Social conditions of voluntary retirement scheme opted employees among selected large steel manufacturing organizations

Abstract

Purpose: With the advent of NEP, 1991, the Indian economy has transformed due to liberalization, privatization, and globalization. It has shown clear indication to corporate for technology upgradation, cost competitiveness, and workforce rightsizing, with greater emphasis on quality. However, due to the prevailing protectionist labor laws, the corporate has preferred voluntary retirement scheme (VRS) for right sizing their workforce. Nevertheless, the negligence of the managements, during implementation of VRS, has not only led to the financial losses for corporate but also transformed the lives of VRS opted employees in an unconstructive direction. To analyze the impact of VRS over the social conditions of employees, the present study has been conducted. Research Methodology: For the purpose of research, 311 VRS opted employees of large steel manufacturing organizations have been selected. The effect of various independent factors such as family members, friends, relatives, neighbor, social attendance, lifestyle, and financial conditions over the social conditions of VRS opted employees has been studied in detail. Further, for testing hypothesis, the appropriate statistical techniques such as paired t-test and independent sample t-test have been applied. Findings: It has been found that VRS had negatively impact the social conditions of a section of VRS opted employees and their family members. As, paired t-test has established a significant difference in the social organizational membership of sampled VRS opted employees before and after opting VRS. Implications: Therefore, it has been suggested that management may consider VRS as the last available option, while ensuring the voluntary nature of the scheme. Originality: Until now, no researcher has done, such an in-depth research study in the concern area. The literature on the subject is rarely available. Moreover, the previous researchers have not provided the adequate solutions to the existing research problem.