Effect of Rightsizing on Productivity of Mumias Sugar Company in Kenya

Abstract

The purpose of this study was to investigate the process of rightsizing and its effects on organizational productivity of Mumias Sugar Company situated in Western Kenya.  The study sought to find out how rightsizing was carried out in the company and its effects of rightsizing on the organization's productivity and   the effect of rightsizing on the company's employees. Descriptive survey design was used to guide the study. Stratified random sampling, purposive and simple random sampling techniques were employed to attain the required sample size as a representation of the general population and automatic purposive sampling of the managers for the interview schedules. The collected data was analyzed using descriptive statistics. The study established that the employees were informed in advance about the intention of the layoff. The employees did not however continue to work normally due to the fear of being laid off in near future .This fear of the unknown caused them to work extra hard recording the  highest productivity during the period. There were efforts also by the remaining employees to jostle for the existing slots, which could lead to industrial unrest. From the findings it was concluded that Mumias Sugar Company needed to revamp its approach to rightsizing to alleviate the low employees' morale that switched in after the process. The employees need to be trained and adequately prepared for outplacements in the event of lay-offs. It was recommended that the Human Resource Managers should organize seminars, workshops and refresher courses to update themselves on rightsizing procedures and counseling skills.  Company employees should also try to keep abreast with the new developments through mass media and journals to improve on their knowledge on the current trends in employment.