Retrenchment And Its Effects On The Morale Of Workers (A Case Study Of Institute Of Management And Technology (I.M.T) Enugu)

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This project work is conducted as part of the requirement for the award of a national diploma in business administration the aim of this research work is to find out the effects of retrenchment of workers especially on haul it has affected their moral that is the still employed workforce whether their moral is low. If they feel threatened or it they have become moor productive. The research is centred on the institute of management and technology Enugu and the entire work is divided into three chapters

Chapter one deeds with the problem of study the purpose and it’s significance.

Chapter two deeds with related literature on the retrenchment issues what different authors said on the causes and consequences of the exercise and ways to solving the problem of retrenchment and also it’s applicability to Nigeria situation

Finally, chapter three contains the summary of the findings and conclusion of the study




1.1              General Background  

1.2              Problem associated with retrenchment

1.3              Problem the study will be concerned with

1.4              The importance of studying the area

1.5              Definition of importance term

1.6              References



2.1              The origin of the subject area

2.2              School of thoughts within the subject area

2.3              School of thoughts relevant to the problem of study

2.4              Different methods of studying the problem

2.5              Summary

2.6              References


3.0       Conclusion

3.1              Data presentation

3.2              Data analysis

3.3              Recommendation

3.4              Conclusion

3.5              References





The background of this study is on the institute of management and technology Enugu state made-up of students academic staff (lecturers) and non-Academic staff.  It aimed et finding the affect on the moral is still low or if they feel threatened and if they have biome productive this research work was prompted by the way how workers have been retrenched for the past years in institutes of higher learning.  Human beings have often been accused or being crazy and having poor attitude to works as shown in mcgregregors assumption of theory of x. in this theory Mcgregors assumed that the average human being does not like working and would went to or avoid it if possible as a result be would have to be controlled threatened with punishment before he can put in effort to achieve some organizational objective.  Mcgregor went on to say that a human being wishes to be directed and controlled in his new ambitions and above all he wants security.  This research work would want to find out if the above claimed reasons for retrenchment of workers were true reasons for these actions or in Mcgregors assumption (ie. Laziness and poor attitude to the two set of behaviour led to the retrenchment of worker in the institute of management and technology Enugu

Moreover, people who were affected by the mass page of workers have resorted to a number of way for survived some who are opportune to have cars turned into taxi drivers others beg for aims along the roads while others turned to petty treading.  In summary this work sets out to find out why retrenchment is being embarked upon who is being retrenched among the workers and the eriterial   for selecting them.

The research work will also be interested in finding out the affect this exercise has had on the remaining staff that is has there been any noticeable change in productivity and in what direction government on their own one trying to decrease the workforce in government parastatals in order to control excess of workers this wages and status in order to channel such funds to other activities


The efficiency of running an organizaiton or establishment is determined by the workforce.  In recent times workers have been undergoing the dilemma of retrenchment.  The retrenchment exercise currently taking place in Nigeria poses economic and social problems.

Retrenchment is defined as dismissed or fermentation of workers when the job cases to exist usually as a result of technological or economic recession or change.  It can also be seen an act to cut down on expenses of it can also be said as when a workers is subjected to compulsory retirement or forceful removal from his/her designation or work. It stated in Nigeria as a result of economic recession in the early 80’s.  The world has been going through a recession but Nigerian case has been a very peculiar situation because it has resulted in many people losing their job it can be seen in an editorial “Agony of retrenchment” from the personnel office of the institute of management and technology (February 11th 1989) a state owned institute of higher learning about 420 workers were retrenched out of the original, 1,224 before the exercise that is about 40% of the workforce.  A lot of factor have brought about the issue of retrenchment of workers in organization and one of such factors include the creation of   state this is a situation where as a result of a creation of new state, workers (non-indigenes) who are part of the workforce are subjected to compulsory removal from their post or position in the civil service. This normally has an adverse effect on the individual workers because the number of years that has being put into service and others achievements attained during the period of service is not into consideration thereby leaving the workers the workers in a state of joblessness.

Although on the other hand retrenchment in this case is said to allow for people who are indigenes of a particular area to enjoy form the civil services.

Another reason for the high level retrenchment rate could be attributed to gross insubordination on the part of the workers in relation to constituted authority hence, a typical example of this is stated in section 27 of the institute of management and technology Enugu (IMT) edict No 2 which is involved when there is an issue of gross insubordination when a staff and the constituted authority or absconding from duty this edict No2 of IMT section 27 states that.

i.                    The council shall have to remove form office on grounds of public interest or institutes interest reason of reorganization any member of the academic or non-academic senior staff.

ii.                  In this and the next two succeeding sections it expression removal from office” induces termination of appointment and dismissal from office of a person within the contemplation those sections.

Lastly in most all the instances of retrenchment of workers the major reasons have been.

a.                   Years of service that is sons employees have been put in more year of service than others.

b.                  Inefficiently

c.                   Fraud and disloyalty on the past of workers

d.                  Poor health


Retrenchment of worker in an event currently taking mace throughout he country. It has reached its height since the military government came into power.  It is the aim of this study therefore to find out the effects this exercise has had on the morale of the still employed workers.

a.                   What the workers think about retrenchment exercise.

b.                  How retrenchment affects their productivity and attitude of work that is if the exercise has made them work harder because they are scared of losing their jobs too to do they feed directed from their jobs.

c.                     Reasons for retrenchment of workers and the criteria for selecting who is to go.

d.                  Social consequence of retrenchment of worker in pursuance of this research work the researcher considers it necessary to pose some research questions those research questions are based on the objective of the study.

e.                   How is retrenchment exercise affecting the workers as an individual?

f.                   How exactly does retrenchment affect productivity and workers attitude of work.  Has it made them to feel delineated from their jobs.

g.                  What are the reason for the retrenchment of workers and the criteria for selecting who is to go? And what alternative the management would have been preferred to take?

h.                  What are the possible consequences of retrenchment furthermore in the past years retrenchment of workers has been the order of the day. It has reached a crisis situation since the military took over the government the serious nature of this exercise has made the executive of the Nigeria labour congress (NLC) to cry out on behalf of their members to the government both federal and state to stop further retrenchment of workers because of very hard conditions it is subjecting their member.  It is in the light of the above situation that this research is being carried out hoping that through the result the true effect on the retrenchment would be know.


Therefore, where retrenchment is done on the basis of efficiency the works would emphasize the fact that employees do not always retrenchment just to save cost or to meet up with recession but the efficiency on the past of employee is rewarding.

However it is hoped that the research paper would be of help to others who would want to explore on the area more.

Finally, the problems concerned to retrenchment study are the scope and limitations covered by the researcher which was only limited within the institute of management and technology Enugu.  The efforts made by the researcher to produce a good thesis was met by certain limitations which include:

1.         Scarce literature review:       For a research topic to be adequately treated it requires sufficient theoretical framework.  Literature peculiar to retrenchment is scanty and therefore the researcher had no alternative but to use magazine articles textbook for reviewing retrenchment issue.  Also the area of coverage is from the personnel department of the institute of management and technology Enugu.

2.         Finance:         No research work can go well without enough fund go because of limited fund available to the researcher the work has to be limited to institute of management and technology Enugu.

3.         Time:              Due to time constraints the researcher had to strike a balance between other school curricula and the research work. The school session started late for the 1999/2000 school years which is due to incessant   strike actions embarked the short period.

4.         Literacy level:            Another problem encountered by the researcher is level of literacy of the average Nigeria worker because most Nigeria civil servants are not graduates and they are unappreciative of the usefulness of a research work they have the impression that the unversity student and lectures are always wasting their time on research that are never used by anybody.


In pursuance of this research work the researcher considers it necessary to see why it is necessary to carry out research on this problem.

a.                   How retrenchment exercise is affecting the workers as am individual

b.                  How exactly retrenchment affects productivity and workers attitude to work. Whether retrenchment has made them work harder or if it has made them feed alienated from their jobs

c.                   The reasons for the retrenchment and the criteria for selecting who is to go.  And what alterative action the management would take.


1.         Retrenchment:          It can be said as the reduction or cutting down the amount of workers form services who are causing out lay. It also the termination or dismissed of workers from their job as a result of technological or economic recession or change.

2.         Employer:      One who keeps person in one’s service either for remuneration

3.         Economic recession:  This is the recede of economy form its previous position to a lower level i.e the fall of the economy from a better or higher level to a lower level and which may cause inflation or deflation of demand and supply commodities.

4.         Employee:      This is a face-to-face interaction between employer and employee in an organizaiton.

5.         Moral:            This is a process on how an employee is discipline in an organization based on the there behaviour or character

6.         Workers:        This is a group of people performing operation

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