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Employment Relations The Paradigm shift

Employment Relations The Paradigm shift. The Assumptions. Conditions of employment in the modern sectors are generally better than the minimal provided under various labour laws

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Employment Relations The Paradigm shift

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  1. Employment RelationsThe Paradigm shift

  2. The Assumptions • Conditions of employment in the modern sectors are generally better than the minimal provided under various labour laws • A larger proportion of employers in the modern sectors have been technically qualified professionals belonging to the middle-class background and been employees themselves before they became independent entrepreneurs • A relatively larger proportion of modern, high-tech firms are some how ‘union-free’.

  3. Shifting focus in the realm of Work Aspect Primary Secondary Tertiary

  4. Shifting focus in the realm of Work Aspect Primary Secondary Tertiary

  5. The Unique Indian Mosaic India offers the diversity of Europe and the unity of a continent Stern(1993) • India always lives across 3 Centuries • Somewhere or other in the vast Indian landmass, one Sector or the other dominates; It is never the same everywhere • To be successful in IR management in India one has to know all the mantras

  6. The realms of transformationAn eightfold path • Market • Work • Technology • Worker • Work organization • Skills • Compensation • Workplace Governance

  7. Plan to Import substitution to Protection to Sellers discretion to Producers diktats to Swadeshi to Market export orientation Competition Buyers preference Consumers kingship Videshi and Bahudesi How the Market is changing?

  8. How is Work changing? • Robotics in Assembly line operations • Unmanned workstations like a Power plant • Office less work – Home based / Mobile • 365days/24hours banking, retail, restaurant • Transcendental working space – call centers • Flextime working • Multiple employment- temporary, project based • Cross functional / competency based • Interdependent Partnership not job hierarchy • Empowerment and leading not Following

  9. How Technology is changing? From To In Farm/Factory: Manual /Mechanized Operations & Up keeping Fixed Work-location for Instructor/workers In Office: Ink pen, Type writers, Telephone, Telex Duplicating Machine Paperwork record keeping Electrical/Electronics based automated working Mobile Work-location for Instructor/workers Gel pen, Computerized Word processing, email, Pagers,Cell phones, Fax, Photo copiers, wireless, Electronic databases

  10. How Workers profile is changing? From To Blue Collar Illeterate / Semi-literate Unskilled/ Semi-skilled Supervision by Sircars Caste profile uniformity Linguistic uniformity Local, inward looking Male predominance Cultural uniformity White Collar Literate/ Neo-literate Skilled/ Computer savvy Supervision by Leaders Caste/class heterogeneity Mutilingual, Hinglish Migrant, outward looking Equal opportunity Cultural integration

  11. How Work Organization is changing? • More autonomous, lesser State controls • More flexibility in production / distribution • Parallel production / assembly locations for cost / revenue optimisation • Global networking of activities • Strategic Alliances, Mergers, Acquisitions • Fat-shedding / down sizing /right sizing around core competencies • Shortening of Product lifecycles • Ever rising demands on Quality

  12. How Skills are changing? • Hot skill concept: • The very latest is the best • The skill that pays the most • Skill to apply cutting-edge of technology / innovation • The skill that employers find hard to acquire • Knowledge drives the skill: • Need for continuous learning / updating • One who knows what and how, when and where is only secure in his job, none else • The more the merrier – multi-skilling

  13. How Compensation is changing? • Pay for performance • Pay for knowledge / skill application ability • Flexible and Contingent pay – not scalar • Employee Stock Option plans • Flexible Retirement Plans • Expatriate Pay – getting adjusted to culture • Cafeteria Plans

  14. Workplace Governance From To • Centralisation / Hierarchy • Collective Bargaining/ • Collective Contracts • Standardised Pay scales • Socialised Allowances, • Perks and other benefits • Higher pay for seniority • Lifetime relationship • Paternalistic control • Decentralisation / Flat • Individual Bargaining/ • Individual Contracts • Flexible customised pay • Merit based Allownaces, • And Cafeteria benefits • Pay contingent upon merit • Gainsharing relationship • Partnership in Management

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