HRM 2025-2026 Chapter 2.pdf

# The historical development of human resource management This topic traces the evolution of human resource management from pre-industrial times through the industrial revolution and into the 21st century, highlighting key phases like scientific management, the humanistic perspective, and adaptability in the modern era. ### 1.1 Pre-industrial revolution Before the industrial revolution, economic activity was primarily agrarian, with crafts and guilds playing a significant role. Work was often organized around family units, such as on a family farm, where ties were more familial than between an employer and employee. Larger structures like the army had more formalized "HR" functions, but this was less common in the business world. Work followed clear rules of thumb and traditions within small operational units [3](#page=3). ### 1.2 The industrial revolution and scientific management The industrial revolution (circa 1830-1940) brought about a significant increase in the scale of operations with the rise of large factories. This era saw the emergence of the classical management perspective, including Scientific Management and Bureaucratic Organizations [4](#page=4). #### 1.2.1 Scientific management Pioneered by figures like Taylor and Gilbreth, Scientific Management approached human resources from a business perspective, aiming for efficiency and effectiveness. The core idea was to select the right staff and place them in the most suitable roles. This led to the development of time-and-motion studies and early ergonomics, seeking to identify the most efficient way to perform tasks. Despite its focus on optimization, Scientific Management created significant conflicts between workers and employers due to three main causes: lack of autonomy, work accidents, and the inability for workers to outgrow their social class. The emphasis on a single "right way to work" often led to frustration, as workers did not wish to be treated as mere machines. Work accidents were common due to inadequate safety measures, with child labor often employed due to its cost-effectiveness and ability to fit into machinery for clearing blockages, sometimes with fatal consequences. Workers began to realize that while their labor was sufficient for survival, it did not enable them to improve their social standing, leading to perceptions of exploitation [10](#page=10) [11](#page=11) [12](#page=12) [13](#page=13) [5](#page=5) [6](#page=6) [7](#page=7) [8](#page=8) [9](#page=9). ##### 1.2.1.1 Consequences of scientific management Scientific Management laid foundations for ergonomics and contributed to the reduction of working hours, moving from seven 12-hour days to the eight-hour day. It also spurred research into the effects of paid work breaks and introduced early forms of pay-for-performance. While the economic growth of this period was significant, it came with harsh realities, the "sharp edges" of which were later softened by subsequent management styles, though the drive for efficiency remains evident today [14](#page=14) [16](#page=16). #### 1.2.2 Bureaucratic organizations Max Weber's concept of bureaucratic organizations emphasized rational action, recruitment, and selection based on competencies, clear hierarchies, and unity of command. These structures aimed to improve the efficiency of production processes through clear lines of communication, though they also introduced the concept of "red tape" [17](#page=17) [18](#page=18). ### 1.3 The humanistic perspective and early HR functions From the 1930s to the 1960s, a greater emphasis was placed on the "social man," leading to the humanistic perspective. This shift was not driven by charity but by economic necessity, spurred by social conflicts and insights from studies like the Hawthorne experiments. During this period, HR functions were often isolated and focused on personnel and family issues, wage administration, with limited impact on job design. While the hard edges of previous approaches softened, core principles like task specialization and hierarchical structures persisted [19](#page=19) [20](#page=20) [21](#page=21). ### 1.4 Revisionism and self-actualization The 1960s saw a revisionist approach that focused more on task enrichment and motivation techniques, drawing inspiration from Maslow's hierarchy of needs. This era emphasized self-actualization and responsibility, with HR departments becoming more involved in work structuring, job-intrinsic motivators, and forms of participation. There was increased involvement from unions and government, and a growing societal perspective on HR practices [22](#page=22). ### 1.5 The years of rapid change and increasing complexity #### 1.5.1 The 1970s: Finding the right profiles Rapid technological innovations in the 1970s led to an increased focus on investing in human capital. Unemployment was increasingly viewed as a qualitative problem, with a mismatch between available jobs and employee skills. The HR department expanded its scope to include recruitment and selection, performance evaluation, training, and compensation, with the understanding that attracting and retaining talent was crucial [23](#page=23). #### 1.5.2 The 1980s: Focus on quality In the 1980s, organizations faced challenges from low-cost countries, prompting a move towards developing holistic organizational strategies that integrated technological, commercial, financial, organizational, and human aspects. The focus shifted to improving, changing, and controlling processes, managing culture, and embracing Total Quality Management, choosing quality over cost leadership. The mantra changed to "working with" instead of "working for" [24](#page=24). #### 1.5.3 The 1990s: Effects of globalisation The 1990s were marked by the effects of globalization, leading to increased access to foreign markets and competition. Business Process Reengineering became prominent, aiming to create transforming and learning organizations. This era also saw horizontalization, with flatter organizational structures and delegated decision-making authority. The Renault Act, enacted in February 1998, clarified procedures for collective dismissals, emphasizing information and consultation with works councils or unions, and stimulating constructive social dialogue. However, this period also witnessed corporate anorexia and a drive for harder organizational reshaping [25](#page=25) [26](#page=26) [27](#page=27) [28](#page=28) [29](#page=29). ##### 1.5.3.1 Functional flexibility and competency management The years 2000 onwards have seen a significant emphasis on flexibility. Functional flexibility involves developing generalists rather than specialists, enabling workers to adapt to temporary shocks and be easily transferred between roles. Competency management involves training that extends beyond immediate job requirements to prepare employees for future needs [30](#page=30) [31](#page=31) [32](#page=32). ##### 1.5.3.2 Numerical flexibility Numerical flexibility refers to the ability to adjust the workforce size quickly through flexible contracts, flexi-jobs, broken shifts, reference periods, and freelancers. Flexible contracts and flexi-jobs allow employers to adapt staffing levels to demand, such as not renewing temporary contracts when demand decreases, as illustrated by the Daikin case. However, this can lead to instability for workers. Flexi-jobs, often taken by pensioners or younger individuals, allow for filling gaps in demand while providing workers with social rights. Temporary unemployment, due to economic reasons or technical issues, allows workers to keep their contract while receiving government benefits, although it may lead to a loss of meal vouchers and potential additional taxes. Broken (split) shifts involve uneven distribution of hours, and reference periods, typically three months or up to twelve months annually, allow for variations in weekly hours to average out to the standard workday, with legislation setting limits to prevent extreme imbalances and stipulating additional pay for overtime. Freelancers offer numerical flexibility by being paid for output rather than time, saving employers costs associated with traditional employment, but can also pressure freelancers to accept projects regardless of their workload [30](#page=30) [33](#page=33) [34](#page=34) [35](#page=35) [36](#page=36) [37](#page=37) [38](#page=38) [39](#page=39) [40](#page=40) [41](#page=41) [42](#page=42) [43](#page=43) [44](#page=44) [45](#page=45) [46](#page=46). ### 1.6 Employability and the modern era The concept of employability, emphasizing continuous learning and adaptability across organizations rather than lifelong employment within one company, gained prominence. This requires individuals to actively manage their careers, seek new opportunities, and maintain mental well-being through stepping away from work when needed. Organizations need robust retention management and clear succession plans. Training agreements are crucial to ensure that investments in employee development are recouped by the organization, with clauses that stipulate repayment if an employee leaves within a certain period. Ultimately, developing a clear life and career trajectory, understanding personal values, and consistently applying them are vital for navigating the complexities of work and life in the modern era [47](#page=47) [48](#page=48) [49](#page=49) [50](#page=50) [51](#page=51) [52](#page=52) [53](#page=53). --- # Flexibility and adaptability in the modern workforce The modern workforce is characterized by a significant emphasis on flexibility and adaptability, encompassing various strategies and concepts that reshape traditional employment models to meet dynamic economic demands and individual needs [30](#page=30). ### 2.1 Types of flexibility Flexibility in the workforce can be broadly categorized into functional and numerical flexibility [30](#page=30). #### 2.1.1 Functional flexibility Functional flexibility focuses on the ability of an organization to reassign workers to different tasks or roles within the company. This approach often involves training employees to be generalists rather than specialists, equipping them with a broader range of skills that extend beyond their immediate job requirements. The aim is to enable workers to transfer easily between different functions and to help the organization navigate temporary disruptions or shocks. A key aspect of competency management under functional flexibility is investing in training for the future, recognizing the potential financial value of competences that may not be immediately utilized [31](#page=31). > **Tip:** Functional flexibility requires a proactive approach to training and development, fostering a culture where employees are encouraged to acquire diverse skills. #### 2.1.2 Numerical flexibility Numerical flexibility refers to the ability of organizations to adjust their workforce size in response to fluctuating demand. This can be achieved through various means, including the use of flexible contracts, flexi-jobs, temporary unemployment, and reference periods [33](#page=33). ##### 2.1.2.1 Flexible contracts and flexi-jobs Flexible contracts and flexi-jobs are arrangements that allow employers to hire workers on terms other than traditional permanent employment. This includes interims and temporary contracts, where contracts are not renewed when business needs decrease, thus avoiding notice periods and layoff compensations. From an employer's perspective, this offers a way to adapt quickly to market changes and manage both business and interest perspectives. Such arrangements can also provide workers with opportunities to gain experience across different employers [34](#page=34). A case study of Daikin illustrates the impact of flexible contracts. In early 2023, Daikin upscaled production of heat pumps to meet anticipated sales growth, hiring approximately 28 new workers per week and implementing weekend and night shifts. However, by late 2023, slower demand led to the non-renewal of 600 temporary contracts. This situation highlights the inherent instability for workers on flexible contracts, who face uncertainty about their future and may need to seek new employment during the final months of their contracts. The link between financial reserves and stress is significant, as unpredictable employment can complicate financial planning, such as obtaining mortgages, potentially leading to a feeling of life being paused [35](#page=35) [36](#page=36). Flexi-jobs, on the other hand, often involve individuals working a second job, commonly in sectors like hospitality or retail, with specific tax advantages. In these arrangements, employees pay no taxes or social contributions, while employers pay only 25% in employer contributions. Crucially, workers still build up social rights, such as unemployment benefits, pensions, and paid holidays. These jobs are frequently used to fill gaps during periods of high demand, such as production shocks or "just-in-time" scenarios. Workers in flexi-jobs are often younger (under 34) or older (64+) individuals [37](#page=37) [38](#page=38). ##### 2.1.2.2 Temporary unemployment Temporary unemployment due to economic reasons, technical issues, or adverse weather conditions allows workers to retain their contracts while receiving a government benefit. The maximum benefit is set at 60% of a topped wage, capped at 2,019.16 dollars. Employers or sectoral funds may provide supplements, and these can be negotiated by unions up to 28 dollars per day. Temporary unemployment can also apply to part-time situations, not necessarily full-time. However, workers may lose meal vouchers during this period and are generally restricted from working elsewhere without jeopardizing their benefits. While it provides time off, a reduction in pay is often inevitable, and workers may face additional taxes when filing annual returns, particularly higher-paid individuals [39](#page=39) [40](#page=40). > **Example:** A restaurant might utilize temporary unemployment if a sudden economic downturn reduces customer traffic significantly, allowing staff to remain employed but with reduced hours and pay, while the restaurant avoids layoffs and associated costs. ##### 2.1.2.3 Broken shifts Broken or split shifts, also known as broken shifts, involve an uneven distribution of work hours over a defined period. These shifts have a basic reference period of three months, though variations exist by sector. The intention is to allow for fewer than 38 hours in some weeks and more in others, averaging 38 hours over the three-month period [41](#page=41) [42](#page=42). ##### 2.1.2.4 Reference period A reference period allows for variations in working hours within a defined timeframe, with the aim of averaging a standard workload. The basic reference period is three months, extendable to a maximum of 12 months, with variations permitted based on the sector. Legislation aims to prevent extreme unevenness, such as working very few hours for an extended period and then excessively long hours. There are internal limits on hours, such as a maximum of 143 hours for an annual reference period before rest is mandated, and daily/weekly limits of 11 hours per day and 50 hours per week, with exceptions possible. Overtime beyond 38 hours per week in a standard 38-hour scheme typically incurs additional pay, at 50% during the week and 100% on Sundays and holidays [42](#page=42) [43](#page=43). > **Tip:** Understanding the reference period and its associated regulations is crucial for both employers and employees to ensure fair working conditions and compensation. An annual reference period can be particularly beneficial for businesses with seasonal demand, allowing them to manage workflow without hiring extra staff during busy periods or paying staff during lulls. For workers, the benefit is personal time off, but the concept of "comfort" derived from one hour of free time versus one hour of work is subjective and depends on individual circumstances, such as family responsibilities or personal preferences [44](#page=44). ##### 2.1.2.5 Freelancers Freelancers operate on a contractual basis, where employers pay for output rather than time. This arrangement offers employers greater numerical flexibility and can lead to cost savings on benefits like company cars, insurance, and pensions, as well as avoiding salary costs during illness. Freelancers can experience greater functional flexibility, choosing projects that align with their expertise and balancing work with their private lives by taking on or declining new projects as needed. However, this comes with pressure to accept work and the inherent risk of not earning if not actively working, while still needing to cover personal expenses [45](#page=45) [46](#page=46). > **Example:** A magazine publisher might hire a freelance graphic designer for a specific project rather than employing them full-time. The publisher pays for the final design, gaining flexibility, while the designer manages their workload and other clients. ### 2.2 Employability Employability represents a fundamental shift in how individuals and organizations view work, moving from a model of lifelong employment within a single company to one where individuals are responsible for maintaining their own career relevance and marketability. This concept emphasizes a proactive approach to career management, where individuals are encouraged to "job hop" if their current situation is not serving their long-term goals, effectively building a career across multiple organizations rather than solely within one [47](#page=47) [49](#page=49). The metaphor of a relationship can be used to understand this shift: while loyalty was once paramount to a single employer, employability redefines this loyalty towards one's own career trajectory and personal goals. This necessitates actively thinking about one's life and career path, recognizing that stepping away from a role can be mentally healthy and prevent burnout, cynicism, and depression associated with prolonged, unfulfilling employment [48](#page=48) [51](#page=51). Key aspects of employability include: * **Clear career goals:** Defining specific career aspirations and trajectories is essential [49](#page=49). * **Proactive development:** Individuals must understand that finding a new job quickly is possible, but this also requires organizations to implement effective retention management and clear clauses [51](#page=51). * **Open communication:** Fostering open conversations about employee development and succession planning is beneficial for both parties [51](#page=51). * **Training agreements:** To mitigate the risk of employees leaving shortly after receiving training funded by the employer, training agreements can be implemented. These agreements typically stipulate repayment terms based on the duration of employment after training completion. For instance, employers might claim a maximum of 80% of training costs if an employee leaves before one-third of the agreed training term, decreasing proportionally to 50% between one-third and two-thirds, and 20% after two-thirds of the term. There may also be limits on the total repayment amount (e.g., 30% of annual wage) and the duration for which the agreement is valid (e.g., 3 years), with repayment being proportionate to the cost and length of the training [52](#page=52). > **Tip:** Employability is not just about seeking new opportunities but also about consistently investing in one's skills and adaptability to remain relevant in a changing job market. Ultimately, developing employability involves staying true to one's core values and identity, determining potential goals, and establishing a trajectory for achieving them. This conscious decision-making process helps individuals navigate their career path and influences how they approach work-life balance, conflicts, and leadership styles. It encourages the application of values consistently over time and fostering a proactive attitude towards personal and professional growth [53](#page=53). --- # Contemporary challenges and trends in HR This section delves into the contemporary HR landscape, examining the evolving challenges and trends that shape the modern workplace, from work-life balance to the impact of global disruptions. ## 3. Contemporary challenges and trends in HR The period from the 2010s onwards has seen a significant evolution in HR challenges and trends, driven by economic shifts, demographic changes, and an increasing awareness of employee well-being and work-life integration. These trends are further exacerbated by recent global disruptions such as the COVID-19 pandemic and the energy crisis. ### 3.1 Employer branding Employer branding emerged as a significant trend in the 2010s, focusing on how organizations attract and retain talent by cultivating a strong and positive image as an employer. This strategy is crucial in environments with low growth rates and low turnover intentions, where internal and external communication plays a vital role. A strong employer brand fosters commitment, leading to higher affective commitment, improved work performance, and lower turnover rates. It also facilitates self-selection, attracting candidates whose values align with the organization's. However, there's a crucial distinction between superficial values and concrete behavior; an organization might present a warm exterior while implementing cold policies, creating a disconnect for employees. This can lead to situations where a dream job for some becomes a nightmare for others, or an employee feels like a "dolphin in a shark company". The case of AB Inbev was cited as an example of an organization perceived as "the coldest organisation in the world" due to its policies, despite a potentially appealing outward image [54](#page=54) [55](#page=55) [56](#page=56). ### 3.2 The end-of-career debate The end-of-career debate gained prominence due to demographic shifts, particularly the retirement of baby boomers, leading to a changing balance between contributors and beneficiaries in social security systems. With increasing life expectancy, individuals at 65 can expect many more years of life, with women at 65 having an average of 21 years left, 11 of which are in good health, and men having 11 years of life expectancy, 7 in good health. Projections indicated a rise in the 65+ population from 19.6% in 2022 to 25.1% by 2050 [57](#page=57). Despite plans to raise the retirement age to 66 by 2025 and 67 by 2030, the reality in 2023 showed that only 54.6% of people retired at 65, with 41.6% retiring before 65. The average effective age of retirement was 62 years, a significant drop from 58 in 2010. In Belgium, the average career length in 2019 was 34 years, slightly below the EU average of 36 years [58](#page=58). Early exit strategies became more difficult from the mid-2010s onwards, with pre-retirement schemes being reduced. The Unemployment with Company Supplement (UCS), which existed since the 1970s and allowed for collective dismissal at 52 (later 55 in 2018), classified individuals as unemployed while the organization paid a supplement on top of government benefits. The 'duty' to search for a job was often nominal, with less than 2% actually finding employment. While the number of UCS beneficiaries dropped significantly from 100,000 in 2011 to 8,000 in 2021, early retirement schemes after long careers still allowed for exits at younger ages. However, this led to "evasion," with 26% of people retiring between 60 and 61 in 2021, up from 21% in 2017 [59](#page=59) [60](#page=60). Additional policies were implemented to curb early exits, including cuts in leave schemes and special privileges. The thematic leave in 2024 involved 119,842 people, covering parental, medical, and other types of leave. Public sentiment shifted, with protests against individuals staying at home and being paid, and a focus in 2023 on the re-activation of homemakers, although their numbers decreased from 233,000 in 2015 to 131,000 in 2023 [61](#page=61) [62](#page=62) [63](#page=63). The need to keep people eager to work became paramount, with the concept of "Ikigai" (finding one's reason to live) suggesting that those who want to work don't want to retire and can be reignited by new opportunities. This led to a focus on non-linear recruitment and atypical profiles, exemplified by the Innoord case, which embraced competency management over diplomas or CVs. Shorter, more focused training with direct added value became the norm, driven by a "war for talent versus war for experience". The Innoord case highlighted a preference for candidates without experience in cases of equal qualifications [64](#page=64) [65](#page=65). The social implications of increasing the retirement age were also debated, as asking older workers to continue while younger neighbors remained unemployed due to schemes like UCS was seen as less social. Governments aimed to increase employment rates, with Belgium targeting 80% employment in the 20-64 age group, though it lagged behind in 2019 at 70.5% and was not expected to reach the target by 2025 [66](#page=66). ### 3.3 Career guidance Career guidance emerged as a key trend from the mid-2010s. Career cheques were introduced to help individuals map their skills, competences, and work values, coach them towards the right career move, and clarify the job market by suggesting less obvious career paths. These cheques required at least seven years of work experience, with individuals receiving 4-hour and 3-hour cheques every six years, valued at 728 and 546 euros respectively. Between 2013 and 2022, 183,000 workers received career coaching through these cheques. However, by 2025, government funding for career cheques was to be significantly reduced. Career guidance was also identified as a potential prevention technique for burnout [67](#page=67) [71](#page=71). ### 3.4 Prevention and management of burn-out The prevention and management of burnout became a critical HR concern, evidenced by a steep increase in long-term illness claims. In 2010, there were 258,000 long-term ill individuals, rising to 420,000 in 2019 and 526,000 by 2024. A significant proportion, 38%, suffered from burnout, depression, and other mental disorders. Mental disorders accounted for up to 50% of long-term illness for individuals under 30 and 25% for those over 55. The financial burden also escalated, with government spending on benefits for the long-term ill increasing from 4 billion euros in 2010 to 8 billion euros in 2024 [68](#page=68) [70](#page=70). The perception of burnout as an "easy way out" was challenged, especially as workers had planned careers based on assumptions of early exits, which became more difficult. The exponential increase in long-term illness since 2010 was sometimes used to support this "easy way out" idea, but the reality was that workers might have made different career decisions had they foreseen the future [72](#page=72). Hein Knaapen argued that "continuance commitment" can lead individuals to accept too much for too long, suggesting that leaving might be a better option than trying to change organizations or other people. The economic and social costs of long-term illness were substantial [71](#page=71). Efforts to manage mental well-being included initiatives like yoga and mindfulness, though these were sometimes seen as minimal efforts by employers. Reintegration schemes aimed to get employees back to work faster, with adjusted work arrangements, initiated by the employer, employee, or the employee's doctor. Company medical officers played a role in assessing reintegration possibilities and creating reintegration plans or declaring individuals permanently unfit. Dismissal due to medical force majeure was a sensitive issue, but options for returning to work part-time increased, with 63,160 long-term ill individuals returning to part-time work in 2021, a 46% increase from 2017 [75](#page=75) [76](#page=76) [77](#page=77). Flexi-jobs also emerged as a strategy to combat work stress and prevent mental imbalance and burnout. Working four days in the main organization and one day in a flexi-job offered less impact on salary compared to working only 80%, providing a different environment, feelings of value and competence, and peace of mind, which positively affected the main job [78](#page=78). ### 3.5 Work-life balance The concept of work-life balance evolved into two main approaches: separation and integration. Work-life separation, promoted by employers, involves a clear split between work and personal life, helping employees mentally detach from work and avoid depletion. The "right to disconnect" at home implies a "duty to disconnect" at work, fostering a specific company culture but potentially being less flexible than employees might need [79](#page=79). Work-life integration, on the other hand, offers more flexibility and realism, allowing employees to work during private time and attend to personal matters during work hours. This approach places responsibility for mental balance on the employee, and working at unconventional hours should not be taboo. Keeping work-life integration workable involves addressing commuting, raising awareness through policies, making work flexible (telework and adaptive hours), and providing additional services like company daycare [80](#page=80). ### 3.6 Working fewer hours The idea of working fewer hours, particularly a 30-hour work week, gained traction as a way to counteract burnout and advocate for work-life separation. Historically, work hours have diminished, and the shift from an industrial to a knowledge economy, coupled with work intensification due to technological progress, made reduced hours a subject of debate [81](#page=81). Management often hesitated to adopt shorter work weeks unless wages also decreased. The goal of a 30-hour week was to maintain the same production and wage costs while giving workers more free time, but if wages remained equal, wage costs would increase, or the cost of technology would rise [82](#page=82). Task rationalization and efficiency reductions could enable shorter work weeks, but high work pressure remained a challenge. In small groups, social control and pilot projects could help manage this, but the question of who reaped the benefits of rationalization was crucial, emphasizing the importance of autonomous choice. There was a risk of "disguised 120%" work, where employees appeared to work fewer hours but were effectively working longer, a dilemma akin to that of a farmer [83](#page=83). ### 3.7 Impact of global disruptions The period from the 2020s onwards has been marked by significant global disruptions impacting HR practices. #### 3.7.1 The Covid-19 pandemic The COVID-19 pandemic, starting in March 2020 with global lockdowns, had a profound impact on the workplace. The virus led to high death rates, particularly among the elderly, and severely limited freedom of movement, causing steep drops in demand and organizational challenges. Companies with a strong work climate and a "fortress culture" were better positioned to weather the storm, banding together to keep the company afloat. The pandemic accelerated the adoption of remote work, with companies developing and implementing work-from-home policies without prior experience, often while managing childcare. Telework developed at an unprecedented pace. Post-pandemic, many companies returned to one or two telework days per week, emphasizing the importance of team spirit and information sharing [84](#page=84) [85](#page=85) [86](#page=86). From a societal perspective, dismissal was more difficult in the EU, leading to a preference for temporary unemployment due to economic reasons, with governments topping up wages to reduce dismissals. In contrast, dismissals were relatively easier in the US, where companies opted to dismiss and rehire later. The case of Deceuninck, a PVC producer, exemplified this difference: in April 2020, 233 dismissals occurred in US factories, while in Belgium and France, temporary unemployment was utilized, and factories in these countries restarted sooner [87](#page=87) [88](#page=88). #### 3.7.2 The energy crisis The energy crisis, particularly in 2022 following the war between Russia and Ukraine, significantly impacted EU countries dependent on Russian oil and gas. Exploding energy prices made production expensive, contributing to inflation waves with wage cost increases exceeding 10%. With demand still recovering from the pandemic, companies faced shrinking margins, leading some to halt production entirely and re-evaluate their return-to-work strategies versus energy costs. Limiting office space was one measure, though it had mixed effects on cohesion and energy bills. The crisis also led to reduced training budgets and a reassessment of dependency on foreign nations by governments and companies, reinforcing the predictions of "different-globalists" [89](#page=89) [90](#page=90). #### 3.7.3 A tight labour market The job-vacancy ratio, a measure of the tightness of the labour market, saw a significant increase. From 1.8% in 2010, it rose to 3.4% in 2019, dipped slightly to 2.9% in 2020 amidst the pandemic, but surged to 5% in 2022 and was 4.21% in Q3 2024, with expectations that it would remain high. Retirements of baby boomers contributed to this tightness, creating more vacancies unless retirees were replaced. This put additional pressure on activating those not currently working. The fear of firms relocating to countries with more available staff and the threat of automation also contributed to concerns about the labour market [91](#page=91). The "Great Resignation" in the US, a wave of dismissals between 2020 and 2021 peaking in August 2021 with 4.3 million quits, was partly interpreted as a counter-offensive against perceived "asocial employers" during the pandemic, though mass mobilization and long periods without salary make this less likely. Alternative explanations for the tight labour market included the departure of 55+ workers due to financial reserves and COVID-19 risks, foreign workers leaving due to work permit issues, a mismatch between job seekers and vacancies, and the "she-cession" where mothers struggled to balance work and family life during lockdowns, exacerbated by generous state income support. This situation forced even large American companies to offer better incentives, such as Apple doubling sick days and benefits for lower-level workers and Amazon doubling wages for higher-level workers to three hundred fifty thousand dollars in 2022 [92](#page=92) [93](#page=93) [94](#page=94). #### 3.7.4 A deglobalising economy Distortions and unfair competition between nations, including currency manipulations and hidden subsidies, along with questionable practices in production processes, characterized a trend towards deglobalization. This was predicted by "different-globalists" and was exemplified by former US President Trump's introduction of high trade tariffs for over 50 countries, making imports more expensive and prompting many companies to announce investments into the US to evade tariffs by 2025. HR departments faced the challenge of analyzing the realism of delocalization, the availability of local talent, the need for local training, the feasibility of sending expatriates, and whether international divisions should maintain the same culture. A counter-movement also emerged to encourage US workers to consider opportunities in Europe [95](#page=95) [96](#page=96). #### 3.7.5 Diversity policies Diversity policies faced pressure, particularly in the US with former President Trump's focus on affirmative action, which was designed to give more chances to minority groups and was a central part of DEI policies in both the US and EU. Trump's criticisms, often based on cases like Harvard where racial balancing was questioned, led many large US multinationals to adapt their diversity policies. This also put pressure on EU companies selling in the US. Reduced tolerance for transgender individuals was also observed in the US and EU, leading to dismissals from the army and becoming a theme in political discussions [97](#page=97). #### 3.7.6 Quiet Quitting Quiet Quitting, which emerged in 2022, was initially interpreted by companies as employees not performing their full duties while still receiving full pay, leading to managers' disapproval and diminished promotion chances. However, a more accurate definition suggests that quiet quitting involves emotional distancing from work and no longer making tasks central to one's life. It means employees are performing the tasks they are paid for, whereas previously, they might have done more out of engagement or commitment. Organizations often rely on this "unpaid labor," and if it stops, it either leads to less work being done or necessitates hiring more staff. The hashtag #actyourwage reflects this sentiment [98](#page=98) [99](#page=99). The concept of quiet quitting has been compared to Stakhanovism, a movement originating in the USSR in 1935 where Alexei Stakhanov famously mined an extraordinary amount of coal through new technology and better work organization. Stakhanovism encouraged employees to be proud of doing more and working harder and more efficiently than others, often driven by PR campaigns. The underlying message of "Be a bit more like Stakhanov" promoted workaholism as a role model, potentially leading to a "race-to-the-bottom" where profits are immediate, but costs are incurred in the future. The text suggests that role models are not always correct and that individuals are not always wrong, emphasizing the need for healthy appreciation and recognition [100](#page=100) . --- ## Common mistakes to avoid - Review all topics thoroughly before exams - Pay attention to formulas and key definitions - Practice with examples provided in each section - Don't memorize without understanding the underlying concepts

| Term | Definition | |------|------------| | Scientific Management | A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity. Key figures include Taylor and Gilbreth, who focused on efficiency, effectiveness, and early ergonomics through time-and-motion studies. | | Bureaucratic Organizations | A management structure characterized by a formal hierarchy, clear division of labor, and standardized rules and procedures, as conceptualized by Max Weber. This approach aims to improve production process efficiency through clear communication lines and competence-based recruitment. | | Humanistic Perspective | A management approach that emerged in the 1930s-1960s, emphasizing the social and psychological aspects of workers. It moved beyond pure efficiency to consider management style, group dynamics, informal networks, and job enrichment to motivate employees. | | Hawthorne Experiments | A series of studies conducted at the Hawthorne Works of Western Electric Company that suggested that workers' productivity could be increased by providing them with special attention and opportunities for feedback and participation. These experiments were foundational to the humanistic perspective in management. | | Task Enrichment | The process of designing jobs to include a wider range of tasks and responsibilities, providing employees with more autonomy and opportunities for self-actualization and motivation. This approach draws inspiration from Maslow's hierarchy of needs. | | Functional Flexibility | The ability of an organization to adapt by cross-training employees to perform a variety of tasks or roles, enabling them to be deployed where needed. This contrasts with specialists and aims to make workers more versatile. | | Numerical Flexibility | An organization's ability to adjust its workforce size rapidly in response to changing demand or market conditions. This is often achieved through flexible contracts, temporary employment, and part-time arrangements. | | Employability | The set of skills, knowledge, and attributes that make an individual attractive to employers and enable them to maintain or progress within the labor market. It shifts the focus from lifelong employment to continuous career development. | | Flexi-jobs | A type of employment that offers flexibility in working hours and conditions, often utilized to fill gaps in demand or for workers seeking supplementary income. These jobs may have specific tax and social contribution advantages. | | Temporary Unemployment | A status where an employee's contract is temporarily suspended due to economic reasons, technical issues, or other operational disruptions, while the employment contract itself remains valid. The employee typically receives a government benefit supplemented by the employer or a sectoral fund. | | Reference Period | A defined period over which an employee's working hours are averaged to meet contractual obligations, often allowing for variations in weekly hours. This helps employers manage fluctuating workloads without constant staffing changes. | | Broken (Split) Shifts | A work schedule where an employee's daily working hours are divided into multiple, non-contiguous segments, with unpaid breaks in between. This allows for coverage at different times of the day but can impact work-life balance. | | Employer Branding | The process by which an organization communicates its values, culture, and employment proposition to attract and retain talent. It aims to create a positive image of the company as an employer of choice. | | Burnout | A state of emotional, physical, and mental exhaustion caused by excessive and prolonged stress. It is often characterized by feelings of cynicism, detachment, and a sense of ineffectiveness. | | Reintegration Schemes | Programs and processes designed to help employees who have been on long-term sick leave return to work, either in their original role or an adjusted one. These schemes involve assessment, planning, and support from the employer, employee, and medical professionals. | | Work-Life Balance | The equilibrium between an individual's professional responsibilities and their personal life. It emphasizes managing time and energy effectively to achieve satisfaction in both domains. | | Work-Life Integration | A more flexible approach where professional and personal lives are blended, allowing individuals to manage personal tasks during work hours and vice versa. This approach requires individual responsibility for managing mental balance. | | Quiet Quitting | A term that describes employees doing only the minimum required by their job description, without going above and beyond. It is a form of emotional distancing from work rather than outright resignation, challenging the expectation of unpaid extra effort. | | Stakhanovism | A Soviet propaganda movement in the 1930s promoting exceptionally high work output by individual laborers as role models. It emphasized exceeding production norms through hard work and efficiency, often through PR campaigns. | | Deglobalization | A trend where national economies become less integrated with each other, characterized by reduced trade flows, investment, and cross-border economic activity. This can be driven by protectionist policies, geopolitical tensions, and supply chain vulnerabilities. | | Diversity Policies | Organizational strategies and practices aimed at promoting equal opportunities and inclusion for all employees, regardless of their background, such as race, gender, age, or other characteristics. DEI (Diversity, Equity, and Inclusion) is a common framework. |