Effects of downsizing on employee productivity in Barclays Bank of Kenya Limited
Karani, Portia N
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Most employees and employers alike know that in this current economic climate there are a few businesses immune from the possibility of staff downsizing. This has been brought about by the global changes in the economic environment brought about by competition and other economic environmental factors. Though the psychological and behavioural effects of downsizing has been conducted the reasons and effects of the exercise on staff productivity has not been studied. This research is a case study analysing the effect of staff downsizing on employee productivity levels at Barclays Bank of Kenya Limited looking at the productivity levels of staff members after the exercise was conducted in February 2011. The population of study will be the staff members of Barclays Bank of Kenya limited post downsizing and the researcher will seek information from five senior managers at the financial institution seeking their opinions on how this exercise has impacted on the remaining staff by looking at their levels of productivity. Data will be collected through interviews with the guidance of an interview guide drafted by the researcher that will be conducted with the chosen managers of Barclays Bank of Kenya Limited. The interviewees pointed out in unison that downsizing exercise has led to reduced levels of productivity among staff members who survived the exercise. This was brought about by the reduced confidence levels among staff members and panic within the bank. The bank being in the service industry the mood of the staff members affects their output and this affects quality of service being offered to the clients. The perception of employees on how companies handle staff downsizing is pathetic. The way companies are going about the exercise leaves a lot to be desired and their reputation may suffer as a result of mishandling the process. Therefore careful detail should be given to this exercise, which if poorly conducted affects staff directly and the staff being core in the running of an organisation should be looked at as valuable organizational resource. Therefore firms seeking to downsize should seek the help of professional human resource bodies for advice before undertaking this exercise which if done without careful planning leaves a company worse off. Firms seeking to downsize should explore all the other possible alternatives and choose downsizing as the last option to restructure a finn since the effects of the exercise are very severe especially to the surviving staff members.
University of Nairobi, Kenya