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Old 24th January 2014, 07:41   #16
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Default Re: Tata Motors to offer voluntary retirement, a direct impact of industry sluggishne

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Originally Posted by neoonwheels View Post

VRS is kind of safest alternative to politely asking people to make a move. It might as well turn out good for employees nearing retirement.

High time they came out with an appealing design and fresh and good looking interiors on their cars. Why so obsession with the ugly India/Indigo design language. Storm interiors still compete with trucks and buses rather than XUV. I hope Karl would be able to turn tables for this marquee.
I agree on the VRS although it will get rid of only oldies nearing retirement. The middle aged unproductive workers need to be chucked out manually.

Indica/Indigo designs are fit for the purpose, that is to make cabs, on the other hand, the Vista and Manza both have good interiors and customers don't have any complaints on them.
Regarding Storme's interiors from what I have seen, it is a far classier design than the garish bling bling Mahindra design, with clashing elements, loud colors and neon lighting. May be the problem is Indian's not liking simple, elegant or understated designs?
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Old 24th January 2014, 09:38   #17
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Default Re: Tata Motors to offer voluntary retirement, a direct impact of industry sluggishne

In most cases, VRS offered among senior management has backfired on the companies.

The aim of VRS is to give an attractive enough offer to the middle level and senior management so that the inefficient ones would avail it and quit the organization.

In most cases, what really happens is that the most efficient employees are the first to agree for this attractive package. Thanks to their quality, they'll not face any difficulty in finding another attractive job elsewhere in a very short while. So they'll get this package as a bonus and get similar package like what they got in Tata at their new job. If they'll get full pension too, then nothing like it!

The inefficient folks however know that it is not likely for them to get a good job elsewhere and would be reluctant to opt for the VRS and might continue.

A lot of banks offered VRS in the past and ended up with the above situation where most of the good people retired and all the inefficient ones remained in the system. Those who retired get full pension and the additional salary from their new employment that they joined in a few months.

I hope history doesn't repeat itself at Tata Motors.
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Old 24th January 2014, 15:48   #18
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Default Re: Tata Motors to offer voluntary retirement, a direct impact of industry sluggishne

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In most cases, what really happens is that the most efficient employees are the first to agree for this attractive package.

A lot of banks offered VRS in the past and ended up with the above situation where most of the good people retired and all the inefficient ones remained in the system.
Very informative. Question: Can VRS be offered selectively to employees? That way, the HR can target only the inefficient / unproductive staff?
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Old 24th January 2014, 15:58   #19
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Default Re: Tata Motors to offer voluntary retirement, a direct impact of industry sluggishne

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Very informative. Question: Can VRS be offered selectively to employees? That way, the HR can target only the inefficient / unproductive staff?
Then it is not called VRS but Forced retirement.

What HR does is to put direct/indirect pressure on non performing/older employees to opt for VRS.
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Old 24th January 2014, 16:04   #20
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Default Re: Tata Motors to offer voluntary retirement, a direct impact of industry sluggishne

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Very informative. Question: Can VRS be offered selectively to employees? That way, the HR can target only the inefficient / unproductive staff?
If its applicable only for select people who are inefficient, then it is no longer 'voluntary'. It would only be like the practice of 'forced resignation'. If it is available only for the inefficient staff, it would by default stamp anyone who took VRS as inefficient and the employees are unlikely to be willing to take up such a social stigma which can also hinder their future job prospects.

If those employees take the union route or legal route, things could get really ugly in no time. Unlike the multinational companies in the software field who would have drafted carefully worded employment contracts, I doubt if the contracts signed by Tata employees 20 years back had all those loopholes covered.
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Old 24th January 2014, 18:34   #21
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Default Re: Tata Motors to offer voluntary retirement, a direct impact of industry sluggishne

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Originally Posted by zenren View Post
If its applicable only for select people who are inefficient, then it is no longer 'voluntary'. It would only be like the practice of 'forced resignation'. If it is available only for the inefficient staff, it would by default stamp anyone who took VRS as inefficient and the employees are unlikely to be willing to take up such a social stigma which can also hinder their future job prospects.

If those employees take the union route or legal route, things could get really ugly in no time. Unlike the multinational companies in the software field who would have drafted carefully worded employment contracts, I doubt if the contracts signed by Tata employees 20 years back had all those loopholes covered.
Correct!
Its only offered to select people and not called as VRS but a 'Special Package'.
Mostly targeted above 50 years aged as mentioned earlier.
Also, this is only for Staff and not the non - bargainable i.e Union employees.
Mostly targeted at those people who are not performing for the last 1 or two years consistently.
Sorry for those, But, It is the wake up call for others too, who are on the border line to perform immediately.

I understand, some 200 Executive grades were offered CRS. EG means - who are offered a company car. Minimum AGM levels.
The new leadership has changed many people's perceptions to the roots.
It's no more a heaven for Lazy people. One way its good for the company. IMHO. Not to hurt any body please.
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Old 25th January 2014, 00:59   #22
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Default Re: Tata Motors to offer voluntary retirement, a direct impact of industry sluggishne

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Originally Posted by zenren View Post
In most cases, VRS offered among senior management has backfired on the companies.

The aim of VRS is to give an attractive enough offer to the middle level and senior management so that the inefficient ones would avail it and quit the organization.

In most cases, what really happens is that the most efficient employees are the first to agree for this attractive package. Thanks to their quality, they'll not face any difficulty in finding another attractive job elsewhere in a very short while. So they'll get this package as a bonus and get similar package like what they got in Tata at their new job. If they'll get full pension too, then nothing like it!
Thats an eye opener. Very much possible too

I think TM must hire some of the guys from TBHP to involve in their decision making. I wonder what runs in their minds when they come up with such schemes. I was not aware that people who take VRS can join another company. Is it really possible to do so? Wouldnt the HR dept consider such circumstances? Is there any sort of clause which may prevent future employment in other companies? Logically I feel its my freedom to work anywhere I want anytime but since in VRS they are offering some benefits to compensate for the early retirement, is it legally possible for the person to work in another company and get paid there also?
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Old 25th January 2014, 01:30   #23
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Multiple benefits: weed out inefficiencies, replace costly labour with cheaper one and bring fresh blood and talent into the company. Back when Mr. Anand Mahindra took the reins of M&M from his father he did the same thing. See where it was then and see where it is now.
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Old 25th January 2014, 08:00   #24
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Default Re: Tata Motors to offer voluntary retirement, a direct impact of industry sluggishne

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Originally Posted by audioholic View Post
I was not aware that people who take VRS can join another company. Is it really possible to do so? Wouldnt the HR dept consider such circumstances? Is there any sort of clause which may prevent future employment in other companies? Logically I feel its my freedom to work anywhere I want anytime but since in VRS they are offering some benefits to compensate for the early retirement, is it legally possible for the person to work in another company and get paid there also?
As long as they are not paying full salaries to the retired folks, they cannot prevent future employment. There are provisions for non-disclosure agreements which would protect the companies from the practice of competitors hiring their staff and knowing about their current and future projects. As long as the future employment of the retired employee would in no way be against the current company, there is no reason for the company to be aggrieved.
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Old 25th January 2014, 10:35   #25
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Default Re: Tata Motors to offer voluntary retirement, a direct impact of industry sluggishne

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Originally Posted by GTO View Post
Very informative. Question: Can VRS be offered selectively to employees? That way, the HR can target only the inefficient / unproductive staff?
There are several gray areas under which companies can target unproductive employees. For example, the ones you need to chuck out, can be given dead beat assignments, not appraised properly, transferred multiple times, made to feel un important and unwanted, and when they go to their bosses to complain, a vrs form can be handed over.. likewise when your stars want to use vrs, you can give them special projects, best appraisals, promotions, and other incentives to keep them in.
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Old 26th January 2014, 05:50   #26
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Default Re: Tata Motors to offer voluntary retirement, a direct impact of industry sluggishne

Will Tata Motors still be able to makeup after sacking employees, I really doubt this strategy is going to work in favour of them. They were on a downhill from 2-3 years did nothing to get rid of their pathetic line-up of cars, no new trend setting launches, they had one last chance last year when they refreshed their Indica and Indigo models which also they failed. Just by changing the color of interiors no one is going to buy their cars, can't they design a proper dashboard and front console for their cars, their wheel caps looks cheap and design is weird, even the new refreshed Indica Vista launched this month is no different from its old version, so many missed opportunities. The marketing team and their design team probably have a severe miscommunication otherwise they would have not reached such a stage.
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Old 26th January 2014, 08:18   #27
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I believe in another thread it has been stated that Tata Motors will be launching the Falcon models in 2014. As a precursor to that they have brought out the Revotron. The Nano Twist has been launched. Still why this bashing?
TaMo isn't sacking people. It's a voluntary retirement scheme. It's most likely launched to get rid of people who haven't been able to innovate and is likely to bring in some new talent as well as save some money which could be used towards better R&D and products.
Simply ranting against TaMo will not help unless you have something constructive to say about the VRS.
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