Impact of Globalization & IT on IR

It can be called as economic integration across the globe in term of free movement of capital, technology ,products & people. The impact of globalization extends from human and social or ethical perspective to the strategic or technological perspective

 Due to liberalization of economy, several organizations have taken a number of steps to improve operational efficiency. The wake of globalization or in the post-New economic policy 1991 era was the governments 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.

Globalization was possible

Globe has come near due to various means of communication. Increasing technology & managerial abilities to cater the global market. Global attitude has developed & nothing is overseas anymore.

Impact
1. On collective bargaining: CB is used to resolve various problems related to labour & personnel policies. now mgmt is trying to search new ways to bypass the CB process. Labour management cooperation to introduce the new technology & other changes to overcome the various crises. It can be carried by consultation of workers.

2. Participative management: - Includes satisfying social & psychological need of the employees. - Helps in increasing sense of belonging ness & involvement in decision making. - Can help the organisation to get maximum utilization of employees. - Provides the organisation a competitive advantage in growing competition. - Increase in labour participation in management.

3. Quality circles,TQM : - Quality improvement ,up gradation & maintenance are main requirement of new economic policy. - In order to match the international standards need for quality improvement .

3. Employment -

Firms in developed nations now promote-and are often required by law to observe-nondiscriminatory policies for the hiring, treatment, and pay of all. Among the employment benefits that are prevalent are VRS, ESOP and other fringe benefits. 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 & employees. 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.

4. Developed corporate social responsibity: - There is increase for business to take more social responsibility & follow all ethics in all the various function in the organisation.

5. Focus on Corporate Governance: - Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. - An important theme of corporate governance is the nature and extent of accountability of particular individuals in the organization, and mechanisms that try to reduce or eliminate the principal-agent problem. - It includes various fundamental issues like how organisation function while dealing with customers, trade unions, suppilers,govt, public etc. - Quality of corporate governance should be high to maintain industrial peace.

6. Increased standard of employees: - Due to globalization, need was to have competitive advantage to sustain in market, which needed quality products, ethical environment & processes, increase in participation of employees, empowerment of employees helped in increasing the standard of employees.

7. Technology: - In this era of globalization is the interaction between technological changes, micro electronic technology,& industrial relations. - 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 from muscle to mind in the use of human energy

 World Bank and IMF have also advised such global organizations to focus their attention on social and labor issues and align themselves to the effort being made by institutions like UNESCO and ILO.

Other impact
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 weak. Such large scale unnecessary things like stopping indexation of wages, workforce reduction and like are a major cause of concern

 the trade unions become concerned about their job loss and potential adverse effects on their group dynamics and their rights. Globalization has suffered labour forces directly or indirectly. Led to job losses in advance economy. Affected low skill workers more than the high skill workers.

 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.

Globalization affect the labour & Labour institutions in following ways:

Developed Quality management system. Changes in the nature of employment- contract bases job. Change in job structure- flat structure. Functional flexibility. Team work started emerging. Importance of specific skills generated. Performance rate pay. More emphasis on customer service, care for quality product. Changes in the composition of the workforce- higher share of women employees. Global recruitment process.( high qualification & skills) Empowerment

Impact of technology.
It is an instrument of development. It has affected various aspects social & economic life directly or indirectly. Technology change can be change in tools utilized for the production. Certain changes which affect jobs & influence the skills in the industrial system, can be called as technological changes. They are: Scientific management of time & motion studies. Change in location of plant. Automation & Rationalization etc.

 Automation & Rationalization which are different forms of technology introduced in Indian industry system in 1960. Rationalization implies a basic change in structure & control of industrial activity. when applied brings planned production,modernisation of production process & sales,technology,centralised regulation of finance, & optimum utilization of manpower.

 Automation is the highest form of mechanization. Lowest level operation involves hand work, operations are controlled by humans. Highest level operation, machines provides the data,form its own operations, control its process & govern the production. Thus, when a country wants to develop & want to achieve success at National & international level technology becomes must.

Eg: Introduction of computers.

Has a great impact on Labour management relations in India. Functioning of computers made the computers important in industry.

Response of Employees to change in technology.

Initially it was mixed with suspicion & fear. Apprehensive about their security of their job,future careers. Technology change the concept of work. Relieved the employees from repetitive job & made the work easier & safe.

Attitude of employees
Prevent the introduction of automation & rationalization. Slow down the introduction of change. Agree to cooperate on change plan on certain conditions. Expedite( speed up) the change. The responses are in 3 stages ( By summer Slichter) Obstruction Competition Control.

1. 2. 3.

Impact of technology
Impact depends on - Nature of change - Rate & speed of change - Method employed by the management.

Impacts are:
1. Installation of large machineries creates a serious problem of unemployment. 2. Affect the work environment & alters the relationship between management & employees. 3. Change affect the labour in two ways: a. Economic: occupational adjustment, retraining problems,allocaton of gains etc. b. Social: Psychological factors like resistance to change, jab satisfaction, workers & union reaction, attitudes, utilization of leisures.

4. Resistance on the part of workers for change. It took various forms like aggression, leading to strike,absentism,resignations etc. But all changes are not resisted. 5. Technology replaced man by machine. 6.Unwillingness of management to discuss & implement change- lead to industrial conflict.

Other impact are:

Changes in job content, creating new jobs & replacing old ones. Fitting the jobs in to the existing incentive scheme or piece rate structure. New jobs created leading to dissolution of unskilled jobs.

 While implementing change its not only cost benefit analysis, but effect on IR should also taken into account. IR & Personnel manager has to be carefully evolve in strategy formulation, which is acceptable to workers & same time favoring the enterprise.