International Journal of Humanities and Social Science

ISSN 2220-8488 (Print), 2221-0989 (Online) 10.30845/ijhss

The Effects of Retrenchment/ Staff Rationalization: A Case of K.T.D.A Ltd.
Hillary Thomas Wandera

The aim of this study was to establish the effects of retrenchment on employees of K.T.D.A Ltd Amongst the objectives of the research were:
1. To investigate if retrenchment affected the productivity of the K.T.D.A Ltd.
2. To find out whether retrenchment has brought about uncertainty and poor attitude towards work.
The researcher indeed wanted to establish if K.T.D.A. Ltd realized any savings from the retrenchment exercise. In pursuance of the above objectives, the researcher expected to establish whether the retrenchment exercise as a reform strategy affected the delivery of services by the employees and their general well being. The researcher further wanted to establish whether K.T.D.A Ltd achieved its goals. A sample of 220 respondents was picked from a population of 880 employees in the K.T.D.A Ltd. Stratified simple random sampling was used and a questionnaire method was used to collect data supplemented by interviews. Tables and descriptive methods were used to represent the data. Many of the employees interviewed were of the opinion that their employer did not prepare them adequately before retrenchment and they were uncertain about the future of their jobs. For retrenchment to work as a reform strategy, it must be carefully planned and managed. Workers who remain after retrenchment must be reassured about the security of their jobs and trained to gain necessary skills to meet the challenges of their increased workload. Their salaries should also be taken care of to boost their morale. The outcome of this study is of great importance, as it will help retrenchments done in future to be organized in a better way, as well as help other organizations that intend to come up with retrenchment strategies.

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