As a result of the development of production technology, which has been brought about by the change in the economic environment and the growth of micro-electronics (ME), workplaces have rapidly become automatized and the skills required of employees skills have been altered. ME-ization has created a new production paradigm, which requires a flexible and participation and democratic based work process involving highly experienced and productive employees, through which various high quality goods can be produced in bulk. In addition, the newly emergent IT technology has also become a new production technology paradigm, and as such, methods of producing small quantities of various goods are required, that is, methods of production that can flexibly respond to changes in the market. There is also a need for a continuous analysis at the individual industry level of how a new work process capable of coping with economic changes is introduced and altered, and how the changes in this work process influence employees development of their skills.
This study intends to analyze the influence of new technologies on the work process foundin the steel industry and what influence these changes in the work process have on the development of employees skills. Moreover, this study will also introduce policy measures to invigorate the development of employees skills.
This study introduces a theory on the development of skills that is based on the background to the development of skills inJapan and Germanys SOFI. Moreover, this paper analyzes the characteristics of skill development based on a systematic approach to the changes in the characteristics of labor as the result of the introduction of a flexible production system, and also analyzes skill development following the introduction of technology and changes in the work process. Following this, with regards to the development of skills as a result of the introduction of new technologies and changes in the work process, this paper uses POSCO as a case study for the steel industry. This paper analyzes the method through which POSCO introduces new technologies, reorganizes its workplace, and how it develops its employees skills. The rolling process of POSCOs 2nd steel mill was selected for our research because this department makes the majority of POSCOs products; and the rolling process involves various technologies, such as electrical-mechanical chemical technologies, thus making it possible for us to examine the changes in the work process and the development of employees skills that have occurred as a resultof automization and the introduction of new technology. Additionally, POSCOs steel wire factory # 1 was also selected in order to develop a better understanding of skill development within the steel industry.
First, an overview of the steel industry, including its characteristics, is presented, asis an overview of POSCO and its main products.
Second, with regards to the work process and the development of skills, this paper selected the department to be analyzed, and then examined the skill level of the employees, the process through which these skills changed, and the changes inthe work tasks of the employees of the selected department.
Third, with regards to the principles and objectives of departmental restructuring, this paper analyzed the relationship between the introduction of new technology and skill development.
Fourth, with regards to POSCOs in-service education programs, this paper analyzed the relationship between POSCOs training systems, such as OJT, Off-JT, and Life Learning programs, and skill development.
Fifth, with regards to POSCOs employment practices, this paper analyzed the influence of POSCOs corporate features, employment and promotion system, and internal labor market types on the development of skills.
Based on the results of this case study, some policy measures designed to activate the development of the skills of the human resources engaged in the steel industry have been introduced:
First, the development of the skills of human resources, as a result of the introduction of new technology, is dependent on individual corporations management strategy. That is to say that workers can acquire new skills, or polish existing ones, as a result of the introduction of new technology if the management strategy is conducive to such a process. This acquirement of new skills is necessary if new technology is to take root and be efficiently utilized.
As such, the following policy measures can be identified with regards to the development of employees skills in the face of new technology: first, a systematic management plan should be drawn up and implemented, in order to develop new skills, that takes into consideration the application of technology, the restructuring of employees skills, and the reform of the work process. In addition, the voluntary participation of employees is of the utmost importance; second, if Korean employees are provided with a vision of stable employment and possibility for career advancement, they will display relatively little resistance to job transfers or skill restructuring, and willingly accept to participate in skill development training programs. Therefore, when it comes to the introduction of new technology, the restructuring of work skills, and the reform of the workprocess, policies that provide opportunities for long-term career advancement and self-development, by minimizing job insecurity, can help employees actively participate and cooperate in the corporations activities, and help efficiently implement and use new technology.
The following measures were suggested to help improve the skill development system. First, given the leading role that POSCO plays in the development and implementation of technology, it is absurd for the government todirectly intervene in the corporations skill development process. This being said, the government does have an indirect role toplay, that of helping to form an environment in which an independent skill development system can be established. Second, the government should help build a social safety net in order to satisfy the demands of each corporation in cases where the introduction of new technology is not accompanied by the implementation of the necessary educational training programs. More specifically, the government will have to actively promote an unemployment compensation plan to assure social security, and provide re-education programs for the transfer of skills needed following the introduction of new technology. In addition, there is also a need to consider political intervention in order to cultivate the skilled manpower needed within the industrial structure and assure the proper levels of manpower required within each industry. Third, as there is a high risk that corporation-led skill development plans would be restricted to individual workplaces, employees could find themselves unable to achieve job transfers or to change occupations if economic changes occurred. Therefore, while the autonomy of the corporation should be respected with regards to internal skill development, the government should introduce long-term plans to minimize layoffs, as well as introduceskill development training policies to assure smooth occupational transfers or changes.
Therefore, while a corporations autonomy still plays an important role in skill development, there is also a need for the government to provide education programs that help to develop skills in order to satisfy workerdemand, cultivate national skilled manpower, provide appropriate training for each industry, and assure the stable development of employees careers.