Abstract: With the emergence of Knowledge Economy and its penetration into every aspect of society, many industrial functions have been changing, including management and labor relations. In this paper, the author first presents a system view of management and labor relations under Knowledge Economy,and then based on it, elaborates on effect of Knowledge Economy on them, using the case of HP as demonstration. In the end, conclusion is made that new dynamic equilibration will develop, depending upon the dynamic power contrast of the above two subjects under dynamic changing circumstances of Knowledge Economy.

Key words: Knowledge Economy,management and labor relations

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