The effects of downsizing on operations and profitability of Transnational bank

Abstract

Virtually every type of organization and every type of industry faces an economic environment of continuous and accelerating change. An increasing pervasive response to this new economic environment is to engage in some form downsizing. In Mid 2000, TNBLsaw the need to reduce its workforce through Downsizing. The objective of the study is to determine the impact of downsizing on the Operations and Profitability of the Transnational bank by looking at the Service quality, technological levels, profitability and employee morale after the downsizing exercise. This is a case study and the respondents were the management and unionisable staff of Transnational Bank. Primary data was collected using questionnaire tool that were self and telephone administered to respondents. Face to face interviews was done with key heads of departments on the entire exercise and the current state. The results show that the morale of the staff dropped after downsizing, qua"lity of serv-ice has improved considerably after downsizing, there is significant advancement of technological levels and the profits of the bank continue to improve. From the study, we learn that there is need for the organizations to put in place proper retention and incentive schemes so as to motivate staff after downsizing and proper human resource policies have to be developed to enhance motivation .