IMPACT OF HUMAN RESOURCE MANAGEMENT IN THE NEW ERA OF OUTSOURCING WITH REFERENCE TO AUTO COMPONENT INDUSTRY

He automobile industry has seen phenomenal growth during last two decades or so. It was observed that there was a tremendous pressure on the giants in this field to produce vehicles and fulfill the production processes carried out by these companies. These changes are distinct from the changes forced by the technological development. Further, these changes have added different dimensions to the traditional approaches in almost every function of the business. Certain new concepts have emerged, such as, Vendor Development, Supply Chain Management, Forward and Backward Integration of the production processes, Outsourcing etc. while introducing each of such new concepts, it has been stated that these concepts will lead to reduction of cost with high quality and greater speed in the production processes. This has led to increase in the number of SSI units supplying materials to these giants. Even the giants have shown interest in starting such a venture. The work load was such heavy that these vendors (i.e. SSI units) have further proceeded for subvendor ship. This has led to the creation of multi-layer production process for the production of one unit/part of the unit. The multi-layer, hierarchical process leads to decrease in margin of profit at each such level of process as also reduction in quality, delay in supply and increase in the number of rejections.