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Strategic Human Resource Management for Traditional Manufacturing Industry in Taiwan

The traditional manufacturing industry in Taiwan in these few years have been severely challenged by the changing business environment. Under the public opinions that how the traditional industry gets rid of the fate of becoming the declining industry, there are still some companies achieving their success implicitly. To accompany with human resource practices, they create unique competitive advantages and values to overcome the threat by the economic depression and globalization competitiveness. A case study method is used in this thesis. Ten companies in traditional manufacturing industry with superior organizational performance and histories of transformation or related actions for business growth are targeted to explore how the traditional manufacturing industry strengthens or develops different human resource abilities according to different transformation strategies while facing different evolutional opportunities. In this thesis, internal fit of universalistic perspective and external fit of contingent perspective are used to investigate the internal mutual fitness among the human resource practices within the organization respectively. A set of core human resource practices which fit the characteristics of traditional manufacturing industry in Taiwan will be proposed as the core of integrated human resource practices. In addition, from the point of external fit, this thesis also explores the fitness of human resource practices and organizational strategies. To the companies with different transformation strategies, including changing strategic frame, investing resources, changing processes, and solidifying relationships, appropriate human resource practices should also be addressed to strengthen and develop the correspondent dynamic human resource abilities as needed. Therefore, the following propositions are proposed in terms of the inductive inference of interviewing with the ten cases and reviewing the related literature extensively.
Propositions 1: The core human resource practices for traditional manufacturing industry in Taiwan are: Focus on employees¡¦ steadiness, hard-working spirits, and employee disciplines while recruiting, high wages, extensive benefits, incentives with cash payment, behavior-oriented and results-oriented performance appraisal, on-the-job training and skill development, promotion from within, harmonious employer-employee relationship, and long-term job security. The more the organization implements those practices, the more the organization could attain competitive advantages and receive superior organizational performance.
Propositions 2: In accordance with different transformation and growth anchors, the human resource practices are also different. There are four anchors of transformation strategies including strategic frames, resources, processes, and relationships.
Proposition 3: In terms of reengineering strategic frames as the transformation strategy, the organization should emphasize innovative ability while implementing human resource practices. To reverse employees¡¦ value by hard-culture reengineering, the organization could receive knowledge and ability which is different from the one supporting the old strategic frames.
Proposition 4: In terms of investing resources as the transformation strategy, the organization should emphasize intensive ability while implementing human resource practices. To intensify and retain the original core techniques, the organization could upgrade the core techniques to the advanced level in order to expand the potential markets.
Proposition 5: In terms of changing processes as the transformation strategy, the organization should emphasize participative ability while implementing human resource practices. The organization could accentuate operation efficiency in order to attain the main purposes of reducing cost and improve quality.
Proposition 6: In terms of solidifying relationships as the transformation strategy, the organization should emphasize service ability while implementing human resource practices. The organization could draw on the strength of each to offset the weakness of the other among the stakeholders in order to develop competitive advantages.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0113104-002235
Date13 January 2004
CreatorsSun, Ling-Ping
ContributorsBih-Shiaw Jaw, Jin-Feng Uen, Liang-Chih Huang
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0113104-002235
Rightsunrestricted, Copyright information available at source archive

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