Abstract:
Organizations are always tried to reduce or expand their human resource by taking their current
positions, prevailing business conditions and specific requirements into consideration.
Volunteers Separation Scheme – VSS (also named as Retrenchment strategy, downsizing,
Volunteer Retirement Scheme - VRS) is considered as the best way to reduce organizational
expenses effectively and efficiently by providing handsome amount of money to the employees
(Chu and Ip, 2002; Budros, 1999). Same strategy was used by Pakistan Telecommunication
Company Limited. Due to this strategy, numerous people were dissatisfied. Accordingly, this
study was aimed to determine the impact of VSS strategy of employee’s loyalty, commitment
and job satisfaction. Data was collected from 150 employees working in PTCL. Correlation,
Regression analyses were used to analyze the data. Results showed the downsizing put negative
impact on employee’s loyalty.
