Employment Relations in Manufacturing Sector - Paradigm Shift (Global Performance onLocal Environment)

The process of economic liberalization began in India since the mid-1980s and accelerated since 1991. Subsequently, the economy has responded positively and India is now considered as one of the dynamic emerging nations. Meanwhile, some important developments were taking place in the industrial relations system as well. The liberalised policies and the increased level of competition by overseas firms have put pressure on employmentrelations function of domestic companies. The employment relations landscape is currently undergoing fundamental change in terms of types of arenas and involved all the stake holders. The traditional industrial relations system is being complemented by an emerging transformational system. At present, the second generation reforms are in progress and the economy seems to be moving on the right track. Owing to such development, a large number of foreign firms have become interested to make business in India. To survive and prosper, the companies have to prepare and develop their employees so as to compete with overseas organisations in skills, efficiency and effectiveness (Sparrow and Budhwar, 1997) 1 . For healthy employment relations, it is necessary to have well defined robust, unbiased, policies and procedures as reactive policies can’t continue for long. Growing competition, complex economic environment, rising labour costs, etc. compel organisations to adopt proactive strategies towards employment relations, while having proactive strategies; the organizations have to ensure achievement of corporate objectives through cooperation and commitment of employees.