Impact of Globalization on Industrial Relations

ceres_shweta

New member
THE IMPACT OF GLOBALIZATION ON INDUSTRIAL RELATIONS

The impact of globalization extends from human and social or ethical perspective to the
strategic or technological perspective. Thus it has a wide scope and the present work attempts to highlight this impact as consequences of globalization and liberalization.
Due to liberalization of economy, several organizations have taken a number of steps to
improve operational efficiency. This includes the introduction of quality management system, identification of NPAs and finding ways and means to transform organizations into strategic business units or profit centers. Another step that was taken in the wake of globalization or in the post-New economic policy 1991 era was the government’s decision to disinvest their stake in the equities of leading public sector undertakings. Eventually many business houses have begun consolidating their businesses and large number of acquisitions and mergers have started taking place.
With large mergers and the development of new free markets around the world, major
corporations now wield economic and political power then the governments under which they operate. In response, public pressure has increased for businesses to take on more social responsibility and operate according to higher levels of ethics. Firms in developed nations now promote-and are often required by law to observe-nondiscriminatory policies for the hiring, treatment, and pay of all employees. Some companies are also now more aware of the economic and social benefits of being active in local communities by sponsoring events and encouraging employees to serve on civic committees. Businesses will continue to adjust their operations according the competing goals of earning profits and responding to public pressures for them to behave in ways that benefit society. Among the employment benefits that are prevalent are VRS, ESOP and other fringe benefits.
However, on the recruitment front, as globalization evolves from being a mere corporate
buzzword to basic economic reality, more and more organizations are realizing that they need managers and workers with skills that conform to the international standards. The CEOs and senior recruitment consultants have to talk about why selecting and developing global managers. Hence organizations are keen to take care of expatriation and repatriation issues or meeting relocation costs to keep their employees motivated and to retain the best performers and keep building a global talent pool.
In this era of globalization, it is also necessary to study corporate governance, a concept
that is multi dimensional. It includes the very fundamental issues like how organizations function in day-to-day dealing with customers, trade unions, suppliers, shareholders, government and the public. Owing to so many forces, corporate governance requires more internal discipline over external accountability. The internal discipline implies that the quality of corporate governance must be of high order and that workers- management relations are conceived to achieve industrial harmony.
Another astonishing fact in this era of globalization is the interaction between
technological changes, primarily micro electronic technology, and industrial relations, while looking at the consequences it is felt that technological changes provide unprecedented opportunities for employers to gain control over the workforce and workers. The present day high-tech information society has resulted in a shift in emphasis away form brawn to brain or from muscle to mind in the use of human energy. Instead of conventional principles based on direction and control. Modern organizations have resorted to consent and consensus. The decisions are least unilateral and such progressive ideas like workers empowerment and workers participation in management have been adopted. As a result these organizations, their workers as knowledge Workers, their products as Knowledge based products (owing to value additions) and last but not least, of having contributed to the knowledge Economy which the nation is gradually heading towards.
Globalization has also given competitive advantage to most organizations. Accelerated
growth, productivity improvement, and accent on total quality have been great milestones. Truly speaking, in a global economy, organizations that have entered into strategic alliances and initialed innovative practices have made huge differences to their enterprises. However, world Bank and IMF have also advised such organizations to focus their attention on social and labor issues and align themselves to the effort being made by institutions like UNESCO and ILO. In India, the confederation of Indian Industries (CII) has addressed itself to social and ethical issues and a few organizations have shown concern to these issues including those under study in this project.
Globalization has necessitated certain structural adjustments (restructuring and
diversifications), which as led to cutting off the jobs and recession in the employment scenario.
Social security systems in most industrialized countries have become vulnerable. Such large scale redundancies like stopping indexation of wages, workforce reduction and like are a major cause of concern but at the same time the rise of informal sector employment and part time employment has offered some relief.
Privatization proved a major thrust to promote global trends. Eventually the trade unions
become concerned about their job loss and potential adverse effects on their group dynamics and their rights. Hence some unions initially came forward to impede the growth of privatization in general and restructuring and diversification in particular. But gradually they understood that in fact privatization is beneficial for the trade unions as they gain more rights like right to organize, right to collective bargaining. The right to strike which has been restricted or denied in public services is now made available to private enterprises. It is yet to determine the negative effects of privatization on collective bargaining and trade dynamics and thus it becomes one of the objectives of this study.
 

savio13

MP Guru
THE IMPACT OF GLOBALIZATION ON INDUSTRIAL RELATIONS

The impact of globalization extends from human and social or ethical perspective to the
strategic or technological perspective. Thus it has a wide scope and the present work attempts to highlight this impact as consequences of globalization and liberalization.
Due to liberalization of economy, several organizations have taken a number of steps to
improve operational efficiency. This includes the introduction of quality management system, identification of NPAs and finding ways and means to transform organizations into strategic business units or profit centers. Another step that was taken in the wake of globalization or in the post-New economic policy 1991 era was the government’s decision to disinvest their stake in the equities of leading public sector undertakings. Eventually many business houses have begun consolidating their businesses and large number of acquisitions and mergers have started taking place.
With large mergers and the development of new free markets around the world, major
corporations now wield economic and political power then the governments under which they operate. In response, public pressure has increased for businesses to take on more social responsibility and operate according to higher levels of ethics. Firms in developed nations now promote-and are often required by law to observe-nondiscriminatory policies for the hiring, treatment, and pay of all employees. Some companies are also now more aware of the economic and social benefits of being active in local communities by sponsoring events and encouraging employees to serve on civic committees. Businesses will continue to adjust their operations according the competing goals of earning profits and responding to public pressures for them to behave in ways that benefit society. Among the employment benefits that are prevalent are VRS, ESOP and other fringe benefits.
However, on the recruitment front, as globalization evolves from being a mere corporate
buzzword to basic economic reality, more and more organizations are realizing that they need managers and workers with skills that conform to the international standards. The CEOs and senior recruitment consultants have to talk about why selecting and developing global managers. Hence organizations are keen to take care of expatriation and repatriation issues or meeting relocation costs to keep their employees motivated and to retain the best performers and keep building a global talent pool.
In this era of globalization, it is also necessary to study corporate governance, a concept
that is multi dimensional. It includes the very fundamental issues like how organizations function in day-to-day dealing with customers, trade unions, suppliers, shareholders, government and the public. Owing to so many forces, corporate governance requires more internal discipline over external accountability. The internal discipline implies that the quality of corporate governance must be of high order and that workers- management relations are conceived to achieve industrial harmony.
Another astonishing fact in this era of globalization is the interaction between
technological changes, primarily micro electronic technology, and industrial relations, while looking at the consequences it is felt that technological changes provide unprecedented opportunities for employers to gain control over the workforce and workers. The present day high-tech information society has resulted in a shift in emphasis away form brawn to brain or from muscle to mind in the use of human energy. Instead of conventional principles based on direction and control. Modern organizations have resorted to consent and consensus. The decisions are least unilateral and such progressive ideas like workers empowerment and workers participation in management have been adopted. As a result these organizations, their workers as knowledge Workers, their products as Knowledge based products (owing to value additions) and last but not least, of having contributed to the knowledge Economy which the nation is gradually heading towards.
Globalization has also given competitive advantage to most organizations. Accelerated
growth, productivity improvement, and accent on total quality have been great milestones. Truly speaking, in a global economy, organizations that have entered into strategic alliances and initialed innovative practices have made huge differences to their enterprises. However, world Bank and IMF have also advised such organizations to focus their attention on social and labor issues and align themselves to the effort being made by institutions like UNESCO and ILO. In India, the confederation of Indian Industries (CII) has addressed itself to social and ethical issues and a few organizations have shown concern to these issues including those under study in this project.
Globalization has necessitated certain structural adjustments (restructuring and
diversifications), which as led to cutting off the jobs and recession in the employment scenario.
Social security systems in most industrialized countries have become vulnerable. Such large scale redundancies like stopping indexation of wages, workforce reduction and like are a major cause of concern but at the same time the rise of informal sector employment and part time employment has offered some relief.
Privatization proved a major thrust to promote global trends. Eventually the trade unions
become concerned about their job loss and potential adverse effects on their group dynamics and their rights. Hence some unions initially came forward to impede the growth of privatization in general and restructuring and diversification in particular. But gradually they understood that in fact privatization is beneficial for the trade unions as they gain more rights like right to organize, right to collective bargaining. The right to strike which has been restricted or denied in public services is now made available to private enterprises. It is yet to determine the negative effects of privatization on collective bargaining and trade dynamics and thus it becomes one of the objectives of this study.

The company these days are undergoing downfall... But the company has to retain its employees .. this way the experienced players of the company are not lost....

The company should reduce the salary.....

But shouldn't sack their employees....
 
The various negative Effects of Globalization on Indian Industry are that it increased competition in the Indian market between the foreign companies and domestic companies. With the foreign goods being better than the Indian goods, the consumer preferred to buy the foreign goods. This reduced the amount of profit of the Indian Industry companies. This happened mainly in the pharmaceutical, manufacturing, chemical, and steel industries. The negative Effects of Globalization on Indian Industry are that with the coming of technology the number of labor required decreased and this resulted in many people being removed from their jobs. This happened mainly in the pharmaceutical, chemical, manufacturing, and cement industries.
 
Although Globalization took place because of industrialization but Important thing which i thing what are the relations between Globalization and employment relations.here are some interesting facts given below.

Although no one disputes that employment relations worldwide have been greatly affected by globalisation, no clear consensus has emerged on the nature and significance of this impact. The seven contributions to this symposium pursue a comparative approach, suggesting that direct analysis of employment relations in distinct industries in two comparably-sized economies since the advent of globalisation leads to a more precise understanding of the interaction of globalisation and employment relations, and sets a pattern for other studies to follow.
The economies studied in the symposium are Australia and Korea, and the industries are automobile (and auto parts) manufacturing and retail banking. In both countries, labour unions play a key role in the way in which employers and governments react to political and economic pressures.
Among the particular topics discussed by the contributors are the following:
effects of the 1997 financial crisis in Korea;
the extent to which the automobile industry in one country (Korea) depends on parts and raw material from another country (Australia);
cross-border cooperation between unions;
the growing trend toward enterprise bargaining;
conciliation and arbitration of industrial disputes; and
the role of government-sponsored industrial relations commissions.
The contributing authors are all industrial relations authorities in Australia or Korea. The in-depth analysis they offer in these very specific areas will be of value to labour lawyers and industrial relations scholars everywhere for the light it sheds on this crucial aspect of contemporary social and economic development.
 

jayashreemarg

Par 100 posts (V.I.P)
One view is that globalization has created pressures for convergence between different countries in regard to employment relations. Another is that national level institutions play a mediating role in maintaining cross-national differences, leading to divergence.
 

Buyrakhi

New member
Globalisation is inevitable trend with the development of technologies in transportation, communication, and information etc. Globalisation has its impacts on many fields including politics, economics, and cultures around the world. With respect to impact on the economy,
 

poornima lagadapati

Active member
Globalisation means intensified competition, the transfer of investments, production relocation outside of Europe, job losses, unemployment and rapid structural changes. European labour markets are characterised as relatively rigid, with high social security and strong industrial relations (IR). The aim of this study is to find out, how the social partners, governments and researchers interpret the challenges of globalisation on future developments of industrial relations. The research is based on expert foresight survey where IR experts from 34 countries were interviewed. The project looked to the future, to the year 2025 and discussed on what industrial relations and social dialogue would look like after fifteen-twenty years. The main findings convinced that decentralisation of collective bargaining is expected in old member states, while the situation will remain unchanged in majority of the new member states. We can conclude that European level convergence is expected in the area of industrial relations
 
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