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General News of Monday, 10 September 2018


Banks now using ‘psychological terrorism’ to lay off staff - Psychologist

It has emerged that some companies, especially banks, have resorted to psychological means to lay off staff following the “banking gate scandal” that has rocked Ghana.

Most of these banks are said to have adopted this strategy because they don’t want to be in the news for people to think that they are about to collapse and trigger panic withdrawal.

“They will not lay you off for it to be in the news but if you are a branch manager, they will move you from you managerial role to become a teller in another branch and by that they are telling you if you don’t leave, deal with the psychological situation,” Dr. Collins Agyemang Badu, Vice President of the Ghana Psychological Association said in an interview.

Although this method of laying off workers is not new, the Industrial and Organizational Psychologist said it is now very common especially among the banks.

He described it as a “Psychological Terrorism” employed by the banks to scale down without getting problems.

About 1,700 people are believed to have lost their job after the Bank of Ghana declared some seven banks insolvent leading to their absorption and consolidation.

It is expected that many more workers will be laid off to get the banks meet their financial obligations.

Dr. Agyemang Badu said apart from the fallout from the banking crisis, banks now have smart applications that is making work easier hence the need to right-size.

He said the “Psychological Terrorism” method is a creeping development that affects performance and create job insecurity.

Dr. Badu opined companies have the luxury to move people around and downsize for the right reasons but it should not start from the boardroom and must be well thought out strategically with the help of professionals.

He added people should not leave their organizations feeling bitter but leave with their heads high up to become good ambassadors.