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An Exploratory Research on the Impact of the Labor Pension Act on Manpower Flexibility and Organizational Performance

The Labor Pension Act¡]LPA¡^was passed by the Taiwan Legislative Yuan on June 11, 2004 and the implementation date is July 1, 2005. The significant difference between the existing Taiwan Labor Standards Law (TLSL) and LPA is that LPA is a portable defined contribution (DC) type of scheme. Employers shall contribute on a monthly basis to the Labor Pension Fund by contributing maximum 6% of monthly wage into the individual pension fund accounts. The raised staffing cost is foreseeable and was expected to turn into a heavy burden to employers.
To decrease the cost of staffing and the turnover rate, this study focuses on the reactions that enterprises would plan to take and response to. However, the new LPA was not carried out officially during the study period, we conclude the exploratory findings through the questionnaire to understand what type of flexibility practice that employers¡¦ plan to take and what kind of impact on organizational performance will be made.
We selected the sample companies from manufacturing, services and financial industries from¡m2003 CommonWealth Magazine Top 1600 Enterprises Ranking¡n. In all, 137 of 630 HR managers to whom we sent surveys returned the questionnaires, this yielding a response rate of 21.75%. The findings are summarized as follows:
1.The larger scale of organization, the more tendencies toward numerical flexibility and financial flexibility practice.
2.Organizations that plan to exercise numerical flexibility practices e.g., layoff, severance, downsizing etc, expect the negative effects on organizational performance.
3.Organizations that plan to exercise functional flexibility expect the positive effects on organizational performance. Organizations plan to adopt job-rotations expect the enhancement of organizational performance.
4.Organizations that plan to exercise financial flexibility do not expect the noticeable positive effects on organizational performance. Among financial flexibility practices, organizations that plan to adjust current fringe benefits expect the negative effect on organizational performance.
5.Organizations that plan to execute the improved HRM exercises expect the improvement of the organizational performance.
6.Organizations that plan to exercise the numerical and financial flexibility expect to lead to tense relationships between workers and employers in the future.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0725105-210747
Date25 July 2005
CreatorsPeng, Hsiao-chen
ContributorsJyh-Jer Ko, Ying-Jung Yeh, Jin-Feng Uen, Shyh-Jer Chen
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-0725105-210747
Rightscampus_withheld, Copyright information available at source archive

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