Economic Liberalization and Globalization

Economic Liberalization and Globalization

 

 

Before we study the meaning of globalization, it is necessary to know the reason for studying globalization, which is a part of today’s modern world. In the pre-industrial stages every nation was interested in its own progress and development. In such a situation, international relations were very limited. However, with the development of industrialization, modernization, urbanisation, developed means of transport, communication science and technology, trade between countries of the world started breaking down and international or external relations between countries developed at a rapid pace.

 

Globalization as a term specifically refers to the policy adopted by the Government of India since 1991. The critical foreign exchange position, rapidly rising inflation and the urgent need for external aid prompted the government to accept the news terms.

 

and conditions for opening up of the Indian economy. This resulted in the removal of import restrictions and duties, meaning that India’s economy was liberalized importing foreign goods and allowing almost unrestricted free flow of foreign capital in practically all important sectors of the Indian economy.

 

Today there is a need for closer contact between the nations of the world. So different nations are co-related with each other and connected with each other through various aspects like communication, media, social relations, economic or it is called as globalization which involves the globe. World globalization, like socialism until recently, is currently in much use and the decline of socialist economics has greatly increased its prestige. Today economics is seen to be linear and economic life has become so competitive and interdependent that they have turned into one world market and economies are partially or fully globalized or are moving towards globalisation.

 

After independence, India adopted a policy of planned economic development and tried hard to achieve this by following a policy of mild protection and import substitution. With the announcement of the New Economic Policy in July 1991. There has been a gradual shift of employment from the organized sector to the unorganized sector during the last 10 or 15 years. The proportion of casual and contract labor within the organized sector is on the rise. This has been one of the major consequences of industrial restrictions during the 1980s. The new economic policy has accelerated this trend with the increasing importance of specialists, and more and more expected processing sectors have emerged in different parts of the country.

 

Globalization refers to a worldwide phenomenon that buys various First World and Third World countries into a close network of socioeconomic and political relations that transcend boundaries between countries. Globalization thus means the increasing interdependence of the world society.

 

Vertigo defines globalization as the intensification of worldwide social relations, which favors distant localities in such a way that local events are shaped by events many miles away and vice versa. McGrew also speaks of globalization as emphasizing the intensity and plurality of global interconnectedness.

 

 

Linkages mean that goods, capital, social, inspirational relations, technological development, ideas all actually flow across regional boundaries.

 

importance of globalization

 

The social context in which we carry out our day-to-day activities is the only way our lives are affected by events far removed from it. Then there emerges the will system or a single social order for the world. Although globalization is developing rapidly today, it is not an entirely new concept. However it has become very important today as the effects of globalization are being felt globally. Major economic reforms which till recently were considered almost impossible were introduced which are popular on structural adjustment or liberalization or globalisation.

 

This globalization of the Indian economy is the need of the hour. In view of the unsatisfactory economic record of previously closed economies such as East Germany, China, Poland and the USSR, the country has progressed well with open economies such as Hong Kong, Singapore, Taiwan and South Korea, which has led to the process of development under liberalisation. can be justified. Globalization Indian economy should prepare itself to move on non-conventional lines to achieve the goals of macro equilibrium between aggregate demand, aggregate supply, savings and investment revenue and expenditure, interpretation and import etc. The Indian economy needs to be completely rehabilitated to solve its fundamental problems. Poverty, unemployment and inequality, liberalization or globalization of the economy is the cure for all these ills.

 

 

 

globalization

 

 

A Sociological Understanding According to Hoogeveldt, sociologists have been at the forefront of the effect of giving globalization a consistent and rigidly heterodox status. In contemporary times, its development as a particularly sociological concept owes the greatest debt to Roland Robertson of the University of Pittsburgh. Strangely, globalization, or a concept similar to it, appeared early in the development of the social sciences. St. Simon observed that industrialization changed practices in different cultures of Europe.

Durkheim’s legacy to globalization was his theories of differentiation and culture. The state and collective consciousness must become progressively more tenuous and abstract in order to accommodate intra-society diversity. All this means that industrialization

Ion breaks collective commitments and opens the way for the elimination of boundaries between societies

 

Durkheim identified differentiation, Weber identified rationalization as the solvent of globalization. Weber’s concern with the success of rationalism and the speed of Calvinism spreading from Protestantism’s bed origins to infecting all Western cultures, as well as the homogenization of cultures, implied less commitment to values such as patriotism and methodism. But this globalization effect was also limited to Western Europe.

 

Of all the clinical terrorists, the most clearly committed to the globalization of modernization was Karl Marx. Globalization greatly increased the power of the capitalist class as it opened up new markets for it. The establishment of a ‘world market’ for modern industry only gave a cosmopolitan character from production beta bo to consumption.

 

In contemporary sociological theory, one of the theoretical debates around globalization surrounds its onset. Two broad patterns have been suggested

1) Dawn of a new era

2) through the powerful medallion of modernity

 

1) The Rise of a New Age – Martin Albro wants us to think about globalization in his own terms and in his own time. He speaks of the ‘Global Age’, which in his anger has been replaced by the ‘Modern Age’. The modern age has been replaced and superseded by a new global age with its own axial principles and distinctive cultural imagery. The ‘optical shift’ from pre-modern to modern to global is rooted in axial principles that place commerce, mobility and connectivity at the heart of our lives. Under this paradigm, three possibilities can be created through the intermediate category of modernity:-

 

1. a) Globalization is seen in the historical competition of modernity. Robertson is a strong supporter of this new. Within the historical presence of the major modern institutions of capitalism, industrialism and urbanism, a developed nation state system forms a network of social relations characterized by globalization. Thus understanding modernity at the nexus of institution is a necessary hysterical nexus of globalization. Prior to this period the socio-institutional conditions and resources of the cultural imagination were not as simple as enabling connectivity. Robertson does not agree with Giddens’ view that modernity has directly led to globalization. Rather, Robertson insists that the contemporary type of globalization was set in motion long before modernity in the economic sphere, even before the rise of capitalism. However, he does not deny that some aspects of modernity have greatly increased globalization i.e. modernization accelerates the process of globalization.

 

 

1. b) Globalization is seen as a consequence of modernity. Gidders in his book ‘Consequences of Modernity’ has offered one of the most sophisticated analyzes of modernization and its underlying globalizing properties, using the concepts of time-space difference and reflexivity to show that the interaction between the local and How complex relationships develop. He sees globalization as a consequence of the inherently expensive features of modernity. He lists one of his organizational groups as having such institutional characteristics as a) a capitalist system of commodity production (ownership of private capital and labor) (b) industrialization (technology requires a collective private capital and labor), (c) ) administrative capacity of the nation state (a) good surveillance system) (d) military command (for the centralization of control of an industrial society) He points out that his discussion of globalization focuses on modernity because he sees globalization as a consequence of modernity Modernity refers to universal trends that make global networks of relationships possible. And were originally expanding the temporal spatial distance of social relationships.

 

1. c) Globalization is the result of the hegemony of modernity. Wallerstein sees globalization in its strategic role of maintenance of Western cultural dominance and its tendency towards universalism and hegemony. They believe that the concept of globalization is an object of obvious, ideological doubt, becoming a preceding and related concept, like modernization, it is intrinsically tied with the pattern of capitalist development as it moves through the political and cultural spheres. spread, it does not mean that every culture/society it meets becomes westernized and capitalist, but they have to establish their position in relation to the capitalist.

 

Wallerstein focuses on the emergence and development of the modern European will system, which he traces from its medieval origins in fifteenth and sixteenth countries to the present day. Capitalism operates in relation to long-term cyclical rhythms, central to which is the regular pattern of expansion and contraction of an entire economy, which

In one year trams have transformed the capitalist world economy from a system primarily based in Europe to a system covering the whole world.

Contemporary Globalization in the World

 

 

The task of globalization theory is to understand the sources and condition of this complex connectivity that is evident in all vertebrates and everywhere, Robertson would explain today that events in any one part of the world have consequences “for or in the context of events”. In other distant parts, it

 

 

relatirization may not always be positive. We need to understand that globalization follows the path of its own rigorous logic. Global connectivity means that we now experience distance in a way that is indifferent to it. This particular sense of closeness can be seen in the transformation of spatial experience into temporal existence. Robertson dated how connectivity colors a) closeness b) unity

 

1. a) Contact and proximity refers to the shrinking of distances through a dramatic reduction in the amount of time it takes physical or representational (information technology) to cross distances. It also refers to spatial proximity through the idea of ‘pulling’ social ties across distances, of which Giddens speaks. The result of the shrinking global proximity or as one McLuhan describes it to be reduced as a ‘global village’. The United Nations uses the term ‘Global Neighbourhood’. Phenomenologically, closeness is described on a common conscious presence of the world, ‘more intimate and more understanding’. Figuratively it implies an increased immediacy and consequently a diminishing of actual distanced relationships.

 

1. b) Connectivity and Integration For the first time in history the world is becoming a single serial and cultural setting. Thus in all walks of life, issues are no longer to be viewed independently from a local perspective, globalization has linked the world. The local has been raised to the horizon of ‘single world’. There are both increasing introductions of frames of reference and simultaneity. Robertson Cloughy believes that global unity does not mean additional weakness like world culture. It does not mean completeness and inclusiveness, even if it is holistic and inclusive. According to Rathi, it is a complex social and phenomenological situation in which different aspects of human life are brought into expression with each other. It should emphasize cultural differences more because it is recognized in relation to ‘the whole’. The will system can be divided into conflicts that are more intractable than previous disputes between nations.

 

Globalization needs to be industrialized and analyzed and multi-dimensional internals of the economy, politics, culture technology and the multi-dimensional internals of simultaneous and completely related processes in the realization of so trust. Robertson stresses that globalization should be understood as involving contradictions, resistances and counterbalancing forces, as it involves a duality of local and global opposing principles and tendencies. The particular and the universal, integration and differentiation.

 

 

 

  new economic policy

 

 

The structural adjustment loans brought about various changes in the policies of the Government of India. Before 1991, the Government of India tried to keep a minimum entry furnace of foreign enterprises in the Indian economy. Foreign companies were not given free market for their products but sometimes; Limit rules regarding foreign collaborations were maintained. Due to the structural adjustment of debts, the government had to remove these limits of control. So there the changes were welcomed and thus the new economic policy was formed. Due to this policy, the process of globalization entered India very fast. That’s why New Economic Policy is considered an important aspect related to globalization.

 

The July 1991 budget included the first stages of structural adjustment of the New Economic Policies. The following are the important elements of the reforms or changes introduced in 1991.

1) The major intention of the Indian government was to solve its balance of payments crisis.

2) It liberalized the policies on import-export and foreign trade. This meant that Indian businessmen as well as foreign enterprises were now free to enter into business relations with each other.

3) Due to this policy the internal control of the market ended.

4) The Government of India devalued the rupee to encourage exports. It increased professional tax and reduced income tax.

 

When the Government of India brought so many changes, they were considered positive and they increased the pace of globalization. However, the government had to make some other changes as well, which had negative consequences, eg. The Government of India had to reduce subsidies on agricultural inputs and prices within the Public Distribution System.

 

Positive and Negative Consequences of the New Economic Policy:

 

new economy

The IC policy brought about some important consequences in the Indian society as a result of it. Its results were both positive and negative.

 

Positive Result:

 

1) The government spent the amount on welfare and poverty alleviation programmes. This meant that additional finance

 

 

 

What the government earned by reducing the subsidy was used in positive activities.

2) One of the important outcomes was the justification provided to the New Economic Policy or the policy of liberalisation. The Government of India estimated the inflow of foreign capital in the form of direct investment. it was assured that

This would lead to faster growth for the economy, reduction in unemployment and increase in personal income.

 

 

 

negative consequences:

 

1) The new economic policies faced increasing poverty. There was a wage crisis.

 

2) One of the serious effects of the New Economic Policy was the increase in the amount of child labour. Thus affecting the future of the nation as children are the citizens of tomorrow. To ensure proper program for the nation it is necessary that the young generation should have a decent level of education. Children are deprived of education due to the problem of child labor and in fact they are traced and denied the right to education.

 

3) Withdrawal of government subsidies in agricultural inputs as well as in the public distribution system caused great loss to the poorer sections. There were fewer laborers who depended on daily wages.

 

4) Integrated rural development also suffered a setback due to the policy of the government. This resulted in heavy losses to the containment section and especially to those who depended on the guaranteed action plan in the slack season.

 

5) The policy of liberalization can also be linked to increasing rationalization and the regions started company with each other in favor of the central government. The basic objective of competition among the sector to get foreign capital. This resulted in ethnic movements and other serious conflicts.

 

6) The New Economic Policy largely brought back caste divisions. The private sector began to become more and more important. However, the private sector did not implement the policy of renewal. As a result, the Scheduled Castes and Scheduled Tribes were adversely affected. On the other hand, the privatization of the economy greatly benefited the Brahmins or the upper castes. Then there was center based economic division.

 

7) Under the influence of the new economic policy and the policy of liberalisation, multinational companies entered the Indian market very rapidly. although his admission was considered important by

 

The increase in foreign capital investment became the government, it created a number of negative consequences. MNCs had their own interests. They were more interested in local buyouts and mergers rather than genuine new ventures. Their main concern was to enter the Indian domestic market, e.g. Coca-Cola acquired Thums Up, Honda merged with Bajaj. Thus the trend of MNCs raised serious doubts about their own genuine concerns. The following were the allegations against the multinational companies.

1) They were exercising dominance and control over the local companies.

2) MNG showed a tendency to import outdated technology.

3) There was a marine brain chain especially going into the software industries.

 

8) The government had liberalized the control over experts under the new economic policy. Thus, some of the high capital Indian farmers started fulfilling their own self-interests. They were involved in exporting high quality products to foreign market for high profit. High quality Basmati rice and Alphonso mangoes are exported, in fact the majority of the Indian population does not get to see this quality of rice and mangoes. Thus farmers show interest in their profits.

 

 

 

Impact of Globalization on India

 

 

The concept of globalization has affected almost all the countries of the world. The impact of globalization on Indians has resulted in various changes in different walks of life. Some changes have been possible while some have had negative consequences. Globalization in India, especially in the economic or market aspect, has been very important, it has important social consequences, both positive and negative. One of the important effects of globalization on India is the New Economic Policy. The New Economic Policy has become extremely important if globalization is to be brought into the Indian society at a very large scale. This means that before the implementation of the New Economic Policy, the concept of globalization process was limited in its structure.

 

After the British left India in 1947, the condition of Indian society was not favorable at all. Low levels of growth in the economy and high levels of deprivation among the population marked the immediate post-independence situation. this or

It is necessary to improve the lower levels for stable economic growth. The result or solution to this problem was the creation of a planned, relatively closed economy with a high degree of government control and a policy of extensive subsidies.

 

 

 

The Government of India developed the policy of Five Year Plans which continues even today. Interest focused on industrialization and modernization through large capital investments in the Five Year Plans. The reason for this was to reduce the high economic growth. Gradually the subsequent five year plans focused more on welfare and poverty alleviation.

 

The Indian economy was divided into two major sectors, namely the public sector and the private sector. The private sector was important, but it did not venture into certain sectors of the economy because of the long gestation period. High capital investment as well as high risk. They wanted these industries to be within the country but neither by themselves nor under the control of foreign enterprise. Therefore, the main objective of the public sector was to set up industries in areas rejected by the private sector. When the Government of India tried to raise funds for this investment from the World Bank, it was given the following

Reference was made on written grounds.

1. a) India was basically a public run school i.e. public sector was highly active in nature.
2. b) In the view of world banks, agriculture is a major factor in India as compared to industries and therefore industrial goods should be reformed instead of domestic production.
3. c) For setting up any industrial enterprise, assistance should be taken from multinational companies (MNC).

 

As soon as the World Bank disapproved the loan, India approached the USSR and processed the loans, despite the loan sanction, the USSR did not stop the problem in the Indian society, the old problems were solved to some extent as well as many important More serious problems Aloe eg. Within the bureaucratic framework, corruption, bribery grew rapidly.

 

The Five Year Plan also resulted in some partial policies such as the Rani Kranti which favored regions such as Punjab and this created differentiation between merchant regions in the country. The Indian government was also unable to influence the redistribution of income that would have boosted demand for domestic production. Thus India was now facing a new type of problem.

 

The Gulf happened in 1991. During this war India found it impossible to borrow from the world market. Non-Resident Indians or NRIs in this situation get worried about the money that they had invested in India and hence withdraw their deposits quickly. The situation made India further short of foreign exchange. with a shortage of foreign exchange

 

 

 

A balance of payments crisis emerged. India now found it impossible to build up its independent economy and was therefore forced to accept a structural adjustment loan from the World Bank. The loan popularly came to be known as the New Economic Policy.

 

 The international economy experienced a program of international economic integration, that is, the internationalization of production, trade, investment, and finance, also called globalization, since the 1950s. However, this process of globalization is not a global phenomenon, as finally accepted in a report published by the World Bank. In May 1996. Like the limits to economic growth, there are also limits to globalization and the reduction of state control of the economy and the growing awareness that no nation can secure tariffs without commitment to international obligations. However, there is still a long way to go before this vision can be translated into reality 

 

 

 

 

Labor in a Globalizing World

 

 

 

Until liberalization in 1991, the government banned most imports, instituted price controls, and discouraged foreign investment. The performance of the Indian economy has been dominated by a regime of multiple controls, restrictive regulation and extensive state intervention. A major part of the nation’s savings was appropriated by the state through various administrative and tax measures, and was used to meet government expenses, public sick undertakings and their losses. The country’s industrial economy was prevented from growing due to rapidly advancing technology protected by the state and insulated against outside competition.

 

 

  economic globalization

 

 

As Karl Marx put it, the logic of capitalism itself seeks to extend the search for new markets to the search for sources of raw materials and capital, labor and profit. This was the reason that the British rule expanded its empire by forming new colonies in America, Africa and Asia. But globalization is a global economic process of change. Some of the basic aspects are covered as follows

 

1) Post-industrialism David Harvey argues that today there is flexibility in the production process, products and patterns of consumption, as well as the increased mobility of capital and labour. Organized sub-contracting, outsourcing etc. are what link third world and advanced countries. As large corporations took international marketing their hard work and dominated small business, Harnery argues that this is an example of capitalism becoming more centrally organized due to tighter controls on capital. This is made possible by a restructured financial system with the development of information technology.

 

2) World trade:- Diffusion production and consumption are linked together in world trade. Earlier Britain was the dominant country, USA used to lead. Many landlocked developed countries have also participated in world trade. There are many trade blocs like ASEAN, EV, NAPTA competition Map * has been extended “The push in industry and trade is towards globalization of markets.

 

3) Multinational Corporation (MNC):- Multinational Corporations have emerged as powerful lobby for the world. They capture most of the profits of the business market. Today, multinational corporations operate not only from the US, but also from other countries, in which more than 35,000 multinational companies will control approximately 1,70,000 foreign executives. One-third of world trade takes place within multinational companies in the form of transfers from one unit of one multinational company to another. Many multinational companies have entered in India and have been made good business e.g. MC Donald’s Food Chair Business.

 

4) New International Division of Labour:- Rich countries (core countries) spread their manufacturing activities all over the world. They spend money and buy labor.

Underdeveloped countries produce labor and it gets involved in fragmented manufacturing activities. According to Walla Stan, the core industries will control the market and production and make the underdeveloped countries dependent on them. More industrialized countries like cheap labor and easy access to raw materials and set up factories there. They also contract for already established factories in countries such as East Asia. But it has been confirmed that only in such areas as textiles, clothing, shoes, rich countries give contracts, in other areas they invest money in machine production.

 

 

 

And save labor cost. Through local branches, multinational companies invest money, do business, they also transfer technology by accepting large projects. Through joint ventures and marketing agreements, multinational companies form less developed countries as an expansion into local markets and further industrial partners.

 

5. Financial Markets:- Through IMP there is a tendency of financially developed countries to undertake structural adjustment programs and conditional efforts of which currency devaluation is usually the first. Global financial institutions are gradually controlling the domestic policies of the member countries and since 1980 they are clearly in favor of privatization, liberalization and globalization. There was a major shift in international finance from banking to security markets. The massive increase in transaction volume in turn affected currency prices. Hence there has been a sharp distinction between the real economy and finance. The development of financial markets has affected loss-making developed countries, as the vast increase in foreign equity portfolio investment rather than direct investment has led LDCs to face a qualitatively new relationship with international capital.

 

6. Labor Irrigation:- While financial marketing is minimal in most of the globalized labor markets. International irrigation is becoming a prominent feature of the globalized economy, despite high irrigation rates.

 

 

 

 

cultural process of globalization

 

 

The white economy process of globalization is based on the autonomy of the world system of capitalism or social and cultural PR

process of globalization. This approach asserts the separation of the economic, political and cultural aspects of globalization as a relatively autonomous or independent process technology and media dissolve boundaries between localities and allow cultural transmission at an increasingly rapid rate. were produced by modernization. Taken money transportation, social technology of power communication administration is progressing more rapidly and thoroughly in the scope of globalization culture. The contemporary growing spread of globalization led to an explosion of signs and symbols associated with modernity. All modern technology originated in advanced capitalist societies.

there are three effects

One. Export of the culture ideology of perfection from the center to the periphery.

1. Cultural flow through human media dissolves boundaries.

 

 

 

1. Insofar as human media symbolize or lead to the competition of human relations, they can connect people far enough apart that communities of interest or commitments can develop between people who have never met.

 

 

 

 

Labor in occupational structure, knowledge economy and current trends of labor

 

 

The occupational structure in industrialized countries has also changed significantly since the beginning of the 20th century. In the early twentieth century the labor market was dominated by blue collar manufacturing jobs, but over time the balance shifted to collar positions in the service sector. In the UK in 1900, over three quarters of the employed population was in manual (blue collar) work. Some 28 percent of them were employed in skilled, 35 percent in skilled and 10 percent in unskilled white-collar and professional jobs. By the middle of the century the population of manual workers in paid labor had fallen to less than two-thirds, and non-manual work had expanded accordingly. There has been much debate as to why such changes have occurred. The resources seem to be many; One is the continuous introduction of labor saving machinery, which in recent years has peaked in the spread of information technology in the industry. Another in the rise of manufacturing industry outside the West, particularly in the Far East. Older industries in Western societies have experienced major cutbacks because they are unable to meet with the more efficient Far Eastern producers who have lower labor costs.

 

 

 

Knowledge Economy and Labour:

 

Some observers have suggested that what is being alleged today is a transition to a new type of society that is no longer primarily based on industrialism. We are entering a phase of development completely beyond the Industrial Age. Various terms have been coined to describe this social order, such as the postindustrial society, the information age, and the new economy. The term that has come into most common use, however, is the knowledge economy.

 

A precise definition of the knowledge economy is difficult to formulate, but in general terms it refers to an economy that underpins innovation and economic growth in the forms of ideas, information and knowledge. A knowledge economy is one in which the workforce produces physical or

distribution or physical goods, but rather their design, development,

 

 

 

Technology, Marketing Vendor and Servicing. These employees can be called knowledge workers. The knowledge economy is dominated by the continuous flow of information and opinion fueled by the powerful potential of science and technology.

 

A recent study by the Organization for Economic Co-operation and Development per attempted to measure the extent of the knowledge economy by measuring the percentage of each country between developed to nothing. Composite commercial production may be attempted which is a knowledge based industry. Knowledge-based industries are broadly understood to include high technology education, training research and development and the financial and investment sector. As a whole, knowledge-based industries accounted for more than half of all commercial output in OECD countries in the mid-1990s.

 

Investments in public education, software development, and spending on research and development are now a significant part of many countries’ budgets. For example, Sweden invested 10.6 percent of its gross domestic product in the knowledge economy in 1995. Finance was in second place due to the extensive spending on public education. The knowledge economy remains a difficult phenomenon to investigate – both quantitatively and qualitatively. It is easier to measure the value of material goods than weightless ideas. Yet it is unsurprising that the production and use of knowledge is becoming increasingly central to the economies of Western societies.

 

Multi-skilling allows employees to broaden the breadth of their skillset by engaging in new types of work

1. in a variety of tasks rather than doing a specific task over and over again. Group production and teamwork Viewed as a multi-skilled workforce capable of undertaking a broad set of responsibilities. This return leads to higher productivity and better quality goods and services; Employees who are able to contribute to their jobs in multiple ways will be more successful at solving problems and coming up with creative approaches. Moving more towards multi-skilling has an impact on the hiring process. If once made largely on the basis of education and merit, many employers now look for individuals who are adaptable and can quickly learn new skills. Thus expert knowledge of a particular software application may not be invaluable because an apparent ability to pick up ideas easily. Expertise is often an asset, but if employees have difficulty applying narrow skills creatively to new contexts, They cannot be seen as an advantage in a flexible innovative workplace.

 

 

 

A Joseph Rowntree Foundation Study:

 

On the Future of Work examines the types of skills that are now sought after by employees. The study concluded that in both skilled and unskilled occupational sectors, personal skills are being increasingly valued. The ability to collaborate and work independently, take initiative and adopt a creative approach to challenges is one of the best skills a person can have for a job. In a market where the needs of consumers are rapidly evolving, it is imperative that employees in a range of settings, from the service sector to financial consulting, are able to hone personal skills in the workplace. According to the study authors, upgrading technical skills may be most difficult for workers who have worked long hours, routine repetitive work that had little to do with individual skills.

 

Training on job multi skilling is closely linked with the idea of employee training and retraining. Rather than employing narrow specialists, many companies would prefer to employ competent non-specialists who would be able to develop new skills on the job. A technology and market demand changes. Companies retrain their own employees as necessary, instead of bringing in experience consulting or replacing exciting employees with new hires, investing in employees who can become valuable lifelong employees. Seen as a strategic way to keep up with rapidly changing. Times.

 

Some companies organize job training through job sharing teams. This technique allows for skills training and mentoring to take place in a short period of time as it takes over one IT specialist’s work to be paired with a company for several weeks to manage a team for each of the other skills. . This form of training is cost-effective because it does not significantly reduce working hours and allows all employees involved to increase their skill base.

 

On-the-job training can be an important way for workers to develop their skills and career prospects. But it is important to note that training opportunities are not equally available to all workers. Economic and Social Research Council (ESRC) studies of young people born in 1958 and 1970 found that employees who already had a qualification were more likely to receive on-the-job training than their counterparts who are without a qualification.

 

of such students

As there continues to be over-investment in those who are already most qualified while the unqualified suffer from fewer opportunities, training also has an impact on wage levels; mid 1970’s. what is the work

 

 

 

On board training increased employee earnings by an average of 12 percent.

 

Work at Home – Having a computer connected to the Internet, working at home allows employees to perform some or all of their responsibilities from home. In jobs that do not require regular contact with customers or coworkers, such as computer-based graphic design work or copywriting for advertisements, employees may find that working from home allows them to balance non-work responsibilities. and to perform more productively. The phenomenon of intelligent workers is surely going to increase in the coming years as technology fundamentally affects the way we work. Although working from home has become more acceptable in recent years, it is not necessarily constituted by all employees, it is more difficult to work when the employee is out of the office, for this reason, after the new type of control Are kept in n homework to ensure that they are not above their independence. The worker may be expected to check into the office regularly, for example or to submit updates on their work more frequently than other employees who are very enthusiastic about their after-home potential. Some scholars caution that a significant polarization is likely to emerge between professional domestic workers pursuing challenging creative projects from home and largely unskilled domestic workers.

Broadly job form work from home like typing or data entry.

 

The end of a career for life and the rise of the portfolio worker

In light of the impact of the global economy and the demand for a flexible labor force. Some sociologists and economists have argued that more and more people will become portfolio workers in the future. They will have a skills portfolio consisting of many different job skills and credentials that they will use to move between multiple jobs and jobs during their working lives. A relatively small proportion of the workforce will have a continuous ‘career’ in the current sense. Indeed, proponents argue, the idea of a job for life is becoming a thing of the past.

 

Some see this move to portfolio employees as a positive light that workers will not be doing the same job for years and will be able to plan their work life in a creative way. Others recognized that the flexibility in practice meant that organizations could overreact and fire or lay off their workers. Employers will have only one shout term commitment to their workforce and will be able to reduce the payment of additional benefits or pension entitlements.

 

A recent study of Silicon Valley, California, claims that the region’s economic success is already founded on the portfolio skills of its workforce. The failure rate of firms in Silicon Valley is very high. About three hundred new companies are founded very quickly.

 

 

 

years but an equal number also perish. The work force, which has a high proportion of professional and technical workers, has learned to adjust. The result is that talent and skills are rapidly transferred from one to the other, with technical experts becoming more adoptable on the way to becoming consultants. consultants become managers; Employees become venture capitalists and back again.

 

There seems to be a growing trend towards portfolio work among young people, especially among consultants and information technology specialists. It is estimated that young graduates in the UK can be employed in eleven different jobs, with different skills being exposed to them over the course of their working lives, yet this situation remains the exception rather than the rule. Employment data did not show the large increase in employee turnover that might be expected from a large-scale portfolio job shift. Several surveys conducted in the 1990s found that full-time workers in Britain and the United States, which have the most regulated labor markets among industrialized nations, spent the same amount of time in each job as they had ten years earlier. It appears that managers recognize that a high level of turnover among workers is an expensive and poor formula and prefer to retrain their won employees rather than fire them, even if it means paying above market rates. have to pay

 

Organizational downsizing is reality, throwing many thousands of workers who may have thought they had the job of a lifetime into the labor market. In order to find work again, they may be faced with developing and diversifying their skills, many especially older people may never be able to find jobs comparable to the ones they had before or may Sometimes there were paid jobs.

 

 

 

Job Insecurity, Unemployment and the Social Importance of Work

 

 

In recent decades the phenomenon of job insecurity has become an important topic of debate within the sociology of work. Many lay and media sources have suggested that job insecurity results in a steady income.

which has now reached an unprecedented height in industrialized countries. Young people can count on me a secure career with one employer for a long time, because of rapid globalization mergers and corporate downsizing where employees are laid off. The drive for efficiency and profit means that people with low skills or abilities are pushed into insecure, marginal jobs that are vulnerable to changes in the global market. Despite the benefits of workplace flexibility, the argument continues that we don’t live by ‘hire and fire’

 

 

 

Culture where the idea of a life away from the job no longer applies, leading to an increase in job insecurity.

 

In 1999 the Joseph Rowntree Foundation published the results of the Job Insecurity and Job Intensity Survey (JIWIS), which examined the types of workers who experienced greater or lesser levels of insecurity over time. The authors found that the 1990s saw the largest increase in job insecurity among non-manual workers. From 1986 to 1999, professionals who moved from the most secure occupational group to the least secure white manual workers experienced somewhat lower levels of job insecurity. A major source of this insecurity appears to be a lack of trust in management. When asked whether management looked out for the best interests of employees, 44 percent of respondents claimed they did so little or not at all.

 

Most scholars agree that job insecurity is not a new phenomenon. the disagreement surrounds to such an extent that it has become more pronominal

In recent years, and more importantly, which sections of the working population experience job insecurity the most. Some critics argue that the JIWIS project study is nothing more than an unwanted response to perceived job insecurity among the middle class. Britain experienced an economic recovery in the late 1970s and 1980s which proved particularly damaging to traditional manufacturing industries. Willow jobs such as steel, shipbuilding and coal mining have largely been lost during this time. It adds up to the 1980s and 1990s that professional and managerial workers largely made up for job insecurity and spent their first years. Corporate takeovers and layoffs have affected banking and finance schools, the spread of the information age has caused many civil servants to lose their jobs as systems are considered one of computer technology.

 

If construction workers had become accustomed to living with the threat of redundancy then white-collar workers were prepared for changes affecting their occupations. This concern among professionals has led some to speak of the unsafe middle. The term was used to describe a white-collar worker whose belief in the stability of his job meant he experienced hobbles or significant financial commitments such as large mortgages, private education for children. Because redundancy had never crossed his mind before, the sudden scenario of unemployment caused him to feel immense anxiety and insecurity. Job insecurity soon became a topic of discussion in the media and professional cricket, although some believed it was a series compared to the chronic insecurity experienced by the working class.

 

 

 

Surveys of job insecurity and work intensity have shown that job insecurity for many workers far outweighs the fear of redundancy. It also includes concerns about the change of work itself and the effects of that change on the employee’s health and personal life. Studies have shown that workers are asked to take on greater responsibility at work as organizational structures become increasingly bureaucratic and decision-making is spread throughout the workplace. Yet sometimes when the demands of more than one employee increase on them, their chances of promotion decrease. This combination causes workers to feel that they are losing control over important features of their work, such as the pace of work and confidence in their overall career progress. Another detrimental dimension to job security can be seen in the personal lives of employees. The study found a strong link between frequent job losses and poor overall health. This link is confirmed by data from the British Household Panel. The survey showed that people’s mental and physical health is determined by long-term episodes of job insecurity. Instead of adjusting to unsafe conditions, workers tend to worry and underestimate stressors. It appears that as work chasers have shifted to the home environment, workers reporting high levels of job insecurity also tend to experience stress at home.

 

 

 

unemployment experience

 

 

For people used to having a secure job, the experience of unemployment can be very distressing. Obviously the immediate result is loss of income. Its effects vary between material constant changes in the level of unemployment benefits. In countries where healthcare and other welfare benefits are guaranteed, unemployed individuals may experience acute financial difficulties but remain protected by the state. In some western countries, such as

In the United States, unemployment benefits are short-lived and healthcare is not universal, increasing economic pressure on those without work.

 

Studies of the emotional effects of unemployment have found that people who are unemployed often pan through a series of phases as they adjust to their new situation. While experience is certainly an individual, the unemployed often experience opportunity after opportunity shock about new opportunities. When that opportunity is not rewarded, as is the case with after care, individuals may succumb to pessimism, depression about themselves and their employment prospects. If the period of unemployment increases, the power of adjustment is eventually exhausted with individuals resigning their relations to relatives.

 

 

 

High levels of unemployment can undermine the strength of communities and societies. In a classic sociological study in 1930, Marie Jahoda and her colleagues investigated Marian’s care that a small farm in Austria was experiencing unemployment following the closure of a local factory. Insecurity Hotel How the long-term experience of the unemployment phenomenon neti enhanced many types of community structures and networks. People were ten less active in civic affairs, nine less socially

e second and even less frequently visited city literacy.

It is important to note that unemployment is experienced by social class as well. For those on the lower end of the income scale, the consequences of unemployment can be felt mostly financially. It has been suggested that middle-class individuals find unemployment primarily damaging to their social rather than their financial situation.

 

Globalization has brought many changes in India. New economic policy towards disinvestment of multinational companies, foreign direct investment privatization and entry into a more liberalized economy has clouded the decision. Computerization, information technology, all sectors have affected the growth of individuals and labor and there is massive unemployment of white-collar and blue-collar workers around the world.

 

 

 

 

Status and Privatization of Public Sector, Voluntary Retirement Scheme

 

After the attempt of liberalization policy in the 70’s and 80’s, India’s industrial policy once again turned to liberalisation, i.e. globalization. This meant the entry of multinationals, re-entry for many of them into the Indian economy. This policy has been adopted to attract foreign capital for investment. Globalization means that a country opens up its economic activities outside its borders.

 

 

A globalizing country does not limit its economic activities to the limits of its geographical boundaries. In other words, globalization means trade and industrial relations with other countries without tariffs and disincentives such as quotas and taxation.

 

 

need for globalization

 

 

Globalization is the need of the hour. If a country chooses to live in isolation, it will not get the best knowledge, best technology, best management expertise and adequate capital. The country has to bring in all the best things available abroad like capital and entrepreneurship. If there is segregation then there will be no competition among the producers, both individuals and companies in the country and hence there will be no improvement in the quality of the products. When the domestic market is limited, there will be monopolies, restrictive practices and consumer exploitation. This will lead to inefficiency in production. No competition means complacency and incompetence and things will be taken for granted. When outside firms enter, firms will be alert, hands-on, and have a fighting spirit rather than lethargy. From the point of view of the consumer, he will benefit both in quantity and quality of goods. For example fans of Usha have to complete RDK of Japan. Therefore, Usha will try its best to retain the market by improving its product, which will benefit the consumers.

 

Globalization also means for business that we can move to other countries, there is free import and export without any restriction, when globalization giant multinational companies enter our country and they can kill our own enterprises. And for this reason we should allow only those companies which are helpful and beneficial and which are ready to work on our terms and conditions. Should be able to balance the interest of MNCs with the interest of counting on economic policy. The year 1964 is a historic year of death of Nehru which proved to be a milestone in our economic policy. Nehru’s original socialist policy was failing. With the advent of liberalisation, his policy got distorted.

 

The real changes came after 1984 when the process of liberalization started. Licensing and regulatory controls were liberalised. The policy of liberalization gained momentum from 1991. When Narasimha Rao’s government came to power. events

 

 

 

 

Today there is no complete liberalization. The public sector is still in progress. There is neither complete privatization nor complete public sector. State Bank a public sector organization issues shares to private individuals. Similarly, there is private investment in the public sector in petrol and oil companies. This is done because the outstanding

 

 

 

course of time. Commercial norms will be introduced in the public sector and there will be a need to make more profit out of it.

Will have the ability. For example with the entry of private individuals in Air Lines, one can expect India to do better. Not only this, when individual inverters are involved in the management of Air India, its performance will be even better. As a result, we will provide better service and earn more profit.

 

Privatization and liberalization differ in their meaning but their outcome is more or less the same. Liberalization is a negative concept in the sense that it results in the withdrawal of state control and regulations, while privatization means that private individuals and entrepreneurs are allowed to intervene in public sector organizations. Liberalization is an ideology while privatization is an operational thing. Liberalization and privatization help our economy to raise its level and improve our industries both quantitatively and qualitatively. Globalization is a broad concept. In the process of globalization, our country invites foreigners to enter our country by liberalizing its licensing and tariff policy. Since foreign entrepreneurs can come to India and start industries, even Indians can go overseas and reverse their capital! Tata and Birla have started industries in Malaysia, Indonesia, Philippines and Mauritius. Mafatlal has been to Indonesia and Nepal. State Bank has branches abroad.

 

 

 

 

 

 

 

 

 

 

 

Impact of Globalization (Realities):

 

1) Low participation in world trade by developing countries:- One of the indicators of integration of nations with the world economy is participation in world trade. There has been a significant increase in world trade. World trade has increased significantly in recent years. During the period 1989 and 1999, the percentage of merchandise trade in PPP, GDP (i.e. GDP measured in purchase price parity) increased from 22.5% to 27.4%. The expansion was much faster in high-income countries, from 28.5% to 37.47. But in low-income countries the increase was less than 1%. India has very small merits from GDP to trade. The share of trade in PPP GDP increased from 3.2% to 2.6%. This was lower than growth in low- and middle-income countries and lower than the growth rate in high-income countries.

 

2) Tariffs in the composition of trade:- India’s share in trade of agricultural products with developed countries has declined. These countries are reducing subsidies by the World Trade Organization while India and other developing countries are rejected on the grounds of sanitary and phyto-sanitary considerations.

 

3) Rich country became rich and poor man became poorer:- Rich countries have benefited the most from the increasing trade system in the world. low and middle income

 

 

 

Developing countries have to be satisfied with negligible gains. India is only marginally integrated with the world economy.

 

The vast majority of the world’s wealth is concentrated in industrialized as ‘developed’ countries of the world. Whereas the nations of the ‘developing world’ suffer from widespread poverty, overpopulation, inadequate education and health care systems, and crippling foreign debt. The disparity between the developed and developing world has grown steadily during the 20th century, and is now the largest it has ever been.

 

4) Greater reliance on foreign capital from private sources:- Foreign direct investment has become more attractive Several measures have been taken to attack foreign capital, the latest being the removal of the cap on foreign ownership in several industries, if DL 162 million US dollars in 1990 to about US$22 billion in 1999. But China has got about 40 billion US dollars. More importantly, it accounts for barely 2% of gross domestic savings. Like business, in capital formation also we have to depend basically on our domestic resources.

 

5) Unequal distribution of world income: According to Robert Wade of the London School of Economics, the share of world income going to the poorest 10% of the world’s population fell by more than a quarter even as the share of the richest 10% grew By 8 percent, 10% fell away from the average white, the poor 10% fell away from the median. In other words, poor countries and the poor in these countries were left behind in the process of development. The world has become much more unequal in recent years. The number of households at the extremely wealthy end has grown disproportionately rapidly, without reducing the distribution at the poorer end, to cite technological charges and financial liberalisation.

 

6) Indian View:- Government of India could not

Do not make adequate investments in the development of power, health or education infrastructure ahead of time. Today we are lagging behind. We have less technologically efficient industrial infrastructure. We have also lost huge opportunities for expansion of industry, trade, production and employment in the last few years. Even in cotton textiles, clothing, leather goods, gems and jewellery, light engineering for products, India occupies a small share of the total global exports. India has lost its position as the 10th largest industrial power in the world at least during the decade, India’s total share in the global market is 07%.

 

7) Role of WTO:- It is necessary to have a historical background of WTO in order to understand the benefit or cost we have paid by joining WTO in the name of globalization. it was only after 1980

 

 

 

US agricultural exports faced a sharp decline and an idea

It emerged that the decline in agricultural exports was due to the protectionist policies of the EEC and Japan that the US began to support an agreement that would enable free trade in agricultural goods. The WTO was eventually established by an agreement between the IIUS and the EEC known as the Blaine Homme Agreement as the GATT provisions were found to be insufficient and unsatisfactory.

 

‘The AOA is one of the important agreements under the aegis of WTO, whose important features are market access without domestic support and proliferation of export subsidies and disincentives. But contrary to expectations, neither the volume of agricultural trade nor the share of developing countries in trade has increased since 1995. Nevertheless, most of the developed countries have benefited from the negotiations and developing countries like India have gained nothing by singing the accord. , It could not expand trade in agricultural goods with the developed countries.

 

8) Income inequalities despite globalization and free markets leave a good 1/5 of humanity living below the poverty line and another fifth floating near or above it. According to a report, the world’s richest man Bill Gates Warner Buffet and Paul Elon have wealth equal to the wealth of 600 million people in 48 tilted developed countries of the world.

 

9) Closure of company:- Globalization has made many companies and then operations redundant. Hence neither they are closed (fully or partially) or they have been separated or their subsidiary units have been declared sick. For example, Hindustan Organic Chemicals’ decision to shut down its benzene operations involved the closure of several related units. This in turn adversely affects the lives of their employees.

 

10) Unemployment:- One negative effect of globalization is widespread unemployment due to technological innovations or diversification or relocation or closure of companies, also retrenchment of employees due to cost-cutting measures adopted by employers due to worldwide recession Was.

 

11) Violation of human rights:- a Decreases the supremacy of many states and increases the ability of corporations to violate rights? of people or to create conditions in which it becomes difficult to exercise or protect the right has increased tremendously. Against this it is not surprising when we get news that MNCs are making huge profits at the cost of people.

 

Both Nike and Reebok subcontracted the production of athletic shoes and soccer balls to Asia.

 

 

 

For others, firms that operate sweat shops employ child labor and make them work in extremely unsafe working conditions. The Bhopal gas tragedy of December 1984 that killed over 8000 people was the worst corporate human rights violation and the multinational company involved was none other than the chemical giant Union Carbide.

 

11) Environmental Hazards:- Chemical pesticides and herbicides pose a health hazard. The animals were pumped with hormones and antibiotics, which resulted in disease. This type of commercial agriculture and increasing influx has proved to be extremely dangerous for human life. To attract foreign investment, the government has allowed foreign investors, including multinational companies, to invest in India on a large scale. Chlorine, petro-chemical, caustic soda and other such chemical industries have come up in India in large numbers since 1991-92. This has encouraged the effect of chemicals polluting the environment. Even a drastic cut in our duties on chemicals has created this situation.

 

12) Loss of traditional jobs:- Many joint ventures related to fishing activities in 1994 have created a threat of jobs for many fishermen of India when their companies decide to go for sea fishing.

 

 

 

privatization of public sector

 

 

Privatization means that many government sectors are sold or given to private hands to run. Although the public sector enterprises played an important role in the development of the industrial sector of the economy during the plan period

Time is running out, investment in the development of the foundation of health or education

 

 

There the level of profit in enterprises have recorded considerable losses in some years. Given the fact that the level of investment in enterprises has been faltering, the returns have been meagre. Bimal Jalan has argued that it is the ‘low return on investment in public sector enterprises’ that is largely responsible for the financial condition of the central government. (a) Inadequate increase in productivity, (b) Poor project management (c) Over manning, (d) Lack of continuous technological up gradation (e) Inadequate focus on R&D and human resource development has been observed as a serious problem. Besides, public enterprises have shown very low rate of return on capital investment. This has hindered their ability to make new investments as well as intern themselves in technology development. The result has been that many public enterprises have become a burden rather than an asset to the government. Proponents of privatization have argued that all public sector problems can be effectively dealt with if the private sector is handed over. they cause the following

gives:

 

 

 

1. a) Improvement in efficiency and performance:- Private sector introduces profit oriented decision making process in the functioning of the enterprise which leads to improvement in efficiency and performance. Furthermore private ownership establishes a market for managers which improves quality managers which improves the quality of management.

 

1. b) It is easy to fix accountability:- While in public enterprises the personnel cannot be held responsible (or accountable) for any lapse, in the private sector the areas of reasonableness are clearly defined. This makes it possible for people working in private sector units to be held accountable for any mistakes made by them.

 

1. c) Private entities are subject to capital market discipline:- Performance or curse funds in the capital market given the highest importance in the private sector. With the government as the owners, it is easier for the public sector to get credit or budgetary support in relation to its performance over time. Thus there is no compulsion on them to perform well.

 

1. d) Political interference in public enterprise is inevitable:- Operating efficiency cannot be affected due to political interference in important decisions. Political decisions influence the choice of technology resulting in overworked workforce or location, inputs for some suppliers and procurement or price preferences become inefficient. Most governments also impose non-economic objectives on public enterprises.

 

1. e) Succession planning:- For many years many PSUs functioned without any ‘head’ so no one had to take responsibility

 

1. f) Response time is less in case of private sector:- Private units take decisions on the spot while public sector consults many people. This delays taking the right decisions at the right time in the public and private sectors.

 

1. g) Privatization gives better service to customers:- The survival of private sector enterprises depends on the satisfaction of the customers, only then they can grow, while public enterprises do not give priority to customer satisfaction, their markets always decline comes

 

Critique- Impact of Globalization on Labor

 

 

Trade unions in India generally oppose all moves towards liberalization and globalization of the economy, irrespective of their party line. They have organized bharat bandh, dao etc for us

 

 

 

of movements to stop the processes. They oppose the measures for the following reasons

1. a) Liberalization will lead to excessive retrenchment and retrenchment.
2. b) The introduction of new technology will hinder future employment.
3. c) The policy of ruckus will create an atmosphere of fear at the workplace.
4. d) Development of public sectors will be checked. Employers in these fields have more job security.
5. e) Labor laws protecting labor will be diluted in the name of flexible labor force.
6. f) The existing public sector undertaking will be transferred to the private sector in the name of privatization.
7. g) Excessive liberalization will lead to fall in wages and insecurity.
8. h) In the absence of government protection, the workers would suffer tremendous losses as the demand for labor is less than the supply of labour.
9. i) The working of free market forces will lead to an increase in the wages of the management and a decrease in the wages of the workers
10. j) Inequalities of income and wealth will further increase.
11. k) There will be loss of social justice
12. I) The ‘human face’ in the organization will be replaced by human brutality.
13. m) A reduction in public expenditure will put labor at a disadvantage.

 

Liberalization has resulted in stagnant employment growth, large mergers of large, medium and small scale Indian industries with foreign companies, widening fiscal deficit, rapid rise in prices, slowing growth of industry, increasing inequality of income and wealth, The country is focusing on the consumption of luxuries, neglecting the poor

Grant of UG and reduction of expenditure on indigenous production and social welfare programs and education. A large number of employees are affected by closures, layoffs and retrenchments. Nearly one lakh employees in the public sector alone have sought voluntary retirement. Contract laborers are being brought in place of permanent laborers. Controlled by the forces of demand and supply of labour, they are paid low wages, and no benefits or facilities are provided. Surveys have revealed that the salaries of Air India, Indian Airlines and Airport Authority employees are low. There contract workers do not get the benefit of provident fund, gratuity, bonus, leave facility, canteen, transport, medical and uniform facilities.

 

 

 

With the policy of line and fine becoming popular, the protective ring provided through various labor laws is loosening its grip. The earlier government did not allow lay-off, retrenchment or retrenchment under the Industrial Disputes Act, 1947 so easily. But now the state governments are allowing this under the tremendous publicity of the new economic policy. It was told that every month 300 laborers are retrenched in Punjab on account of overage. Trade unions have refuted the allegation that the public sector is inefficient that is why workers are against liberalisation. The Reserve Bank of India reports that only 2% of Indian industries are sick due to labor problems. And there are also a large number of PSUs which are operating at 85% to 110% efficiency. Trade unions also refused to accept this.

It is believed that such liberalization measures will bring more jobs in the near future. More and more capital intensive technologies will result in labor surplus.

 

They feel that there has been a foreign exchange crisis created under pressure from the IMF and the World Bank; The government has to continue its policy of reforms. The collapse of the communist regime and dependence on limited status have further strengthened this. The Central Trade Union has opposed all direct and indirect attempts to implement the exit policy. The unions have not allowed the government to formally announce an exit policy. Through the recent state elections, they have been successful in asking the government to drop its affluent image and spend more for the welfare of the poor, to slow down in its reform process. Though the management is always for reforms and they are introduced in public sectors and relief from many government controls, private managements are also critical of new economic politics. Reasons are:-

1. a) Increase in the number of sick units of large, medium and small scale industries
2. b) Acquisition by foreign affiliates and winding them up subject to the existing Indian managers being allowed 50% equity ownership.
3. c) Eliminate competition from foreign companies that are more efficient in their technology and resources.
4. d) Continuity of many contracts for Indian industry with white foreign companies.
5. e) Withdrawal of the protective subsidy structure by the government.
6. f) The high internet rate structure reflects their cost and puts them at a loss.

 

Free entry of MNCs, especially in the non-private sector into the hands of public sector management, workers on the other hand, joining hands with unions to fight against the new economic order.

 

 

 

policy. Though the government has also launched Rational Renewal Fund to help the retrenched workers and provide resources for the approved employment generation schemes, the benefit is not much. There is more emphasis on spending on VRS and less emphasis on retraining and redeployment. It is reported that the money collected through VRS was blown away by the workers and their jobless life with more responsibilities at home was miserable. The government has been very slow in changing the existing labor laws. It is suggested that the time is right to reconsider the whole issue of globalization, liberalization and privatization.

 

We should not forget that India as the largest country along with other developing countries is the ‘engine’ of growth for the developed countries as the market and our raw material developed countries cannot maintain their high level of progress or even the present standard of living. Can keep , It is also true that globalization has resulted in jobless development, cultural development (uneven development with rich galaxy becoming rich and poor poorer), rootless development (material prosperity without social and cultural generation) and development without future (development of future). development at the cost of) environmental degradation)

 

Automation-Computerization-New Technologies of Industrial Revolution

 

 

Globalization:- When business can no longer have a local focus and management now recognizes the global char. This means that the business had a global orientation. Due to globalization-

1. a) The globe has become almost like a village because of the best means of communication. Distance is no longer a problem for sound and vision due to the phenomenal development of TV, video and D telecommunication.
2. b) we have an increase

To develop technical and managerial capabilities to cater to the global market with the help of global brands. Even production can be located in several countries.

1. c) We have now developed a global outlook in business. Nothing is foreign now.

 

The current global business scenario is characterized by turbulent changes, high levels of uncertainty and intense competition. The impact of globalization is briefly outlined below.

 

Changes in the Business World:

1. a) Total Quality Management (T&M) of the company

2. B) Restructuring and Restructuring Revolutio

1. c) Planned changes in management/organisation.

2. d) Short life cycle of the product, small change of product in the cycle, high rate of new product development, ample scope for creativity and innovation.

3. e) Product quality integration, internals of zero defect production.

4. f) The growing inmportance of project management, self management, self managed teams, holistic values and strategic management.

5. g) Rapid development and increasing use of information technology including telecommunications and computers.

6. h) Education and training of employees The technology-based competitive strategy is multitasking. Skills based on all personnel values are empowerment of employees with organizational change, planning and decision making, strategy for problem solving, genuine participation and responsibility of workers in management.

 

Automation:- Traditionally, automation has been understood as greater replacement of labor by machines- this perception has now changed. Today, automation projects are undertaken not only for labor cost savings, but also for improving product quality, faster production and delivery of products, and increased product flexibility. Simply put, automation is the technology of operating or controlling a productive process by electronic devices and minimizing human intervention.

refers to. Human contribution to production includes two types of effort – physical and mental. The physical aspect i.e. labor was taken over by machines which came into use increasingly after the industrial revolution. The mental contribution to production is now taken over by electronic devices, primarily computers, which are often referred to as giant brains. With the advent of automation, the second industrial revolution has begun.

 

In a fully automated plant, all aspects of manufacturing

i.e. the feed, production, information and control is done by computer, supervised only by a few men who take an occasional look at the control room or clear the cutting. However, the extent of automation varies from plant to plant, and depends on the willingness and ability of management, the cooperation of workers and their trade unions, and the general economic conditions of the country. ‘In the simplest sense’ author Ruddell Reid ‘Automation is nothing more than an extension of the principles of mechanization to the integration of machines with each other in such a way that the group operates as an individual processing and control unit. The other extreme is the application of automation electronic digital computer control systems, which not only read the individual measuring instruments but also analyze the data received from the instruments, arrive at a decision and adjust the control values or motors or proper setting for optimum results. does.

 

 

 

There are many levels of application of automation techniques and principles between the extremes.

 

In practice, automation can include three district forms, namely integration, feedback control and computer technology. Integration involves processes in which finished products are automatically moved, untouched by human hands, from one stage to another, for example, industries handling liquids of gases, powdery goods such as the oil and chemical industries. Feedback control is primarily an electronic process by which any movement or movement of a machine is automatically corrected by the planned performance. These controls, called ‘servo mechanisms’, are highly developed in chemical industries and operate a number of mechanisms involved in these industrial processes. Third, computer technology relies on the use of electronically operated machines capable of recording and classifying information and, when necessary, drawing conclusions from this information. Third, computer technology relies on the use of electronically operated machines capable of recording and classifying information and, when necessary, drawing conclusions from that information.

 

Advantages and Disadvantages of Automation:

 

Automate or Die is the slogan of many producers all over the world, increasing production and productivity. Lower cost, better quality, elimination of wastage and inefficiency etc. is an essential requirement for the owner of any industrial establishment to successfully face the competition. . Gone are the days when whatever was produced found a ready market, in times to come only the best manufacturers would perform

Excellence will prevail and best performance will be possible only through automation.

 

Specifically the benefits of automation are:

 

1) Increase in production and increase in productivity:- Automation increases productivity and leads to increased production speed, eliminates production bottlenecks, reduces dead time (the time when No machine works due to lack of things like cutter fixtures etc.).

 

2) Better and Uniform Quality:- The quality of production has been greatly improved, as the whole production process, starting from raw material to final product, is controlled by machines. There is consistency in the quality of the products – a factor that makes or breaks customer goodwill.

 

 

 

3) Reduced Cost:- Automation results in reduced overall cost per unit of production, cost savings in the factory mainly due to virtual elimination of labour.

 

4) Dangerous and Unpleasant Work:- Factory work like sawing causing ear-splitting noise, Painting in which workers have to cover their entire face except their eyes, Work in machinery plant where oil seeps directly through clothes and skin etc are now controlled by robots instead of men. It is predicted that robots will perform many public and welfare services in the next few years. Will fight fines, work in garbage dumps, remove dirty water, and take the place of nurses in lifting patients from beds. The day is not going to stop when robots will step outside to perform tasks in dangerous situations.

 

Harm:

 

1) Heavy capital investment:- Automation involves high capital outlay, and hence increases cost of capital, also increases depreciation, power consumption etc. Therefore automation is a luxury for small firms.

 

2) Labor displacement:- Despite assurances to the contrary, automation results in labor replacement and often management replacement as well. Labor union concerns oppose the move to automation. LIC wanted to introduce computers in 1965. The trade unions protested and observed that automation through a computer would ultimately lead to the elimination of any LI.

The employee C was not retrenched. ‘The office was set up in Mumbai, and further employment opportunities were lost forever.

 

3) Fighter Specifications: – May need be Machines are not as flexible as humans. Mistakes in design or product cannot be corrected by machines. Therefore, increased automation will place demands on suppliers to adhere more strictly to specifications.

 

4) Dehumanization:- Automation taken to its logical end, dehumanises the plant and creates a strange environment in it. It is the three that offer many advantages. It is also true that an automated plant can save management from labor related hassles. But it should not be forgotten that employing thousands of people in a single plant has its own charm and hundreds of robots or computers give a comet-like sense of pride and achievement.

 

5) Effect on Employment :- In developing countries already the unemployment rate in such countries is very high. With the advent of machines, unemployment will increase further. foreign shortage

 

 

 

Exchange, the lack of highly skilled personnel and the lack of capital may not allow the country to go up to 100%. Computerization automation can be useful for increasing production in agricultural and industrial sectors but for some time to come these countries cannot afford this luxury selective automation to ensure accuracy, if not speed may be more relevant.

 

 

 

Subcontracting and Outsourcing:

 

It is most common to think of skill upgrades as spontaneous technological change, for example the discovery and introduction of computers that displace production workers. Several authors, such as Feenstra and Howson (1997), compared the effects of automation in the United States to law wage outsourcing to developing countries. They found that the effect on salary dispersion of computerization is more than half that of outsourcing.

 

While there are many other explanations for the spontaneous change in technology, skill upgrades have been seen as being at least partially driven by recent increases in the relative supply of skilled workers. The first concern of premia firms is paying for good employees. In the early 1970s the proportion of professionally trained workers was low and advanced qualifications were rarely available as an index of quality. Today, since the 1990s, tertiary qualifications have increased the costs of removing unsatisfactory employees. So it seems natural for them to use tertiary qualification as quality and index and select professionally trained candidates even for regular jobs.

 

Companies always love it when they see benefits in both the financial and quality aspects of production by outsourcing many of their components. Since it has become too expensive to employ highly skilled workers and firms have to maintain or grow

To maintain the quality of many products in the market, outsourcing i.e. subcontracting various parts or stages of production to small industries, which may be in developing countries, has been found to be most beneficial and cost-effective. But such industries have to produce quality products with high-tech production technology. 1) Business competition, when combined with internationally mobile physical capital!, affects vertically integrated internationally mobile physical capital, increasing the outsourcing of components to vertically integrated production processes. , It is the form of internal industry structural change that produces the observed ski; Upgradation in all areas. It provides the appearance of innovation in the form of technological change.

 

2) Labor displacement:- Despite assurances to the contrary, automation results in labor replacement and often management replacement as well. workers are unionized concerns

 

 

 

Resist the move to automation. LIC wanted to introduce computers in 1965. The trade unions protested and saw that eventually no LIC employee was retrenched due to automation through a computer. ‘The office was set up in Mumbai, and further employment opportunities were lost forever.

 

3) Fighter Specifications: – May need be Machines are not as flexible as humans. Mistakes in design or product cannot be corrected by machines. Therefore, increased automation will place demands on suppliers to adhere more strictly to specifications.

 

4) Dehumanization:- Automation taken to its logical end, dehumanises the plant and creates a strange environment in it. It is the three that offer many advantages. It is also true that an automated plant can save management from labor related hassles. But it should not be forgotten that employing thousands of people in a single plant has its own charm and hundreds of robots or computers give a comet-like sense of pride and achievement.

 

5) Effect on Employment :- In developing countries already the unemployment rate in such countries is very high. With the advent of machines, unemployment will increase further. Lack of foreign exchange, lack of highly skilled personnel and lack of capital may not allow the country to go up to 100%. Computerization automation can be useful for increasing production in agricultural and industrial sectors but for some time to come these countries cannot afford this luxury selective automation to ensure accuracy, if not speed may be more relevant

subcontracting and outsourcing

 

 

It is most common to think of skill upgrades as spontaneous technological change, for example the discovery and introduction of computers that displace production workers. Several authors, such as Feenstra and Howson (1997), compared the effects of automation in the United States to law wage outsourcing to developing countries. They found that the effect on salary dispersion of computerization is more than half that of outsourcing.

 

While there are many other explanations for the spontaneous change in technology, skill upgrades have been seen as being at least partially driven by recent increases in the relative supply of skilled workers. The first of these concerns the premium the firm pays for good employees. In the early 1970s the proportion of professionally trained workers was low and advanced qualifications were rarely available as an index of quality. Tertiary qualifications today have made more progress to reduce costs than in the 1990s

 

 

 

unsatisfactory worker. So it seems natural for them to use tertiary qualification as quality and index and select professionally trained candidates even for regular jobs.

 

Companies always love it when they see benefits in both the financial and quality aspects of production by outsourcing many of their components. Since it has become too expensive to employ highly skilled workers and firms have to maintain or enhance the quality of many products to market, outsourcing i.e. subcontracting various parts or stages of production may occur in developing countries. . Has been found most profitable and cost effective. But such industries carry with them high-tech production techniques to produce quality products. Trade competition, when combined with internationally mobile physical capital!, affects vertically integrated internationally mobile physical capital, increasing the outsourcing of components to vertically integrated production processes. It is the form of internal industry structural change that produces the observed ski; Upgradation in all areas. It gives the appearance of innovation, as technological change in the sectors measured at the end, when what is actually happening is a shifting of component activities with increased import competition, a decline in both wages and employment of production labor. comes because many firms are ready to manufacture products of similar quality. And that too at low prices eg. Chinese goods in Ind

I am one As imports of competing products flow in, the monopolist responds better by contracting its output while keeping the price of its original product intact. Low-skill employment falls and the laid-off workers reduce unskilled wages elsewhere in the economy or, if those wages are severely reduced, increase unemployment.

 

With the enormous growth of services in industrialized economies and the corresponding decline in manufacturing, there is a greater demand for good manufacturing in developing countries. Yet the relative proliferation of service firms in the new industrial economy brings pressure for organizational change. One of the European style of managing this is the phenomenon of ‘multitasking’ in a typical service firm. This makes the central reform wage bargaining prevalent in Europe less efficient, creating pressure to switch to individual contracts and therefore greater wage dispersion.

 

Many companies in India have started subcontracting their products. Parle Gulkos Biscuit, Johnson & Johnson, well-known jewellers, Bombay Dyeing, Bata Shoe Company, many pharmaceutical firms that outsource their parts or components and market those products under their own trademarks after carefully monitoring their properties. Sells For small firms, such subcontracting reduces labor costs by not having to employ skilled labor at the factors. such as competition with multinational companies or foreign manufactures

 

 

 

The market is very difficult and uncertain, it is absolutely necessary to increase the level of productivity and quality of goods. If the present labor structure is unable to produce the desired output, it has to be changed and technological change has to be brought about. Business process outsourcing is considered to be one of the biggest job opportunities the Indian market is a part of in IT. Enabled Services. In the rapidly changing business environment in the world today, many large companies no longer want to be involved in routine and administrative tasks. This trend is today giving rise to a huge industry called Business Process Outsourcing (BPO).

 

B P O – means delegating back end administrative tasks that are necessary to run the business but do not generate any revenue directly. Companies around the world are increasingly outsourcing their routine and administrative tasks, including data entry, data conversion and processing, insurance claim processing, document management, billing services, accounting, results, payroll services, credit and debit card processing, and more. A huge number is involved. services, logistics management, sales administration, travel management and data research.

 

This (infection technology) is the first sector which has started outsourcing on a large scale. East Man Kodak helps ignite outsourcing industries, with its IT

Outsourced the bulk of the tasks to three external partners. The practice became widespread over the next 20 years. Gnomonic certainly and the rapid pace of change are driving companies toward transformative outsourcing partnerships, says Mazzavi – a consultant at Cap Gemmons. Performance improvement under traditional outsourcing is operational, but rather strategic in nature to do the same job better, faster or cheaper. But usually there is no scope for change. Transformational outsourcing transforms the entire business. Earlier non-essential services such as payroll, processing or security activities were outsourced to outside agencies. But now, according to Jim Jackson and Jim Lasseter, more essential activities like manufacturing or logistics can also be transferred.

 

Downsizing and its impact

 

 

Exit Policy:- The proposal to introduce an exit policy was first put forward in September 1991 when it was introduced that without the flexibility of the labor market it would be difficult to achieve efficient industrialization. The World Bank and the IMF have long argued that governments should initiate labor market changes to allow employers to move workers from one unit to another and to retire excess labor. It is the threat of retirement that is worrying the working class.

 

 

 

In the guise of improving the competitive strength of our experts and introducing a competitive environment in the Indian domestic market, the new economic policy has opened the door for multinational companies. Over the past few years a large number of cooperation with foreign companies have dived. MNCs are also controlling many Indian companies. Tendencies are found for workers in MNCs which employ capital intensive technology with automatic machine, the production process in a unit can be run with a handful of workers and this can reduce the size of the unit i.e. size Shrinkage of workers. The danger sign is open in front of everyone, which can be seen by everyone. A large number of companies have already raised objections regarding VRS (Voluntary Retirement Scheme) in their various units. While some companies have copied

Some companies have adopted VRS to overcome losses by making them ‘lean and fit’ to improve their profit margins at the expense of employees due to the growing threat from foreign competition. Domestic companies are now building more on care capability and diversification. Accordingly, they are trying to weed out unrelated and unprofitable business. VRS is also adopted by companies when they enter into strategic alliances with other companies or there is an acquisition. Workers of Halpern are currently victims of the process of restricting the consolidation, mergers, acquisitions and amalgamation sector. The government’s policy has been to ease the process of retrenchment of employees.

 

 

 

 

 

 

 

 

 

 

 

impact on trade unions

 

 

Trade unions in India played an extraordinary role in protecting the interests of the workers even by controlling and regulating the management at the expense of the organization. But trade unions now play an important role by collaborating with the management as the organization will survive in the state under the competitive environment. The role of trade unions fighting with management to protect workers’ interests would be changed, with most employment conditions determined by market forces rather than the political and all-membership power of trade unions. Further the government will support the management rather than the trade union as opposed to the part, as at present the aim of the government is to achieve faster income growth. Therefore, liberalization will not guarantee equal role and importance for trade union in India.

 

Trade unions in India oppose the imposition of economic liberalization as they generally do not favor free access to the Indian industrial sector to multinationals, support the development of small scale sector, oppose privatization of public enterprises and do not want to close down the sick units. but they could not answer

 

 

 

Substantially and effectively led to a rapid decline in employment and wages. Market manipulations force the management to take unilateral decisions to solve the labor problem to reduce the labor burden. Technological and other changes may be introduced to modernize and/or restrict enterprises to recover from the crisis and face competitive pressures. Most of the private sector organizations are seeking to promote labor management cooperative through consultation instead of collective bargaining. Hence collective bargaining machines would not be able to enjoy the same privileges under a liberalized economy.

 

  Voluntary Retirement Schemes (VRS)

 

 

To increase profitability, many managements decided to downsize their organization. This is called downsizing. For this they adopted various exit policies. Under the current policy, the government has allowed business and industrial establishments to lay off additional staff and reduce staff. Due to modernization by implementing new technology and new methods of operation, the reduction of additional staff is the result of the rest metering of the organization, so that the industrial organization becomes economically viable.

operate and face competition with a body of companies that have captured foreign collaborations, innovative methods and Technology upgrade provides some staff surplus.

 

Since the procedure under the Industrial Disputes Act 1947, retrenchment involves a lot of legal handles and complicated system, government authorized schemes of voluntary retirement of employees provide suitable voluntary retirement benefits and under the guidelines issued by the government and income tax authorities Doing something gives relief. Public sector units are providing employment to lakhs of people but many of them are not cost effective. Trade unions have been opposing retrenchment under existing labor laws. So the government found a solution to the problem of surplus employees by allowing voluntary retirement to both private and public units. Industrial units of workers a) have become surplus due to the existing level of technology b) will become surplus with the adoption of good technologies and technological upgradation.

 

The Industrial Disputes Act 1947, as it stands, imposes restrictions on employees in case of reduction of excess workforce by retrenchment, closure of establishment. Unions strongly oppose any plans for retrenchment and reduction of employees and workforce. The government had decided to amend the labor laws, so that employees would be able to legally join the labor force following the conditions of the labor laws. but for

 

 

 

For some reason the government will not do this. However, a way was found by allowing employees, including government units, to offer voluntary retirement schemes to offload surplus manpower. The URS plans were not opposed by the unions, it became the nature of being voluntary and not using any coercion.

 

URS complication has not been detected. This includes voluntary separation

Employees who are above 40 years of age or who have served the company for at least 10 years. The company may offer different severance benefits to employees of different age groups subject to overall benefits including tax exemption PSY, however, prior permission from the government has to be obtained before starting any such programme. Reason for proposing Rs.

 

1. Slowdown in business.
2. Intense competition which makes the establishment unviable unless downsizing is resorted to.
3. Charge in technology, production process innovation, new product line.
4. Restructuring of business due to market conditions
5. Joint venture with foreign collaboration
6. Acquisitions and Mergers
7. Business Reengineering Process
8. Product/Technology has become out of date process by now, the employer has to circulate his proposal mentioning URS
9. a) Reason for downsizing.
10. b) Eligibility i.e. who are eligible for voluntary retirement.
11. c) Age limit and minimum length of service of the employees applying.
12. d) The advantages offered by us.

1) Provident Fund.

2) Gratuity Fund.

3) Privilege leave pay up to the date of his retirement, in addition to UR benefits

4) Right of the employee to accept or reject any application for voluntary retirement.

5) The date up to which the scheme is open and applications are received for consideration.

6) The circular may indicate income tax benefit on any voluntary retirement benefit exceeding Rs. 5 lakhs which is the maximum for fax benefits

7) It should also be mentioned that those who accept UR and the benefits thereunder shall not be eligible for employment in the establishment in future.

 

 

 

Rewarding the studies done on UR and their impact on employees and workers, it is observed that after UR many people blow away the money they received as part of the retirement package. Some blame it on the high interest rates. Some bought houses which had to be sold after the wards. Some even committed suicide after being abandoned by their children. Some others have become alcoholics. It was observed that the rate of protest across departments has increased in Mumbai. On the bright side, there are people who restricted and reorganized their lives. Some started their own business, some became outsourcing partners of their farming companies.

 

Counseling is necessary for people taking VR there. Essentially UR is neither voluntary nor retirement but a retrenchment scheme. Many employees are separated from the organization to increase efficiency. The union leaders do not accept the VRS schemes. He says the management sees VRS as a way to increase profits. For them if is unacceptable. And go for subcontracting. Establishment of new units is also named, some managements close down and many others.

 

 

 

Globalization, liberalization and privatization had influenced the economic policies of India. The New Economic Policy set the course for the entry of multinational companies, foreign direct investment, investment, privatization and a more liberal economy. Computerization, subcontracting and down sourcing of outsourcing have all affected the growth of industries and labor and large scale workers are being laid off with no work in hand.