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Impact of Globalization & IT
on IR
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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
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Due to liberalization of economy, severalorganizations have taken a number of steps toimprove operational efficiency.
The wake of globalization or in the post-Neweconomic policy 1991 era was the governmentsdecision to disinvest their stake in the equities ofleading public sector undertakings.
Eventually many business houses have begunconsolidating their businesses and large numberof acquisitions and mergers have started takingplace.
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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.
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Impact
1. On collective bargaining:
CB is used to resolve various problems related tolabour & personnel policies.
now mgmt is trying to search new ways to bypass theCB process.
Labour management cooperation to introduce the newtechnology & other changes to overcome the variouscrises.
It can be carried by consultation of workers.
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2. Participative management:
- Includes satisfying social & psychological needof the employees.
- Helps in increasing sense of belonging ness &involvement in decision making.
- Can help the organisation to get maximumutilization of employees.
- Provides the organisation a competitiveadvantage in growing competition.
- Increase in labour participation in management.
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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 .
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3. Employment -
Firms in developed nations now promote-and are oftenrequired 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 frombeing a mere corporate buzzword to basic economic
reality, more and more organizations are realizing thatthey need managers and workers with skills thatconform to the international standards
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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.
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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.
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5. Focus on Corporate Governance:
- Corporate governance is the set of processes,customs, policies, laws, and institutions affecting the waya corporation (or company) is directed, administered orcontrolled.
- An important theme of corporate governance is thenature and extent ofaccountability of particularindividuals in the organization, and mechanisms that tryto reduce or eliminate the principal-agent problem.
- It includes various fundamental issues like howorganisation function while dealing with customers, tradeunions, suppilers,govt, public etc.
- Quality of corporate governance should be high tomaintain industrial peace.
http://en.wikipedia.org/wiki/Accountabilityhttp://en.wikipedia.org/wiki/Principal-agent_problemhttp://en.wikipedia.org/wiki/Principal-agent_problemhttp://en.wikipedia.org/wiki/Principal-agent_problemhttp://en.wikipedia.org/wiki/Principal-agent_problemhttp://en.wikipedia.org/wiki/Accountability7/27/2019 Impact of Globalization & IT on IR
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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 inincreasing the standard of employees.
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7. Technology:
- In this era of globalization is the interaction betweentechnological changes, micro electronic technology,&industrial relations.
- Technological changes provide unprecedentedopportunities for employers to gain control over theworkforce and workers.
- The present day high-tech information society hasresulted in a shift in emphasis away from muscle to mindin the use of human energy
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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 madeby institutions like UNESCO and ILO.
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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
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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.
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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.
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Globalization affect the labour & Labour
institutions in following ways:
Developed Quality management system.
Changes in the nature of employment- contract basesjob.
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 qualityproduct.
Changes in the composition of the workforce- highershare of women employees.
Global recruitment process.( high qualification & skills)
Empowerment
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Impact of technology.
It is an instrument of development.
It has affected various aspects social & economiclife directly or indirectly.
Technology change can be change in tools utilizedfor the production.
Certain changes which affect jobs & influence theskills in the industrial system, can be called astechnological changes.
They are: Scientific management of time & motion studies.
Change in location of plant.
Automation & Rationalization etc.
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Automation & Rationalization which are different
forms of technology introduced in Indian industry
system in 1960.
Rationalization implies a basic change instructure & control of industrial activity.
when applied brings planned
production,modernisation of production process
& sales,technology,centralised regulation of
finance, & optimum utilization of manpower.
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Automation is the highest form of mechanization.
Lowest level operation involves hand work,
operations are controlled by humans.
Highest level operation, machines provides thedata,form its own operations, control its process
& govern the production.
Thus, when a country wants to develop & want toachieve success at National & international level
technology becomes must.
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Eg: Introduction of computers.
Has a great impact on Labour
management relations in India.
Functioning of computers made the
computers important in industry.
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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.
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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)
1. Obstruction2. Competition
3. Control.
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Impact of technology
Impact depends on
- Nature of change
- Rate & speed of change- Method employed by the management.
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Impacts are:
1. Installation of large machineries creates aserious problem of unemployment.
2. Affect the work environment & alters therelationship between management &
employees.3. Change affect the labour in two ways:
a. Economic: occupational adjustment, retrainingproblems,allocaton of gains etc.
b. Social: Psychological factors like resistance tochange, jab satisfaction, workers & unionreaction, attitudes, utilization of leisures.
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4. Resistance on the part of workers forchange. It took various forms likeaggression, 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 industrialconflict.
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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.
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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.