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Globalization and IR

The phases of industrial relations in India includes both pre liberalisation and post liberalisation. Prior to liberalisation the key features were that the economy was state owned, there were subsidies and the domestic market was protected. It is true that the impact of globalisation on industrial relations is contradictory in nature. Globalisation affects business and nations by both reducing barriers between countries and increasing integration in world markets.

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Ankit Raj
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107 views

Globalization and IR

The phases of industrial relations in India includes both pre liberalisation and post liberalisation. Prior to liberalisation the key features were that the economy was state owned, there were subsidies and the domestic market was protected. It is true that the impact of globalisation on industrial relations is contradictory in nature. Globalisation affects business and nations by both reducing barriers between countries and increasing integration in world markets.

Uploaded by

Ankit Raj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Before Liberalization Post Liberalization

State-owned Market-led
Protected domestic market Competitive area
subsidies Rational pricing
Welfare state active in labour Labour neutral and investment
market friendly state policies
Govt. funded social security Emphasis on CSR
 Globalisation can be defined as a process of
increasing global connectivity, integration and
interdependence in the economic, social,
technological, cultural, political and institutional
spheres.

 Globalisation refers, for instance, to the


processes that reduce barriers between
countries and involve greater integration in
world markets, thus increasing the pressure for
assimilation towards international standards
 Increasing Integration Of Global Economic
Activities,
 Rising Competitiveness,
 Relocation Of Economic Activities,
 Structural Changes In The Economy,
 Rapid Technological Advancements And
Innovation.
 Flexibilisation Of Labour Markets;
 Increasing Labour Migration;
 Rising Atypical And Non-standard Forms Of
Employment;
 Changes In Work Content And Working
Conditions;
 Skills Mismatch, Multi-skilling And The Need
For Lifelong Learning.
 Overall, employment rates are increasing, but
non-standard forms of work such as part-
time, fixed-term and self employment
are also rising.
 Broad social developments in many
countries have also led to an increasing
participation rate of women in the labour
market which, in turn, has augmented the
demand for atypical forms of employment.
 The majority of developed countries face
serious labour and skill shortages which
threaten their sustainability of economic
growth, productivity performance and
international competitiveness.
 Pressures of globalisation affect employment
relations and industrial relations at regional,
national and international levels.
 These pressures interact with national
characteristics of: the economic and political
system; the type of government; legislative
developments; industrial stages; the exposure to
globalisation; the influence of labour and the
state in each country; and different policies
regarding industrial relations.
 Globalisation has a contradictory impact on industrial
relations.
 On the one hand, it is accelerating economic
interdependence between countries on an intraregional
basis and encouraging similar business approaches of
individual companies in competitive markets.
 This may lead to some convergence in industrial relations
arrangements worldwide.
 On the other hand, evidence exists that industrial relations
in some countries resist the convergence trend; such
resistance from industrial relations actors is based on
particular national and regional circumstances.
 Big multinational companies cover different countries and
this means new challenges for social partners as well.
 One of the top employment generators until a
few years ago, India’s $160 billion IT industry
laid off more than 56,000 employees in the year
2016-17. Some analysts believe this spree was
worse than the one during the 2008 financial
crisis.
 Tata Consultancy Services (TCS) and Infosys, two
of India’s largest IT companies and once leaders
in job creation, reduced their headcounts for the
first time ever. Even mid-sized players like Tech
Mahindra retrenched several employees.
 “Digitisation and automation brought about
disruption in traditional roles, which means that
most of the IT firms found themselves
reassessing the capability of the talent pool to
stay market relevant,” Arun Paul, vice-president
of human resources at Incedo, an IT service
management company.
 Compared to the normal rate of forced attrition
(i.e. asking non-performers to leave) of around
1% in earlier years, 2017 saw Indian IT companies
letting go of between 2% and 6% of their
employees, said Alka Dhingra, general manager
of IT staffing at TeamLease Services.
 Infosys cut 9,000 jobs in January. “Instead of
10 people, what if we have three people to
work on (a project). If we don’t have the
software, then some others will take the
advantage (away from us),” Vishal Sikka, the
former CEO of the Bengaluru-based
company, said in February.
 Meanwhile, around 6,000 Indian employees at
Cognizant reportedly lost their jobs to
automation. Mumbai-based Tech Mahindra
implemented a cost optimisation plan of
increasing automation and reducing
manpower.
 It turned ugly in when the firm made
headlines over a controversial audio clip that
featured an HR personnel purportedly
coercing an employee into quitting by 10am
the next day, or risk being fired.
 The phases of industrial relations in India
includes
a) Pre liberalisation
b) Post liberalisation
c) A only
d) Both A & B
 Prior to liberalisation the economy features
were:-
a) State owned
b) Subsidies
c) Protected domestic market
d) All of these
 Impact of globalisation on industrial relations
are contradictory in nature-TRUE/False.

 Gloablisation has affected business and


nations as:-
a) It reduces barriers
b) Increases integration
c) Creates barriers
d) Both a & B

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