Gig Economy and HRM Class 21 10 31 Sang Hoon Han PhD Candidate CPA Department of Management and Human Resources Fisher College of Business The Ohio State University A few things to note Exam 2 score post completed Ignore the letter grade on Carmen Minor revision on Class 20 Lecture Slide 1 2 What is Gig Economy Gig is a slang for a live musical performance Originally used in the 1920s by jazz musicians short for the word engagement 1 3 What is Gig Economy The gig economy is the collection of markets that match providers to consumers on a task basis in support of on demand commerce It also refers to a growing segment of the labor market where employment is outside a traditional full time or part time model usually in a freelance capacity Donovan S A Bradley D H Shimabukuru J O 2016 What does the gig economy mean for workers 1 4 What is Gig Economy 1 5 Types of Gig Work Service based gigs Knowledge based gigs 1 6 1 7 How do pharmaceutical companies such as Pfizer use gig employees Data analyses Contract researchers or data analysts e g market data clinical data IT experts System launch revision Marketing Product promotion campaigns Consulting Business consulting 1 8 1 9 1 10 Types of Gig Workers 1 11 1 12 1 13 1 14 Test your knowledge True or false o All gig workers are low skill workers x o Some gig workers choose to be gig workers o o Most gig workers are forced to work in the gig economy o The rise of the gig economy is a phenomenon peculiar to out of necessity x the U S x https www weforum org agenda 2017 12 predictions for freelance work education 1 15 Class 21 Gig work and HRM In Class Activity 9 Have you seen someone working as a gig worker Or have you If yes please answer the following questions based on your observations or experience If no please answer the following questions based on your general observations of gig workers 1 16 Class 21 Gig work and HRM In Class Activity 9 Please briefly describe o how they or you were paid o how their or your performance were evaluated e g customer ratings completion rates or other metrics and o how they or you were trained to perform their or your jobs if there was any training 1 17 Development of Gig Economy What are the fundamental factors driving the emergence of the gig economy Economic reason great recession less need for fulltime workers increased labor cost Technological reason IT big data internet smartphone Social and cultural reason young generations preference for flexibility and autonomy 1 18 Development of Gig Economy 1 19 Development of Gig Economy https www weforum org agenda 2017 12 predictions for freelance work education 1 20 Test your knowledge Which factor contributed to the rise of the gig economy A Increase in full time job availability B Increase in worker desires for stable employment C Economic Recession leading to less need for full time workers D Expansion of in house vocational training programs E Decrease in labor costs for full time workers https www weforum org agenda 2017 12 predictions for freelance work education 1 21 Impact of Gig Work on HRM How do platform firms e g Uber Lyft manage gig workers How do other firms use gig workers through platform firms 1 22 Managing Gig Workers in Platform Firms Are gig workers employees of platform firms controversial 1 23 Uber s argument We are just a platform tech company User type 1 drivers User type 2 riders Who is responsible for issues such as accidents insurance crimes 1 24 Jan 2009 July 2015 1 25 Managing Gig Workers in Platform Firms Gig workers provide services to requesters rather than platform firms Gig workers are hired on immediate demand Gig workers can work for several platform s at the same time Gig workers have autonomy to choose whether and when they want to work 1 26 Managing Gig Workers in Platform Firms Employer Employee Relationship Platform Individual Relationship 1 27 Test your knowledge What is a major difference between gig workers and traditional employees A Gig workers are always full time B Gig workers have a direct employer employee C Gig workers operate under a platform individual relationship relationship D Gig workers receive extensive benefits E Gig workers do not have autonomy 1 28 Managing Gig Workers in Platform Firms How are workforce planning and job design in platform firms different from those in regular firms Who designs the content of the gig tasks Who matches the gig workers with service requesters Who decide how gig workers complete the tasks Issues on HR planning recruitment selection performance management etc 1 29 Managing Gig Workers in Platform Firms How are staffing and training in platform firms different from those in regular firms How to select qualified gig workers What training activities need to be provided 1 30 Pricing the self compensation not decided the employer it is unclear who the employer is anyway 1 31 Managing Gig Workers in Platform Firms How are performance appraisal and compensation management in platform firms different from those in regular firms How to evaluate performance How to compensate gig workers How to motivate them beyond money 1 32 o Customer rates performance o How about peers and supervisors who are traditional raters of employee performance Oftentimes there are no peers or supervisors for gig workers 1 33 1 34 1 35 Managing Gig Workers in Regular Firms 1 36 Impact of Gig Work on HRM Buy vs make strategy Oliver Williamson Nobel Prize in Economic Sciences 2009 Williamson 1979 Transaction cost economics Firms choose between buy and make strategies They select the choice that is less costly 1 37 Impact of Gig Work on HRM Gig work Extreme version of buy strategy The buy strategy focuses more on buy strategies such as Identifying already qualified individuals Result oriented performance evaluation Performance based or market based compensation Specific work standards The buy strategy focuses less on make strategies such as Training and career development Process oriented performance evaluation Position based compensation and extensive benefits Coordination and communication 1 38 Test your knowledge How do firms in the gig economy approach performance appraisal A Focus exclusively on process oriented evaluation B Rely on position based compensation C Implement result oriented performance evaluation D Minimize the importance of performance metrics E Prioritize employee tenure 1 39 Impact of Gig Work on HRM Knowledge based gig workers Service based gig workers Lepak Snell 1999 Applied
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