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Effect of Post - Retrenchment ‎Exercise on the Morale and Loyalty ‎of the Surviving Employees in the ‎Remto Industries, Ilorin, Nigeria

Dr. Emmanuel Olaniyi, Dunmade

Volume 3 Issue 4 | Dec 2020

DOI: 10.31841/KJEMS.2021.17

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Abstract

The possibility of an organization in reducing work related stress of its ‎surviving workforces ‎resulting from retrenchment practice is not only ‎dependent on such establishment’s ability in ‎developing appropriate ‎strategies for the exercise, but also on its capability to formulate effective ‎‎policies for the practice. The study therefore examines the effect of post – ‎retrenchment practice on ‎the morale and loyalty of surviving employees in ‎Remto industries, Ilorin, Nigeria. The study ‎adopted simple random sampling ‎technique with the employment of structured questionnaire to ‎obtain the ‎needed information from the respondents. The descriptive statistics utilized ‎for the study ‎comprised simple percentage and tables, while inferential ‎statistics used were Pearson correlation ‎analysis together with regression. The ‎findings of the study indicated that workforce reduction has ‎negative and ‎significant relationship with the morale of the surviving employees, and that ‎there is ‎positive and significant effect of communication over cost – cutting ‎process on the loyalty of the ‎current employees in the industries. The study ‎recommends development of best approaches by the ‎management of the ‎organization through formulation of effective and communicative ‎‎retrenchment’s policies in the workplace. This is to minimize the negative ‎aftermath effects ‎associated with the practice on the staff of the company. ‎



Keywords: Corporate Performance; Employees’ Morale; Existing Staff; ‎Retrenchment Practice, and Workers’ Loyalty