Downsizing Strategies-A Case Study of Bharath Sanchar Nigam Limited

Workforce downsizing has become a popular Human resources practice by management over the last few decades. Corporate downsizing is the result of poor economic conditions and/or companies need to cut the jobs in order to lower costs and maintain profitability. After the economic liberalization in India in 1991, most PSEs are compelled to stream line their operations to increase their efficiency. One of the major steps taken to achieve this goal is to shed the excess staff on their payrolls through the ‘golden handshake’, by floating voluntary retirement schemes (VRS) and compulsory retirement schemes (CRS). The other major step is to outsource non-core activities and focus on their core competencies. This article provides a snap shot of the Indian experience of downsizing and social implications of these measures in general and specific in BSNL. The financial position of BSNL is studied and examined that the employee cost is more BSNL. The data is analyzed based on annual reports of BSNL for a period of four years i.e. 2011-2013-14. BSNL has already adopted some downsizing strategies like VRS. Organizational downsizing is more effective, when the management communicate openly and honestly to their employees regarding the reason downsizing and the downsizing plan. Managers are also need to listen to employees and provide comfort when necessary in order to keep up the high morale among the survivors of the organization.