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Title: Outsourcing manufacturing activities and its impact on industrail relations
Authors: Kamble, Vaishali Y.
Keywords: Datta, R.C.
School of Management and Labour Studies
Issue Date: 2001
Publisher: Tata Institute Of Social Sciences
Abstract: Today most of the Indian manufacturers are increasing outsourcing most of their components to gain flexibility and competitive advantage in the market where each player is a master In his own field. This study has highlighted some of the important aspects of outsourcing and its need in the industry today Organisation have moved away from the traditional concept of fordism to a lean and mean production system thereby shrinking its size of operations and getting leaner and meaner in the 90's. The current status shows that almost all the automobile manufacturing plants have turned themselves into assembly units, outsourcing more than 80 to 85% of their components. With the shrinking size of the organizations even the manpower requirement has been shrinking day-by-day retrenching, laying-off, terminating majority of workers. This has led to what we call as the breaking of psychological contract which, existed in the history of manufacturing. Today the concept has been completely eroded from the minds of both the employers as well as the employees. Even the role of trade union is diminishing from the industrial front. Gone are to days when the Trade Unions were strong and concrete in putting forward their demands, in front of the management. There has been a complete revival in the trade unions role after the economy opened and posed several challenges to the Indian Industry. Even the legal frame work does not provide an adequate support to the management and workers which would enable them to accept these changes with grace and courage. Outsourcing is and will be the face of tomorrow, and hence is going to provide tremendous opportunities and pose several challenges to the Indian Industry.
Appears in Collections:M.A.

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