The voluntary redundancy option: carrot or stick?
Date
2005
Authors
Clarke, M.
Editors
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Journal article
Citation
British Journal of Management, 2005; 16(3):245-251
Statement of Responsibility
Marilyn Clarke
Conference Name
Abstract
<jats:p>Voluntary redundancy is a relatively new form of retrenchment that has become a popular means of reducing workforce numbers in downsizing organizations. Voluntary redundancy involves the offer of a financial incentive to encourage employees to ‘volunteer’ for redundancy. Using the findings of a small study of individuals who had taken voluntary redundancy, this paper explores the voluntary nature of voluntary redundancy and suggests that both organizational change and the financial incentive are contributors to the redundancy decision. From an organizational perspective voluntary redundancy does appear to smooth the downsizing process but at the same time tends to mask underlying issues of morale and commitment.</jats:p>
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Dissertation Note
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© 2005 British Academy of Management