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POVERTY POLICY PERSPECTIVES
EFFECTS OF THE RETRENCHMENT EXERCISE ON ORGANIZATIONAL
PERFORMANCE AND QUALITY OF WORK LIFE
AMONG UGANDAN PUBLIC OFFICERS
Peter Baguma
Leon Matagi
Working Paper # 7
Published by NURRU Publications
June 2002
2002
TABLE OF CONTENTS
TABLE OF CONTENTS .......................................................................................................................2
LIST OF TABLES .................................................................................................................................3
SUMMARY ............................................................................................................................................4
1.0 INTRODUCTION ............................................................................ Error! Bookmark not defined.6
1.1 Implementation of Retrenchment ...................................................................................................6
1.2 Costs and Benefits of Retrenchment ..............................................................................................7
1.3 Disadvantages of Retrenchment .....................................................................................................8
1.4 Advantages of Retrenchment .........................................................................................................9
1.5 Quality of Working Life and Retrenchment .................................................................................10
1.6 Research Objectives .....................................................................................................................10
1.7 Operational Definitions ................................................................................................................10
2.0 METHODOLOGY.........................................................................................................................12
2.1 Design ...........................................................................................................................................12
2.2 Sample ..........................................................................................................................................12
2.3 Instruments ...................................................................................................................................12
2.4 Research Procedure ......................................................................................................................12
2.5 Data Analysis................................................................................................................................13
3.0 RESULTS........................................................................................................................................14
3.1 Employee Perceptions Regarding Retrenchment .........................................................................15
3.2 Effect of Retrenchment on Individual Performance .....................................................................16
3.3 Factors Hindering Employee Performance after Retrenchment ...................................................17
3.4 Ways of Improving Performance of Employees after Retrenchment ...........................................18
3.5 The Impact of Retrenchment on Organizational Performance .....................................................19
3.6 Retrenchment and Quality of Working Life .................................................................................21
3.6.1 Effect of Retrenchment on Employee Work Attitudes ..........................................................21
3.6.2 Salary Package and Meeting Financial Obligations ..............................................................22
3.6.3 Feelings of Job Insecurity ......................................................................................................23
3.6.4 The Predictors of Job Insecurity in the Public Service after Retrenchment ..........................24
3.6.5 Effects of Job Insecurity ........................................................................................................24
4.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS .............................................26
4.1 Employee Perceptions Regarding Retrenchment .........................................................................26
4.2 Individual and Organizational Performance .................................................................................27
4.3 Organizational Performance Issues ..............................................................................................28
4.4 Management of Physical Resources like Retooling .....................................................................28
4.5 Quality of Working Life ...............................................................................................................29
4.6 Critique and Suggestions for Further Research ............................................................................31
4.7 External Validity Problems ..........................................................................................................31
4.8 Time Constraints ..........................................................................................................................31
5.0 REFERENCES ...............................................................................................................................33
2
LIST OF TABLES
Page
Table 1: Demographic Information about the Sample 14
Table 2: Meaning of Retrenchment to the Survivors 15
Table 3: The Impact of Retrenchment on Individual Performance (N = 247) 16
Table 4: Factors that Impede Performance of the Survivors 17
Table 5: How to Improve the Performance of the Survivors 18
Table 6: Effects of Retrenchment on Organizational Wide Factors (N = 247) 19
Table 7: Impact of Retrenchment on Organizational Goals, Mission
and Values (N = 247) 20
Table 8: The Effect of Retrenchment on Motivation and Morale of Survivors
(N = 247) 21
Table 9: Effect of Retrenchment on Job Satisfaction of Survivors 21
Table 10: Effect of Retrenchment on Organizational Commitment 22
Table 11: Present Salary Package 22
Table 12: Satisfaction with Salary 22
Table 13: Ability to Meet Financial Obligations 23
Table 14: Job Insecurity among Participants 23
Table 15: Reasons For Feeling Insecure 23
Table 16: Discriminant Analysis Regarding Predictors of Job Insecurity 24
Table 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 effects
of retrenchment on individual and organizational performance and quality of work life in the
Uganda Public Service. In all, 247 public officers filled in a questionnaire that measured
employee perceptions about retrenchment, individual and organizational performance and
quality of working life. Results showed that the positive/expected perceptions regarding
retrenchment included reducing the number of employees, removing „deadwood‟, drunkards,
poor performers, firing excess staff, and establishment of effective management structure for
service 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 employees
having 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 of
motivation, 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 the
organizational level, retrenchment was associated with increased sensitivity to the needs of
customers, and increased teamwork, improvements in joint decision-making, quality
leadership, employee supervision, creative management, information management, and
departmental performance.
Furthermore, the majority of the participants reported that retrenchment neither had effect on
the 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, increased
knowledge of organizational goals, meeting of organizational goals and increased knowledge
of organizational mission and organizational values. Regarding the quality of work life, the
majority participants reported no change in motivation, job satisfaction, organizational
commitment, but reported improved participation in decision-making. Unsatisfactory salaries
were 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, and
the criteria used in retrenchment was not clear/known. The best predictor of insecurity was
how 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 of
retrenchment, effective public relations work and managers tuning in on the negative
perceptions of workers. Strategies to fight corruption and unprofessional behaviour, increased
funding, paying a living wage, improved welfare, training of workers, motivation and morale
boosting of workers, improved conditions of living, improving chances of promotion and
capacity building, reduction of job insecurity, computerization, and timely reshuffles were
4
recommended. Effective management of physical resources for example, retooling; job
analysis, job redesign, job evaluation and counselling were also recommended.
5
Chapter One
Introduction and Background to the Study
1.0 Introduction
Retrenchment is a government-initiated policy, ministry-wide to cut down the number of
employees and subsequently, reduce costs incurred by government. This policy is within
the Civil Service Reform Programs that have been implemented in Uganda. Civil Service
Reform in Uganda was necessary because the civil service had problems including low
pay and benefits, poor management skills, dysfunctional organisation, and inadequate
personnel management and training. These led to abuse of office and misuse of
government property, moonlighting and corruption, indiscipline, erosion of rules and
regulations, obsolete procedures, in appropriate systems, thin managerial and technical
skills, poor public service attitudes and massive bureaucratic red tape (Hansen and
Twaddle, 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 and
effectiveness (Ministry of Public Service, 1993).
In order to attain the above objectives, several strategies were devised, one of which was
retrenchment. The main objective of retrenchment was to reduce the size of the civil
service and thereby cut down on Civil Service employment costs. This was anticipated to
improve salaries, quality of work life and performance of workers. In part, improvement
of service delivery was a long-term objective of retrenchment.
1.1 Implementation of Retrenchment
Management set-up that included the Implementation and Monitoring Board, the
Planning and implementation committee-and the Permanent Secretary‟s‟ Administrative
Reform Commission were formed to facilitate the planning and implementation of the
reform. Retrenchment was implemented in phases. Martin Orech (1995), the then head of
the Civil Service and Permanent Secretary in the Ministry of Public Service, in a seminar
for Permanent Secretaries on 6th, December, 1995 said that the Civil Service which had
320,000 personnel in 1990 was then 150,000. This implies that about 170,000 civil
servants have been retrenched.
Appropriate skills, strategies and tactics are needed in implementing and managing
retrenchment. This is partly because, retrenchment implies organizational change and
change is normally resisted. Biller (1980) highlights some of the tactics used in carrying
out retrenchment as: indicating that there are no losers or winners not favouritism for
special categories of people who will win all the time, advancing general reasons for
cutbacks (that are difficult to challenge, preference of some across–the-board cuts that
increase fairness and legitimacy, concentrating on incentives especially for those who
remain; having open minded management which is innovative, and involving customers
in the search for ideas and problems to solutions. In short, having a corporate strategy is
important for successful implementation of retrenchment (Behn, 1980).
6
Having corporate strategy for example, ensured successful retrenchment and restructuring
of the shipping and ship building industry in Sweden during the crisis of the1970s. In
1988, Behn indicated that to make retrenchment work, there are basic responsibilities of
cutback management which include deciding what to cut, maintaining morale, avoiding
mistakes, developing support of key constituencies or stake holders, creating
opportunities for innovation, attracting and keeping quality people. According to him,
retrenchment has stages. These are: assessing economies needed to carry out
retrenchment, taking a long 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 is
dependent on leadership and management. Behn (1980) says leaders must explain the
reality, 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, and
orientation programs and programs to manage staff reductions. On a general note,
Bentley (1986) listed 3 issues which in effect summarize what has been discussed above
to include: redefining the organization‟s mission, reorganizing the structure, and re-
staffing/adjusting personnel. These improve retrenchment management. Furthermore,
Bennett, Fadil and Greenwood (1994) highlights on the importance of organizational
culture during the retrenchment period and recommend the designing and implementation
of a cultural intervention strategy before and after retrenchment. The conclusion here is
that retrenchment must be effectively implemented and managers should have the
required 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 for
retrenchment, its planning, implementation and impact are related. It also shows that the
need for retrenchment (for example, of an oversized civil service) leads to planning and
then implementation of the exercise. Implementation may result in positive or negative
consequences and this has implications for employees who are retrenched and those who
stay on their jobs. Retrenchment has implications for both organizations, and the country.
Feedback about retrenchment effects is necessary whether the effects are positive or
negative. Particularly, corrective feedback on consequences is necessary to improve
subsequent 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 of
identifying the need for change, planning for the change, implementation, evaluation and
feedback.
7
consequences for individual,
organization and country
Need for change:
loss of skills, poor physical and mental
issues, rationale for implementation
Planning health, reduced performance, increased
retrenchment of
industrial and political unrest,
retrenchment
centralization, innovation, discipline,
efficiency, training, performance & salary
Feedback
Figure 1: The conceptual model of the study.
1.3 Disadvantages of Retrenchment
Levine (1984) found that retrenchment resulted in fiscal stress and human resource
shrinkage that caused many difficult problems for government managers. These
problems are caused by methods used by managers to cope with the need to retrench and
decrementalism (decrease in budget without loss of visible operating effectiveness). The
major problem is decrease of human resource that results from cost cutting measures
Which brings loss of skills, energy, morale, commitment, physical and mental health
degradation that results from employees withdrawing physically and emotionally.
Decrementals also cause reduced co-operative attitudes, greater fear and distrust, poor
communication, lowered performance goals, restriction of production and increased
turnover.
Biller (1976) is of the view that organizational costs increase as a result of retrenchment
due 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 seems
thus likely that the cost bill reduction as an advantage of retrenchment is not attainable in
the short run. But even in the long run, its achievement may be bleak. The retained
workers become more productive and if the Productivity Theory of wages rules, the
wages go up pushing the wage bill up (Levine, 1978).
Retrenchment may create demoralization, dampen organizational productivity and
increase 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 retrenchment
arrangements may impose considerable financial burdens on the organisation. Wilburn
and Worman (1980) say that retrenchment threatens one‟s faith in the value of his
contribution to the organisation and sense of control over the future.
8
Retrenchment causes industrial unrest. Biller (1980) notes that people whose status,
income, and future are dependent on the programs that employ them will inevitably resist
the 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 of
management who have spent time developing policies and programs and whose end may
not be seen. Innovation might be dampened because of retrenchment (Biller, 1980).
Denga (1987) states retrenchment of workers, inflamed psycho-social problems, for
example, reduced self-esteem, general irritability, stomach ulcers, tendency to commit
crimes, high blood pressure, heart disease, financial emaciation and depression. Such
stressful events are not limited to low cadre employees; managers are equally adversely
affected. For example, Burke (1988) found that contemporary sources of stress both
managerial 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
responses of administrators and lower personnel to retrenchment in the western culture
and concluded that administrators‟ responses about events leading to cutbacks have been
reactive activities that centralize, formalize and increase downward communication and
directiveness. These responses exacerbate the existing problems connected to employee
morale, trust, depression and productivity. Cutbacks and cutback management can
introduce threatening environments that engage individual, and psycho-social actions to
intervene between environmental change and pressures and internal organizational
response.
Levine (1984) found that organizations facing crises, for example, reduced resources by
implementing cutbacks in personnel and retrenchment, cope with and adapt to their
environment by unwittingly exhibiting certain crisis-syndrome characteristics. In hard
times, 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 with
anxiety. Their working habits may deteriorate, filled with resentment, hostility, anger and
may develop a sense of dependence and search for a leader to save them. Such crises
cause physical and psychological problems in the employees.
1.4 Advantages of Retrenchment
On the other side, retrenchment could have positive aspects. An effective adjustment
policy, therefore, should be associated with high organizational productivity and not
strikes (Cascio, 1986). It should also be associated with high quality of working life of
the employees.
Many retrenchment programs have been implemented in Africa. For example, in the
Gambia, Guinea, Guinea-Bissau, Ghana, Equatorial Guinea, Cameroon, Tanzania,
Zimbabwe, and Lesotho. Reports on these Programs have not indicated how the
immediate 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 innovation increase
as a result of retrenchment. This is reflected in improved service delivery (Ssezi,
9
Director, Public Service, 1999, personal communication). Namatovu (1993) isolated
some 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 the
first of its kind and more supportive evidence is needed.
1.5 Quality of Working Life and Retrenchment
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 or
unfavourable.
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
the most 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 been
addressed, monetary benefits, improved labour relations, fewer grievances, lower
absenteeism, reduced turnover and strikes have been achieved (Casio, 1986). Where it
exists, high quality of work life has been associated with high job performance (Cascio,
1986). In summary, retrenchment has positive, and negative effects on individual, and
organizational performance, as well as quality of work life. However, in Uganda, its
effects 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 individual
performance.
Organizational performance: This means ratings regarding 13 indicators of
organizational performance and attainment of organizational goals.
10
Quality of work life: Quality of work life is multi-factorial and meant satisfaction with
salary and ability to meet financial obligations, presence of job security, participation in
decision making, overall job satisfaction, job motivation and increased organizational
commitment.
Survivors: These are the employees in the Uganda Civil Service who were not
retrenched.
Retrenchment: A government initiated, ministry-wide exercise of cutting down the
number of employees aimed at cost reduction. This cutback of the employees is
determined by various reasons and is aimed, in the long term, at improving the quality of
services delivered.
Trouble makers/shooters: Employees perceived by managers or supervisors as
disobedient
11
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 organizational
performance and quality of work life before and after retrenchment.
2.2 Sample
Purposive sampling was used to get a list of ministries that had implemented
retrenchment. Ministry of Public Service gave a list of 49 organizations and ministries
that had implemented the exercise by 1992. The selected organizations and ministries
were assessed to make sure that they had adequate participants respecting gender balance.
Thereafter, a stratified random sample of equal number of male and female employees
was picked from the payroll. The sample collected comprised of 247 participants from
the ministries of Public Service, Local Government, Education, Internal Affairs, and
Gender and Community Development. The study was done in Kampala district. This is
because Kampala had a relatively higher percentage of organizations that had
implemented retrenchment.
2.3 Instruments
A questionnaire was used to gather data since all respondents could read and write very
well. The questionnaire requested performance ratings on 25 key different performance
indicators that reflected individual and organizational level performance and had a
reliability 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 scored
from 1 to 4 respectively. In some cases, this response format was reversed to stop the
development of a response set.
The next section assessed the perceptions regarding retrenchment, factors affecting
individual performance and how performance could be improved after retrenchment. The
following 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 Council
of Science and Technology. Thereafter, managers and senior civil servants/officers of the
concerned ministries were approached for permission to conduct the research. In most
cases, access was granted and the relevant personnel managers and or officials in charge
of retrenchment were also approached to fill in questionnaire and identify other selected
employees. The participants were then requested to fill in the questionnaire. The
participants who did not have enough time out work were allowed to complete the
questionnaire at home.
12
The research assistants were trained. Female research assistants assessed female
participants in case more information was needed. The instrument used in the research
was pre-tested to improve their validity and reliability. Questionnaires were edited as
soon as they were received to ensure completeness. Filling in questionnaires was
voluntary 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 data
collected. Further and detailed analysis was done using discriminant analysis. The next
section shows the results.
13
3.0 RESULTS
The results are presented beginning with the presentation of sample characteristics as
shown in Table 1.
Table 1: Demographic Information about the Sample
Factors Category No. %
Sex Male 142 57.5
Female 105 42.5
Seniority Less or equal to 3 years 51 20.6
4-10 years 103 41.7
11-20 years 59 23.9
21-30 years 18 7.3
Not indicated 16 6.5
Ministry Gender 56 22.7
Internal Affairs 61 24.7
Education 43 17.4
Local Government 25 10.1
Public Service 42 17.0
Finance 18 7.3
Not indicated 2 0.8
Age 20-29 57 23
30-39 109 44.1
40-49 65 26.3
50-59 12 4.8
Not indicated 4 1.6
Terms of Service Confirmed 199 80.6
Probation 19 7.7
Temporary 6 2.4
Contract 15 6.1
Non-response 8 3.2
Education Primary 7 3 1.2
„O‟ Level only 87 35.2
„O‟ Level + certificate 10 4
„A‟ Level only 22 8.9
„A‟ level + certificate+diploma 24 9.7
Degree only 71 28.7
Degree+diploma+certificate 12 4.9
Masters level 17 6.9
Not indicated 1 0.4
Economic
dependants
1-3 people 30 12
4-9 people 109 44
10-30 people 77 31
Above 30 people 31 13
14
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,
7.3% had served 21-30 years and 6.5% did not indicate their length of service. Out of the
sample, 22.7% were from the ministry of Gender, 24.7% from the ministry of Internal
Affairs, 17.4% from the ministry of Education, 10.1% from the ministry of Local
government, 17.0% were from the Ministry of Public Service, and 7.3% were from
ministry 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 years
of age, 26.3% were 40-49 years of age, 4.8% were 50-59 years of age. Of all the
participants, 1.6% did not indicate their age. Of the sample, 80.6% were on confirmed in
the Service, 7.7% were on probation, 2.4% were on temporary and 6.1% were on contract
terms of employment. 3.2% was non-response.
The majority of the participants had „O‟ Level Certificate 35.2%, 1.25% had primary
education, 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 sample
used was representative of the Uganda Civil Service.
3.1 Employee Perceptions Regarding Retrenchment
The perceptions of participants regarding retrenchment were interesting because they
could influence the performance of the survivors, hence influence the success of the
retrenchment exercise. Results on how the participants perceived retrenchment (the
meaning of retrenchment) appear in Table 2. The results are presented in terms of
frequencies.
Table 2: Meaning of Retrenchment to the Survivors
Positive/expected perceptions No. %
Reducing the number of employees 107 47
Removing „deadwood‟ for performance improvement
(drunkards, poor performers) 13 6
Firing excess staff 10 4
Establishment of effective management structure for 5 2
service delivery
Make less or cut down expenses 4 2
Creating employment 2 1
Removing unqualified old people due to retire (not 2 1
technically fit)
To lessen/ arrange ones expenditure/operation 1 0.4
Create room for better working conditions 1 0.4
Hard work and dedication to duty 1 0.4
Negative perceptions No. %
Premature layoff/retirement of work force 26 11
Creation of poverty to those affected 8 3
15
Ransom dismissal of employees for various reasons 2 1
Laying off workers without any cause 2 1
Punishment 2 1
Malicious methods to provide efficient, well paid
employees under limited resources 2 1
The concept was not grasped correctly and workers were 1 0.4
victimised
Has made no change to workers 1 0.4
Disorganization of employees 1 0.4
Abolishment of jobs 1 0.4
Reduction in strength 1 0.4
Remaining with a skeleton ministry 1 0.4
Non – response 35 15.3
Total response 229 100
Table 2 shows that the majority of the responses (47%) on retrenchment were in the
expected direction, that is, reducing the number of employees. Other perceptions
regarding retrenchment included, removing „dead wood‟ to improve performance (6%),
firing excess staff (4%), establishing of an effective management structure for service
delivery (2%), and cutting down expenses (2%). Creating employment, and removing
unqualified people about to retire comprised 1% of the responses each. Lessening
expenditure, 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 the
retrenchment exercise were also considered. Premature layoff of workers was the most
popular reported response (11%). 3% of the respondents perceived retrenchment as
creation of poverty. Ransom dismissal of employees for various reasons, laying off
workers without cause, punishment, and malicious methods to provide efficient well paid
employees with came next in popularity with 1% each. The concept of retrenchment
being grasped incorrectly leading to victimization of employees, retrenchment not
bringing 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 factors
concerning 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 No Improv No
(%) effect ed idea
(%) (%) (%)
Employee job performance generally 9* 28 55 5
Punctuality 7 32 59 1
Absenteeism in your department 55 19 17 5
16
Number of employees remaining on 7 23 61 5
duty all the time
Having two or more jobs 37 15 8 35
Number of alcoholics in your dept. 48 7 7 35
Efficiency and effectiveness 8 26 59 4
Personal responsibility 6 28 64 0.4
Employee accountability 7 30 38 21
Corruption & unprofessional 31 23 7 35
behaviour
Loyalty to your boss 3 30 61 3
Employee 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 exercise
had a positive effect on employee performance generally (55%), the number of employees
reporting to work on time (punctuality) (59%); absenteeism (55%); number of employees
remaining on duty most of the time (61%); reduction in the number of employees having
2 or more jobs or „moonlighting‟ (37%) and reduction in alcoholism (48%); employee
efficiency and effectiveness (59%), employee responsibility (64%), and employee
accountability (38%). The majority of the participants reported that retrenchment had
improved employee loyalty and discipline (61% and 62%, respectively).
The majority of the participants did not know the effect retrenchment had on corruption
and other unprofessional behaviour (35%). These results show that retrenchment was
associated with increased individual performance in some respects, reduced performance
and 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 some
instances, 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 their
performance after retrenchment. Table 4 shows the results.
Table 4: Factors that Impede Performance of the Survivors
Factor No. %
Inadequate funding 101 32
Lack of motivation 47 15
Too much work being done by a few 23 7
lack of tools (equipment) 23 7
Poor transport 13 4.2
No job security 13 4.2
Poor training 10 3
Financial constraints, bureaucracy, lack of 9 3
transparency
No change (in performance) 6 2
Poor management style 5 2
Low morale 4 1
Poor chances of promotion and poor work 3 1
17
environment
Only working for survival 2 1
Long delays of salary 1 0.3
Loss of confidence 1 0.3
Non-response 52 17
Total response 313* 100
* The total is more than 247 because more than one response was permitted
Table 4 indicates that inadequate funding was the main problem impeding the
performance 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 were
other 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% did
not 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. These
suggestions were tallied and percentages used to analyse the data. Results are presented
in Table 5.
Table 5: How to Improve the Performance of the Survivors
Factors No. %
Provide a living wage 175 49
Improvement on social welfare/incentives 36 10
Train the workers 34 10
Motivate the workers 33 9
Improved conditions of living 11 3
Provide transport 11 3
Promotions, increase capacity building 7 2
Assurance of job security 6 1.7
Computerisation 2 1
Timely reshuffles 2 1
Morale boost 2 1
By assigning lesser or more specific work to employees 1 0.28
It has improved generally 1 0.28
Competitively filling their positions 1 0.28
Government knows better 1 0.28
Involve survivors in high level decision making 1 0.28
Turn to good use or grow better and value 1 0.28
Employ more workers 1 0.28
Clearly defined jobs to indicate their out put 1 0.28
By change in management style of 1 0.28
leaders/administrators
Non - response 26 7
Total response 354 100
18
* 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 by
survivors included: Provision of living wage (49%), improvement in welfare and
incentives, and training of workers, each suggested by 10%, respectively, and
improvement of motivation (9%). Improved conditions of living (3%), provision of
transport (3%); promotions and increased capacity building (2%), assurance of job
security (1.7%); computerization (1%), timely reshuffles (1%) and morale boosting (1%)
were also suggested.
Less popular responses that emerged included: Assignment of more specific work tasks,
competitive employee selection, involvement in decision making, and improvement of
management 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 factors
of 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 No Improved No idea (%)
(%) effect (%)
(%)
Awareness of the needs of the public 5* 3 44 15
2
Team work 11 3 51 5
1
Constructive feedback about 7 4 39 11
performance 0
Joint decision making 11 3 45 10
2
Quality leadership 6 2 49 11
9
Employee supervision 10 3 48 4
4
Creative management in your 5 2 50 15
organisation 6
Information gathering, storage & 8 2 36 21
dissemination. 9
Selection procedures 4 3 20 32
9
The way jobs are designed 5 3 33 20
9
Training opportunities 20 4 29 3
5
Chances of promotion 26 4 22 8
1
19
Departmental performance 7 2 57 3
9
* the remainder are missing cases
The frequency distributions in Table 6 show that the majority of the participants reported
that retrenchment was associated with increased sensitivity to the needs of the public
(customers) (44%), and increased teamwork (51%). The majority of the participants
reported improvements in joint decision-making (45%), quality leadership (49%),
employee supervision (48%), creative management (50%), information management in
their organizations (36%), and departmental performance (57%).
Furthermore, the majority of the participants reported that retrenchment had no effect on
the way performance feedback was given (40%), job design (39%), and training
opportunities (45%). The majority of the participants reported that retrenchment had no
effect on selection procedures (39%) and chances of promotion (41%). The above results
show that retrenchment had positive, negative as well as no effects on some aspects of
organizational performance. There was no reason for social desirability bias to operate in
these responses. In some cases, the response format was reversed to avoid the
development of response biases.
Organizational performance after retrenchment was also assessed by presence and
achievement of organizational goals and knowledge of organizational mission. The
participants had to use the terms reduced, no effect, improved, or no idea. Non - response
was also an alternative (see Table 7).
Table 7: Impact of Retrenchment on Organizational Goals, Mission and Values
(N = 247)
Factor Reduce No Improve No Non-
d effect d idea response
(%) (%) (%) (%) (%)
Presence of achievable. goals 3 30 44 17 6
Knowledge of organizational 3 25 49 17 6
goals
Meeting of organizational 7 29 57 3 4
goals
Knowledge of organisation‟s 4 23 44 19 10
mission
Knowledge of organizational 4 28 43 20 5
values
Table 7 show that the majority of the participants reported that their organizations had
implemented achievable goals (44%). Retrenchment was also reported to be associated
with increased knowledge of organizational goals (49%), retrenchment and meeting of
organizational goals (57%). Retrenchment was also associated with increased knowledge
of the organisation‟s mission (44%) and increased knowledge of organizational values
(43%).
20
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 and
organizational commitment (Warr, Cook and Wall, 1979). These attitudes were
considered because they influence employee performance and mental well-being. The
participants had to indicate the impact of retrenchment on the work attitudes using the
response 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 %
Motivation and morale
No idea 11 5
Reduced 62 25
No change 124 50
Improved 50 20
Total 247 100
Table 8 shows that the majority of the participants reported motivation and morale did not
change as a result of retrenchment (50%). 25% reported that motivation and morale had
reduced due to retrenchment and 20 % reported that motivation and morale had improved
due to retrenchment. 5% had no idea. Results on the effect of retrenchment on job
satisfaction are presented (see below Table 9).
Table 9: Effect of Retrenchment on Job Satisfaction of Survivors
Variable Category No. %
Job
satisfaction
Improved 58 23
Reduced 41 17
No change 120 49
No idea 28 11
Total 247 100
Table 9 shows that the majority of the participants reported that job satisfaction did not
change as a result of retrenchment (49%). 23% reported that job satisfaction had
improved 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 retrenchment
on organizational commitment.
Table 10: Effect of Retrenchment on Organizational Commitment
21
Variable Category No. %
Organisation
commitment
Improved 81 32.8
Reduced 41 16.6
No change 84 34.0
No idea 41 16.6
Total 247 100
Table 10 shows that the majority of the participants reported that organizational
commitment did not change as a result of retrenchment (34.0%). 32.8% reported that
organizational commitment had improved after retrenchment and 16.6% percent reported
that 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.
The ranges of the total salary package are shown in Table 11.
Table 11: Present Salary Package
Salary Range (Uganda No. Percentage
shillings)*
20,000-50,000 56 22.7
50,001-100,000 104 42.3
100,001-200000 78 31.4
200,001-1000000 9 3.6
Totals 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 of
between US $ 50-100 (42.3%). This was followed by 100,001-200,000; 20,000-50,000; and
200,001-1000,000; each being reported by 31.4%, 22.7% and 3.65, respectively. Satisfaction
with salary packages is shown in Table 12.
Table 12: Satisfaction with Salary
Satisfaction with present salary No. %
Satisfied 4 1.6
Unsatisfied 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 improved
since retrenchment was implemented. Ability to meet financial obligations after
retrenchment was assessed and results appear in Table 13.
22
Table 13: Ability to Meet Financial Obligations
Ability to meet financial No. %
obligations
Able 4 1.6
Unable 227 91.9
Non-response 16 6.5
The majority of the participants (91.9%) reported that they were still unable to meet most
financial 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 result
of the retrenchment exercise. Table 14 shows the results.
Table 14: Job Insecurity among Participants
Response No. %
Felt job insecurity 111 44.9
Reported no job insecurity 121 49.0
Non-response 15 6.1
Table 14 shows that out of the sample, 44.9% reported feelings of job insecurity. This is
a large percentage. 49.0% reported no such feelings and 6.1% said gave no response. For
those 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 14
Every time we are threatened with retrenchment by managers 21 9
The criteria used not clear/known 18 7
No job insecurity 16 6
Because the retrenchment package is too little 4 2
Influenced assessment can easily earn one a sack 3 1.2
I am not confirmed in civil service 2 1.0
By pegging civil servants in one ministry without change 1 0.4
(transfer)
Due to scarcity of job opportunities 1 0.4
Victimization for various reasons 1 0.4
There are qualified employees who were retrenched 1 0.4
No assurance of continued performance on the job 1 0.4
No qualifications 1 0.4
No promotion 1 0.4
Non - response 142 57
23
Total response 247 100
Consider Table 15 above. The most common reasons why the survivors felt insecure
were because the process of retrenchment was not yet complete (14%), retrenchment was
used as a threat (9%), the criteria used was not clear (7%); 6% of the responses indicated
no feelings of job insecurity by the time of these research, 2% of the responses indicated
worry because the retrenchment package was little. Unfair decisions (that is, regarding
assessment) was suggested by 1.2% and lack of confirmation were suggested by 1%.
Lack of timely transfers, scarcity of jobs, victimization, presence of qualified employees
who were retrenched, no assurance of continued performance on the job, no qualifications
and no promotions were suggested by 0.4% each.
The biggest percentage comprised non-response (57%). This shows that some employees
were anxious about filling in the scale regarding job insecurity. The participants thought
their 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 discriminating
variables between the group that felt insecure (scored as 1) from the one that felt no job
insecurity (scored as 2). The stepwise procedure enters variables into the analysis
independently 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
between groups. All the variables assessed were entered as independent and job
insecurity 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
how significantly the function discriminates between these two groups.
Table 16: Discriminant Analysis Regarding Predictors of Job Insecurity
Step Factor Wilks’s lambda Significance
1 The way job 0.92 0.01
performance is
appraised
Eigen value = 0.08; canonical correlation = 0.28; Wilks‟s 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 that
performance evaluation accounted for approximately 8% of the variance in job insecurity.
The factor of performance evaluation, therefore, accounted for little variance in job
insecurity. The factor of performance evaluation came up probably because of its
implication 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.
24
Table 17: Effects of Job Insecurity on Public Officers
Factor No. %
Reduced performance 29 12
Increased commitment 26 10.5
No influence 22 8.9
No job security 8 3.2
Confident to remain 8 3.2
Bad effects 6 2.4
I am not contented, I keep job searching for better 4 1.6
jobs
Pressure to perform 3 1.2
Job consciousness 3 1.2
Adopted a wait and see attitude 2 0.8
At times lack of concentration 2 0.8
Rather indifferent 2 0.8
Ever behind deadline 1 0.4
Moderate job performance 1 0.4
I am free 1 0.4
Fear but need to improve 1 0.4
Short term future planning 1 0.4
Psychological torture 1 0.4
It discourages my interest 1 0.4
Non-response 125 50.6
Total response 247 100
Table 17 shows that the most common response, i.e., reduced performance represented
12% of all responses. Other popular responses were: Increased commitment (10.5%), no
influence 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 a
frequency of 1.2%; adoption of wait and see attitude, at times lack of job concentration
and indifference each comprised of 0.8%. Ever behind deadline, moderate job
performance, I am free, fear but no need to improve, short term planning, psychological
torture and discouragement of interest were least popular, each comprising 0.4% of the
responses. The largest percentage (50.6%) comprised non-response. This confirms that
the participants were not willing to give information probably because they feared
managerial reprisals. This could be true since by the time this study was done
retrenchment 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 the
participants reported no change in job attitudes, and a reasonable number of participants
reported it had brought job insecurity. Participants reported that they were not satisfied
with present salary packages and their ability to meet financial obligations had not
improved. Some factors of quality of work life were influenced positively, others
negatively.
25
4.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS
This research was done to establish public officers‟ perceptions on retrenchment, the
effects of the exercise on the factors of individual and organizational performance and
quality 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 show
that the effects of retrenchment depend of the factors under consideration. In addition,
present research considered short-term effects of retrenchment. These findings are in line
with 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 public
officers was supported by employee perceptions of the retrenchment process. This
research found out that retrenchment was perceived differently by the respondents. Some
saw 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 in
America, which used the chance of cutbacks to get rid of the “trouble makers." It is likely
that a similar situation happened in Uganda.
The fact that negative perceptions stem from the way retrenchment was designed and
implemented is unquestionable. The first phase of retrenchment 1992/1993 was based on
subjective criteria. Many managers did not know the implications of the questionnaire
information 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 hence
delaying verification by auditors, when the employees to retrench were already identified.
The need to consult and ensure fairness by implementing and monitoring board also took
more time. Delays in releasing funds by the Ministry of Finance and Auditor General‟s
offices because, of combining normal pension work with ex East African Community
employees‟ compensation and normal retirement exercise led to work overload. Delays
in 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 until
funds are ready.
Since such negative perceptions about retrenchment are likely to have a serious impact on
the early stages of implementation of the exercise. Managers of retrenchment should be
sensitive to employee perceptions and work on them through seminars, counselling and
public relations. Managers should study the negative perceptions with the view of
changing them. These perceptions should also be noted by those who want to implement
retrenchment. Normally, tactics in handling organizational change are important here.
These include the involvement of the stakeholders early in the process of change, and
giving information. Participation in decision-making at an early stage ensures
26
commitment to the process of change. The stakeholders should be given a chance to
suggest how retrenchment should be implemented (in fact union leaders complained of
being excluded from the planning and implementing of retrenchment. This should be
avoided 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 process
through improved public relations. This is how organizational change can be better
managed.
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. This
might have happened since retrenchment was ongoing by the time this study was done.
In some 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 and
thus increasing costs of retrenchment.
For the retrenchees, the situation could be worse. The retrenchees with negative
perceptions, which stem from poor retrenchment criteria, could cause political and social
unrest (Biller, 1980). This was the case in Uganda, among the veterans and other
employees who were retrenched without packages (R. Yombo, The Monitor, 28th July
1997). Still, government had promised to pay a living wage after retrenchment but this
promise has taken time without being fulfilled. This has caused many strikes among
teachers, lecturers, doctors and other civil servants. Some of these problems stem from
misunderstanding the rationale of retrenchment.
4.2 Individual and Organizational Performance
The majority of the respondents agreed that retrenchment has been associated with improved
general employee performance, punctuality, reduced absenteeism, reduced tardiness, reduced
moonlighting, reduced alcoholism, increased efficiency and effectiveness, employee
responsibility, accountability, loyalty and discipline. Reduced performance, withdrawal
behaviours, moonlighting, lack of accountability, alcoholism, reduced employee effectiveness
and efficiency, irresponsibility, and lack of loyalty had been some of the problems with the
Uganda civil service (Hansen and Twaddle, 1989). These had seriously affected the
performance of the Service and hampered service delivery. Their reduction is welcome and is
in line with the visions, goals and objectives of the Civil Service Reform Program (including
retrenchment) (Uganda Civil Service Reform, Vision, Objectives, Strategy and Plan, 1993).
Besides, a reasonable majority of the participants agreed that retrenchment had no impact on
corruption and unprofessional behaviour. However, 31% of participants agreed that
retrenchment had reduced corruption and unprofessional behaviour. This is not a small
number. Reports from retrenchment managers also confirmed that corruption and indiscipline
among others remain a challenge (Lagara, 1996). Corruption and unprofessional behaviour
have 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 a
minister. This is a step in the right direction and should be supported. Together with the
Inspector General of Government and other anti-corruption agencies, the problem of
corruption 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
Conduct to check corruption among government senior personnel. This Code stipulates how
27
civil servants behave in public office. More information on the Code of Conduct can be
obtained from 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 General‟s office so as to enable it do its work.
The majority of the respondents identified some factors that hindered their performance after
retrenchment. These factors include: inadequate funding, low motivation and morale, work
overload, 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 with
dampened 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 is
ongoing (Ministry of Public Service, 1993).
Respondents suggested more ways of how such hindrances could be reduced so as to improve
performance among the survivors. Suggested ways included paying a living wage,
improvingwelfare, training of workers, motivation and morale boosting workers, improved
conditions of living, improving chances of promotion and capacity building, reduction of job
insecurity, computerization, and timely reshuffle. Again some of these suggestions have
already been identified by government and appear in the strategies government is using to
improve 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. For
example, retrenchment has led to increased sensitivity to the public. This relates well with the
overall goal of the Civil Service Reform Program, which is the provision of quality service to
the public. Retrenchment has been associated with increased teamwork, participation in
decision-making, quality leadership and supervision, creative management, and information
management. Improved information management is among the vision of the civil service
reform Program (Ministry of Public Service, 1993). Retrenchment was also associated with
increased departmental performance.
On the other hand, a majority of the participants reported that retrenchment had no effect on
job design, training opportunities, feedback on performance, chances of promotion and
selection procedures. Burke (1988) had already found that job design and participation in
decision making are some of the factors that need to be addressed after retrenchment. Some
of these factors like offering well designed jobs, training opportunities and human resource
management 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 in
achieving some of the objectives of the civil service reform. However, this may be a rushed
conclusion 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, for
example, computers. Retooling is one of the strategies of the Civil Service Reform Program
and 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.
28
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 that
have chances of promotion built into them. These will be motivating to the workers. The
current 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 and
then retrenchment.
The Ministry of Public Service should embark on operative and management training.
Particularly, the managers should be trained in selection procedures, performance appraisal
and other aspects of human resource management. When this is done, managers will not
again recruit 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 of
retrenchment. A majority of the public officers reported that after retrenchment was
associated with presence of achievable goals, increased knowledge about the goals and
meeting of such goals had improved. Additionally, knowledge of the mission and
organizational (corporate) values in the public service had improved. This is attributable
to increased sensitisation that the Ministry of Public Service had undertaken. The
sensitisation of officers about organizational goals, mission and values has been an
objective under the restructuring, re-organizational and retrenchment exercises (Ministry
of 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 in
motivation 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 is
hoped that if the recommendations of this study are implemented, positive changes in these
attitudes will result.
Most of the participants reported as still poor. Furthermore, a majority reported
dissatisfaction with current salary packages and their inability to meet most of their
financial needs. In order to improve individual performance, government should provide
a living wage. Government is already tackling this problem through phased increment of
salaries 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
conditions and employee motivation will improve. However, the effect of inflation
should be considered when determining salaries.
The government has broadened the tax base so that it can get money it can use improve
the welfare of workers. In some cases, salaries have already been increased up to 50%.
However, employees are complaining that the increments are not proportional. For
example, the ratio of the new to the old salary for senior officers, for instance, permanent
secretaries was 20 times while that of junior officers was only 7 times, at the time of this
research. Improving economic conditions and improving tax collection might not be
29
enough conditions to pay a living wage. The allocation of the collected funds and
decision-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. In
1998/99 it is estimated to be Shs 250 billion. This is when the civil service will have
reduced by less than a half it used to be in 1992. Revenue collection has risen from 50 to
900 billion in the same period. Why then is a living wage not possible? Political and
administrative decisions are to blame. For example, the recruitment of security personnel
is not under Civil Service and policies like the Universal Primary Education (though
good) were not considered to be part of the wage bill. This hampers the payment of a
living wage.
With the fund it has mobilised, government is addressing the distortion in the salary
structure through beefing up from U5 salary scale and above. There will be a continuous
improvement 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 voiced
the role of political forces/factors in these strikes.
Another aspect of quality of work life assessed was job insecurity. A high percentage of
respondents reported job insecurity. This was due to the fact that retrenchment was not
yet over and was badly implemented. The rationale and criteria for retrenchment were
not 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 and
emotional issues that arise in the process of retrenchment including job insecurity. This
structure can service the survivors and the retrenchees as well as providing general
information about retrenchment. In addition, the public relations function, as suggested
earlier, 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 objective
in applying the criteria for retrenchment. An attractive severance package will also serve
as an attractor for those employees who want to separate with the organization voluntarily
or involuntarily. The process of retrenchment should be made as transparent as possible.
The above measures coupled with increased skills in performance evaluation should
reduce the problem of job insecurity. Existence of these problems further shows that
some 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 all
stakeholders. Participation in decision-making causes the parties to be committed to the
decisions taken.
30
Retrenchment had positive effects on some indicators of quality of work life and had
negative effects on others. These findings support prior research on retrenchment in
Uganda and elsewhere (Behn, 1980; Biller, 1980; Burgsdorff, 1989; Levine, 1984;
Cascio, 11986; Denga, 1987; Gelles, 1991; Lawler, 1973; Namatovu, 1993; Singer, 1987;
and Wilburn, 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 flouted
with recall errors since participants cannot remember vividly what was happening before
retrenchment was implemented. So, a before and after design should have yielded better
results and is recommended for further researches on retrenchment. The other criticism
concerns the problems with the self-report, in general. These can be flouted with biases
and inclusion of objective measures like records and behavioural observation in
subsequent retrenchment researches is recommended. The influence of third variables
cannot 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 long
term impacts. The effects of retrenchment obtained depend on when the measurements were
taken. 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 workers
in Uganda. Retrenchment was also done at the district level. Research focusing on
retrenchment at the district level is recommended.
4.8 Time Constraints
More time was needed to get the required information from the sample. Getting access in
some 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 are
likely to be resented because employees mistake them as evaluation tools on which
retrenchment 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 used
against 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 and
government had interest in the exercise. Detailed explanation about the importance of
research, assurance of anonymity and confidentiality were given. Rejections and non-
response are likely to be high.
Environmental stability at the time of research is also important. Events like election fever set
in and made people anxious and suspicious about the intentions of research. The researcher
must be able to sense effects that are caused by retrenchment per se from those that happen
due to other processes like political events.
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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 various
stakeholders. Retrenchment can be a harm or loss, threat or challenge. Harm or loss would
concern 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. Some
will remain under fear of future retrenchment. Challenge refers to opportunities for growth,
masterly or gain (Folkman and Lazarus, 1988). Retrenchment, therefore, is both an
opportunity and challenge to organizational development and to the stakeholders. It is
challenging 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.
Retrenchment has different outcomes depending on the timing, that is, whether the short term
or long term impacts are the ones in question. The long-term effects will be realised only if a
supportive organizational culture develops. Therefore, follow-up studies on the development
of organizational culture in the Uganda civil service is recommended. These will show if a
new culture favourable of higher organizational performance has been created.
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