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[Excerpt] Through labor-management policy, the management is responsible for establishing mutually beneficial relations between workers and employers. Establishing proper relations from the perspective of the worker refers to protecting workers’ rights by guaranteeing their quality of life. Areas of labor-management policy set by management include those that appropriate wages and labor conditions; stipulate and settle collective relations between management and workers; and establish industrial safety and workers’ compensation. Management also sets employment policies related to labor welfare, vocational training, employment security, maintenance of employment agencies, and other policies that push forward human resource development.

When setting these policies, management seeks to find a solution that is mutually beneficial for workers and employers. However, in the case of downsizing, there are not sufficient guidelines specific or objective enough for both workers and employers to agree on. Therefore, it is difficult to resolve differences when it comes to labor settlements. The following case study hypothetically illustrates ways in which the management could resolve labor settlements that are jointly accepted by workers and employers.


Suggested Citation

Choi, I. (2015, November 9). The potential of data envelopment analysis (DEA) in labor adjustment policy [Electronic version]. Cornell HR Review. Retrieved [insert date] from Cornell University, ILR School site:

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