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EFFECTS OF THE RETRENCHMENT EXERCISE ON ORGANIZATIONAL PERFORMANCE AND QUALITY OF WORK LIFEAMONG UGANDAN PUBLIC OFFICERS

by: Peter Baguma &Leon Matagi June 2002

Levine (1984) found that retrenchment resulted in fiscal stress and human resource shrinkage that caused many difficult problems for government managers. These problems are caused by methods used by managers to cope with the need to retrench and decrementalism (decrease in budget without loss of visible operating effectiveness). The major problem is decrease of human resource that results from cost cutting measures Which brings loss of skills, energy, morale, commitment, physical and mental health degradation that results from employees withdrawing physically and emotionally. Decrementals also cause reduced co-operative attitudes, greater fear and distrust, poor communication, lowered performance goals, restriction of production and increased turnover.

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