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

Table 11: Present Salary Package Table 12: Satisfaction with Salary

22...............................................................................................................3 22..............................................................................................................3

Table 15: Reasons For Feeling Insecure 23........................................................................3 Executive Summary.....................................................................................................................4 1.0 Introduction.............................................................................................................................5
1.1 Implementation of Retrenchment ....................................................................................................................5 1.2 Costs and Benefits of Retrenchment ................................................................................................................6 1.3 Disadvantages of Retrenchment .......................................................................................................................7 1.4 Advantages of Retrenchment ...........................................................................................................................8 1.5 Quality of Working Life and Retrenchment .....................................................................................................8 1.6 Research Objectives.........................................................................................................................................9 1.7 Operational Definitions....................................................................................................................................9

2.0 METHODOLOGY ...............................................................................................................11

2.1 Design............................................................................................................................................................11 2.2 Sample...........................................................................................................................................................11 2.3 Instruments....................................................................................................................................................11 2.4 Research Procedure........................................................................................................................................11 2.5 Data Analysis.................................................................................................................................................12

3.0 RESULTS ..............................................................................................................................13

3.1 Employee Perceptions Regarding Retrenchment...........................................................................................14 3.2 Effect of Retrenchment on Individual Performance......................................................................................15 3.3 Factors Hindering Employee Performance after Retrenchment .....................................................................16 3.4 Ways of Improving Performance of Employees after Retrenchment.............................................................17 3.5 The Impact of Retrenchment on Organizational Performance.......................................................................18 3.6 Retrenchment and Quality of Working Life..................................................................................................19 3.6.1 Effect of Retrenchment on Employee Work Attitudes...........................................................................19 Table 10: Effect of Retrenchment on Organizational Commitment .................................................................20 3.6.2 Salary Package and Meeting Financial Obligations................................................................................20 3.6.3 Feelings of Job Insecurity........................................................................................................................21 Table 14: Job Insecurity among Participants....................................................................................................21 Table 15: Reasons For Feeling Insecure...............................................................................................................22 3.6.4 The Predictors of Job Insecurity in the Public Service after Retrenchment ............................................22 3.6.5 Effects of Job Insecurity..........................................................................................................................23

4.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS................................25

4.1 Employee Perceptions Regarding Retrenchment...........................................................................................25 4.2 Individual and Organizational Performance..................................................................................................26 4.3 Organizational Performance Issues................................................................................................................27 4.4 Management of Physical Resources like Retooling.......................................................................................27 4.5 Quality of Working Life.................................................................................................................................28 4.6 Critique and Suggestions for Further Research..............................................................................................29 4.7 External Validity Problems............................................................................................................................30 4.8 Time Constraints............................................................................................................................................30

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

LIST OF TABLES Page Table 1: Demographic Information about the Sample Table 2: Meaning of Retrenchment to the Survivors Table 3: The Impact of Retrenchment on Individual Performance (N = 247) Table 4: Factors that Impede Performance of the Survivors Table 5: How to Improve the Performance of the Survivors Table 6: Effects of Retrenchment on Organizational Wide Factors (N = 247) 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) Table 9: Effect of Retrenchment on Job Satisfaction of Survivors Table 10: Effect of Retrenchment on Organizational Commitment Table 11: Present Salary Package Table 12: Satisfaction with Salary Table 13: Ability to Meet Financial Obligations Table 14: Job Insecurity among Participants Table 15: Reasons For Feeling Insecure Table 16: Discriminant Analysis Regarding Predictors of Job Insecurity Table 17: Effects of Job Insecurity on Public Officers 14 15 16 17 18 19

21 21 22 22 22 23 23 23 24 25

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 recommended. Effective management of physical resources for example, retooling; job analysis, job redesign, job evaluation and counselling were also recommended.

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 Secretarys 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 acrossthe-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). 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 organizations mission, reorganizing the structure, and restaffing/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.

consequences for individual, organization and country

Need for change: issues, rationale for retrenchment

Planning

implementation of retrenchment

loss of skills, poor physical and mental health, reduced performance, increased industrial and political unrest, 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 layoffs are intended to reduce the costs, some costs like the severance package, out-ofplacement 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 ones faith in the value of his contribution 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 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 decisionmaking, 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, 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. 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

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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 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. 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

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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.

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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 Sex Seniority Category Male Female Less or equal to 3 years 4-10 years 11-20 years 21-30 years Not indicated Gender Internal Affairs Education Local Government Public Service Finance Not indicated 20-29 30-39 40-49 50-59 Not indicated Confirmed Probation Temporary Contract Non-response Primary 7 O Level only O Level + certificate A Level only A level + certificate+diploma Degree only Degree+diploma+certificate Masters level Not indicated 1-3 people 4-9 people 10-30 people Above 30 people No. 142 105 51 103 59 18 16 56 61 43 25 42 18 2 57 109 65 12 4 199 19 6 15 8 3 87 10 22 24 71 12 17 1 30 109 77 31 % 57.5 42.5 20.6 41.7 23.9 7.3 6.5 22.7 24.7 17.4 10.1 17.0 7.3 0.8 23 44.1 26.3 4.8 1.6 80.6 7.7 2.4 6.1 3.2 1.2 35.2 4 8.9 9.7 28.7 4.9 6.9 0.4 12 44 31 13

Ministry

Age

Terms of Service

Education

Economic dependants

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 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 Reducing the number of employees Removing deadwood for performance improvement (drunkards, poor performers) Firing excess staff Establishment of effective management structure for service delivery Make less or cut down expenses Creating employment Removing unqualified old people due to retire (not technically fit) To lessen/ arrange ones expenditure/operation Create room for better working conditions Hard work and dedication to duty Negative perceptions Premature layoff/retirement of work force Creation of poverty to those affected Ransom dismissal of employees for various reasons Laying off workers without any cause Punishment Malicious methods to provide efficient, well paid employees under limited resources No. 107 13 10 5 4 2 2 1 1 1 No. 26 8 2 2 2 2 % 47 6 4 2 2 1 1 0.4 0.4 0.4 % 11 3 1 1 1 1

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The concept was not grasped correctly and workers were victimised Has made no change to workers Disorganization of employees Abolishment of jobs Reduction in strength Remaining with a skeleton ministry Non response Total response

1 1 1 1 1 1 35 229

0.4 0.4 0.4 0.4 0.4 0.4 15.3 100

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 Employee job performance generally Punctuality Absenteeism in your department Number of employees remaining on duty all the time Having two or more jobs Number of alcoholics in your dept. Efficiency and effectiveness Personal responsibility Employee accountability Reduced (%) 9* 7 55 7 37 48 8 6 7 No effect (%) 28 32 19 23 15 7 26 28 30 Improv ed (%) 55 59 17 61 8 7 59 64 38 No idea (%) 5 1 5 5 35 35 4 0.4 21

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Corruption & unprofessional 31 behaviour Loyalty to your boss 3 Employee discipline 3 * the remainder to 100% indicates missing cases

23 30 27

7 61 62

35 3 7

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 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

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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 * 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.

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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 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 Awareness of the needs of the public Team work Constructive feedback performance Joint decision making Quality leadership Employee supervision Creative management organisation Information gathering, dissemination. Selection procedures The way jobs are designed Training opportunities Chances of promotion Departmental performance * 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 in storage Reduced (%) 5* 11 about 7 11 6 10 your 5 & 8 4 5 20 26 7 No effect (%) 3 2 3 1 4 0 3 2 2 9 3 4 2 6 2 9 3 9 3 9 4 5 4 1 2 9 Improved (%) 44 51 39 45 49 48 50 36 20 33 29 22 57 No idea (%) 15 5 11 10 11 4 15 21 32 20 3 8 3

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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 d (%) Presence of achievable. goals 3 Knowledge of organizational 3 goals Meeting of organizational 7 goals Knowledge of organisations 4 mission Knowledge of organizational 4 values No effect (%) 30 25 29 23 28 Improve d (%) 44 49 57 44 43 No idea (%) 17 17 3 19 20 Nonresponse (%) 6 6 4 10 5

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 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 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 %

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Motivation and morale No idea Reduced No change Improved Total 11 62 124 50 247 5 25 50 20 100

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 Job satisfaction Category Improved Reduced No change No idea Total No. 58 41 120 28 247 % 23 17 49 11 100

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 Variable Organisation commitment Category Improved Reduced No change No idea Total No. 81 41 84 41 247 % 32.8 16.6 34.0 16.6 100

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.

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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 Satisfied Unsatisfied Non-response No. 4 231 12 % 1.6 93.5 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. Table 13: Ability to Meet Financial Obligations Ability to meet obligations Able Unable Non-response financial No. 4 227 16 % 1.6 91.9 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 nonresponse (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 Felt job insecurity No. 111 % 44.9

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Reported no job insecurity Non-response

121 15

49.0 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 The process of retrenchment has not ended Every time we are threatened with retrenchment by managers The criteria used not clear/known No job insecurity Because the retrenchment package is too little Influenced assessment can easily earn one a sack I am not confirmed in civil service By pegging civil servants in one ministry without change (transfer) Due to scarcity of job opportunities Victimization for various reasons There are qualified employees who were retrenched No assurance of continued performance on the job No qualifications No promotion Non - response Total response No. 34 21 18 16 4 3 2 1 1 1 1 1 1 1 142 247 % 14 9 7 6 2 1.2 1.0 0.4 0.4 0.4 0.4 0.4 0.4 0.4 57 100

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

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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 1 Factor Wilkss lambda Significance The way job 0.92 0.01 performance is appraised 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 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. Table 17: Effects of Job Insecurity on Public Officers Factor Reduced performance Increased commitment No influence No job security Confident to remain Bad effects I am not contented, I keep job searching for better jobs Pressure to perform Job consciousness Adopted a wait and see attitude At times lack of concentration Rather indifferent Ever behind deadline Moderate job performance I am free Fear but need to improve Short term future planning Psychological torture It discourages my interest Non-response Total response No. 29 26 22 8 8 6 4 3 3 2 2 2 1 1 1 1 1 1 1 125 247 % 12 10.5 8.9 3.2 3.2 2.4 1.6 1.2 1.2 0.8 0.8 0.8 0.4 0.4 0.4 0.4 0.4 0.4 0.4 50.6 100

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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.

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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 Generals 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 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

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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 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 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 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. 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 redesign. 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.

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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 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 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

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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 decisionmaking 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. 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

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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. 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.

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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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5.0 REFERENCES Baron, A. & Greenberg, H., Organisation Theory and Design, 4e. St Paul MN: West Publishing, 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 and Whetten D.A., (eds): Readings in Organizational Decline: Frameworks, Research, and Prescriptions, Ballinger Cambridge, MA, 1988. Bennett, R. H., Fadil P. & Greenwood R., Cultural Alignment in Response to Strategic Organizational Change: New Considerations for a Change Framework, Journal of Managerial 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 Development and 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 for Organizational 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 Advancement of 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 Human Service 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 Personality and 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 of Applied Behavioural Science, 21(1), 1985. Lagara, M., Progress Report on the Reduction of Civil Service Number: July 1991 to February 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 Personnel Manager, in Public Personnel Management, 13(3), 1984. Ministry of Finance, Planning and Economic Development, Uganda Manpower Survey Report, Kampala, 1989. Ministry of Public Service, Report of the Public Service Review and Reorganization Commission. Kampala: Uganda Printing Publishing and Corporation, 1989/1990. Ministry of Public Service, Management of Change. Kampala. Uganda Printing Publishing and Corporation, 1993. Namatovu, B., Effects of the Retrenchment Exercise on Ugandan Organizations. A B.A. Dissertation, Dept. of Psychology, Makerere University, Kampala, 1993. Orech, D.M., Status Report No. 5, Uganda Civil Service Reform, Kampala, Ministry of Public 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, Essex University, UK, 1991. Skinner, W., The Productivity Paradox, in The McKinsery Quarterly, Winter, 1987. Standing, G., & Tolkman, V. Towards Structural Adjustment: Labour Market Issues in Structural 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 Aspects of Psychological Well Being, in Journal of Occupational Psychology, 52, 1979. Wilburn, C. R. & Worman A. M., Overcoming the Limits to Personnel Cutbacks: Lessons Learned in Pennsylvania, in Public Administration Review, 40, 1980.

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