Balancing Decent Work With Competitiveness
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© Prof. Hyo-Soo Lee 1 Governance for Balancing Decent Work with Competitiveness Prepared for the IIRA 6th Asian Regional Congress by LEE, Hyo-Soo Professor of Yeungnam University, Korea President of the Korean Industrial Relations Association April 20 2007 New Delhi, India
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This paper provides the way of balancing decent work with competitiveness on the basis of the PDR systems theory and the RESAP model. In the macro level, the RESAP will provide an infrastructure for decent works with competitiveness. In the micro level, firms should develop PDR systems focusing on humanware for mutual gains to balance decent work with competitiveness. Decent work with competitiveness in a firm level refers to mutual gains. Mutual gains are achieved in the wll-developed and balanced PDR systems by a good humanware. For a good humanware, distribution and rule-making systems should be designed so as to maximize mind-set such learning, creative and cooperative minds. The software and hardware systems can be continuously improved and efficiently by creative human resources. This mechanism will create decent work with competitiveness and real flexibility. What can we expect from the RESAP? The RESAP model will provide new paradigm in strategic choices for knowledge economy. We can find the way to attain both economic competitiveness and social inclusion on the RESAP model. VADS(Vocational Ability Development System) and LJIC(Learing and Job Information Sysem) will create a 'dynamic and healthy labor market(DHLM)' that minimize job and skill mismatchs. More information of the PDR System Theory: * Lee, Hyo-Soo, "The Interaction of Production, Distribution, and Rule-Making Systems in Industrial Relations", Relat. ind. vol.51, no 2, 1996. * Lee, Hyo-Soo, "Paternalistic Human Resource Practices: Their Emergence and Characteritics", Journal of Economic Issues, Vol. 35, No.4, 2001. More information of the RESAP model: Lee, Hyo-Soo, "Korea: Proposal for a New Type of Partnership", More than Just Jobs, OECD, 2008.
Transcript of Balancing Decent Work With Competitiveness
© Prof. Hyo-Soo Lee Yeungnam Univ.
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Governance for Balancing Decent Work with Competitiveness
Prepared for the
IIRA 6th Asian Regional Congress
by
LEE, Hyo-Soo
Professor of Yeungnam University, Korea President of the Korean Industrial Relations Association
April 20 2007
New Delhi, India
© Prof. Hyo-Soo Lee Yeungnam Univ.
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Contents
Introduction
Changes in Economic Environment and Decent Work
Policy Options for Decent Work with Competitiveness in Macro Level
Balancing Decent Work with Competitiveness in Micro Level
Conclusion
© Prof. Hyo-Soo Lee Yeungnam Univ.
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Changes in Economic Environment and Decent Work Localized Market → Global Market
⇒ Global Competit ion, Speed, Flexibility Push downward pressures on wages and working conditions Flexible labor market
Industrial Society → Knowledge-based economy
⇒ Rapid changes of technology and knowledge Destruction of traditional jobs and creation of new jobs Lifelong learning system to renew vocational ability
Young Society → Aging Society
⇒ Increase of low wage jobs for the aged
In these changing environments, decent jobs are easily destructed in the middle of price and speed competition.
Balancing Decent work with competit iveness is a central issue
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What is policy options for decent work with competitiveness?
Policy options in Macro Level for Decent Work Flexible Labor Market focusing on Numerical Flexibility
⇒ Decent Job Destruction and Low Skill Equilibrium Dynamic and Healthy Labor Market focusing on Wage and
Functional Flexibility, Job Mismatch and Skill Mismatch 2 infrastructures : Vocational Ability Development System (VADS), Learning & Job Information Center (LJIC) RESAP Model
Strategic Choices in Micro Level for Decent Work Low Road Strategies for Flexibility and Price Competition
Destruction of Decent Work, Competitiveness in Short-run High Road Strategies for Decent Work with Competitiveness
Humanware revolution for mutual gains PDR Systems Theory
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RESAP Model : Vision & Directions of HRD Partnership
Economic and Social Advancement Economic and Social Advancement
DHLMMinimization of job & skill mismatch
DHLMMinimization of job & skill mismatch
Competitive advantageJob creation
Competitive advantageJob creation
LJICOvercome asymmetric
information
LJICOvercome asymmetric
information
Social inclusionWorkfare
Social inclusionWorkfare
VADS for innovation clusters
VADS for innovation clusters
VADS for the marginalized
VADS for the marginalized
Building RHRD clusterKnowledge workforce and vocational ability development per life cycle
Building RHRD clusterKnowledge workforce and vocational ability development per life cycle
VisionVision
MissionMission
Strategies
RESAPRegional Economic and Social Advancement Partnership
RESAPRegional Economic and Social Advancement Partnership
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What is basic Strategies for the RESAP?
What is basic Strategies for the RESAP?–What is the strategic goals for the RESAP? @ Simultaneous pursue of economic and social advancement
Why? Interdependence of Economic Competitiveness & Social Inclusion
–What is the policy instrument for the RESAP?@ VADS and LJIC based on partnership
–Who and How operate the RESAP? @ Regional Governance Initiatives, Partnership
Why Regional Governance Initiatives? –Why regional initiatives? @ Innovation Cluster and Social Inclusion
fully Effective on a Regional-level–Why Governance Initiatives? @ Partnership among companies,
Univ. and government for fostering and effective utilization of knowledge workforces
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How to make the Regional governance initiatives?RESAB : Governance of RESAP
Province or StateRESAB
Project & Policy Review
LJICOne stop
center
LCCPolicy Development
KCCPolicy
Development
ICCPolicy
Development
City or CountyRESAB
LJICOne stop
center
LCCKCC ICC
Project Application
Financial Support
Departments of the
governmentMOL
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What is the functions of the LJIC?
Information hub of the labor market
Provide information for learning and jobs
One-stop services for job seekers and companies
To make effective competition system and induce specialization of education and training institutes such as universities, colleges and training center
To reduce transition cost and transaction cost in the labor market.
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What is function of the KCC, ICC & LCC
KCC (Knowledge Competitiveness Council)
– To develop partnership and polices for life-long learning and Strategies for Fostering Knowledge Workforce
ICC (Innovation Cluster Council )
– To develop VADS for the Innovation Cluster for regional economic competitiveness
LCC (Learning Community Council)
– VADS for the Vulnerable for Social Inclusion
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PDR Systems Model for Employment Relations
Actors’ value &
Power Positions
PDR Systems & their Interaction
Production System
Humanware System Personnel System Mind-set Ability-Development System Software System Hardware System
Distribution System
Rule-Making System
Performance Levels Productivity
Workers’ Quality of life
Competitive Environment
Strategic Choice
General Environment
Source: Adapted from Hyo-Soo Lee [1996; 2001]
G
We should make mutual gains for decent work with competitiveness in a firm level. PDR System model will provide the mechanism for mutual gains
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Strategic Choices for Decent Work with Competitiveness in a Firm Level : PDR System Model
Mutual gains are achieved in the well-developed and balanced PDR Systems by a good humanware
For a good humanware, distribution and rule-making systems should be designed so as to maximize mind-set such as learning, creative and cooperative minds
The software and hardware systems can be continuously improved and used efficiently by creative human resources
This mechanism will create decent work with competitiveness and real flexibility
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Conclusion
In the macro level, the RESAP will provide an infrastructure for decent work with competitiveness
VADS and LJIC will create DHLM that minimize job and skill mismatches
Regional governance initiative will provide competitive human resources for decent work with competitiveness
In the micro level, firms should develop PDR systems focusing on humanware for mutual gains to balance decent work with competitiveness
In conclusion, humanware does matter for decent work for competitiveness
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Conclusion (continued)
What can we expect from the RESAP– Get new paradigm in strategic choices for knowledge economy
– Economic competitiveness and Social Inclusion
– Effective competition system for HRD
– Maximization of invisible resources by effective cultivation of knowledge workforces
– Efficient utilization of labor and reducing structural unemployment by the minimization of skill mismatch
– Optimum allocation of labor forces and reducing frictional unemployment of by minimization of job mismatch
– Minimization of transition cost and transaction cost
