Definition of 'Voluntary Retirement Scheme'

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This mode has come about in India as labour laws do not permit direct retrenchment of unionized employees.
Definition: Voluntary retirement scheme is a method used by companies to reduce surplus staff. This mode has come about in India as labour laws do not permit
direct retrenchment of unionized employees.
Description: VRS applies to an employee who has completed 10 years of service or is above 40 years of age. ?It should apply to all employees (by whatever
name called), including workers and executives of a company or of an authority or of a co-operative society, excepting directors of a company or a co-operative
society.
It has to result in an overall reduction in the existing strength of employees. ?The vacancy caused by voluntary retirement is not to be filled up. The retiring
employee shall not be employed in another company or concern belonging to the same management. The amount receivable on account of voluntary retirement of
the employee does not exceed the amount equivalent to three months' salary for each completed year of service, or salary at the time of retirement multiplied by
the balance months of service left before the date of retirement on superannuation of the employee. It is the last salary drawn which is to form the basis for
computing the amount of payment.
Most large public and private sector companies have implemented VRS in recent years.
Also See: 360-Degree Feedback, Competency Mapping, Conflict Management, Employee Stock Option Plan (ESOP), Job Description, MBO, MBWA, Mentoring,
Pink Slip, VRS

Definition of '360 Degree Feedback'

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360-degree feedback is a feedback process where not just your superior but your peers and direct reports and sometimes even customers
evaluate you.

Definition: 360-degree feedback is a feedback process where not just your superior but your peers and direct reports and sometimes even
customers evaluate you. You receive an analysis of how you perceive yourself and how others perceive you.
Description: Benefits of 360-degree feedback:
To the individual:
> This helps the person understand his or her own personality from an outsider's perspective > Development needs are revealed
To the team:
> Increases communication between team members > Supports teamwork by involving team members in the development process
To the organization:
>Better career development for employees > Improves customer service by having customers contribute to evaluation > Drives training
However, should 360-degree feedback be linked to performance appraisals? Prevailing thought says that 360-degree feedback and
performance appraisals should not be linked. If it is linked to compensation decisions, it may lose its power as a tool for development. The
thinking is that when compensation is the outcome, individuals will quickly learn how to play the game of "I'll scratch your back, if you scratch
mine."
Further, if people do not get satisfactory ratings, morale can decrease when 360 is linked to performance appraisal mode. But when 360 is
used purely for development, low scores tend to be viewed as constructive feedback.
Also See: Competency Mapping, Conflict Management, Employee Stock Option Plan (ESOP), Job Description, MBO, MBWA, Mentoring, Pink
Slip, VRS