CHAPTER ONE

INTRODUCTION

• Background of the study

Organisational Downsizing, is a planned set of organizational policies and practices aimed at workforce reduction with the goal of improving firm performance (Datta et al., 2010). Also, Organisational downsizing is a practice of reducing the organisations size through extensive layoffs, whereby whole layers of the organisation are eradicated and management is done with fewer people  (Ndlovu & Parumasur, 2005) Since the early 2000‟s there has been a wave of global downsizing of employees in many organisations.  Organisational downsizing has recently become an increasingly important issue that needs to be addressed to ensure fair employment practices. Companies worldwide have used downsizing to improve employee competitiveness, profitability, organisational effectiveness, efficiency as well as to reduce the size of their workforce. Downsizing has ramifications for everyone in the organisation, regardless if employees are remaining in the organisation or those. As a result of restructuring, employees might be suspicious about the future direction of the organisation and their role in it.  Organizational downsizing, characterized by reductions in the number of employees, has been a widely studied phenomenon due to its significant impact on individuals and the workplace. Research on the effect of downsizing on employee morale and employees morals spans the fields of organizational psychology, human resource management, and organizational behavior.

Studies have consistently shown that downsizing can negatively impact employee morale and employees morals. Research by scholars such as Cascio (1993) and Brockner et al. (1992) revealed that downsizing often leads to feelings of job insecurity, decreased commitment to the organization, and a decline in overall employees morals among remaining employees. In many cases, downsizing can create an atmosphere of fear and uncertainty, eroding trust and morale within the workplace. The effects of downsizing are not restricted to those who lose their jobs. Survivors of downsizing, i.e., employees who remain with the organization, often experience increased workloads, heightened stress, and are susceptible to a decline in employees morals and overall well-being. This has been documented in various studies examining the outcomes of downsizing (e.g., Kivimäki, Vahtera, Pentti, & Ferrie, 1996; Rousseau, 1998).

The manner in which downsizing is implemented and managed plays a pivotal role in shaping its impact on employee morale and employees morals. Studies by scholars such as Cameron (1994) and Pynes (2009) have highlighted the importance of transparent communication, fairness in treatment, and the provision of support services for affected employees in mitigating the negative effects of downsizing. Hence organizational practices such as retraining programs, career development support, and efforts to maintain a positive work environment have been identified as means to buffer the adverse effects of downsizing and enhance employee well-being (Noer, 1993; Armstrong-Stassen & Schneer, 1997).

Globally,  organizational downsizing and its relationship with employee morale and employees morals spans the global landscape, with unique regional nuances and impacts. Examining this evolution from a global, African, and specifically Cameroonian perspective provides valuable insights into the intersection of economic, social, and organizational dynamics. Here’s an overview of the historical evolution and its relationship with employee morale and employees morals at these levels: Early Economic Shifts. Throughout the 20th century, various global economic events, including world wars, economic depressions, and industrial revolutions, contributed to shifts in organizational structures and employment patterns. These early developments laid the groundwork for the emergence of modern concepts of downsizing and its impact on employees worldwide Rise of Modern Downsizing. The 1980s marked the widespread adoption of downsizing as a strategic response to increased global competition, technology advancements, and restructuring imperatives. This era saw the global proliferation of downsizing practices, which raised awareness of its effects on employee morale and employees morals across diverse cultural and economic contexts. Research and Awareness. As downsizing became a more widespread phenomenon in the 1980s and 1990s, researchers and practitioners began to investigate its effects on employees in greater detail. This era saw a surge in studies examining the psychological and emotional impact of downsizing on individuals, as well as its broader implications for organizational culture and productivity. Research during this period began to illuminate the detrimental effects of downsizing on employee morale and employees morals, shedding light on the human costs associated with these strategic decisions

Across Africa, historical events such as decolonization, economic reforms, and shifts in global trade have had profound implications for organizations and their employees. These changes have influenced the evolution of downsizing practices and their impact on the African workforce. Unique Organizational Context. In Africa, downsizing has been shaped by regional economic challenges, including structural adjustment programs, political transitions, and globalization. The impact of downsizing on employee morale in African contexts has been influenced by factors such as cultural values, community ties, and the role of organizations in societal stability. Human-Centered Approaches.  In recent years, there has been a growing recognition of the importance of employee well-being in African workplaces, leading to a shift in organizational strategies toward more humane downsizing practices aimed at minimizing adverse effects on morale and employees morals. More so Through the 21st century, there has been a gradual shift in management philosophies, with a growing recognition of the importance of employee well-being and engagement. Organizations became more attuned to the negative consequences of abrupt and insensitive downsizing measures on employees and the subsequent impact on organizational performance. This transition led to a greater focus on human and considered approaches to effects on employee morale and employees morals.

1.2 Statement of the problem

Organisational downsizing, the deliberate reduction of an organisation’s workforce, is often deemed a necessary strategy for enhancing efficiency and competitiveness. Scholars argue that in dynamic and competitive business environments, downsizing can help organisations ations trim expenses and reallocate resources, enabling them to adapt to changing market conditions (Cascio, 2003; Cameron, 1994). This perspective underscores the importance of downsizing as a tool for organisational survival and competitiveness. However, the idealized notion of downsizing clashes with the harsh reality on the ground. Economic downturns and challenging market conditions force organisations to resort to downsizing as a survival tactic, impacting employee morale and employees morals. Research indicates that downsizing during economic crises is common, as organisations struggle to maintain financial viability (Cascio, 2002; Mishra & Mishra, 1994). The consequential reduction in workforce often leads to increased workloads, job insecurity, and heightened stress levels among remaining employees, negatively affecting their morale and employees morals (Brockner et al., 1992; Kivimäki et al., 2001).

The causes of downsizing reality are multi-faceted and include economic recessions, technological advancements, and organisational restructuring. Economic downturns prompt organisations to cut costs, and technological advancements can lead to workforce redundancies. Organisational restructuring, driven by the need for agility and innovation, further contributes to downsizing scenarios (Appelbaum et al., 2000; Freeman & Cameron, 1993). The consequences of downsizing are significant, impacting not only those who lose their jobs but also the morale and employees morals of the remaining workforce. Reduced trust in management, increased workload, and the fear of job insecurity are common consequences that affect employee well-being (Brockner et al., 1997; Wanous et al., 1997).

In the context of this study, the argument lies in understanding the complex interplay between organisational downsizing, employee morale, and employees morals in BAMCCUL. Despite the perceived necessity of downsizing for organisational survival, the detrimental effects on the remaining workforce cannot be ignored. This study aims to delve into the nuances of organisational downsizing, examining its impact on employee morale and employees morals, and ultimately to a more comprehensive understanding of the implications of downsizing on organisational dynamics in BAMCCUL.

1.4 Research Questions

1.4.1 Main Research Question

What is the effect of organizational downsizing on employee morale in BamCCUL branches?

1.4.2 Specific Research Questions

1. What is the effect of communication on employee morale in BamCCUL branches in Bamenda?
2. What is the effect of workload redistribution on employee morale in BamCCUL branches in Bamenda?

III. What is the effect of perceived job security on employee morale in BamCCUL branches in Bamenda?

1.5 Research Objectives

1.5.1 Main Research Objective

To assess the effect of organizational downsizing on employee morale in BamCCUL branches in Bamenda

1.5.2 Specific Research Objectives

1. To assess the effect of communication on employee morale in BamCCUL branches in Bamenda.
2. To analyze the effect of workload redistribution on employee morale in BamCCUL branches in Bamenda.

III. To evaluate the effect of perceived job security on employee morale in BamCCUL branches in Bamenda.

1.6 Research Hypotheses

H01: The quality of communication during the downsizing process has no significant effect on employee morale at BamCCUL branches in Bamenda.

H02: Increased workload redistribution after downsizing does not significantly affect employees moral at BamCCUL branches in Bamenda.

H03: Perceived job security does not have a significant impact on the morale of employees who remain after downsizing at BamCCUL branches in Bamenda.