Read the introductory case ASML: HR Boosts Technical Innovation (pp. 3-4, chapter 1) and discuss on how ASML has built its competitive advantage to cope with the recession by making HRM its strategic focus and using its HRM practices to successfully implement its business strategy.

20200219_140328 - Windows Photo Viewer File Print E-mail Burn Open - ENTER THE WORLD OF BUSINESS ASML: HR Boosts Technical Innovation Most of you who have a personal computer or a laptop are not aware that the integrated circuits and chips inside your computer are probably man- ufactured with equipment which is built by a rather unknown enterprise located in a tiny village called Veldhoven in the south of the Netherlands. This enterprise, ASML, is one of the world's leading pro. viders of lithography systems for the semiconduc- tor industry and manufactures complex machines that are critical to the production of integrated circuits or chips. ASML has over sixty service points all over the world. Customers are manufacturers of integrated circuits and chips, such as Intel. Most of its turnover is earned in Asia (66%) and the US (25%). According to an ASML spokesman: "ASML pertains to follow Moore's law to provide produc- tion equipment of smaller, cheaper, more power- ful and economical chips which are conditional for our customers' competitive advantage. ASML takes pride in providing possibilities for producing possibilities for producing affordable micro-electronics which makes it pos sible to improve the quality of life." As such, ASML invests much money in Research and Development. Huge investments in high-tech knowledge and equipment demand a labor force that is able to make the highest returns pos sible on these investments. The demand for chips and integrated circuits often shows high peaks of demand and sharp downturns often not in line with worldwide economic developments. Also, high investments in time-consuming education or training of many people are necessary before employees become productive in high-tech envi- ronments. However, what to do with these people in periods of economic decline? And, how does ASML make sure that the right numbers of highly educated and trained people are aboard when the market demand suddenly increases? These are important challenges for ASML. Hence, HR is an important condition for ASML's success and HRM is as strategically impor tant. ASML's workforce consists of 2500 employ. ees of which about 82% are highly educated with a bachelor's degree or higher. In the attrac- tion, selection and employment of employees, ASML is focusing on the most creative and bril liant thinkers in physics, mathematics, chemistry, mechatronics, optics, industrial manufacturing, software and ICT. ASML has an immense attrac- tion for highly educated engineers and scientists who are standing in a queue to work for ASML even in times of economic prosperity. What binds! the workforce in Veldhoven is the love for tech- nology, even among staff employees. An important characteristic of ASMLS HRM strat egy is the use of a flexible workforce. Installed in 2002, between 20% and 40% of all workers of ASML belong to this workforce since Dutch law employees with a labor contract for an indefinite period are protected from immediate dismissal. This flexible workforce enables ASML to adjust the number of employees to its production capacity and market demand. Most of the people who belong to this flexible workforce are deployed in the manufacturing process of lithographic equipment. Most of these employees who are in research and development have a contract for an indefinite period securing the continuity of R&D and retention of knowledge. But how does ASML guarantee that flexible workforce workers return to ASML when they are wanted? According to Harry de Vos, vice-president, HR is the most important condition for attracting highly valu- able people as well as a flexible workforce to invest in the attractiveness of ASML Harry de Vos believes that the first point of attraction is that ASML is willing to invest money in the competencies of all the people working for ASML, including people of the flexible workforc w * P * 2:30 PM 2/19/2020