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Purpose

The purpose of this paper is to highlight the significance of the voluntary retirement scheme (VRS) as a management tool for organisational restructuring.

Design/methodology/approach

The paper presents the personal view of the author, based on research findings and practical experience.

Findings

The paper advances the viewpoint that to attain the competitive edge and to survive in the current turbulent times, it is essential for the management to right size their organisations. It is imperative for them to look for the right kind of strategies to overcome the redundancy. They have to choose the most viable options considering its financial and legal implications. This would not only help management in maintaining the healthy industrial relations but also enhance the overall organisational profitability and well-being.

Practical implications

The paper highlights the pros and cons of the VRS. It reflects the financial and legal implications of the same on the employer and employees in the organisations.

Originality/value

This paper depicts how VRS (acts as a management tool and helps in improving organisational efficiency. It basically talks about exercising the VRS and its related legislation in an Indian context.

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