Internal staff adjustment programs and performance of commercial banks in Uganda: a case study of Dfcu bank, Lira branch.

Abstract

The research explored the relationship between internal staff adjustment programs and performance of DFCU Bank, Lira Branch. The study was guided by the following objectives: i) To establish the effect of workforce reduction program on productivity of DFCU Bank, Lira Branch. ii) To assess the relationship between organization re-design program and product quality of DFCU Bank, Lira Branch and. iii) To determine the influence of systemic program on service delivery of DFCU Bank, Lira Branch. Descriptive research was used in this study. The sample of the study consisted of 66 respondents out of a total of 80 respondents. Out of a total sample of 66 respondents, all were able to respond and therefore the researcher collected data from 66 respondents. The data collected was analyzed using Statistical Package for Social Sciences (SPSS).Results were presented in form of tables and in prose form. The study concluded that while the workforce reduction, organization redesign and systemic downsizing strategies are used by DFCU Bank Uganda, certain aspects of these strategies have a negative impact on organizational performance, while others have a positive impact on organizational performance. Based on the findings of the study, the researcher came up with recommendations which are meant to be of practical and theoretical significance. First, organizations need to develop and clearly spell out guidelines for internal staff adjustment programs to be able to implement workforce reduction strategy correctly. Second, before embarking on any major organization redesign, organizations should take the time to do a strategic analysis so as to enable them to have a clear idea of their missions, challenges, and opportunities in order to know why, how and to what extent they must undergo structural changes, if any. Third, the systemic downsizing strategy offers the best option for long-term, sustainable organization performance, as successful internal staff adjustment programs go well beyond simply reducing total staff numbers and changes to organizational structures. The findings reveal that the significant majority of the respondents were female (59 %), with males making up a small minority (41%). The overall response rate stood at 100%.