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Globalization is an important driver of economic development and is concerned with all the
actors in economy. Globalization has a major effect on social partners and therefore resulting in
dynamic situations in labour relations.
Globalization has withered away the global boundaries and world has emerged as one global
village. Continuous mergers and acquisitions across the globe are changing the skyline of business
and global competitiveness is the only key of survival in this global business game.
To cope up with these changes, India embarked upon New Economic Policy (1991). This policy
effected the industrial and labour relations in India. Some of the features of this policy were:
The scenario of Industrial Relations has changed a lot in India post globalization. Various changes
that took place were:
IR is not static activity, it keeps on changing, referring to the persons, groups and the institutions
which it relates with in a particular country. Employment relations on the development of global
enterprises and industrialization changes require a broader perspective. Work related activities
must now be covered by IR which includes the interaction between mangers and other fellow
employees. This is due to the fact that some issues that relate to HRM like job design,
development of skills, job security and employment flexibility have been ignored on the IR front.
But now the situation is changing. What we are seeing now is a broader approach to IR issues
that is incorporating and seeking to harmonize the two; IR and HRM. This is done by expanding
on the boundaries of the two and thus IR's mandate will need to be expanded to address issues
that it does not currently address. Therefore it will have a shift from only addressing collective
relations and incorporate issues related to labour management.