INTRODUCTIONIn the present globalised scenario, right sizing of the manpower employed in an organization has become an important management strategy in order to meet the increased competition. The Voluntary Retirement Scheme (VRS) is the most humane technique to provide overall reduction in the existing strength of the employees. It is a technique used by companies for trimming the workforce employed in the industrial unit. It is now a commonly used method to dispense off the excess manpower and thus improve the performance of the organization. It is a generous, tax-free severance payment to persuade the employees to voluntarily retire from the company. It is also known as GOLDEN HANDSHAKE as it is the golden route to retrenchment. Employers refer to VRS as'golden handshake',trade unions call it'voluntary retrenchment scheme',and for the government, it is'unstated exit policy'which means that an exit policy which may not exist on paper. VRS means Voluntary Retirement Scheme. Employers who want to reduce the employee strength give some employees the option to retire before normal retirement age. The employees may or may not accept this option. Those who accept the option are VRS employees. The VRS employees get the compensation.

PROCEDURE FOR VOLUNTARY RETIREMENT SCHEME FOLLOWED BY THE EMPLOYER:

The employer has to issue a circular communicating his decision to offer voluntary retirement scheme mentioning therein

The reasons for downsizing The age limit and the minimum service period of employees who can apply The benefits that are offered. It should be noted that employees who offer to retire voluntarily are entitled as per law and rules the benefits of Provident Fund, Gratuity and salary for balance of privilege leave up to the date of their retirement, besides the voluntary retirement benefits. The right of an employer to accept or reject any application for voluntary retirement. The date up to which the scheme is open and applications are received for consideration by the employer. The circular may indicate income tax incidence on any voluntary retirement benefits which are in excess of Rs. 5lakhs, which is maximum tax free benefit under such schemes.

PROCEDURE FOR VRS TO BE FOLLOWED BY THE EMPLOYEE:

An eligible employee may submit request opting for Voluntary Retirement under the scheme to the Competent Authority through proper channel in a prescribed proforma which shall be available in the PSU. The Competent Authority may after considering the application and after giving an opportunity to the applicant; of being heard, pass a speaking order within a period of 3 months, either accepting or rejecting the request. In case the Competent Authority fails to pass an order rejecting the request by the due date as given above, the request would be deemed to have been accepted and the employee would be retired. A copy of every order made under above shall be given to the employee. An employee who is aggrieved by an order of rejection may within thirty days from issuance of such orders file An appeal before the Administrative Secretary of the Department under which the concerned PSU falls, whose decision shall be final and binding, The date of acceptance of VRS by the competent authority will be treated as date of voluntary retirement.

STEPS TO BE TAKEN FOR INTRODUCING AND IMPLEMENTING VOLUNTARY RETIREMENT SCHEME:

If the company is a public sector undertaking obtain approval of the government. Identify departments/employees to which VRS is to be offered. If there is a union of employees in the establishment involve the union by communicating to them the reasons, the target group and the benefits to be offered to those who opt for the scheme Terms of VRS and benefits to be offered are to be mentioned in the circular and decide the period during which the scheme is to be kept open. Counseling employees is an essential part of implementing the scheme. The counseling should include what the retiring employee can do in future i.e. rehabilitation, how to manage the funds received under the scheme. After receipt of applications for accepting VRS, scrutinize, decide whose applications are to be accepted and those whose are not to be accepted. For those whose application are to be accepted prepare a worksheet showing the benefits each will receive including other dues like Provident Fund, gratuity and earned leave wages for the balance un-availed earned leave, and tax incidence should the VRS amount exceed Rs. 5 lakhs.ADVANTAGES OF VOLUNTARY RETIREMENT SCHEME There is no legal obstacle in implementing VRS as is predominantly encountered in retrenchment under the labour laws. It offers to the employee an attractive financial compensation than what is permitted under retrenchment under the law. Voluntary nature of the schemes precludes the need for enforcement which may give rise to conflicts and disputes. It allows flexibility and can be applied only to certain divisions, departments where there is excess manpower. It allows overall savings in the employee costs thus lowering the overall costs.DISADVANTAGES OF VOLUNTARY RETIREMENT SCHEME It creates fear and a sense of uncertainty to a certain extent among employees. Trade unions generally protest the operation of such schemes. Some of the good, capable and competent employees may also apply for retirement. It is found in practice that organizations may have to repeat the scheme if there is no response or poor response to the scheme by the employees.

ELIGIBILITY CRITERIA IN GENERAL

The companies can frame different schemes of voluntary retirement for different classes of their employees. However, these schemes have to conform to the guidelines prescribed in rule 2BA of the Income-tax Rules. The guidelines provide that the scheme of voluntary retirement framed by a company should be in accordance with the following requirements, namely:

It applies to an employee of the company who has completed ten years of service or completed 40 years of age. It applies to all employees, including workers and executives of the company except Directors of the company. The vacancy caused by voluntary retirement is not to be filled up, nor is the retiring employee to be employed in another company or concern belonging to the same management. The amount receivable on account of voluntary retirement of the employees does not exceed the amount equivalent to one and one-half month salary for each completed year of service or monthly emoluments at the time of retirement multiplied by the balance months of service left before the date of his retirement on superannuation. In any case, the amount should not exceed rupees five lakhs in case of each employee.

IMPLEMENTATION OF SCHEME IN SBI(STATE BANK OF INDIA) INTRODUCTION:State Bank of India (SBI) is the largeststate ownedbankingandfinancial servicescompany inIndia, by almost every parameter - revenues, profits, assets,market capitalization, etc. The bank traces its ancestry toBritish India, through theImperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in theIndian Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in turn became State Bank of India. The Government of Indianationalized the Imperial Bank of India in 1955, with theReserve Bank of Indiataking a 60% stake, and renamed it the State Bank of India. In 2008, the Government took over the stake held by the Reserve Bank of India.SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed atNRIs. The State Bank Group, with over 16,000 branches, has the largest banking branch network in India. With an asset base of $352 billion and $285 billion in deposits, it is a regional banking behemoth. It has a market share among Indian commercial banks of about 20% in deposits and advances, and SBI accounts for almost one-fifth of the nation's loans.SBI has tried to reduce over-staffing by computerizing operations and "golden handshake" schemes that led to a flight of its best and brightest managers. These managers took the retirement allowances and then went on to become senior managers in new private sector banks.

VRS IMPLEMENTATION:History of VRS up to the date of implementation by the respective PSBs, which commenced on 01.09.2000, was common for all the banks. The difference in VRS between banks to bank manifested only at the point of implementation, i.e. when the results were achieved.The package differed from bank to bank but had been broadly structured around the "model" prescribed by the IBA. There was no difference in the eligibility criteria of officers or the quantum of compensation. Individual banks had discretion in defining the category of employees, who were to be kept outside the preview of VRS and who were not eligible to apply for the same.Individual banks also had the discretion regarding the mode of disbursement. The model proposed that banks offer to pay 50 per cent of the settlement in cash and the balance in bonds with a lock-in period of three years. However, State Bank of India (SBI), the largest Indian bank, offered to settle fully in cash. According to figures available by early February, of the estimated one lakh and odd employees who offered to accept the package, at least 33,000 were from the SBI. However SBI has accepted VRS applications of only 20784, of which there were 6,694 officers, 11,271 clerical staff and 2,819 subordinates.On a bank-wise break-up, SBI's estimated cost for VRS was the highest at Rs 1,500 crore. And average cost per employee worked out to Rs.6.52 Lacs. It was claimed that operating expenses for SBI in 2001-2002 increased by only 3.64% mainly due to savings in staff cost after Voluntary Retirement Scheme in the last fiscal year.The SBI is the largest bank in India in terms of network of branches, revenues and workforce. It offers a wide range of services for both personal and corporate banking. The personal banking services include credit cards, housing loans, consumer loans, and insurance. For corporate banking, SBI offers infrastructure finance, cash management and loan syndication. Over the years, the bank became saddled with a large workforce and huge NPAs. According to reports, staff costs in 1999-2000 amounted to Rs 4.5 billion as against Rs 4.1 billion in 1998-99. Increased competition from the new private sector banks (NPBs) further added to SBIs problems. Though SBI had 9,000 branches, a mere 22% of those (1935 branches) were connected through Internet. SBIs net profit per employee was Rs 0.43 million and SBIs NPA level was around 7.18%.

The table given below shows the data of other banks for comparison with SBIs.

A COMPARISON BETWEEN SBI & SOME NPBsTable:

BANKNPAs/NETADVANCESPROFIT PEREMPLOYE E (Rs in Millions)

SBI7.18%0.43

HDFC0.77%0.96

UTI BANK4.71%0.69

ICICI BANK1.53%0.78

From the above table it is clearly indicated that SBI was far from the standards that could be arrived from analyzing other banks NPAs and profit per employee. Analysts remarked that the very factors that were once hailed as the strengths of SBI - reach, customer base and experience - had become its problems. Technological tools like ATMs and the Internet had changed banking dynamics. A large portion of the back-office staff had become redundant after the computerization of banks. To protect its business and remain profitable, SBI realized that it would have to reduce its cost of operations and increase its revenues from fee-based services. The VRS implementation was a part of an overall cost cutting initiative.SBI faced a lot of protest against VRS from its employees due to varying reasons. In spite of all such protests, SBI received around 35,000 applications for the VRS. Analysts pointed out that many bank employees opted for the VRS due to the better employment prospects. SBI had not anticipated such a huge response to the scheme. While the VRS was mainly aimed at reducing the clerical staff and sub-staff, the maximum number of optees turned out to be from the officer cadre. The clerical staff was reluctant to go for the VRS due to the low employment opportunities for them. According to reports, the number of applications from officers stood at 19,295, which meant that over 33 per cent of the total officers in the bank had sought VRS. While announcing the VRS on December 27 2000, SBI had merely stated that the management would relieve only those officer cadre applicants who had crossed the age of 55 years. The bank also issued circular barring treasury managers, forex dealers and a host of other specialized personnel, from seeking VRS. Employees who had not served rural terms were also barred from opting for the scheme. The VRS was also not open to employees who were doctorates, MBAs, Chartered Accountants, Cost & Works accountants, postgraduates in computer applications. Another category barred from the VRS consists of employees who have received training at any Indian Institute of Management, the National Institute of Business Management, the Xavier Labour Relations Institute and trainers who have undergone training on behavioral sciences. Technical training is also a disqualification - applying to those trained in computer or information technology related areas at specialized external institutes in India or abroad and those with training in derivatives. According to highly placed SBI sources, the original VRS and the restrictions that followed have left hardly any significant department open to the VRS. A source said that the aim of the VRS was to reduce the large numbers of the award staff but most of the applicants were officers. "So SBI came out with tough stipulations to discourage the officers," an SBI official said. In another circular, SBI mentioned that any break in service (i.e. leaves availed on a loss of pay basis) would not be taken while calculating the service period. The bank also restricted the loan facilities to the personnel who had opted for the VRS. If an employee wished to continue a housing loan after accepting VRS, he was asked to pay interest at the market rate. After these restrictions were introduced, only 13.4% of the officers were left eligible for VRS instead of the earlier 33%. The conditions laid down by the management faced strong criticism from the officers who had opted for the VRS, but who could not meet the prescribed criteria. They alleged that the bank was practicing discrimination in implementation of the scheme and that no other banks had implemented such policies and denied the opportunity of VRS to officers who were willing to avail the scheme. While the bank authorities considered SBIs VRS agenda meticulous, sources inside the bank strongly believed that the bank should have phased out its VRS implementation because of the disruptions it caused. For instance, in some cases, the banks managerial employees had to share some clerical functions, which delayed the clearance process. Irate customers of SBI complained of the increased waiting time for cheque clearance since there was shortage of manpower.SBI faced flak not only for customer service but also for interest lost on money transferred from various branches as delays in remittance of cash snowballed to over five days with SBI too understaffed to clear transactions in time. In normal cases, the transfer takes place on the same day or the next day. According to media reports, some of SBIs problem centres were Pune, Baroda, Surat, Panjim and, to a lesser extent, Jalandhar and Jamshedpur. But one of the banks human resource executives claims that there were no identified problem centres as such and that the media reports were inaccurate. He concedes, however, that the VRS resulted in some minor regional imbalances, but these were tackled by SBI by rotating the administrative staff to various branches wherever there was a need to do so. SBIs manpower problems were shared by all public sector banks. State Bank of India is not only the largest of the Indian Banks, but also it is the biggest Institution at the Global level in terms of manpower employed. In the period immediately before VRS implementation it employed 237504 officers and other employees. Through the application of VRS it has shed its work force by 20784 (8.7%). Cadre-wise the position is as under.

ParticularsOfficers ClericalSubordinate Aggregate

Total Strength6053611718459784237504

Those opted VRS669411271281920784

%age VRS of Total Strength11%9.62%4.72%8.7%

However State Bank of Travancore is a subsidiary of SBI and is of much smaller size. It has branches mainly spread in Kerala. The subsidiaries of SBI implemented VRS subsequently after it was implemented by the SBI and other Nationalised Banks. SBT had 13000 & odd number of employees (inclusive of all cadres). It incurred an expenditure of Rs.57 Crores towards compensation payment under VRS and relieved 915 employees, which is approximately 7% of the staff-strength as detailed hereunder:

ParticularsOfficers ClericalSubordinate Aggregate

Total Strength31507023296413137

Those opted VRS53429982915

%age VRS of Total Strength16.96%4.28%2.77%7%

SBI took a hit in its profits by charging VRS expenses to the tune of Rs 8.8 bn in FY01. The bank's profits, excluding VRS, however jumped by 22%, in line. During the year SBI implemented a VRS plan to cut its operating costs and improve efficiency levels. The total cost of the scheme to the bank was Rs 23 bn. In FY01 the bank had made a provision of Rs 8.8 bn and planed to write off the balance expenditure equally over a period of four years. SBI moved towards the right direction by implementing the VRS, foraying into retail, technology up gradation plan and entering into the insurance business. In future it was be however difficult for the bank to operate at high margins considering the increasing competition and improving quality of services provided by other banks. Also, the bank will have to provide a higher amount as provisions for non performing assets, if the economic and industrial activity witnesses further downtrend. Departments like internal audit, concurrent audit, monitoring, inspection of borrowers had hardly any staff, according to reports. It was reported that employees working in branches that had a high workload went on work-to-rule agitation, blaming the VRS for their problems. Analysts felt that SBI would have to take serious steps to reorient its HRD policy to restore employee confidence and retain its talented personnel. SBI had many strong organizational strengths and an excellent training system, but due to weak HR policies, it had lost its experts to its competitors. The employees of almost all the new generation private sector banks were former employees of SBI. The banks well-defined promotion policy was systematically flouted by the framers themselves and, as a result, employees with good track records were frequently sidelined. Many analysts felt that SBI was not able to realize the critical importance of recognizing inherent merit and rewarding the performers. The above factors were cited as the major reasons for the success of VRS in the officer cadres, who were reported to be demoralized and de-motivated. The arbitrariness and insensitivity at the corporate level had dealt a severe blow to the employees of the organization. What remained to be seen was whether SBI would be able to reorganize its HRD policy and retain its talented personnel.

IMPLEMENTATION OF THE SCHEME INCANARA BANK

INTRODUCTION:Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port in Karnataka. The Bank has gone through the various phases of its growth trajectory over hundred years of its existence. Growth of Canara Bank was phenomenal, especially after nationalization in the year 1969, attaining the status of a national level player in terms of geographical reach and clientele segments. Eighties was characterized by business diversification for the Bank. In June 2006, the Bank completed a century of operation in the Indian banking industry. The eventful journey of the Bank has been characterized by several memorable milestones. Today, Canara Bank occupies a premier position in the comity of Indian banks. With an unbroken record of profits since its inception, Canara Bank has several firsts to its credit.

VRS IMPLEMENTATION The VRS scheme of canara bank is not different from the rest of the public sector banks in terms of the basic content of the benefit package, or other terms offered. It had a very smooth VRS sail and granted it to almost all of its applicants ranging between 15 and 22 per cent of the total staff strength. Canara Bank,has received an overwhelming response of around 8,500 applications to its voluntary retirement scheme that ended on January 31, has permitted withdrawal of VRS applications till February 10. The total number of employees eligible for VRS were 47.834 and the employees who opted for VRS were 8,500. Canara Bank proposes to acquire banks in regions where its presence is not adequately felt at present.COSTS TO BANKS:

All 26 banksCanara bank

Estimated CostRs. 5.93 lakhRs. 450 Cr

Actual CostRs. 7490 crRs. 750 cr

``We have plans for synergical acquisition through mergers but we will place the proposals before the board of directors of the bank before going to the Government on this score', the Chairman and Managing Director, Mr R. J. Kamath, has said. Addressing presspersons at the knitwear town of Tirupur, Mr Kamath hinted that Maharashtra and Gujarat where the presence of Canara Bank was not strong were the target regions. `Acquisition in these States will bring synergy to bank', he said. The CMD who sought to underplay what he called `controversial media reports' on Canara Bank's move to acquire the Dena Bank, denied that he had stated that his bank was involved in acquiring Dena Bank. `The Special Secretary, Banking Division, himself ha d clearly stated that the Government favoured bank mergers and so, Canara Bank was not averse to acquiring banks through mergers', he added. With 450 branches in Tamil Nadu and 520 branches in Karnataka, the bank already enjoys a strong presence in South and therefore any further acquisitions in the region may not bring synergy to its operation. As for the bank's proposed voluntary retirement scheme (VRS) for its employees, Mr Kamath said that as against the authorisation given earlier by the board to accept 5,000 VRS applications, the total number of applications received was 8,500. The board, scheduled to meet on February 20, will decide on whether to accept all the VRS applications or not. If it chooses to accept all the applications, the total outflow on account of VRS compensation will be Rs 750 crore as against the present pro jection of Rs 450 crore. On the bank's performance, Mr Kamath said its operating profit for the current year was expected to touch the Rs 1,250-crore mark and its net profit would be around Rs 435 crore. Concerted efforts to reduce its non-performing assets (NPA) level had paid dividends. The bank would be able to reduce its NPA by Rs 1,000 crore this year and as against 5.36 per cent last year; the NPA percentage would come down to four per cent, he said.

POST VRS SCENARIO The banks implemented VRS with a view to enjoy all its advantages but somewhere things didnt went as per planned and because of this many problems were faced by the bank management, customers and the existing employees. Customer inconvenience was the least of the problems that banks suffered. There were disgruntled employees throughout the industry. Of course, this state of affairs was inevitable; even the best-planned VRSs has an impact on employee morale. But it is also true that the exercise had left several bank managements dissatisfied with the results in business terms too. To be fair, the exercise cannot be written off as a rampant failure. To start with, its the first of its kind on this scale. It was also a major move in an industry in which employment was almost considered a sinecure. But the problems it has thrown up hold important clues to what can go wrong when corporations implement a golden handshake. The State Bank of India, along with a number of other nationalized banks, implemented a voluntary retirement scheme for its employees. A large number of employees actually took advantage of this scheme and sought premature retirement. In consequence, the overall employment of the State Bank of India shrunk. The consequences, unfortunately, are only too evident to those who use the bank. There is now significant understaffing, and consequent overwork of the remaining employees, with obvious effects on the service. Transactions even simple matters such as withdrawing money from an account - which earlier required a few minutes, can now take up to an hour. There are usually crowds waiting at each counter, with more waiting time and more mistakes. The fault is not that of greater inefficiency of the remaining workers, but that there are simply not enough people left to do all the required jobs easily and efficiently. What is worse is that the remaining workers are now not just overworked but harried and anxious. The same people, who earlier would perform their functions pleasantly and smilingly, are now tensed, rushed and even surly, as they struggle to meet the demands of increasingly irritated customers. Recently, two major multinational banks merged, in an example of growing concentration of the world banking industry. Obviously, that meant that the banks in India also had to merge. This entailed the closing of some branches and the drastic pruning down of staff in others, again through a Voluntary Retirement Scheme which has focused on getting rid of active union members. The consequence, even in this newly merged multinational bank, was a significant deterioration in service. Not only have the number of employees dwindled, but experienced and skilled workers had been replaced with raw recruits who had yet to learn their work and were prone to many more errors. Many of the banks customers found it extraordinary that a major bank, which had always ensured great care in the details of its transactions, was willing to live with such a situation all in the name of reducing staff in order to improve overall efficiency!But for a whole range of services, both public and private, the consumers of such services also lost from the process of reducing the number of workers. There were real losses in terms of delays, reduced capacity of the remaining workers to cope with the greater load, resulting mistakes, and a more oppressive atmosphere in the workplace. In fact, the only real benefit from such downsizing was usually be found in the balance sheets of the companies, as they could show lower labour costs and therefore possibly higher profits. This was what creates the competitive pressure across an industry for other companies to follow suit, and to try and reduce the number of their workers. It is time to call the bluff of those who tried and make us believe that downsizing increases efficiency. Instead, it is really a way of shortchanging both workers and consumers, and increasing profits at the expense of everyone else. The irony, of course, is that when all employers try this approach, it leads to lower economic activity in general, and as a result, for macroeconomic reasons, profits do not raise either! According to many, the timing of the cut-off date for implementation of the VRS gave no room for the management in most of the banks as they were too busy with the annual closing of accounts as at the close of March 31. Most of the top management functionaries in banks were engaged in statutory audit and finalisation of balance sheet within the timeframe prescribed, with the approval of their Boards and the like. The public sector banks in India today are in deep trouble as their bad debts (NPAs) are assuming gigantic proportions with no signs of any serious attempt to recover them. Add to this the unprecedented removal of workforce through the back doors, by resort to VRS, CRS and such other unfair schemes, and a gloomy picture emerges. Explains a banking analyst: Public sector banks have numerous branches and the relocation of staff from one area to another was not as easy as it seemed because the notice given to employees was too short. Says a former employee of the State Bank of Maharashtra, Theres no doubt that the VRS was mismanaged. It left all branches short on staff and managers and the remaining staff frustrated. Part of the problem had to do with the fact that in several cases, many more people opted for VRS than the managements had bargained for. In most banks, the management had not planned the replacement of the duties of the existing staff.

The banks managed to achieve two major VRS objectives: Removing surplus (including non-performers) and reducing employee costs A second objective was still to be met. VRS was supposed to level the age profile.

An additional and major problem was dealing with those who were eligible for VRS and whose applications were rejected. In SBI, for instance, only 21,329 employees applications for VRS got approved out of the total of 35,380 applications, leaving about 11,000 dejected. This lot formed an association - SBIVRS Optee Officers Association - to articulate their case and request the government to reconsider applications The association also maintained that the SBI management abysmally lacked the human touch in its manpower planning and this resulted in indelible functioning among its officers. Eleven cases have been filed by these employees against the bank. Says the HR executives at SBI, It will take some time to soothe the heartburn but through constant communication the employees that were refused VRS, are being convinced that they were needed and hence were not granted VRS. PRIMARY DATAIn order to find out the present thinking of the bank employees, I conducted a survey by distributing questionnaire to bank employees from STATE BANK OF INDIA and CANARA BANK. The survey size is 20 i.e. 10 employees each bank. The questionnaire for the employees is as under-

BANK:AGE: SEX:QUALIFICATION: DESIGNATION:NO. OF YEARS SERVICE PROVIDED:

1. YOUR MONTHLY SALARY RANGES BETWEEN.. BELOW 20,000 20,000 TO 30,000 ABOVE 30,000

2. DEPENDANTS IN YOUR FAMILY.. NONE 2 TO 3 3 TO 5 MORE THAN FIVE

3. A BETTER OPTION FOR YOU VRS CONTINUING THE JOB

4. YOUR EXPECTED AMOUNT FOR VRS

5. YOU WOULD PROBABLY UTILISE THE VRS AMOUNT FOR INVESTMENTS OLD AGE SAVINGS FOR CHILDREN SETTING UP A BUSINESS

FINDINGS

For a clear understanding of the collected and its systematic representation the use of charts and diagrams will be done in order to analyse the data. Moving on with the question whether the bank employees will accept or reject it, the following results were found..

The red bar represents the percentage of employees who would accept the VRS offer and the blue bar represents those who would reject it.Now, the red bar mostly comprised of the people between the age group of 45 50 years. The amount that they expected to receive ranged between Rs 2000000 to Rs 25000000.

The employees who would accept the offer were asked as to where they would invest their amount. Their replies are represented in the form of a bar diagram.

It can be clearly seen that the maximum employees would keep their saving for their old age thus securing their future, and the least of them would apply it in setting up a new business, while some would invest it in setting up a new business and for their children. Thus, it can be concluded saying that if given an option, not many would opt for VRS and that the optees would be people nearing their retiring age and would utilize their amount for their old age saving.

CONCLUSIONS

After a thorough research it can be concluded that If the VRS has landed the banks in a situation where the remaining staff is found inadequate to carry on with the various functions of these banks - both internal and to the clientele - it is necessary to implement the other ingredients of the VRS package such as redeployment, accelerated mechanization and computerization, selected recruitment of specialized staff and closure of or merger of uneconomic branches. The scheme of VRS should convince the employees that the posts in the organization have become redundant and not the person and the organization still value the person. Since this process involves emotions and feelings, every care must be taken by the management that the process must be carried out in such a manner that it keeps the dignity of the employees but at the same time achieves the objective in a tactful manner.

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BIBLIOGRAPHY Banking Sector and Human Resources: Changing Scenario By T. Sreenivas

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