Voluntary Redundancy - A tool for restructuring or a temporary pain reliever?

This thesis has two aims: The main purpose is to describe and illustrate how a large Ltd. company can use voluntary redundancy as a tool for restructuring. The additional purpose is to challenge the concept of voluntary redundancy trough outlining alternative ways of reaching the intended achievements of the voluntary redundancy programme. The theoretical framework that has been used primarily contains knowledge assets theories. The chosen theories are intellectual capital and knowledge management theory to approach and analyse the empirical findings. The Knowledge-Profile was used in order to structure and present the knowledge processes of the case study. The empirical work in this thesis has been based on the different interviews conducted at Ericsson Sweden. The interviewees were Mats C Andersson (responsible for design and implementation of the voluntary redundancy programme at Ericsson), Anna Guldstrand (union representative and deputy director and knowledge manager at Ericsson), Anders Weihe (chief legal adviser of employer issues at the Association of Swedish Engineering Industries) and three former employees. The findings are presented in a case study in order to fulfil the main purpose of this thesis. The knowledge processes that occurred during the implementation of the programme is structured and analysed trough the organizational K-Profile model. To challenge the concept of voluntary redundancy, an analysis matrix is presented that analyze and compares the “Ericsson way” against the theoretical approaches of intellectual capital and knowledge management. Intellectual capital theory and the voluntary redundancy programme both manage to handle Ericssons intended purposes with the programme. It seems like a decision making process occurred, without a sufficient analysis that would provide alternatives. A consequence of the implementation is that questions arise considering the sustainability of the achieved effects. Ericsson has concentrated on acquiring new human capital, but there has not been enough focus on the multiplier connection between human and structural capital. However, voluntary redundancy, in the way it has been used in this case, can be a very efficient way of restructuring an organization without interfering with LAS regulations