[Abstract]
Labor-management partnership is an innovative form of industrial relations. Its importance has been emphasized as one of ways to improve organizational performance and to become basis of company competitiveness.
Recently there has been also much attention to the partnership from managers, trade ists and labor policy makers in Korea. In retrospect, Korean companies have paid huge social costs stemmed from industrial conflicts, specially 6.29 declaration of democracy of 1987. In order to establish stable industrial relations, the Korean government has built a new form of industrial relations, which is called in the different terms, such as new industrial relations, innovative industrial relations, and new labor management culture. The new form of industrial relations puts an emphasis on labor-management partnership, which aims to achieve cooperative industrial relations and mutual gains to both sides of employers and employees through the successful business.
Despite those widely attentions on the labor-management partnership and numerous studies have been conducted at home and abroad, most of empirical studies about labor-management partnership have been conducted in narrative and qualitative analyses of case study. Therefore we needs to analyze closely which partnership practices affects its supposed outcomes such as company competitiveness.
In this context, the main purpose of this paper is to examine through a systematic analysis the impact on company competitiveness of the labor-management partnership in small and medium-sized enterprises that has been placed at the center of new industrial relations models in the USA and the European countries, such as the UK and Germany.
To accomplish this research objective, 194 labor-management cooperation companies in small and medium-sized firms were randomly ed and surveyed with questionnaire method. The results of the study using collected 77 questionnaires are summarized as follows.
First, labor-management partnership score of labor-management cooperation companies in Korea is slightly high from 3.64 to 4.00(5 point scale). Especially information sharing and investment in training ware high.
Second, fair financial rewards and investment in training have significant effects on the financial organizational performance in the positive direction, but employment security, information sharing, and management participation have no significant effects on the company competitiveness.
Third, I found that fair financial rewards only has significant effects on the nonfinancial organizational performance in the positive direction, but employment security, management participation, investment in training and information sharing have no significant effects on the company competitiveness in small and medium-sized enterprises.
This results show that as Large-scale downsizing layoffs were legalized and irregular workers dramatically increased, the workers' values were moving from lifetime employment to lifelong job.