Reduction of employees has become a potentially valuable way of securing a competitive\nadvantage and improving organizational performance, downsizing has been in existence for\na while now however, its effect on employee or organizational performance has brought\nmixed reactions in both developed and developing countries. This quagmire has led to a lot\nof uncertainty while considering downsizing as a tool of enhancing employee performance.\nTherefore, this study sought to find out the effect reduction of employees as a downsizing\nstrategy on performance of employees of Barclays bank hypothesized as there is no\nrelationship between reduction of employees and employee performance. The study\nadopted a survey research design. Data for the study were collected from a sample 183\nemployees of Barclays Bank South Rift Hub, Kenya. Questionnaires were used as the sole\ndata collection instrument. The data that was collected from the field was analyzed using\nboth descriptive and inferential statistics. The findings established that there was a strong\npositive correlation of 0.982 between reduction of employees and the dependent variable\nemployee performance. The results indicated that higher levels of effective employee\nreduction leads to effective performance of commercial banks hence they need to consider\napplying downsizing. The results of this study shall therefore benefit the management of\ncommercial banks to understand the effects of downsizing and put in place appropriate\nstrategies to ensure that only the positive effects leading to improved performance are\nemphasized.
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