Volume: 1, Issue: 1
INTRODUCTION
Today, it has become necessary to dispense with the excess manpower for improving the health of organizations. If this is not done, the excess labour could cause industrial sickness. At present, many companies are in lossand nearly all the government organizations are turning to be private concerns. In India, publicsectors, both the Central as well as State, have expended indiscriminately and extended to non-priority sectors where private sectors would perform better. Due to the forces of globalization and liberalization, the companies are facing competitions. The stimulus for globalization comes from the urge to grow, the need to become competitive, the need to diversify and to gain the strategic advantages of internationalization. Moreover, due to the introduction of information technologies the manpower need of the companies has also been reduced. Almost all the government institutions have excess manpower. The fact that the manpower strength was out of bound and the expenditures of salaries of workers was unbearable for the companies. Due to the losses faced by the companies, they became unable to complete with their peer institutions. Also, due to the shortage of funds, the better quality of goods (commodity) could not come in the market. The late delivery of products to the customer resulted in low number of orders, as well as the low price of the imported articles in comparison to the Indian products. This has resulted in lowering down the indigenous product prices.
