Strategies used by state corporations to manage problems experienced by the survivors of retrenchment: a survey of state corporations in Nairobi

Abstract

In order to salvage State Corporations from poor and declining performance, and mismanagement prohibiting sustainable economic growth, the Kenya government initiated reform programs in 1993, which included the reorganization and restructuring of the sector. This led to the introduction of retrenchment in State Corporations. Although the main purpose of retrenchment was to improve efficiency and productivity, the problems of survivors was an unforeseen phenomenon that led to contrary results. It is imperative therefore, for the State Corporations to design strategies to address problems experienced by survivors of retrenchment. This study therefore sought to determine strategies used by State Corporations to manage problems of survivors of retrenchment. The population of interest was all the fifty-two State Corporations in Nairobi that had retrenched staff. Structured questionnaires were used to collect data. The data collected were analysed and summarized using descriptive statistics, consisting of frequencies, percentages, arithmetic mean and standard deviations. A five point likert scale was used to measure and identify strategies by State Corporations to manage problems experienced by survivors of retrenchment. The findings from the study indicate that most of the organizations in dealing with problems experienced by survivors of retrenchment have put in place strategies that promote organizational culture supportive of the human resources management practices. These strategies include periodically carrying out job satisfaction and attitude surveys, introducing instant recognition programs to reward good performance; providing tools and resources necessary for enhancing staff performance and enhance strategic human resources practices to motivate and retain employees, facilitate increased productivity and bottom line profitability; conducting training workshops to create new culture and emphasize organization cherished values. The major conclusions were that strategies used to manage these problems included putting in place quality work life initiatives which included; excellent communication channels; team work and collaboration; training and development policies; providing tools and resources necessary to enhance performance; establishing equitable performance pay systems and remunerations; employee participation in decision making; promoting health and safe workplace; enhanced organization's support and employees' personal health care and family. Quality work life programs enhance staff commitment to an organizations Vision and Mission. Communication emerged as a vital strategy used; State corporations explained to employees reasons for retrenchment, issued advance notices for retrenchment to affected employees; enhanced excellent communication channels; showed compassion and listened to workers sentiments. In addition, educated survivors about the vision and mission of the corporations as well as established suggestion boxes, newsletters and conducting regular meetings for enhancement of effective internal communication. However, it emerged that State Corporations need to introduce and enhance other sustainable strategies such as instant recognition programs to reward good performance; establish equitable performance pay system and remuneration policies; provide good salary and benefits; institutionalize regular meetings with employees; enhance employees participation in decision making processes and problem solving; and organize stress management training for staff.