EFFECT OF LABOUR CASUALIZATION ON ORGANIZATIONAL PERFORMANCE IN MONEY DEPOSIT BANKS IN ENUGU STATE

Abstract

The study examined the effects of labour casualization in the performance of Money deposit Banks in Enugu state. Casual labour which is supposed to be a form of temporary employment has ironically acquired the status of permanent employment in many organizations in Nigeria without the statutory benefits associated with permanent employment status. Casual workers are subjected to lower pay, barred from their right to join a union, and denied some other essential benefits made available to core staff. Companies will often hire several part-time workers instead of one or two full-time workers to avoid their obligation to provide benefits so as to reduce labour cost and enhance productivity and efficiency. Considering the smallness of the population size (less than 200), Census sampling technique was adopted. As a result, the entire population (38 core staff) participated in the study. Structured questionnaire was the instrument used for data collection. The dependent variables of interests are three key performance indices: profit, expansion capacity and shareholders return. Response on research questions showed that core staff of studied Money deposit Banks scored a grand mean of 3.325, 3.29 and 3.085 respectively for research questions one, two and three. This indicates that the core staff of the studied Money deposit Banks believe that labour casualization affects the expansion capacity of Money deposit Banks negatively to a high level. On the other hand, the response of core staff of the studied Money deposit Banks shows that labour casualization positively affects profit and shareholder return. The result of test of hypothesis on the first research question supports these positions by showing that there is a significant difference between the grand mean of the research questions and the minimum acceptable mean of 2.5. Analysis and discussion on this result revealed labour casualization tend to reduce expansion capacity, enhances profit and shareholders return of money deposit Banks in Enugu State. From the results, analysis and discussions, it can be concluded that labour casualization affects the performance of Money deposit Banks in Enugu State both positively and negatively. This is because, labour casualization tends to increase profit and return on investment but on the other hand reduces customer base and expansion; t was recommended that to ensure an all-round positive impact on performance of money deposit Banks; the number of casual staff used by money deposit Banks should be reduced.