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THE GROWING IMPORTANCE OF HR IN THE NEW KNOWLEDGE ECONOMY

THE GROWING IMPORTANCE OF HR IN THE NEW KNOWLEDGE ECONOMY. ABSTRACT: WHY GROWING IMPORTANCE OF HR ?. WHY GROWING IMPORTANCE ?. In the industrial economy, capital and technolgy are really crucial. Human resources (HR) are important, but it works also and better with robots.

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THE GROWING IMPORTANCE OF HR IN THE NEW KNOWLEDGE ECONOMY

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  1. THE GROWING IMPORTANCE OF HR IN THE NEW KNOWLEDGE ECONOMY Marc Luyckx Ghisi CBA Dean, expert European Commission

  2. ABSTRACT: WHY GROWING IMPORTANCE OF HR ? Marc Luyckx Ghisi CBA Dean, expert European Commission

  3. WHY GROWING IMPORTANCE ? • In the industrial economy, capital and technolgy are really crucial. • Human resources (HR) are important, but it works also and better with robots. • HR is not really crucial. • HR is squeezed between 2 logics : • Caring for the human • Cutting the costs = less employment ! Marc Luyckx Ghisi CBA Dean, expert European Commission

  4. WHY GROWING IMPORTANCE ? • In the post industrial « knowledge economy » in which we are entering full speed, HR becomes totally central. • Because, the NEW value creation process is appication of knowledge to knowledge in order to create new knowledge. • But this can be done only by humans. Marc Luyckx Ghisi CBA Dean, expert European Commission

  5. WHY GROWING IMPORTANCE ? • Hence in the «knowledge economy » humans become of crucial importance. • This is the reason why companies begin to speak about « human capital ». • Indeed Human capital is the new « Tool of production». • Hence the new importance of HR because it cares for the new tool of production !! Marc Luyckx Ghisi CBA Dean, expert European Commission

  6. INDUSTRIAL Econ. Tool of production = capital + technology Humans are second, AFTER machines & robots HR is secondand squeezed KNOWLEDGE Econ. Tool of production is Human person= able to create new Knowl. Humans are before machine & robots HR is central. HR IN INDUSTRIAL & KNOWLEDGE ECONOMIES Marc Luyckx Ghisi CBA Dean, expert European Commission

  7. WHY GROWING IMPORTANCE ? • This means that any HR manager has to have sense of humour… • Because on one side (S)he has to manage an industrial role. (Squeezed). • And on the other side it has to become a leader in the new « knowledge economy » • And (S)he has to explain this to the General Manager!! Marc Luyckx Ghisi CBA Dean, expert European Commission

  8. CHAPTER 1:BUSINESS IN A TIME OF DEEP TRANSFORMATION Marc Luyckx Ghisi CBA Dean, expert European Commission

  9. P. Drucker: Transformation Every few hundred years in Western History there occurs a sharp transformation. Within a few short decades, society rearranges itself : its worldview (paradigm), its basic values, its social and political structures, its arts, its key institutions. Fifty years later there is a new world.” Peter DRUCKER: “Post Capitalist Society”.Butterworth Heinemann, 1993, 2001, p.1. Marc Luyckx Ghisi CBA Dean, expert European Commission

  10. One of the most fundamental shifts • “We are living through one of the most fundamental shifts in History: a change in the actual belief structure of Western Society. No economics, political or military power can compare with the power of a change of mind. By deliberately changing their images of reality, people are changing the world.” Willis HARMAN Stanford Research Institute (+1997), Founder of the “World Business Academy” Marc Luyckx Ghisi CBA Dean, expert European Commission

  11. Transition to Transmodern Death ? Marc Luyckx Ghisi CBA Dean, expert European Commission

  12. KNOWLEDGE SOCIETY:FIVE LEVELS OF CHANGE Marc Luyckx Ghisi CBA Dean, expert European Commission

  13. Transformation’s five levels • Humanity is in danger of collective death • Knowledge society is the End of the Patriarchal values (CCC) • Knowledge Society is the end of modernity. It is tansmodern. (post secular, flat, tolerant, new level of responsibility and consciousness). • Knowledge society is also a new economic logic. • Knowledge society is potentially a new political concept of non violence between States. (like EU) Marc Luyckx Ghisi CBA Dean, expert European Commission

  14. The Iceberg of TRANSMODERNITY Level 5 : Credibility gap of all Institutions is increasing dramatically… Level 4 : The knowledge society : post-capitalist society (Drucker) Level 3: End of Modernity: REASON Only Truth, Science, Violence, Pyramids, Control Level 2 : End of Patriarchal myths, sacred and values Level 1 : Danger of Collective Death Marc Luyckx Ghisi CBA Dean, expert European Commission

  15. LEVEL 1: HUMANITY IS IN DANGER OF COLLAPSE Marc Luyckx Ghisi CBA Dean, expert European Commission

  16. WorldWatch Institute Washington • “Our global economy is outgrowing the capacity of the earth to support it, moving us ever closer to decline and possible collapse…. • “We have the technologies needed to build the new economy…” • Lester BROWN: “Plan B 2.0” Norton NY, London • 2006. Presentation text on the cover. Marc Luyckx Ghisi CBA Dean, expert European Commission

  17. UNESCO : War against nature • Koichiro MATSUURA, Director of UNESCO in Paris has declared that “we must end this war against nature, which is in fact a war against ourselves, and against the future generations.” • “We must conclude an armistice, a new “natural pact” of co-development with nature.” (“Le Figaro” Jan 11, 2007.) Marc Luyckx Ghisi CBA Dean, expert European Commission

  18. WHY? • It is a question of Survival for HUMANIY. Marc Luyckx Ghisi CBA Dean, expert European Commission

  19. Level 2: KNOWLEDGE SOCIETY =END OF PATRIARCHAL VALUES Marc Luyckx Ghisi CBA Dean, expert European Commission

  20. MATRILINEAR(-3500) Woman= Goddess, snake = her power SACRED = LIFE tree, blood, birth… Sexuality + Pleasure Power = life giving Beauty + art Creativity PATRIARCHAL God the Father women infer + sin. SACRED= Violent DEATH, blood, cross… Sex pleasure impure Power = to kill Ascetism is better From Matrilinear to Patriarchal Marc Luyckx Ghisi CBA Dean, expert European Commission

  21. KNOWLEDGE SOCIETY = END OF COMMAND AND CONTROL • Every LEADER will have to shift his approach, and the political structures towards post patriarchal values: • respect for the environment, • Importance of human relations • Fostering the joy of creation, • contact with nature, link with the cosmos, • Interiority, spiritual dimension Marc Luyckx Ghisi CBA Dean, expert European Commission

  22. A NEW WOMAN-MAN RELATION • In every couple around the world, we see a hidden transformation of the relation. Hence... some new conflicts! • This means that women and men are obliged to redefine their roles and behaviours. • Few structures are able to help couples in this unexplained transition. SILENCE. Marc Luyckx Ghisi CBA Dean, expert European Commission

  23. LEVEL 3: KNWOLEDGE SOCIETY = END OF MODERNITY Marc Luyckx Ghisi CBA Dean, expert European Commission

  24. Multi level changes... • Structures: From pyramids to void circle • Status of rational thinking • Status of Spiritual aspiration (religion) in public. • Status of truth: real tolerance. • Status of Science and tech. • Status of political violence: beyond war • Status of body, intuition, ethics, esthetics... Marc Luyckx Ghisi CBA Dean, expert European Commission

  25. PRE-MODERN MODERN 0. Pre-Modern to Modern : Pyramid to Pyramid GOD REASON Economist Clergy Government Government Men Men Women Women COSMOS = sacred COSMOS = object Marc Luyckx Ghisi CBA Dean, expert European Commission

  26. MODERN TRANSMODERN REASON Economist Government Men Women Men ‘above’ the COSMOS 1. From Modern to Transmodern: From Pyramid to void cercle Men part of COSMOS Cultures Centre is empty Marc Luyckx Ghisi CBA Dean, expert European Commission

  27. 2. STATUS OF RATIONAL THINKING • “Modern” rational thinking has been a liberation struggle against medieval obscurantism. • It has become now, like a mental prison. • Rationality is loosing its divine status given by “modernity”. And it is only one way to think. • Other ways of thinking like intuition, connection to the cosmos, gain credibility, because we need them, to create knowledge !! Marc Luyckx Ghisi CBA Dean, expert European Commission

  28. 3. STATUS OF SPIRITUAL ASPIRATION IN PUBLIC • For evident reasons modernity has taken distance from religions. • But in doing this, it has progressively marginalized religions and spiritual aspiration as outdated. • This negation of such an important human dimension is in crisis. • We go probably towards : distinction but not anymore separation. Marc Luyckx Ghisi CBA Dean, expert European Commission

  29. MODERN Pyramidal Intolerant Rational = truth Secular (France) Disenchanted NOT Responsible No conscious of whole TRANSMODERN Round table + Hole Radical tolerance Truth exist=“void” Post secular Re-enchanted Collective responsibility New level of consciousness 4. STATUS OF TRUTH Marc Luyckx Ghisi CBA Dean, expert European Commission

  30. 5. NEW ROLE OF SCIENCE & TEC. • Science & Technology had received in “modern” times a “divine” status, because they were rational thus true. Now they have to be at the service of our survival in a sustainable future. • Science was above ethics, value free ! Now ethics is back and citizens ask questions to science. • Science was functioning in a offer economy (please consume what we invent !). • Now science HAS to function in a demand economy (please be part of the solution !). Marc Luyckx Ghisi CBA Dean, expert European Commission

  31. 5. SCIENCE • And science is reinventing itself at full speed. • And this happens through hard paradigm conflicts (Thomas Kuhn, Harvard) • Back to a “poetic” approach to nature... (Ilya Prigogine, Nobel prize 1977). Marc Luyckx Ghisi CBA Dean, expert European Commission

  32. 6. STATUS OF POLITICAL VIOLENCE • Modernity has created the State as zone of internal NON-violence inside.But outside the borders, citizens are obliged to kill. • Transmodernity has invented structures of non-violence between States: The EU is the first success. • But European Governments “sell” the EU as a market... They should sell EU as the first political avantgarde of the Knowledge society ! Marc Luyckx Ghisi CBA Dean, expert European Commission

  33. 7. STATUS OF INTUITION, ETHICS, BODY, SACRED, DEATH... • Many things are changing • We see that intuition, ethics, esthetics, are really becoming important again in the knowledge society. • The very concept of sacred has transformed more in 40 years than in 2000 years! • The way we see death and life after death is also changing completely... • We see a reconnexion of body, mind, soul, intelligence...Towards Reenchantment ? Marc Luyckx Ghisi CBA Dean, expert European Commission

  34. CONSEQUENCE: POLITICAL CHOICES (I) • EU should be presented as the First political structure of the Knowledge Society in the XXI° century. • Politicians should dear to say that we are like at the beginning of a new Renaissance... • They should call people to reflect worldwide on the new sustainable structures of the future Knowledge Society. Marc Luyckx Ghisi CBA Dean, expert European Commission

  35. CONSEQUENCE: ECONOMIC CHOICES (I) • Politicians and economist should have the courage to say that we are not anymore in the industrial capitalist period. • We are already in the knowledge economy/society which is post capitalist (Drucker). • But nobody dears to say the truth to the citizens. And they know it .... subconsciously. Marc Luyckx Ghisi CBA Dean, expert European Commission

  36. WHAT IS LISBON STRATEGY ? • In March 2000, the Head of the 15 States, which are Members of the European Union, met in Lisbon for one of their official meetings called « European Council ». • They decided that « the EU should become the most competitive world actor in the Knowledge society before 2010, and this in full respect of sustainability and social inclusion. » Marc Luyckx Ghisi CBA Dean, expert European Commission

  37. CONSEQUENCE: ECONOMIC CHOICES (II) • And this “knowledege Society” (Lisbon Strategy of the EU 2000-2010), has to be oriented towards full sustainability and social inclusion. • It IS Possible. A debate is urgent and needed. • But this presupposes that the economists and politicians admit that we are - for 60%- not anymore in the industrial “free trade” economy, which is unable to lead to a sustainable world. Marc Luyckx Ghisi CBA Dean, expert European Commission

  38. THE DINOSAUR SYNDROM ! • We are in a time of rapid change. • Many structures will become dinosaurs, if they are unable to transform... • Better create new structures without fighting the old ones. Marc Luyckx Ghisi CBA Dean, expert European Commission

  39. Conclusion • Where are you personally? Are you feeling this transition? • Where are Macedonian young business leaders? In which paradigm are they ? • What is the future of Macedonia? Knowledge economy? • Macedonia could perhaps leapfrog the industrial phase and perform in the new economy? Marc Luyckx Ghisi CBA Dean, expert European Commission

  40. CHAPTER 2:WHAT IS KNOWLEDGE ECONOMICS?(Level 4! ) Marc Luyckx Ghisi CBA Dean, expert European Commission

  41. DEFINITIONS • Data: what is on the web, unorganised • Information: is already sorted by « Google ». Overabundance. • Knowledge: is digested by human brain. Less • Human brain and networks are the NEW TOOLS of PRODUCTION • Wisdom, Knowledge are rare. Not enough. Marc Luyckx Ghisi CBA Dean, expert European Commission

  42. A new world... • New tool of production : human brain • New CEO: Enabling creativity and sharing, Caring for humans = new human-centered management • New value creation process : adding K to K. • New Trade: from Free Trade to Free Sharing • New measurements = qualitative “intangibles” • New strategy: beyond war: win-win not win-loose • New definition of Progress = qualitative • Beyond patenting towards “Open Source” • Beyond pyramids towards networks • Capitalizing on cultural capital + gender capital Marc Luyckx Ghisi CBA Dean, expert European Commission

  43. 1. NEW TOOL OF PRODUCTION • The tool of production is not anymore machine + technol.+ capital (€). • New tool of production is human brain + sharing knowledge in Networks in order to create new K. • This new tool of productionis more important than capital and technol. Humans are ABOVE machines and Capital. • Hence Post capitalist society! Marc Luyckx Ghisi CBA Dean, expert European Commission

  44. 2. NEW CEO FUNCTION • Old CEO: command, control, conquer • New CEO: • Enables the creativity of his “human capital”= tool of Production • Enables and creates networks around his team. Because (S)He cannot control networks! • Cares for the intangible assets = brand Marc Luyckx Ghisi CBA Dean, expert European Commission

  45. 2. HR AND NEW MANAGEMENT • Human capital and HR become central because they are caring for the tool of production: Please come back tomorrow! • Thus Management : shifts 180° towards human centeredness = more creativity-centred, gender & culture – centred. • HR Becomes absolutely central. Marc Luyckx Ghisi CBA Dean, expert European Commission

  46. HR AND NEW MANAGEMENT • The EU economy is at least 50% in this new knowledge economy. Thus HR is really becoming more important everyday. • But many enterprises are not understanding the change. And keep HR devalued ! • Most CEO’s do not understand... It is too quick! Marc Luyckx Ghisi CBA Dean, expert European Commission

  47. HR AND NEW MANAGEMENT • And so the HR managers have a difficult task to convince their top managers. • Meanwhile people under them push for change, because they feel the need. • It is important for HR managers to understand that their problems are worldwide the same. The transformation is too quick! Marc Luyckx Ghisi CBA Dean, expert European Commission

  48. INDUSTRIAL SOC. Add value to object From steel to car ! Tool is Machine Humans are cost Management is machine-centered Machine is central KNOWLEDGE SOC. Create new K From data, info to K Tool is Human brain in Networks Humans are capital Management is Human-centered Machine is at service 3. NEW VALUE CREATION PROCES Marc Luyckx Ghisi CBA Dean, expert European Commission

  49. 4. BEYOND TRADE : win-win(I) • If I exchange an object against money, I loose the object. This is “trade”: I win and I loose. “Win-Loose” logic • If I exchange knowledge, I do not loose my knowledge. I win and you win. I am not trading anymore. I share. This is a “win-win logic” of sharing. Marc Luyckx Ghisi CBA Dean, expert European Commission

  50. INDUSTRIAL SOC. Free trade of objects Industrial structure Pyramids Unemployment Pollution Quantitative growth KNOWLEDGE SOC. Free sharing of knowl. Post-industrial-capitalist. Network =value creation Self-creation of my job Immaterialization of prod. Qualitative growth 4. BEYOND TRADE (II) Marc Luyckx Ghisi CBA Dean, expert European Commission

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