Question: Please write down the definition of flexible workforce and how ASML uses it. (300-500words)

ENTER THE WORLD OF BUSINESS de tiny village called femployees, mechatronics , optics, industrial masics, chemistry in a queue to work for ASML equipment which is built by a rather ees of which about 82% are highly the ASML: HR Boosts Technical Innovation Most of you who have a personal computer or a Hence, HR is an important condition for laptop are not aware that the integrated circuits ASML's success and HRM is as strategically impor- and chips inside your computer are probably man- tant. ASML's workforce consists of 2500 employ- ufactured with educated unknown enterprise located in a tiny with a bachelor's degree or higher . In the attrac- Veldhoven in the south of the Netherlands. This tion, selection and employment of enterprise, ASML, is one of the world's leading pro ASML is focusing on the most creative and bril- viders of lithography systems for the machine liant thinkers in physics, mathematics, chemistry that adesity and manufacturos complex machines software and ICT. ASML has an immense attrac- circuits or chips. ASML has over sirly service points tion for highly educated engineers and scientists all over the world. Customers are manufacturers of who are standing in integrated circuits and chips, such as Intol. Most even in times of economic prosperity. What binds of its turnover is earned in Asia (66%) and the US the workforce in Veldhoven is the love for tech- (25%). According to an ASML spokesman: "ASML nology, even among staff employees. to follow Moore's law to provide produc An important characteristic of of ASMLS HRM strat- tion equipment of smaller, cheaper, more power egy is the use of a flexible workforce. Installed in ful and economical chips which are conditional 2002, between 20% and 40% of all workers of ASML for our customers' competitive advantage. ASML belong to this workforce since Dutch law employees e in providing possibilities for producing will affordable micro-clectronics which makes it pos- it for an indefinite period are from immediato dismissal. This flexible sible life workforce enables ASML to adjust the number of As such, ASML invasts much money in Research employees to its production capacity and market and Development. Huge investments in high-tech demand. Most of the the poople who belong to this knowledge and equipment demand a labor flexible workforce are deployed in the e manufacturing force that is able to make the highest returns pos process of lithographic equipment. Most of these ible on these investments. The domand for chips employees who are in research and and integrated circuits often shows high peaks of a finite period securing the Wilh worldwide economic developments. Also, and sharp downturns ofton continuity of R&D and retention of knowledge. But, how does ASML guarantee that flexible workforce estments in time-consuming education workers return to ASML when they are wanted? al plajees become productive in high-tech envi- ning of many people are necessary before According to Harry de Vos, vice-president, HR is the most t important condition for attracting highly valu- ments. However, what to do with these people able people as well as a flexible workforce to invest en periods of economic decline? And, how does in the attractiveness of ASML. SAMI make sure that the right numbers of highly Harry de Vos believes that the first point of Hadicated and trained people are aboard when attraction is that ASML is willing to invest money to market demand suddenly incroases? These are Sportant challenges for ASML. in the competencies of all the people working for ASML, including people of the floxible workforce, pertains protocted from able to improve the not in line CONTINUED 3 We strenger op non performance Managemenjen. Introduction education and training programs and develop. Employees are working on a daily vary between one and a half and three years and basis in multi-disciplinary tearns in which people during these programs, employees work under listen to each other, learn from each other and supervision on a real piece of equipment which exchange ideas and knowledge. In addition, peo- costs about fifty million Euros. ple of collaborating partners with ASML including Every two years, new technology is launched with universities, knowledge centers and customers an increasing complexity; hence, besides the intro can be involved in these teams which make the duction program, continuous education and training learning experiences even greater. Leadership for employees is necessary. Investments in educa is focused on nourishing these intense collabo- tion and training are extremcly high and therefore rations which provide an environment in which continuous working on state-of-the-art knowledge people can develop and grow. and skills is very attractive for flexible workers to Furthermore, ASML. offers a program entitled return to ASML when asked, but also for the workers "Caroer Tracks" with which employees can keep with a definite contract. According to Harry de Vos, track of their progress in line with agreements attraction of workers for the flexible workforce is not with their direct supervisors. ASML ensures as a an issue and turnover rates of staff are low. As an rule of thumb that at least 15 percent get pro- example, with the start of the economic crisis in 2009 moted and another 15 percent move to another 1,100 flex workers were discharged. More than 60% job with the same salary per annum. In sum, returned to ASML in 2012 when demand increased. this enteils that everyone moves to another job The second point of attraction is the pack within three years. Strategic HRM within ASML age of labor conditions including salaries and is an important condition for its success and bonuses. ASML is known for paying high salaries ASML's story entails an optimal use of HRM in and bonuses which are competitive in compari accomplishing its goals and strategy. However, son with other European high-tech companies. the question of whether there are any loose Also, ASML pays attention to the different age ends still remains. Harry de Vos states: "The categories and the possibilities these offer for ongoing process of knowledge Creation remains deployment in the workforce. In contrast to some our challenge in relation to the increasing com- other high toch organizations, they believe older plexity of technology." people are highly acclaimed because of their vast and robust knowledge. SOURCE: Schaap. J.& Groothangel, P./2013). Try de Vos, ASML: The most important point of attraction is the RTL (2014). Recordomast ASMI in vierde kwartaal high-tech environment in which people can learn ecran home/recordance-ml-vierde-kataol. Introduction Mars Incorporated illustrates the key role that human resource management (HRM) plays in determining the survival, cffectiveness, and competitiveness of Competitiveness U.S. businesses. Competitiveness refers to a company's ability to maintain and A company's ability to gain market share in its industry. Mars' human resource management practice maintain and gain mar kat share in its industry customer values. The value of a product or service is determined by its quality are helping support the company's business strategy and provide services the and how closely the product fits customer needs. Competitiveness is related to company effectiveness, which is deter mined by whether the company satisfies the needs of stakeholders (group affected by business practices). Important stakelolders include stockholders, who want a return on their investment; customers, want a high-quality