12
Political
Constitutional Monarchy
Government System
-Monarchy has a ceremonial role and no actual power
- Government is governed under the constitution
Legislative Branch
Fredrik Reinfeldt
Carl Gustaf XVI
3 divisions of Government
-National
-Regional
-Local
National
Government Committees
- One Cabinet system
- The Riksdag
- Seats are assigned on the bases on the of votes the party receives in total
- The 4% rule
15 parliamentary committees that help create legislation
- Could be referred as "miniature Riksdag"
The Committees that effect HRM system are
-The Committee on Labor Market
- The Committee on Social Insurance
Economic
LABOUR FORCE HISTORY
2013
2000
1980s
employment rose by 90,000 people, the greatest increase in 40 years
unemployment rate between 2% and 3%
- unemployment in June 2013 was 9.1% in the general population
- 29% amongst 15- to 25-year-old
male: 26.3%
female: 23.7%
- Mixed economy
- GDP growth 0.8% (2012)
GDP by sector:
- agriculture: 1.8%,
- industry: 27.3%,
- services: 70.9%
- Inflation (CPI): 1.4% (2012 est.)
- Currency: SEK, rejected the Euro
in a referendum in 2003
1990s
2004
2013
1980s
2000
1990s
2004
rate increased to more than 8%
new target: that 80% of the working age population will have a regular job
Legal
PROBLEMS
LABOR FORCE
1. There is no minimum wage that is required by legislation.
Instead, minimum wage standards in different sectors are normally set by collective bargaining.
2. Swedish unskilled employees are well paid while well educated Swedish employees are low-paid compared with those in competitor countries in Western Europe and the US.
Fundamental Labour Laws
Labor force 5.032 million (2012 est.)
- Labor force - by occupation:
- agriculture: 1.1%
- industry: 28.2%
- services: 70.7%
Average gross salary 3,911 € / 5,279 $, monthly (2006)
Taxes and other revenues 55.3% of GDP (2012 est.)
Ease of Doing Business Rank: 13th
- Employment Protection Act
- Labor Dispute Act
- Labor Co Determination Act ( discussed later in the presentation)
TRADE UNIONS
70% of the Swedish labor force is unionized
The unionization rate among white-collar workers is exceptionally high in Sweden – almost as high as for blue-collar workers
Swedish Labor Law
Employment Protection Act
Regulates employment contracts and termination procedures
-Generally indefinite employment is the norm
- Fixed term employment is acceptable in certain occasions
- Termination under just cause and redundancy**
- Labor law regulation on a national level
- Swedish labor laws have more emphasis on the employee’s security.
- Most labor regulations based on collective agreements between employees and employers
Labor Dispute Act
- Outlines the procedure in resolving collective bargaining and employee vs. employer disputes
-Labor dispute courts
- Only governs unionized work force
-Any un-unionized employee employer disputes go directly to district courts, but is moved to the labor court for the appeal and final ruling
Labour Courts
Labour court panel consists of:
- 3 non partisan members
- Chair
- Vice Chair
- Labor market expert
- 4 partisan members
- 2 appointed members from employer organization
- 2 members from the employee organization
The Setting
Social
Swedish Flag
HISTORY
1921
Women get the right to vote and run for office. The first five women to win seats in parliament are Kerstin Hesselgren, Elisabeth Tamm, Agda Östlund, Nelly Thüring and Bertha Wellin.
2011
Stalking – repeated harassment – becomes an offense. One aim of the law is to further prevent male violence against women.
2002
Parental leave increased to 480 days, with each parent entitled to two months of non-transferable benefits.
2009
1974
1921
2011
2002
2009
The Discrimination Act replaces seven separate anti-discrimination laws.
1974
Sweden becomes the first country in the world to replace maternity leave with parental leave.
10 things to know about Sweden
Gender equality:
The Swedish approach to fairness
Sweden has succeeded in creating a balance between social equality and economic success.
1. Sweden ranks as one of the world’s most gender-egalitarian countries, based on a firm belief that men and women should share power and influence equally.
- Education is free
- Healthcare is cheap
- Childcare is universal
GOALS
1. To diminish, and if possible eliminate, regional differences so as to create equality in the whole country in terms of access and quality of social services.
2. To promote the principle of distribution of social services on the basis of need, rather than the cash nexus of the market.
Gender equality:
The Swedish approach to fairness
MAP OF SWEDEN
National
costumes
- Sweden remains one of the most egalitarian countries in terms of income distribution
- Consistently appears near the top of the Human Development Index (which ranks countries according to life expectancy, education and standard of living).
- Swedes pay high taxes to maintain their prized social welfare system.
- BUT they are no longer the highest-taxed people in the world.
2. One important factor in Swedish equality is parental leave.
- New dads get ten days off work when their child is born
- Then share with their partner a further 480 days of paid parental leave.
Government
Equality Ombudsman
Capital: Stockholm
Population: 9.6 million
Size of country: 50,000 km²,
the third largest country in Western Europe
Languages: Swedish;
Religion: In practice, Sweden is very secularized.
Member of: EU, WTO, OECD
Life expectancy:
Men 79 years, women 83 years
Number of people migrating to Sweden:
- Seeks to combat discrimination
- ensures obedience with the Discrimination Act
- Promote equal rights and opportunities for everyone
- Monitors compliance with the Parental Leave Act
State Owned Enterprises
The Riksdag
- Swedish state is Sweden's largest company owner and employer
- 57 companies are managed through the government
- 43 entirely state owned
- 12 partially state owned
Working Life Policy
- Ensure good working conditions and opportunities for development
- Create conditions for high and sustained growth and full employment
Prime Minister
+
Ministers
=
Government
Work Environment Act
Wage Formation
Labour Legislation
- Covers initiatives to ensure effective wage formation and mediation in labour disputes
- Includes the activities of the National Mediation Office
Purpose: to prevent illness and accidents in the workplace
- Work shall be planned and arranged in such a way that it can be carried out in a healthy and safe environment
- Work conditions shall be adapted to people's differing physical and mental capabilities
- The Swedish Work Environment Authority can intervene
- Lays the foundations for working life that meets both employees and employers needs for flexibility, security and influence
The Ministry of Employment
1932-1976
1979
2006
1985-1991
1994
The Social Democrats remain in power after both elections.
The Social Democrats rule without interruption, except for a period of 109 days in 1936 when Sweden has an interim government.
The Social Democrats form a new minority government.
The non-socialist parties retain their parliamentary majority, and a new three-party government is formed. In the spring of 1981, the Moderate Party leaves the Government.
The non-socialist parties form a four-party coalition government called the Alliance - compromising of the Moderate Party, the Liberal Party, the Centre Party and the Swedish Christian Democrats.
Responsible for 9 administrative agencies:
1. Council for Employee Representation Boards of Directors
2. Council for the European Social Fund in Sweden
3. Institute for Labour Market Policy Evaluation
4. Labour Court
5. National Advistory Board on Patent Rights and Compensation Settlements for Inventions at Work
6. National Mediation Office
7. Swedish ILO committee
8. Swedish Unemployment Insurance Board
9. Swedish Work Envinronment Authority
1982
1991
1976
2010
1998 & 2002
1985-1991
1994
2006
1979
1932-1976
1998 & 2002
1976
1982
1991
2010
The Social Democrats remain in office after both elections, but in order to implement their policies are forced to form a parliamentary alliance with the Left Party and the Green Party.
A non-socialist minority government is formed of the Moderates, Liberals, the Centre Party and Christian Democrats.
The Social Democrats are defeated by a coalition consisting of the Centre Party , the Moderates and the Liberal Party.
The ruling centre-right Alliance beats the left-of-centre coalition, but fails to gain an outright majority.
The non-socialist parties lose their majority and a Social Democratic minority government is formed.
Sweden
Management
8 Parties:
- The Social Democratic Party (Socialdemokraterna)
- The Alliance:
- The Liberal Party (Folkpartiet Liberalerna)
- The Moderate Party (Moderaterna)
- The Centre Party (Centerpartiet)
- The Christian Democrats (Kristdemokraterna)
- The Green Party (Miljöpartiet de Gröna)
- The Sweden Democrats (Sverigedemokraterna)
- The Left Party (Vänsterpartiet)
Government Policy
- Give direction
- Be accountable
- Manage employees
- Communicate
- Motivate
- Follow up on progress
- Report results
- Work-first principle
- Everyone who wants to and can work should have a job to go to
- Goal
- Full employment
- Create conditions for more people to want and be able to work
Unions
Why is Sweden so Unionized?
Important Events
- Some reasons:
- Union unemployment fund
- Lack of government regulation (e.g. min wage)
- More public sector employees
1938 Saltsjobaden Agreement
- Consensus & Cooperation
- No government interference
- Increase in unemployment fund fees
- Tax reductions abolished
- Union density decline
- Social Democrat Party Founded
- LO Union founded
1909
1976
2006
1938
1889-1900
Swedish General Strike
- 300 000
- Lockout of 80 000 employees in pulp, sawmill, and textile industries
- Ended due to fund shortage
Co-Determination Act - Medbestammandelagen
- Act on Employee Consultation and Participation in Working Life
- Employee Representation
- Right to be informed about business decisions
Going Forward
- Decline in Unions?
- Decentralization
TCO - "Swedish Confederation of Professional Employees
- White Collar
- 15 Trade Unions
- No Political Connections
Worker Influence
- Unions
- Co-Determination
- Board Level Representation
Unions
SMO 417
- 71% Unionized
- 3.5 million trade union members
- Public vs. Private Sector
- More females
- Divided into confederations
SACO - "Swedish Confederation of Professional Associations
LO - Swedish Trade Union Confederation
- Blue Collar
- 14 Trade Unions
- Ties to Social Democratic Party
- Academic & Graduate Members
- No Political Ties
- 26 Professional Associations
- Smallest of 3 umbrella organizations
- The only one that is growing
Fall 2013
Break Time!
The HRM System
HRM Flow
Retaining
Recruiting
Finding Job Vacancies
Other Factors to Consider
- Loyalty
- Long term vs. immediate rewards
- Employee's welfare
- Flexibility
- Internet
- Newspapers
- Networking
- EURES Data Base
- Online Job Portals
- Company Websites
- Internship programs
- Executive recruitment agencies
- The Active Labor Market Policy
- wage & recruitment subsidies
- public relief work
- matching programs
- Position-based system
- Job Security Legislation
- age
- Gender
3 Main Components
- CV
- Cover letter (personligt brev)
- Interview (intervju)
What do Swedish organizations look for in an appropriate candidate?
- Education
- Communication
- Personal Chemistry
- Experience
- Performance
- Work Ethic
- Team Player
Exiting
Training
- Voluntary
- identification, loyalty, trust
- responsibility, violations of the psychological contract were correlated with turn over
- Lay offs
- Act on Security of Employment - LAS
- The Employment (Co-Determination in the Workplace) Act
- Employment security and stability are highly valued in Sweden.
- LIFO - Last In First Out
- Forced
- Just Cause
- 14 day notice
- Disciplinary
• The Labor Disputes Act (1974:371);
• The Co-Determination in the Workplace Act (1976:580);
• The Employment Protection Act (1982:80);
• The Equal Opportunities Act (1991:433);
• The Parental Leave Act (1995:584);
• The Act on Measures Against Ethnic Discrimination in Working Life (1999:130);
• The Act against Discrimination of Disabled in Working Life (1999:132);
• The Act against Discrimination in Working Life on the Basis of Sexual Orientation (1999:133);
• The Act against Discrimination of Part-time Employees and Employees on Fixed-term Employment (2002:293); and
• The Act on Prohibition against Discrimination (2003:307)
- Continuous Training
- Experienced colleagues
- External programs
- Training centers
- Industry schools
- Vocational Training
- High investment
- Methods to discover a need for training
- Performance appraisals
- Line management requests
- Employee requests - life long learning
- Effectiveness
Reward System
Work Design
Monetary
Non-Monetary
Payment System
- Solidaristic Wage Policy
- Collective Agreements
- Setting Wages
- No Minimum Wage
Rewarding High-Performers
- Cannot reward with money
- Intrinsic motivation/competition
Dealing with Low-Performers
- Union employee's protected
- Times changing?
- Managers in Sweden least worried with low-performers
- Peer group pressure
- Teamwork
- Horizontal organization
- Skilled workers
- Self-managed work teams
- Functional flexibility
Monetary
Incentive Programs; Bonuses
- Generous welfare state
- Social Solidarity
- Education, Health Care, Equality Rights, Sick Leave, Company Benefits
- Holidays: Midsummers Day, Labour Day, Christmas, New Years, Swedish National Day
Stephanie Bradshaw
Timothy Chan
Lindsay Church
Sukhjit Dhillon
Jennifer Gust
Kandace Kobryn
Alysha Martin
Elena Shmatchenko
https://jeopardylabs.com/play/swede-trivia
Lessons for Canada
The Work System
- Individuality but consensus
- More non-monetary incentives
- Less hierarchy - managers leaders not bosses
- Equality
- Job restructuring
- better integration of new employees; training/onboarding
References
- The Nordic Model
- Co-operation between organized labour market and the state
- Promote "good work"
- Less conflicts in working environment would increase productivity
- High spending on human capital
- Challenges with Nordic Model
- Change in globalization
- Aging population
- Tight budget
- Less incentives
References
HRM and its Environment
- http://search.proquest.com/abiglobal/docview/224074526/141D249E3B26C8E4F95/1?accountid=14474
- http://www.worldbusinessculture.com/Swedish-Management-Style.html
- http://www.arbetsdomstolen.se/pages/page.asp?lngID=7&lngLangID=1
- http://www.riksdagen.se/en/Committees/The-parliamentary-committees-at-work/
- http://volvosteget.se/om-volvosteget/varfor-volvosteget/
- http://sweden.se/society/government/
- http://sweden.se/culture/the-swedish-monarchy/
- http://www.government.se/sb/d/16235/a/220822
- http://www.riksdagen.se/en/Documents-and-laws/Laws/The-Constitution/
- http://sweden.se/culture/the-swedish-monarchy/
Swedish Management
Model
- Structure is ambiguous
- Decision making processes are slow
- Control - informal
- No bureaucracy
- Indecisive
- Pragmatic
- Change in doctrine
- http://www.sweden.se/eng/Home/Society/Equality/Facts/Gender-equality-in-Sweden/
- http://www.government.se/content/1/c6/17/06/91/fe6c52f2.pdf
- http://sweden.se/society/government/
- http://www.volvogroup.com/group/global/en-gb/volvo%20group/videos/Pages/group_videos.aspx
- http://video.ft.com/.../A-tale-of-two-Volvos/Companies
- http://www.researchgate.net/publication/23729392_The_Swedish_Economic_Model
- https://eprints.mdx.ac.uk/1405/1/Muller_-_employee_representation_%26_pay.pdf
- http://en.wikipedia.org/wiki/Sweden
References
- Consensus seeking - egalitarian culture
- Investment in human capital - low power distance
- Managers are facilitators - low power distance
- Open discussion and sharing - feminism
References
- http://login.ezproxy.library.ualberta.ca/login?url=http://search.proquest.com/docview/235996956?accountid=14474
- http://www.sweden.se/eng/Home/Work/Labor-market/Salary-and-standard-of-living/
- http://www.sweden.se/eng/Home/Work/Labor-market/Employment-based-benefits/
- http://www.sweden.se/eng/Home/Work/Labor-market/Employee-rights/
- http://www.visitsweden.com/sweden/sweden-facts/worth-knowing-about-sweden/public-holidays/
- http://login.ezproxy.library.ualberta.ca/login?url=http://search.proquest.com/docview/236378312?accountid=14474
- http://www.forbes.com/2009/08/31/europe-minimum-wage-lifestyle-wages.html
- http://login.ezproxy.library.ualberta.ca/login?url=http://search.proquest.com/docview/235205828?accountid=14474
- http://login.ezproxy.library.ualberta.ca/login?url=http://search.proquest.com/docview/231903510?accountid=14474
- http://login.ezproxy.library.ualberta.ca/login?url=http://search.proquest.com/docview/229916209?accountid=14474
- http://geert-hofstede.com/sweden.html
- http://www.heritage.org/index/country/sweden
- http://globial.com/globialtalksbusiness/sweden-economy-facts/
- http://search.proquest.com/abiglobal/docview/909381056/141D247ABE061C64682/1?accountid=14474
- http://login.ezproxy.library.ualberta.ca/login?url=http://search.proquest.com/docview/920282216?accountid=14474
- http://www.volvogroup.com/SiteCollectionDocuments/VGHQ/Volvo%20Group/Volvo%20Group/Our%20values/volvo_way_eng.pdf
Video
References
- http://search.proquest.com.login.ezproxy.library.ualberta.ca/abiglobal/docview/235205828/141AC37BFB529F881AB/1?accountid=14474
- http://www.worker-participation.eu/National-Industrial-Relations/Countries/Sweden/Trade-Unions
- http://search.proquest.com.login.ezproxy.library.ualberta.ca/abiglobal/docview/89159326/141AF66FA902FE62417/19?accountid=14474
- http://www.eurofound.europa.eu/emire/SWEDEN/ANCHOR-MEDBEST-Auml-MMANDELAGEN-SE.htm
- http://search.proquest.com.login.ezproxy.library.ualberta.ca/abiglobal/docview/236329047/141B0FF6FD8FE6F6BA/4?accountid=14474
- http://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=1964092&fileOId=2064087
- http://www.thelocal.se/20080905/14164
- http://www.worker-participation.eu/National-Industrial-Relations/Countries/Sweden/Board-level-Representation
Volvo
Volvosteget
- Founded in 1927
- Their Mission Statement: By creating value for our customers we create value for our shareholders. We use our expertise to create transport-related hard and soft products of superior quality, safety and environmental care for demanding customers in selected segments. We work with energy, passion, and respect for the individual.
- Global success through emphasis of core values:
- [of the corporation] quality, safety, and environmental care.
- [of products] innovation, durability, reliability, variability, and safety
- [of employees] productivity, individuality, and cost effectiveness
- [of customers] individuality and flexibility
- A paid internship program that is created by the Volvo group providing practical training for youths between 18-22
- 46 week certificate program that consist of theory and practical training at Volvo factories