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S. Pogosian and I. Dzemyda (2012) noted that concept of innovations/innovative behavior is<br />

still relatively new in Lithuania. Main attention of the researchers was focused on<br />

innovations in public sector (Domarkas, Juknevičienė, 2010; Černikovaite , 2011:<br />

Giedraitytė, Raipa 2012; Raipa, Jurkšienė, 2013 and else) , but appearance multi topic study<br />

books (Ališauskas, Karpavičius, Šeputienė, 2005; Jakubavičius Jucevičius, Jucevičius,<br />

Kriaučionienė, 2003) and specialized articles, (Gečas, Jakubavičius, 2001) suggests, that<br />

studies in business innovation is gaining its momentum in Lithuania.<br />

Starting from 2008, in response to the pending legal reform, Lithuanian of labour law<br />

specialists intensified research of flexible work arrangements (Davulis, 2008;<br />

Dambrauskienė, 2008; Usonis, Bagdanskis, 2008; Usonis, Bagdanskis, 2011 and other). These<br />

works are used for more accurate understanding of legal reform and flexibility in<br />

employment relations. Articles and monographies (Eichhorst W., Tobsch, 2014; De<br />

Spiegelaere, Van Gyes, Van Hootegem, 2014) describing results of studies of actual labour<br />

relations in West European countries provides opportunities to predict outcomes of legal<br />

modernization in Lithuania<br />

Aim of this article is to research possible impact of introduction flexible legal regulation on<br />

innovative human resource management practices. The research tasks are the following:<br />

1. To ascertain different approaches to innovations in human resource management and<br />

work flexibility;<br />

2. To define European Commission aims and policies toward work relations and<br />

innowation;<br />

3. To examine DNLC to, single out and classify proposed measures of flexibility;<br />

4. To evaluate the impact of new legal framework to innovations in the area human<br />

resource management.<br />

Concepts of innovation in human resource management and work flexibility<br />

Innovations can be regarded as one of most important elements of successful business<br />

strategy. There is no single universally accepted definition of innovation. European<br />

Commission innovation described innovation change that speeds up and improves the way<br />

we conceive, develop, produce and access new products, industrial processes and services.<br />

Changes that create more jobs improve people's lives and build greener and better<br />

societies. (European Commission (2010) Turning Europe into a true Innovation Union.).<br />

Product innovations are new or improved goods or services. There are distinction between<br />

“new to the market” innovations and innovations that are ‘new to the firm’ (being adopted<br />

from other sources), that are (mainly) a measure of the diffusion of innovations Process<br />

innovations are new technological or organizational arrangements (Edquist, Hommen,<br />

2008). Non-technological, organizational innovations is often available even to small firms<br />

(10–50 employees) which are by far the largest group of business organizations, but they<br />

show the lowest degree of innovativeness even in generally innovative countries like<br />

Netherlands( Verspagen , 2008).<br />

Human resource management is defined as a system of operational functions such as<br />

staffing, selection, job design, training and (career) development, performance appraisal<br />

and compensation, dismissal. (Jorgensen, Becker, Matthews, 2009). Innovations in human<br />

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