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Retrenchment Process and the Coping Mechanisms Of RETRENCHMENT PROCESS AND THE COPING MECHANISMS OF EMPLOYEES FROM THE BANKING INDUSTRY IN GHANA: A CASE OF ADOT BANK GHANA LIMITED BY ROSEMARY BOATENG COFFIE (M.ED. INTERNATIONAL MANAGEMENT & POLICY) A Doctoral Thesis Submitted to the Department of Human Resources and Organisational Development in Partial Fulfilment for the Award of Degree of the Doctor of Philosophy in Management of the Kwame Nkrumah University of Science and Technology June, 2016 DECLARATION I, hereby, declare that this submission is my own work towards the award of the Doctor of Philosophy in Management and that, to the best of my knowledge, it contains no material previously published by another person nor material which has been accepted for the award of any other degree of the University, except where due acknowledgement has been made in the text. ROSEMARY BOATENG COFFIE ……………………………………. …….................... …………………… Student’s Name Signature Date Certified By PROF. KOFI OSEI AKUOKO ……………………………… ………………….. ………………… 1st Supervisor’s Name Signature Date DR. ERIC HENRY YEBOAH ……………………………….. …………………… ………………… 2nd Supervisor’s Name Signature Date PROF. SOEREN JEPPESEN ……………………………….. ……………………. ……………………. Danish Supervisor’s Name Signature Date Certified By MR J. K. TURKSON ……………………... …………………… …………………… Head of Department Signature Date ABSTRACT Although there has been a great deal of work on retrenchment in other sectors like mining and general business, this has not been the case in the banking sector. This study attempted to fill this gap in the literature in Ghana. The study adopted a qualitative case study methodology employing in-depth interviews as its main data collection tool. Purposive sampling was used to select three (3) bank staff at the HRM Department of the case bank, and snowball sampling was used to reach thirty eight (38) retrenched staff. A Logical Positivist approach was adopted, employing the Social and Human Capital Theories as the mediating variables to explain the coping mechanisms of these retrenched staff. The researcher used the comparative content analysis to analyse the data. The findings showed that the retrenchment process of the bank under study had an implementation gap at the selection criteria and severance package level within the retrenchment process. There were also indications that retrenched staff suffered loss of self-esteem and change in status. Retrenchees also experienced a reduction in spending as well as emotional breakdown such as anger and crying at some point in time which were directly related to the retrenchment process. The study further revealed that retrenched staff coped differently due to varying family backgrounds and environmental situations. Moreover, the study found that retrenched staff coped with emotion and problem focused coping by Folkman and Lazarus (1984) and also resorted to coping with the knowledge, skills and capabilities they have as well as friends, family, social organisations and religion. In line with the findings of the study, the researcher had bridged the gap by providing a comprehensive study on retrenchment that looks at the retrenchment process through to the effects, coping mechanisms as well as the labour market reintegration of the affected employee. Again the findings of the study would be relevant for policy implementers in banks to look at issues within the retrenchment process especially at the selection criteria and severance package. The researcher therefore recommends proper negotiations towards the establishment of consensus between the employer and employee as well as the trade union on the selection of the affected employee to minimise the effects on the affected employee for a better coping. ii DEDICATION This thesis is dedicated to my mother, Madam Mercy Dwamenah, who went beyond her means to provide me good education. Mum, I hope that wherever you are, you will be happy smiling at me. iii ACKNOWLEDGEMENT This thesis could not have been possible without the help of the Almighty God who reigns today and forever. I am so grateful for His Grace and Glory abundant for me. I am also highly indebted to the Danish Government for the funding available on the DANIDA BSU platform which made it possible for me to carry out this research. I extend my most appreciation to my supervisors, Professor Soren Jeppesen, Professor Kofi Osei Akuoko and Dr. Eric Henry Yeboah, for, spending time and tirelessly working on this thesis. To them, all I can say is Ayekoo! Not forgetting my better half, Mr. Frank Coffie, and my children Annie, Kevin and Spencer, for their patience when mum was not available. I also want to take this opportunity to thank Mrs. Augustina Haywood Benjamin and the staff of the HRM Department of Adot Bank Limited who helped and led me to access the information used for this work, not forgetting my colleague, Dr. Kofi Agyenim Boateng, who spent time to proofread this work and make good suggestions for its successful completion, to everyone who supported me in one way or the other, I say thank you to you all, and may the Good Lord bless you. iv TABLE OF CONTENT ABSTRACT ..............................................................................................................................ii DEDICATION ......................................................................................................................... iii ACKNOWLEDGEMENT .......................................................................................................iv LIST OF FIGURES................................................................................................................. xii LIST OF TABLES ................................................................................................................. xiii LIST OF ABBREVIATIONS ................................................................................................ xiv CHAPTER ONE ...................................................................................................................... 1 INTRODUCTION.................................................................................................................... 1 1.1 Background to the Study .................................................................................................... 1 1.2 Statement of the Problem ................................................................................................... 3 1.3 Objectives of the Study ...................................................................................................... 6 1.4 Research Questions ............................................................................................................ 6 1.5 Scope of the Study.............................................................................................................. 7 1.6 Significance of the Study ................................................................................................... 8 1.6 Brief Methodology ............................................................................................................. 9 1.7 Definition of concepts ...................................................................................................... 10 1.7.1 Retrenchment ................................................................................................................ 10 1.7.2 Coping Mechanisms ...................................................................................................... 10 1.7.3 Leavers .......................................................................................................................... 10 1.7.4 Social networks ............................................................................................................. 11 1.7.5 Social capital ................................................................................................................. 11 1.7.6 Human capital ............................................................................................................... 11 1.7.7 Labour market reintegration .......................................................................................... 12 1.8 Organisation of the Study................................................................................................. 12 v CHAPTER TWO.................................................................................................................... 14 LITERATURE REVIEW....................................................................................................... 14 2.1 Introduction ...................................................................................................................... 14 2.2 Defining Retrenchment .................................................................................................... 14 2.3. Reasons for Retrenchment in Firms ................................................................................ 16 2.4 The Retrenchment Process ............................................................................................... 20 2.4.1 Retrenchment Process According to the Labour Laws of Ghana ................................. 24 2.5 Effects of Retrenchment ................................................................................................... 25 2.5.1 Economic Effects of Retrenchment on the Affected Individual ................................... 26 2.5.2 Social Effects of Retrenchment ..................................................................................... 27 2.5.3 Emotional Effects of Retrenchment on the Affected Individual..................................
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