The document discusses the changing dynamics of industrial relations in India amidst increasing globalization. It argues that industrial relations must adapt to support India's growing competitiveness in the global market by minimizing disruptions like strikes while still addressing worker grievances. Labor rules also need flexibility for hiring and firing while protecting worker opportunities. Reporting structures should be informal to quickly communicate market changes up the chain of command. As globalization brings more diverse workforces, industrial policies must accommodate varying cultures amicably. With its large workforce, India can benefit greatly from globalization if industrial relations evolve to engage workers and meet market needs.

1. “Present Scenario of
Industrial Relation in India”
SubmittedBy: SubmittedTo:
SuruchiGupta Prof. Vivek Pachouriya
AyushiSaxe ITMUniversity
BBA(H) (SOB)
5th
Semester

2. Introduction
Industrial relationship is a field which basically deals with the relationship between
the management and work force. like any other field of social science it has been
subject to change since its inception, initially labor was thought just as a mean for
production, and the idea was to exploit it to the highest degree possible, this kind
of mindless exploitation gave rise to militant unionism, strikes and gheraos .With
time it was realized that that labor is not a resource to be exploited but an ally to be
utilized in a properway to achieve higher goals and gradually there was a change
in the dynamics of industrial relations. In present scenario when the Indian
economy is globalizing very rapidly followed by the massive influx of technology,
capital and ideas the dynamics of Industrial relationship in India again calls for a
paradigm shift. One fifth of all those born between 2007 and 2030 will be an
Indian. By 2030, India will become the biggest sourceof labor thereby attracting a
huge degree of investments from the global market. Under such a scenario,
Industrial relations in India will require major changes to streamline itself with the
needs of vast globalization. This change has to be implemented from bothsides
that are from the end of management as well as from the end of labor force so that
it can becomea win- win situation for both, along with the growth of the nation.
Paradigm Shifts in Negotiations:
As we know that globalization is followed by huge investments of capital,
technology and ideas, so one of the major aspecton which globalization survives is
Competitiveness. If India wants to leverage its potential in the classic age of
globalization, Indian companies need to be highly competitive. This
competitiveness has to be shown in every aspectof the organization ranging from
innovative measures to process alignment to efficiency of workforce. If the
workforce will remain unsatisfied, and will exert means like strikes and gheraos,
then productivity will be hugely affected and a lot of man-hours will be lost along
with incurring bureaucratic costs to deal with it. Practically speaking, modern

3. Indian industries simply cannot afford this kind of wastage. So the new Industrial
policies call for minimizing to a large extent this unwarranted loss. To have almost
a zero rate of such activities is easier said than done. Given the kind of history
Capitalism has, this neo-Capitalism will have some sort of inclination to exploit the
labor force which might create unrest in the workforce. They need some means to
address their grievances. Forthis they need to design such intelligent ways which
will not only solve their problems but will also avoid man-hour loss. An excellent
example would be the case of strikes in Japanese shoe factories where if the
workforce has to protest, they simply don’tgo for a strike as their Indian
counterparts, but they produceshoes for only one leg. Once their grievances are
addressed, they producethe shoes for the other leg to complete the pair. Thus
during the time of their so called strike, they hamper the sales of the company
temporarily, thereby gaining the attention of the top management, but the best part
is that once their problems are resolved it doesn’tlead to any man-hour losses and
the company doesn’tlose out on its Competitive advantage.
Paradigm in Labor rules:
Globalization calls for flexible labor rules with hiring and firing as a norm. So our
labor rules has to be flexible enough to give proper room to the process ofrapid
hiring and firing, so that the industry may not lose out on its competitiveness. But
at the same time, the industry also has some obligations towards its employees.
One beautiful aspectof Globalization is that it generates a lot of new and
diversified avenues for employment. With the help of ample technical knowledge
as well as soft skills, anyone can leverage on it. What the industry needs to do is
that it should keep on innovating as well as providing the required training for its
workforce. This will not only ensure better opportunities for a fired employee to
search for a new sourceof employment but will also help in the productivity of the
company. One important point to be noted over here is that since globalization
calls for flexibility in hiring and firing, it has to be played on a level ground where
the rules are same for the employer as well as the employee. Generally it is often
seen in Indian IT companies that before hiring an employee the company signs a
bond with the new recruit, according to which if the employee quits the company

4. within a particular time period he needs to pay a bond amount. Such kind of
practices are not only highly biased against the employee but are also a mis-fit in
the world of globalization. If a company has the right to fire an unproductive
employee for reducing its losses, so should an employee have the right to switch
from one company to another smoothly for his individual growth.
Paradigm shifts in Reporting Relations:
To gain a high degree of efficiency in a globalizing economy it is vital for the
Indian industries to have a workforce that is highly motivated and which sees an
alignment in their personal interest and the goals of the company. This can only be
done when employees have a say in the decision making process as well as vital
functions and processes. This can be implemented with the help of an organic, non
bureaucratic and informal structure that does not differentiate between
management and the workforce and facilitates smooth flow of information from
the workforce to the management. This will not only result in psychological
satisfaction (as important as economic satisfaction)of the work force but will also
have a lot of positive impact on the industry itself. One of them could be the
detection of changes in the market. As we know that globalization is always
accompanied with a great degree of frequent changes, so it is imperative that such
changes be detected as soonas possible so that the propercourse of action be
followed. It is not the top management but the common workforce which has the
direct link with the market that detects such changes. But unfortunately due to
mechanistic and bureaucratic structure, the information doesn’tgo upwards which
in some cases might end up in huge losses. An example that supports this is the
“SonyWay”, which encourages the productengineers to ‘self promote’ in the
company by seeking projects in different departments of the company where they
feel can contribute more and hence promotethe flow of ideas in the company.[2]

5. Paradigm shifts in managing cultural
diversity:
Unrestricted flow of labor is one of the pillars on which globalization is based
upon. Todaymainly we see outflow of labor from India. But with time we should
be ready for considerable amount of labor inflow also. So far our industrial relation
policies are not accustomed to deal with a diversified workforce, with varying
backgrounds in geographies, culture and thoughts. So we need to adapt our
industrial policies in view of these demographic shifts. Our policy should be
modified in such a way that it can accommodate workforce from various
geographies amicably and can extract the best out of each of them. Since the
philosophy of India has always been Unity in Diversity, this will not be a very
tough task. So far we have dealt with our own regional diversities, now we need to
deal with diversity across borders.
Conclusion:
Along with China in this coming future, India has a very crucial role to play. India
has the potential to be benefitted hugely by not only outsourcing but also by other
models of globalization such as off shoring and global sub contracting model.
Right now the world perceives India as a destination where the forces of
globalization can play a constructive role that will not only boostIndian economy
but will be in favor of the world economy as a whole. The basic reason for this is
the cultural aspect of India (which has always been the melting potof various
cultures), the democracy of India, secularism of India, sound fiscal policies and last
but not the least, the huge amount of Indian workforce which is not only very
talented but also economically viable. We should also consider the fact that Indian
economy can be benefitted not only from the influx of capital and technology, but
also from the influx of the global workforce and innovative ideas in the near future.
But to make these things happen a very vibrant, flexible, unbiased and technically

6. sound workforce is needed. But at the same stage of time to fulfill these above
objectives regarding our workforce we also need a very flexible, vibrant, unbiased
and knowledge friendly industrial relationship. As we know that the forces of
globalization as well as industrial relationship are mutually dependant, we need to
design our industrial relationship policies in such a way that not only we are in a
position to strike a beneficial deal for ourselves, but can also fulfill the
expectations of the globalized economy.
REFERENCE:
1). Organizational Behavior – Robbins, Judge and Sanghi , Pearson Publications
2). Organizational Theory, Design and Change – Jones and Mathew – Pearson
Publications.
3).The World is Flat – Thomas Friedman
4).Kautilya Today – Jairam Ramesh