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Flexicurity in Denmark

The various interventions from the government, is often seen as a big barrier in making of various labor markets which are not flexible in nature. These labor markets of the flexible type are required to be created if the various economies of the West wish to survive in an environment which is quite volatile in nature and is increasingly becoming hungry of knowledge. The regulations imposed upon the various labor markets, actually tend to cause a slowing down of progress towards a world in which you will find most people to be self-employed in nature. The people may also have contracts for working in various organizations at the same time. Madsen in the year 2003 showed that the things happening in Denmark are opposite to this. You will find that in Denmark the turnover for employees is really high; in fact it is highest in all of Europe (30%) in the present times. The turnover for jobs is also hence on the higher side ranging between 10%-15 %. Hence new jobs are replacing the old ones. You will see that about one fourth of the workforce in Denmark often found themselves quite unemployed for certain periods of the year. 10% of the people of this country have found employment of a fixed nature. The number of companies of the small scale and medium scale type is also really high here. Speaking from an economic point of view, the story of the Danish people can be termed as a success. The rates of inflation have remained low here for quite some time now. The rate of unemployment in the country has been far less here than all of the other countries of the European Union. The economy in the past decade has gone from strength to strength. It can rightly be said that Denmark is progressing towards what can be termed as the future of working, which was envisioned by Handy.

The social security system of Denmark seems to be main reason behind this occurrence. The system is always quite generous to the people than all the other countries. To dismiss employees here is quite common. But the people who have been dismissed suffer much less in terms of monetary condition than those belonging to other countries. These people receive the benefit of taking part in training as well as educational programs. Hence the benefit system for the unemployed is extremely modern and sophisticated in nature.  This has led to the development of labor markets of the flexible type. The different people hence can take up roles which do not provide with much job security. The different employers are also not that concerned about avoidance of firing of people.


1.1 You can say that HRM is quite fundamental to different other managerial activities.

1.2 It is very much possible for you to differentiate and identify to unique definitions for the term called HRM. In the first you will find description of different managerial activities while in the other one the approach to carry on with those activities will be described.

1.3 The different managers of HRM are always quite worried about meeting up of the 4 different objectives of organizations. These objectives include the presence of staffs as well as their performance and how to administrate them properly.

1.4 You will find that the activities of HRM can be carried forward in many different ways. Different kinds of structure for the organization are required to be seen. In many organizations, you will find the generalists of HR working side by side with the specialists.

1.5 You will find that the HRM can be termed as one of the newest avatars that the people practicing personnel management have got since the very profession started a century ago.

1.6 The point of view regarding HRM that has been presented in this particular book can be said to be a particular series different activities. The people constituting the workforce, as well as the business house come together and discuss the relationship they share and what they would aim to achieve. It has to be ensured that every agreement is fulfilled.

1.7 The debates about HRM in the present times, is generally the focus of the degree to which different responses are required when a particular business atmosphere is getting developed.

1.8 The top 3 debates of the present times usually focus on what the psychological contract is. The different models of best fit as well as best practice is also looked into in order to predict how the future of working is going to shape up.

General Discussion Topics

  1. State how you are going to know that suggestions concerned with employment contract is metamorphosing into performance based contract.
  2. You will see the kind of philosophy of HRM which has been put forward towards the chapter’s end makes no references regarding the customers. In the words of David Ulrich who is a professor of the Michigan Business School, it is of real importance to keep the focus on HR activities different from that of the firm and to that of customers, hence ensuring that different suppliers along with the customers and employees of the firm are all connected together in a chain. You need to state what difference it is going to make if this is done.
  1. Tell the extent to which it is conceivable to simultaneously agree with the models of best fit and best practice. State the ways in which these two share some kind of compatibility.

Further Reading

British Journal of Industrial Relations (Vol. 41, No. 2)

This is a special edition of the book and was published in the month of June in the year 2003. This book was primarily concentrated upon doing research ad well as engage in debates regarding what the future of working would be. Lots of articles have been present in the book, provided by the most eminent of authors on the subject. The findings presented in the book, have originated from a research project of national stature, supported by 22 universities.

Human Resource Management: Rhetorics and Realities. London: Macmillan

This book will provide you with strict discussions regarding the differences present between personnel management and Human Resource Management. Also presented here are other debates concerned with the working of HRM and what purpose it will serve to various companies. Different important discussions by Tyson, Maund etc have also been put inside it.

The Employment Relationship: Key Challenges for HR. London: Butterworth-Heinemann

This book provides with a really great introduction to some of the biggest issues that the HR managers usually face in the business environment prevalent today. Here you will find the topics of psychological contract as well as how new structures of organization in business are developing, covered excellently.

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You will find lots of extra materials, where MCQ questions are provided for you along with the answers. You will find lots of links to important websites by visiting the site of HRM Companion.


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