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.

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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