Innovations in Business and Strategic Management

ABSTRACT

Background: Outsourcing in the Indian coal sector involves delegating functions like mining operations and logistics to external vendors for cost reduction and operational flexibility. Contract management structures agreements to ensure vendor compliance and performance.
Introduction: This study investigates the impacts of outsourcing and contract management on organizational culture, employee relations, and strategic decision-making in the Indian coal sector, highlighting changes in employer-employee dynamics and implications for job security and labour rights.
Methods: A mixed-methods approach was used, combining qualitative and quantitative data collection. Case studies of coal companies utilizing outsourcing, surveys, and interviews with stakeholders provided primary data. Secondary data from industry reports and academic literature were analyzed for context.
Results: Findings show outsourcing and contract management lead to cost savings and efficiency gains but also weaken employee morale, increase labour disputes, and challenge organizational cohesion. While contract workers gained better job security and benefits, employee detachment and dissatisfaction grew.
Conclusions: Outsourcing and contract management significantly affect organizational culture and employee relations. A balanced approach with robust contract practices and equitable worker treatment is essential to optimize benefits and mitigate negative impacts. Future strategies should promote inclusive cultures and develop strong internal capabilities.
Objective: The study aims to examine the effects of outsourcing and contract management on organizational culture, employee relations, and strategic decision-making, offering insights for improved management practices and policy-making in the Indian coal sector.

KEYWORDS

1. Outsourcing
2. Contract management
3. Indian coal sector
4. Employee relations