Factory Closure Challenges for Human Resource Intervention in Closure Management Process and Employee Anxiety

This paper explores the factory closure management process and its impact on employee anxiety in a foreign-based manufacturing firm that had been operating for more than 30 years. The closure significantly affected operational employees, many of whom had spent their entire careers within the company. Most employees possessed only a single working experience and had achieved promotions through internal career advancement without formal educational qualifications. Consequently, they faced considerable challenges in securing new employment opportunities after the factory closure. The main objective of this study is to examine the perspectives of 200 respondents regarding the effectiveness of the closure management process implemented by the human resource management team, as well as the level of employee anxiety experienced during the transition period. The research adopted a two-phase mixed-method approach. The first phase involved quantitative data collection through questionnaire surveys using a five-point Likert scale to evaluate employee perceptions of closure management practices and anxiety levels. The second phase employed qualitative analysis through engagement with selected government agencies to assess whether the company’s closure management process aligned with recommended best practices for employee welfare and industrial transition management. The findings indicate that most respondents considered the closure management practices acceptable and consistent with government guidelines related to employee welfare. Furthermore, the study found no strong correlation between the closure management process and employee anxiety. Most employees demonstrated an understanding of the company’s decision and appeared mentally prepared for the closure despite the unfavourable circumstances. In conclusion, the study provides practical insights and best practices for manufacturing firms managing employee separation and organizational closure processes.

Factory Closure; Human Resource, Closure Management Process, Employee Anxiety

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