GLOBALISATION AND HUMAN RESOURCE MANAGEMENT
The context of huge fiscal deficits ,crisis in the Balance Of Payments (BOP) situation ,falling
foreign exchange reserves ,growing
trade deficits and mounting foreign debts ,declining India’s creditworthiness in international business community and conditions imposed by the International Monetary Fund on India regarding radical economic
reforms consisting of
liberalization, macro economic adjustments and structural reforms. To become eligible for large loans, necessitated for the announcement of economic liberalization by the Government of India .There economic liberalization launched in India since July 1991 have resulted in radical change of the direction and structure of the nation .The direction has tended towards
market economy from the then existing socialistic pattern and glo0balisation of Indian economy.
Liberalisations aimed at freeing
industry , business and trade from the clutches of control, decontrolling macro economy of the country and its economic institutions and changing the structural infirmities .Liberalisations include liberalising industry .bussiness and trade both domestic and foreign .Economic reforms are broader in scope .They include reforms of fiscal and monetary policies besides liberalization of industry ,business and trade.
Liberalisation of industrial policy, includes delicensing of industries and removed of restrictions o0n foreign investment ,relaxation of Foreign Exchanges Regulation Act (FERA) and Monopolies and Restrictive Trade Practices Act(MRTP) ,curtailment of the role of public sector and application of commercial principle to the public sector industries .Liberalisation of trade policy includes liberalization of i9mports, linking of imports to exports and lowering of tariffs ,introduction of new exchange rate system ,encouragement of exports and foreign investment .Economic reforms include fiscal and monetary reforms , inflation control and financial sector reforms .Structural adjustment includes controlling subsidies and introduction of a market driven environment , restructuring the public sector and exit policy.
The economic reforms announced by the Government change the direction of the country from socialistic pattern to market economy .The trends of market economy result in intense and vibrant
competition, entry of new multinationals and consolidation of existing multinational .increasing the stake of multinationals in their Indian partnerships, intensification of competition due to import liberalization, increased competition due to the emergence of buyer’s market and changed notions about small scale industry .The vulnerability of Indian Industry and frequent changes in international environment are other basic causes for competition .Thus, the major result of economic reforms is competition and all-round competition .This situation necessitated for the Total quality and Productivity Management(TQPM) and minimization of cost through attracting positive factors and eliminating hindering factors.
Now, the survival and development of industry in India, mostly depends on its ability to compete with other Indian firms, multinationals and in foreign markets .The ability to maintain high quality and maximize productivity determine the competitive ability of Indians firms, which in turn is largely dependent on the quality and commitment of human resources.