematurely. Threat refers to

potential harm or loss. This can be seen in the light of those employees who remain. Somewill remain under fear of future retrenchment. Challenge refers to opportunities for growth,masterly or gain (Folkman and Lazarus, 1988). Retrenchment, therefore, is both anopportunity and challenge to organizational development and to the stakeholders. It ischallenging to plan, implement and manage retrenchment and its effects. However,retrenchment offers an opportunity to put right what had gone wrong with the civil service.

This stimulates organizational growth and development.

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Retrenchment has different outcomes depending on the timing, that is, whether the short termor long term impacts are the ones in question. The long-term effects will be realised only if asupportive organizational culture develops. Therefore, follow-up studies on the developmentof organizational culture in the Uganda civil service is recommended. These will show if anew culture favourable of higher organizational performance has been created.

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5.0 REFERENCES

Baron, A. & Greenberg, H., Organisation Theory and Design, 4e. St Paul MN: WestPublishing, 1990.

Behn, R. D., Leadership in the Era of Retrenchment. Public Administration Review, 40,

1980.

Behn, R. D., The Fundamental of Cutback Management in Cameron, K. S. Sutton R I andWhetten D.A., (eds): Readings in Organizational Decline: Frameworks, Research, andPrescriptions, Ballinger Cambridge, MA, 1988.

Bennett, R. H., Fadil P. & Greenwood R., Cultural Alignment in Response to StrategicOrganizational Change: New Considerations for a Change Framework, Journal ofManagerial Issues, 6(4), 1994.

Bentley, C., Retrenchment Consulting in the Public Sector: Issues and Recommendations, in

Consultation: An International Journal. 5(1), 1986.

Biller, R. P., Leadership Tactics for Retrenchment, in Public Administration Review, No.40, 1980.

Burgsdorff, S. K. V., The Political Dimensions of Structural Adjustment, in Developmentand Co-operation, 1989.

Burke, R J., Sources of Managerial and Professional Stress in Large Organizations, in:Cooper C. L. and Pain R. (eds)., Causes, Coping and Consequences of Stress at Work.John Wiley & Sons Chichester, England, 1988.

Cascio, W. P., Managing Human Resources: Productivity, Quality of Work Life,Profits, New York, McGraw Hill, 1986.

Coulter, P B., Organizational Effectiveness, in Administrative Science Quarterly, No.24, 1979.

Curtis-Russell, L., Cutbacks, Management and Human Relations: Meanings forOrganizational Theory and Research, in Human Relations, 42(8), 1989.

Denga, D. I., Counselling the Retrenched Worker in Nigeria. International Round Table

for the Advancement of Counselling, in International Journal for the Advancementof Counselling, 10(4), 1987.

Hansen, H. B. & Twaddle M., Uganda Now: Between Development and Decay, Kampala:Fountain Publishers, 1989.

Levine, I., Organizational Crisis and Individual Response: New Trends for HumanService Professionals, in Canadian Journal of Community Mental Health, 3(2),1984.

Folkman, S. & Lazarus, R. S., Coping as a Mediator of Emotion, in Journal of Personalityand Social Psychology, 54, 1988.

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Furniss, W. T. Retrenchment, Layoff and Termination, in Educational Record, 55(3),1974.

Gelles, L., Labour Market Adaptation, Towards an Action Agenda. PREALC,UNDP, Santiago, 1991.

Krantz, J., Group Process under Conditions of Organizational Decline, in Journal ofApplied Behavioural Science, 21(1), 1985.

Lagara, M., Progress Report on the Reduction of Civil Service Number: July 1991 toFebruary 1996, Ministry of Public Service, Kampala, 1996.

Lawler, E. E., Motivation in Work Organizations, CA, Monterey, Brooks-Cole, 1973.

Levine, C. H., Retrenchment Human Resource Erosion, and the Role of the PersonnelManager, in Public Personnel Management, 13(3), 1984.

Ministry of Finance, Planning and Economic Development, Uganda Manpower SurveyReport, Kampala, 1989.

Ministry of Public Service, Report of the Public Service Review and ReorganizationCommission. Kampala: Uganda Printing Publishing and Corporation, 1989/1990.

Ministry of Public Service, Management of Change. Kampala. Uganda Printing Publishingand Corporation, 1993.

Namatovu, B., Effects of the Retrenchment Exercise on Ugandan Organizations . AB.A. Dissertation, Dept. of Psychology, Makerere University, Kampala, 1993.

Orech, D.M., Status Report No. 5, Uganda Civil Service Reform, Kampala, Ministry ofPublic Service, 1995.

Osborn, R.N. & Hunt, G.J., Environment and Organizational Effectiveness,Administrative Science Quarterly, 19, 1974.

Singer, H., Structural Adjustment: Institute of Development Studies, EssexUniversity, UK, 1991.

Skinner, W., The Productivity Paradox, in The McKinsery Quarterly, Winter, 1987.

Standing, G., & Tolkman, V. Towards Structural Adjustment: Labour Market IssuesinStructural Adjustment, Geneva, ILO, 1991.

Steers, R.M., Problems in the Measurement of Organizational Effectiveness,Administrative Science Quarterly, 1975.

Warr, P., Cook J. et al., Scales for the Measurement of Some Work Attitudes and Aspectsof Psychological Well Being, in Journal of Occupational Psychology, 52, 1979.

Wilburn, C. R. & Worman A. M., Overcoming the Limits to Personnel Cutbacks: LessonsLearned in Pennsylvania, in Public Administration Review, 40, 1980.

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