Essay about The Education And Labour Systems

Essay about The Education And Labour Systems

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The education and labour systems have a strong impact on the firm capabilities of the business systems. In the following paragraphs we will introduce the main concepts, identifying the main advanced business systems, analysing the different labour systems and education systems, and showing two examples of contrasting countries where the education and labour systems have shaped the way capabilities are developed.

To start with, in order to analyse how education and labour systems affect organisational capabilities, we will discuss the context in which we will use each of those concepts:
There are three advanced business systems: Compartmentalised, collaborative and highly-coordinated business.
• Traditional compartmentalised is mainly driven by market ownership. In this systems, there are low alliance based vertical integration, low competitor collaboration, low employer-employee commitment and low worker discretion and influence. Venture compartmentalised differs from traditional, that the ownership is mixed (market and committed) and there is higher worker discretion.
• In the collaborative systems, ownership is committed, there is limited alliance based vertical integration, high collaboration between competitors, considerable employer-employee commitment and high worker discretion and influence.
• Finally, highly co-ordinated business system has also committed ownership, and considerable worker discretion and influence, however, in contrast to other systems, the alliance based vertical integration is high and the employer-employee commitment is high.
The previous business systems can be classified in five different labour systems:
• Taylorism: it involves the division of the work process. In this labour system, there is high...

... middle of paper ...

... systems have a strong impact in the way firms develop their capabilities. We have discussed how advanced business systems can be classified in compartmentalised, collaborative and highly co-ordinated and categorised in five different labour systems: Taylorism, ventured, among others. Also, there are two different education and training systems: generalist and dual systems. To show the difference, we have analysed the American and German business systems. Americans have developed strong pharma and high tech, through ventured systems that align employer-employee incentives with options, and takes advantage of the educational or training investment the formal system has already done in their employees. German systems have dual training, with strong cooperation between employer, employees, trade unions and educational system, to develop highly skilled technical workers.

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