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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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
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
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