Fixing the redundancy quandary: Does redundancy management preserve employee performance in the mining industry?

Abstract

While studies have focused on the subject of redundancy, empirical studies have rarely considered the case of total redundancy characteristic of the mining industry. This is a field where the organization has a fixed lifespan and at some point all functions become redundant. Studies have also concentrated on redundancy as a problem and not on solutions to effectively manage it. The study relies on a case of Base Titanium Ltd, which is a Kenyan subsidiary firm and affiliate of the Base Resources Group, an Australian mineral sands producer. The purpose of the study was to determine the effect of redundancy management on employee performance. A descriptive survey research design was used on a target population of 1,898 staff. A sample of 330 respondents was selected from whom primary data was collected with the help of a questionnaire. Quantitative data were analysed using descriptive (median and mode) and inferential analyses (regression analysis and Spearman rank correlation analysis). The regression analysis results provided evidence that each of the redundancy management variables – Prior Preparation and Training (β .396 p<.05), Compensation and Incentives (β.304 p<.05), Communication Strategy (β .301 p<.05), and Employee Engagement (β .233 p<.05) – has a positive and statistically significant effect on employee performance.