IntroductionEmployment relations refer to those practices and policies concerned with regulation and management of relationships between the individual staff members and the organization within the work place. According to Schuler (2006), a sound employment relation is based on effective and safe work environment, motivation, and commitment of staff and effective systems for participation and communication. Employment relations are influenced by the government along with its agencies via laws, institutions, policies, programmes, and laws and by the broader economic, social, political, cultural, and technological characteristics of every country. The outcomes of employment relations are a set of laws which pertain to work, laying down wages and conditions and terms of employment for the staff.
The employment conditions may include working hours, training, leave together with issues which relate to occupational health and safety, and conditions that apply to particular groups of workers. The laws also describe the responsibilities and roles of parties, collectively and individually through joint labour agreements, and through legislation. Globalization and employment relationsGlobalization can be defined as a practice in which local societies, cultures, and economies have been incorporated via a global system of transportation, trade, and communication.
Blanpain (2007) states the term is at times to specifically define economic globalization which is the incorporation of countrywide economies into worldwide economy through capital flows, direct foreign investment, trade, migration, and technology. Globalization promotes competition both at firm’s level and nation’s level. This leads the state and management to employ plans designed to raise effectiveness of labor in order to benefit from human capital (Som, 2008). Nevertheless, the influence of globalization on employment relations and substantive results is conditional. Pressure for superior flexibility in exploitation of labor is ubiquitous although the result is controlled by cultural customs valuing security and hierarchy.
The strategies used by different countries differ by historical conditions, resource endowments, and interior political forces comprising the effect of trade unions. Reduction in costs of communication and a fast technological change have enhanced globalization of financial markets and production. Globalization has led to more deregulation and liberalization, rivalry for competition and enlarged economic independence for nations. There is an increase in technology, information, and capital flows.
Competitiveness is being based on innovation and knowledge productivity and skills and not upon natural resources and wages. The victory of international firms is to a great extent reliant on their capability to organize between and within organizations and across nationwide boundaries information, people, and money. Supporters of globalization dispute that expanded direct foreign investment and free trade increases earnings and employment in developing and advanced nations. Critics uphold that globalization possess a deleterious impact on working conditions, wages and employment on most developing nations workers. This is as a result of rivalry by multinational companies and the discern opening of global markets to global trade in favor of advanced countries.
The fresh demands of global competition and remarkable progress in technology as a result of forces of globalization have substantially changed the operation and nature of market place and management of production in industries in India.