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SAIL's Voluntary Retirement Scheme

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : HROB002 For delivery in electronic format: Rs. 200;
For delivery through courier (within India): Rs. 200 + Shipping & Handling Charges extra


HR Practices and Policies
Case Length : 07 Pages
Period : 1999-2001
Organization : SAIL
Pub Date : 2001
Teaching Note : Available
Countries : India
Industry : Metals & Mining


Voluntary retirement scheme (VRS) is one of the least studied phenomena in both business and academia. Despite its increasing popularity, field-based scientific literature on VRS is sparse in India. International literature on organizational downsizing has focused on three issues: the impact on those who have lost their jobs; the impact on those remaining; and on how to downsize effectively. The case study focuses on the VRS introduced by SAIL. Since financial year 1998-1999, SAIL had been incurring huge losses. One of the major reasons for the losses was its high manpower cost. To deal with the situation, McKinsey advised SAIL to reduce its workforce from 1, 70.000 to 1, 00,000 by 2003.

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

The case deals at length with various VRS schemes launched that SAIL launched its staff education initiatives and the problems faced by the company while implementing VRS.

The case is intended for MBA/PGDBM level students as part of their Human Resources Management (HRM) curriculum. The case throws light on the various issues that an organization has to deal with, while implementing VRS.


Voluntary Retirement Scheme


  Page No.
Introduction 1
Background Note 1
The Jolt 2
The Dilemma 2
The Voluntary Retirement Scheme 3
The Persuasion 4
The Reaction 5


Voluntary retirement scheme, VRS, business, academia, popularity, field-based scientific literature, VRS, India, organizational downsizing, three issues, impact, lost, jobs, remaining, downsize, effectively, VRS, financial year 1998-1999, SAIL, huge losses, high manpower cost, McKinsey, SAIL, 1,70.000, 1,00,000, 2003

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