2000 Research Abstracts 27
Developmental Model for Skill & Function Encouragement in the Personnel Management System
RR-07
Joon-Ho Seo Su-Weon Kim
Ⅰ. Overview
Although blue-collar employees have contributed to the industrial development of many Korean companies, human resource management often focuses on white-collar workers. Ironically, the background of economic growth among Korean companies is based on the manufacturing industries, which rely on the power of labor.
This study investigates the importance of skill & function encouragement and the methods current in use at Korean companies. Under the skill-centered cultural structure, gain sharing plans as a measure to increase productivity is investigated. This study, therefore, develops a skill & function encouragement model and explores social support for it.
First, to carry out this study, the corporate environment and recent corporate human resource management trends and problems were investigated.
Second, government skill & function encouragement was investigated alongside human resource management in Korean companies, as a case study, and was examined to encourage skill & function.
Third, a variety of literature on gain sharing plans were reviewed in search for a gain-sharing plan that best suits Korean companies.
28 2000 Research Abstracts
Fourth, this study investigated compensation and promotion within corporate human resource management through a company survey. We also investigated the present conditions and problems associated with skill & function encouragement and gain-sharing.
Finally, This research proposes a gain-sharing model and design process as a human resource management model based on the results of the literature review and empirical studies.
Ⅱ. Research results
According to the research results, common problems were limited promotion opportunities caused by insufficient position structures and blue-color employees being unable to experience the various career paths due to there being few opportunities for cross-over to white-color employees. Further, many companies usually adopt time-based and day-based pay structures. The worst problem is discrimination between blue-color pay and white-collar pay, which is established using a different pay table.
Companies frequently use methods for skill & function encouragement that give advantages in employee recruitment and personnel management to employees who have qualifications. Another frequently used method for skill
& function encouragement is employee training, both inside and outside the company. The most effective method for the skill & function encouragement, therefore, as perceived by companies and employees, provides the well-qualified employee with incentives. This result indicates that skill &
function encouragement should be linked to the pay system.
The research results of the gain-sharing study revealed that 24 companies, out of the total 92 companies, adopted gain-sharing, but many companies have
2000 Research Abstracts 29
considered introducing gain-sharing plans into their firms. This result indicates that firms are becoming increasingly interested in gain-sharing.
In companies that have gain-sharing plans, distribution standards are based on income or productivity. This gain-sharing plan is more of a group gains method than an individual gain method. In these gain-sharing plans, the core problems were imperfections in the gain-sharing distribution standard index and distribution methods. Companies that accept the gain-sharing plan have precise distribution calculations and standard settings. There is no statistical significance between firms with gain-sharing plans and those without in terms of employee motivation, job satisfaction, and job involvement. This result indicates that these gain-sharing plans are not being implemented correctly.
A proper gain-sharing plan must provide the employee with the perception that he and company are the same.
Ⅲ. Suggestions
It is necessary to distinguish between job grade and qualification. This implies a promotion system that is development-centered and makes possible promotion based on job grade and job performance.
▪Transform time-based promotions and grades into ones that are ability (performance)-based.
▪In employee career management, organizations should use a dual career path that will give employees various job experiences.
▪In compensation management, many companies usually accept time pay and daily pay. This system is not suitable for providing blue-collar workers' lives with stability and motivation.
▪Performance/ability appraisal must be the basis for promotion and compensation.
30 2000 Research Abstracts
▪Replace relative evaluations with human resource development evaluations.
▪Introduce flexible training programs, or dual (training) systems, within the organization.
▪Introduce choice fringe benefits within the organization to promote the QWL (quality of work life).
▪It is necessary to improve organizational structures with dual chains (white-collar and blue-collar).
▪Government must arbitrate labor-management relationships.
▪Government must reduce corporate taxes to enhance the adoption of gain sharing & profit sharing.([email protected])
Manpower Structure and the Demand for Vocational Education and Training in Small and Medium-sized Manufacturing Industries
RR 00-8
Hyung-Mann Kim Cheol-Hee Kim
This study analyzes the demand for vocational education and training in the small and medium-sized manufacturing industries, in which VET is a major channel of human resources development, and also identifies the content and type of training most suitable for enhancing the vocational skills of workers employed in the manufacturing sector of small and medium-sized firms. Based on these findings, new directives are laid out for the promotion of VET necessary for the development of human resources in small and medium-sized
