The Impact of Labour Force Reduction on the Financial Performance of Manufacturing Companies

  • Wadesango N. University of Limpopo, Turflop Campus, Republic of South Africa
  • Gwangwadza D. C. Midlands State University, Gweru
  • Mhaka C. Midlands State University, Gweru
  • Wadesango V. O. University of Limpopo, Turflop Campus, Republic of South Africa
Keywords: Labour force, financial performance, manufacturing company, reduction

Abstract

This study attempts to corroborate the impact of labour force reduction on financial performance of manufacturing companies in a developing country. Despite the on-going use of labour force reduction, literature and research on this approach continues to yield mixed results. This desktop research was therefore conducted with the aim of determining the impact of employing labour force reduction initiatives on financial performance of manufacturing companies. The study reviews the results and findings of empirical and qualitative literature on labour force reduction by previous scholars for a period of 6 years ranging from 2012 to 2017. The phenomenon of labour force reduction has facilitated the research and studies on the area in the past six years, with researchers reaching different conclusions on the practise’s effect on organisations. This has prompted the researchers of this study to critically study labour force reduction methods, factors affecting their success, employees’ reaction to the strategy, the practise effect on productivity and the relationship between labour force reduction and organisation performance. 

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References

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Published
2018-05-19
How to Cite
N., W., C., G. D., C., M., & O., W. V. (2018). The Impact of Labour Force Reduction on the Financial Performance of Manufacturing Companies. Journal of Economics and Behavioral Studies, 10(2(J), 20-32. https://doi.org/10.22610/jebs.v10i2(J).2214
Section
Research Paper