Main Article Content
Ever since post consolidation era, retrenchment in the Nigerian banking sector is prominent and even alarming. This paper adopted a mixed method technique to evaluate the dimensions of retrenchment approach and criteria used by banks’ employers in determining employees to be retrenched and extent of fairness perceived by the surviving employees. The study was anchored on organizational justice theory. Four banks - two each from the old generation bank and new generation commercial banks in southwest Nigeria were selected for the study. The sample size comprised 256 survivors selected through the triangulation of purposive and simple random sampling techniques, while questionnaire and in-depth interviews (IDIs) were used to gather data. The quantitative data were analyzed using frequency percentage distribution, cross tabulation, and content analysis for qualitative data. Findings revealed the new generation banks - Access and Eco banks and even UBA Plc. among old generation bank adopted reactionary approach, thus retrenching their workers arbitrarily without prior or adequate notice. In retrenching employees, the banks combined many criteria, but the most commonly criterion used to evaluate employees’ productivity was performance appraisal system; for instance, 100% of survivors in NGB and 98.4% in OGB accepted the use of performance appraisal, however 74.2% in NGB perceived the outcomes were subjective and unfair. The study concludes that banks’ management have treated their employees in unfair manners during retrenchment, thus survivors have manifested high level of perceived injustice in the system. It recommended top management to applyfairness during retrenchment and treat survivors in a fairly manner.
Young-Victor A. Labour raises alarm over mass retrenchment in banks. Punch; 2012.
Ademola A. More bankers to lose job. The Punch. 2012;16.
Kurebwa J. Organisational downsizing and its impact on leavers and survivors: The case of the Reserve Bank of Zimbabwe. Journal of Emerging Trends in economic and Management Sciences (JETEMS). 2011;2(4):264-269.
Noronha E, D’ Cruz P. Achieving downsizing: A managerial perspective .Global business review. 5th August, 2013. 2006;6(1):79-94.
Chipunza C, Berry–David M. The relation-ship among survivor qualities – attitude, commitment and motivation – after downsizing. African Journal of Business; 2010.
Munjuri MG. A survey of the criteria used by commercial banks to determine employees to retrench. International Journals of Business Administration. 2011; 2(2):57-80.
Noer DM. Healing the wounds. Over-coming the trauma of staff retrenchment and revitalizing; 1993.
Kozlowski SW, Chao GT, Smith EM, Hedlund J. Organisational downsizing: Strategies, interventions and research implications. In Cooper CL, Robertson IT (eds.). International Review of Industrial and Organisational Psychology, New York, John Wiley and Sons; 1993.
Musa D. Our banks are slave camps. The News. 2013;40(28):18-19.
Burke RJ, Nelson D. Merger and acquisitions, downsizing and privatization: A North American perspective. In Gowing MK, Kraft JD, Quick JC (Eds.), The new organizational reality: Downsizing, restructuring and revitalization. Washington, DC: American Psychological Association. 1998;21-54.
Floppi EB. Personnel management. McGraw- Hill, Inc. 6th edition; 1984.
Lewis P. Practical employment law- A guide for human resource managers. Blackwell Publishers; 1992.
Greenberg J. Taxonomy of organisational Justice Theories. Acad. Manage. 1987; 12(1):9-22.
Campbell L, Finch E. Customer satisfaction and organisational Justice. Facilities. 2004;22(7/8):178-189.
Saunders MNK, Thornhill AS. Organisa-tional justice, trust and the management of change. Pers. Rev. 2003;32(3):360- 375.
Cropanzano R, Greenberg J. Progress in organisational justice: Tunnelling through the maze. Organization, Psych. Develop. 2001;243-298.
Uvieghara EE. Labour Law in Nigeria. Lagos, Malthouse; 2000.
Anyanwu G. Industrial relations update. ASSBIFI News Letter, Ecobank Chapter; 2013.
Salako SO. Banks as slave camps. The News. 2013;40:28:14-19.
Beylerian M, Kleiner BH. The downsized workplace. Management Research News. 2003;26:97-108.