Abstract
This work explores the scheme’s impact on key dimensions, including profitability, productivity, human resource management, and the psychological effects on employees. The introduction of VRS was driven by the need for cost efficiency, enhanced operational performance, and competitiveness in response to economic liberalisation and globalisation pressures. The study is structured around three core objectives. First, Analysing changes in profitability and productivity in the pre-and post-VRS periods, with specific metrics such as business per employee, profit per employee, and staff cost ratio. Secondly, Evaluate the effects of VRS on human resource management parameters, including policies, development, acquisition, maintenance, and organisational restructuring and lastly towards investigating the psychological impact of VRS on employees, focusing on those who accepted or declined the scheme, with a particular emphasis on morale, loyalty, and stress levels. Using statistical tools like paired t-tests, regression analysis, and factor analysis, the study establishes relationships between VRS objectives and outcomes. Key findings suggest that while profitability and productivity metrics generally improved post-VRS, the scheme also revealed challenges in maintaining employee morale and loyalty among "survivor employees." Additionally, significant shifts in human resource strategies, such as workforce optimization and organisational restructuring, were observed. The research highlights the dual-edged nature of VRS, where operational efficiencies may come at the cost of employee well-being. The findings provide actionable insights for policymakers, banking boards, and HR planners to optimise workforce management strategies in a competitive and liberalised banking environment. Furthermore, the study emphasises the importance of addressing psychological dimensions to ensure sustained organisational health and performance post-VRS.
Key-Words / Index Term
Retirement Scheme (VRS), State Bank of Indore (SBIN), Profitability, Productivity, Human Resource Optimization, Employee Morale, Organisational Restructuring, Economic Liberalisation, Public Sector Banks, SBIN, Competitiveness, Workforce Dynamics
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