Psychological Impacts of VRS: A Critical Analysis of Employee Behavior and Organisational Dynamics in PSU Banks

Ravindra Yadav¹

Section:Research Paper, Product Type: Journal-Paper
Vol.3 , Issue.1 , pp.6-10, Jun-2015

Online published on Mar 30, 2015

Copyright © Ravindra Yadav . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
This study evaluates the psychological effects of Voluntary Retirement Schemes (VRS) on employees in public sector banks, with a focus on those who accepted the scheme and those who remained in the organisation. While VRS aims to optimise workforce structure and improve financial performance, its psychological consequences on employees remain a significant concern. This research explores key psychological parameters, including job satisfaction, morale, stress, and post-retirement adjustment. Using tools such as factor analysis and survey-based indices, the study investigates changes in employee behaviour, trust in organisational processes, and overall emotional well-being. The findings highlight that while organisational performance might improve post-VRS, employees who remain often experience increased stress, diminished morale, and a perception of unfairness. Additionally, employees who opted for VRS may face financial and life satisfaction challenges, indicating the need for enhanced support mechanisms. This research provides actionable insights for HR planners and policymakers to balance operational efficiency with employee well-being in the banking sector.

Key-Words / Index Term :
voluntary Retirement Scheme (VRS), Job Satisfaction, Employee Morale, Stress, Organisational Dynamics, Public Sector Banks, Workforce Optimization, Financial Security

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