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Governance for Balancing Decent Work with
Competitiveness
Prepared for the
IIRA 6th Asian Regional Congress
by

LEE, Hyo-S...
Contents


Introduction



Changes in Economic Environment and
Decent Work



Policy Options for Decent Work with
Compe...
Changes in Economic Environment and
Decent Work


Localized Market → Global Market
⇒ Global Competition, Speed, Flexibili...
What is policy options for decent work with
competitiveness?
 Policy

options in Macro Level for Decent Work

 Flexible ...
RESAP Model : Vision & Directions
of HRD Partnership
Vision

Mission

Economic and Social Advancement
Economic and Social ...
What is basic Strategies for the RESAP?


What is basic Strategies for the RESAP?
– What is the strategic goals for the R...
How to make the Regional governance initiatives?
RESAB : Governance of RESAP
Departments
of the
government
MOL
LJIC
One st...
What is the functions of the LJIC?


Information hub of the labor market



Provide information for learning and jobs

...
What is function of the KCC, ICC & LCC


KCC (Knowledge Competitiveness Council)
– To develop partnership and polices for...
PDR Systems Model for Employment
Relations
PDR Systems & their Interaction
Production System

Competitive Environment
Acto...
Strategic Choices for Decent Work with
Competitiveness in a Firm Level : PDR System Model


Mutual gains are achieved in ...
Conclusion


In the macro level, the RESAP will provide an infrastructure
for decent work with competitiveness
 VADS and...
Conclusion (continued)


What can we expect from the RESAP
– Get new paradigm in strategic choices for knowledge economy
...
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Balancing Decent Work With Competitiveness

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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.

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Balancing Decent Work With Competitiveness

  1. 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
  2. 2. 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
  3. 3. Changes in Economic Environment and Decent Work  Localized Market → Global Market ⇒ Global Competition, 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 issue Decent work with competitiveness is a central
  4. 4. 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
  5. 5. RESAP Model : Vision & Directions of HRD Partnership Vision Mission Economic and Social Advancement Economic and Social Advancement Competitive advantage Competitive advantage Job creation Job creation DHLM DHLM Minimization of job & skill mismatch Minimization of job & skill mismatch VADS for VADS for innovation clusters innovation clusters Strategies Social inclusion Social inclusion Workfare Workfare LJIC LJIC Overcome asymmetric Overcome asymmetric information information VADS for VADS for the marginalized the marginalized Building RHRD cluster Building RHRD cluster Knowledge workforce and vocational ability development per life cycle Knowledge workforce and vocational ability development per life cycle RESAP RESAP Regional Economic and Social Advancement Partnership Regional Economic and Social Advancement Partnership
  6. 6. 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
  7. 7. How to make the Regional governance initiatives? RESAB : Governance of RESAP Departments of the government MOL LJIC One stop center Project Application Province or State RESAB Financial Support Project & Policy Review KCC ICC LCC Policy Development Policy Development Policy Development City or County RESAB LJIC One stop center KCC ICC LCC
  8. 8. 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.
  9. 9. 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
  10. 10. PDR Systems Model for Employment Relations PDR Systems & their Interaction Production System Competitive Environment Actors’ value & Humanware System Personnel System G Mind-set Power Positions Strategic Choice Ability-Development System Software System Performance Levels Productivity Workers’ Quality of life Hardware System General Environment Distribution System Rule-Making System Source: Adapted from Hyo-Soo Lee [1996; 2001] We should make mutual gains for decent work with competitiveness in a firm level. PDR System model will provide the mechanism for mutual gains
  11. 11. 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 rulemaking 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
  12. 12. 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
  13. 13. 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

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