Reconciling traditional Chinese management with high‐tech Taiwan

The traditional view of management culture among the overseas Chinese is that of an autocratic, paternalistic and centralised organisation with low levels of trust of ‘outside’ professional managers and employees. By contrast, the organisational culture associated with successful innovation and/or high technology is that of a decentralised organisation with high levels of employee autonomy. Existing research indicates that the overseas Chinese have become successful by sticking to the business sectors compatible with their preferred management culture, and that this holds true for Taiwan. What, then, explains the Taiwanese success in high‐technology ventures? This article offers initial evidence that management culture in Taiwan is adapting in order to enable industrial development in new areas. In‐depth interviews with 20 Taiwanese companies indicated that the change is being led by the high‐technology businesses. However, while many of these business culture changes are in a direction towards the organisational culture associated with high‐technology companies, it is also clear that a strong Chinese influence remains.     

Decision support systems for human resource training and development

Human resource training and development methods and techniques have different qualitative characteristics that require a multicriteria and multiscenario framework for their assessment. This study incorporates the AHP to assess the nine most important human resource training and development methods and techniques, under five criteria and six scenarios. The methods considered are ‘on-the-job training’, ‘mentorship’, ‘apprenticeship’, ‘vestibule training/simulators’, ‘web-based learning’, ‘instructor-led classroom training’, ‘programmed self-instruction’, ‘case studies/role playing’ and ‘systematic job rotations and transfers’. ‘Vestibule training/simulators’ and ‘mentorship’ have the average best scores, and they should be among the first priorities especially when efficiency, the motivation of employees and minimization of the duration of training time are the most important factors. ‘Web-based learning’ is ideal for minimizing training costs or when ease of application is the first priority. ‘On-the-job training’ is a very good alternative when the cost of training should be reduced while the motivation of employees should be increased.     

Responses to work intensification: does generation matter?

Work intensification can be an organisational tool to increase the productivity of an existing workforce. We investigate employee reactions to three levels of sustained extensive work intensification (long work hours over two consecutive time periods) of the two most prevalent generational groups in the labour market: Generation X and Baby Boomers. Boomers have been characterised as ‘workaholics’ who ‘live to work’, while Gen Xers are ‘slackers’ who ‘work to live’. We investigate, using a nationally representative sample of employees, whether these generational differences in work attitudes impact employee reactions (measured by employee reports of job satisfaction and work–life balance) to sustained extensive work intensification. The results show that perceptions of job satisfaction and work–life balance are reduced by sustained extensive work intensification but the differences between the two generations are minimal, suggesting that organisations do not need to tailor their employment practices to fit the work values of different generations.     

Examining the ‘black box’ of human resource management in MNEs in China: exploring country of origin effects

We examine the impact of HPWS on the attitudes and retention of Chinese employees in multinational enterprises (MNEs) operating in China. More specifically, we examine the extent to which the degree of HPWS and the impact of these practices differ according to the country of origin of the MNE. We surveyed a sample of 410 Chinese employees currently working in Western and Asian MNEs. The findings indicate significant ‘country of origin’ effects, where employees of Western and Asian MNEs perceive different levels of HPWS are in operation in their respective organisations. Employee trust, job satisfaction and affective commitment are all important factors in the retention of Chinese employees of MNEs, with high levels of commitment being the most significant factor. However, the relative impact of these factors on employee retention differs by country of origin of the MNE.     

Don't know,don't care: An exploration of evidence based knowledge and practice in human resource management

Over the past two decades the integrity (alignment of words and deeds) of the Human Resource Management (HRM) profession has been questioned by scholars who have identified a gap between the rhetoric of ‘people are our most important asset’ and the reality of ‘impersonal economic rationalism’. In a more recent, and as yet unconnected, stream of research there has been concern about a research-practice gap in HRM. This article draws on both streams of research to explain why HRM Does not implement evidence based practice. It focuses on research indicating that HRM practitioners are not incentivized to learn about evidence based practice and develops theory proposing that their satisfaction with the status quo reflects a value proposition based on utilitarian instrumentalism. Further to this, it is proposed that management's focus on the short-term drives and obfuscates current approaches. It concludes that neither academia nor HRM practitioners are incentivized to change current practice with negative consequences for employees, organizations, and HRM practitioners. Arguments are supported and illustrated with High Performance Work Practices and solutions are proposed to implement evidence based practice.     

An Eastern and SME version of expatriate management: an empirical study of small and medium enterprises in Taiwan

This study, different from previous ‘individual level’ research, explored ‘company-level’ expatriate training, expatriation policies and the perceived willingness on the part of expatriates to take on an enhanced role in organizational performance. Based on data from 254 Taiwanese SMEs with foreign investments, an Eastern and SME version of expatriate management is presented. The most significant predictors of expatriate premature return and company sales are the ‘number of expatriates’ and ‘ratio of expatriates with managerial positions’. Companies that have a greater percentage of expatriates with spousal accompaniment experience more premature return while insufficient training explains lower company sales. Insights regarding regional expatriate differences and methodological implications are also elaborated.     

Lessening the difference is more – the relationship between diversity management and the perceived organizational climate for gay men and lesbians

With a growing number of European companies following a variety of diversity management strategies, the number of companies including the ‘sexual orientation’ dimension in their diversity programs is increasing. Partially explained by the lack of research on that topic, most companies apply the risk-minimizing strategy of copying actions implemented by companies which have already done more in that field. In this context, this paper aims to provide more profound evidence for evaluating the interrelation between sexual orientation diversity management and the perceived organizational climate for gay and lesbian employees. Study 1 compares Deutsche Bank, Commerzbank and a German equivalent, showing that companies including ‘sexual orientation’ in their diversity programs can be associated with a more supportive organizational climate for gay men and lesbians. Applying a Heideggerian theoretical framework, Study 2 compares regression models based on a sample of 1308 gay men and lesbians working in Germany. It is shown that those organizational practices that lessen the difference between homosexuality and heterosexuality within the organization are more strongly related to positive psychological climates than those practices that accentuate the difference. Equalization of heterosexual and homosexual partnerships, internal thematization of homosexuality and gay marketing are associated with positive climate perceptions; LGBT networks and mentoring are not.     

Competence development on the shop floor and industrial upgrading: case studies of auto makers in China

Industrial upgrading in China is rapidly increasing the competence requirements for employees on the shop floor. The institutional environment in China, however, does not seem very supportive: the quality of vocational education is often low and Chinese labor law provides strong incentives for companies to use temporary labor. This paper examines the competence development practices for blue-collar workers in automobile companies in China. Against expectations, automobile companies in China do not pursue ‘low road’ strategies but have designed intensive internal training programs and long-term career paths for blue-collar workers. Different theoretical explanations for the competence development approaches are discussed: human capital theory, high-commitment work systems theory, production systems theories, industrial relations and institutionalist theories. The paper is based on qualitative case studies of German, Japanese and domestic automobile manufacturers in China.     

Convergence in human resource systems: A comparison of locally owned and MNC subsidiaries in Taiwan

This article investigates issues of convergence in human resource systems in Taiwan, with reference to the similarities and differences between locally owned companies and subsidiaries of multinational corporations (MNCs). Traditionally, management in Taiwanese companies has been largely influenced by Confucian values and is quite distinct from approaches common to MNCs. However, globalization has engendered significant competitive pressures, coupled with cultural and institutional change within Taiwan. This article provides a theoretical framework for understanding such changes and provides empirical evidence indicating that Taiwanese companies are acting very much like MNCs with regard to the adoption of flexible, highperformance work systems. © 2005 Wiley Periodicals, Inc.     

Preserving knowledge legacies: workforce aging,turnover and human resource issues in the US electric power industry

The aging of the workforce is believed to be a potential threat to productivity of companies both in the US and worldwide. High levels of turnover that may result from workforce aging could cause short-term as well as permanent loss of knowledge critical to firm operations and customer service. While there is a wealth of research regarding the causes of turnover, there is comparatively little research on the actual effects of turnover, particularly involuntary forms of turnover such as retirement. Focusing on the US electric power industry, whose employees have average ages and company tenures among the highest in the world, this paper explores the aging workforce issue both qualitatively and quantitatively. Results from an executive survey encompassing companies representing over 75 per cent of the industry's workers affirm that workforce aging is the electricity industry's dominant human resource (HR) concern but that it is interrelated with many other top HR issues, including skill shortages, leadership, and transition from an ‘entitlement-based’ to a ‘performance-based’ culture. Implications of prior literature on organizational learning, turnover and socio-technical systems theories are discussed, and propositions are offered as a framework for further research on the general effects of potential knowledge loss due to aging-related turnover.     

Influence of high performance work systems on employee subjective well-being and job burnout: empirical evidence from the Chinese healthcare sector

Over the last two decades, high performance work systems (HPWSs) research has been dominated by examining the effects of these systems on firm performance. Research on the impact of HPWSs on employees has been marginalised. This study examines the impact of HPWSs on two psychological outcomes for employees, namely, subjective well-being (SWB) and workplace burnout, by utilising data collected from 1488 physicians and nurses in 25 Chinese hospitals. It also examines the moderating effects of employees' organisational based self-esteem (OBSE), as an individual intervention and physician–nurse relationships, as an organisational intervention, on the relationship between HPWSs and employee outcomes. HPWS is found to increase employees' SWB and decrease burnout. Such well-being-enhancing and burnout-relieving effects are stronger when employees have high OBSE. The positive effect of HPWS on SWB is also stronger when there is a collaborative relationship among employees in an organisation. The major contribution of this study is to unpack the ‘black box’ of how HPWS influences employee well-being in the Chinese healthcare sector context.     

‘High potential’ programs: Let's hear it for ‘B’ players

Organizations implement ‘high potential’ (HiPo) programs to identify, develop and retain their most talented employees (also known as ‘A’ players). However, there is still not much known on how these programs affect other employees (i.e., ‘B’ players) who are not included. Drawing on Bowen and Ostroff's (2004) framework on the strength of HRM system and attribution theory, we theoretically examine the impact of HiPo programs on ‘B’ players’ attitudes and behaviours. Specifically, we propose that ‘B’ players use various information and contextual cues to make attributions about these programs. We also propose that trust moderates the relationship between various meta-features of HiPo programs and ‘B’ players' perceptions about these programs. Further, we examine the role of an employee's motivation profile (i.e., achievement motivation and power motivation) in forming his/her attributions about these programs, which then affects his/her commitment and organizational citizenship behaviours. Future research directions and practical implications are presented.     

High involvement work system,work–family conflict,and expatriate performance – examining Taiwanese expatriates in China

This study explores the effects of multinational companies (MNC) implementation of a high involvement work system (HIWS) for their expatriates on both expatriate work–family conflict (WFC) and their performance. We surveyed 174 Taiwanese expatriates stationed in China. Data were collected on: (1) perceived human resource management (HRM) practices concerning ‘high involvement work system’; (2) perceived work–family conflict; (3) job satisfaction; and (4) supervisor ratings of expatriate job performance. Structural modeling techniques helped us examine in one model the interdependent relationships among high involvement work system, work–family conflict, and expatriate performance in their host country. Our results show that a high involvement work system is positively related to expatriate satisfaction and performance. However, a high involvement work system is also positively related to expatriate work-family conflict, which in turn is negatively related to expatriate satisfaction and performance. Our findings remind managers that a high involvement work system may produce multiple effects on various dimensions of employee work life, and not all of these effects may be positive.     

Confucian Entrepreneurship: Towards a Genealogy of a Conceptual Tool

The concept of the ‘Confucian Entrepreneur’ is now used by many scholars to understand entrepreneurship in China and other East Asian countries. This paper traces the development of this concept from its roots in the writings of nineteenth-century Western authors to its use in modern management journals. We show that while this conceptual tool has been adapted over time, the claims associated with it have remained largely similar. Use of the term Confucian entrepreneur implies belief that Confucian ideas induce Chinese entrepreneurs to behave differently than their Western counterparts, a claim for which the empirical foundations are weak. We do not go so far as to say that those who research Chinese entrepreneurship should discard the concept of the Confucian entrepreneur simply because of its historical origins in colonialism. However, we do call on researchers to reflect on the historical origins of their conceptual tools. By historicising our theories of entrepreneurship, this paper should encourage greater scholarly reflexivity and thus the development of entrepreneurship and management theory with greater predictive power.     

Diffusing ‘best practice’ in Chinese multinationals: the motivation,facilitation and limitations

With increasing global integration, the diffusion of ‘best practice’ is a critical activity in MNCs, particularly for those from developing countries which have recently joined global markets. Recent research has suggested that ‘reverse diffusion’ is an important approach to the internationalization of management. However, there is little empirical evidence in support of this argument. This paper draws on in-depth case studies of the UK subsidiaries of Chinese MNCs to explore the nature and characteristics of diffusion activities. It confirms that ‘reverse diffusion’ played a positive part in the internationalization process of these companies, although the impact on the home firms is limited. It also found that new forms of management transfer are emerging in these Chinese MNCs. This suggests that the diffusion of ‘best practice’ in MNCs can be varied with different national and organizational characteristics.     

Interpretation of probability expressions by financial directors and auditors of UK companies

Probability expressions, such as ‘remote’, ‘possible’, ‘probable’ and ‘virtually certain’, have been used extensively in accounting. However, little is known about how these expressions are interpreted. It is important to understand how these expressions are interpreted by preparers of financial statements as significant inconsistencies will reduce the comparability between companies' financial statements. This paper reports the results of a survey of financial directors of large UK listed companies and UK auditors concerning the interpretation and the communication efficiency of thirty frequently used probability expressions. This paper fills two gaps in the literature. First, it surveys attitudes to probability expressions in the UK of two important groups of individuals involved in the financial reporting system and, second, it explicitly measures the ‘communication efficiency’ of these expressions. The results show that while many probability expressions were seen to have similar meaning and have a high degree of communication efficiency, several had low communication efficiency. Policy implications involve a reassessment of the use of probability expressions with low communication efficiency, and the adoption of well-understood probability expressions with high communication efficiency.     

Profiling the desirable psychological contract for different groups of employees: evidence from Greece

This study aimed to examine potential variations in employees' perceptions of the desirable psychological contract, based on gender, age, and educational level. A total of 1145 employees – 642 of whom were female – aged between 18 and 64, who had attended all educational levels, participated in the study. T-tests and analyses of variance suggest that there is no uniform view of the psychological contract content among different groups of employees. With the exception of involvement with decision-making affecting the organization, women tend to expect more from their employment relationship. As for age groups, the ‘new generation’ emphasizes balance in personal life, the ‘old generation’ is rather indifferent, while the ‘desert generation’ is the most demanding and attached to the ‘old psychological contract’. Finally, individuals with at least college education have relatively increased expectations, with the exception of co-worker support for personal problems and continuous training.     

Negative affectivity and workplace deviance: the moderating role of ethical climate

This study investigates (1) the relationship between employees’ trait of negative affectivity (NA) and workplace deviance and (2) the moderating role of ethical climate in the above relationship. Data was collected from 310 employees in 40 Taiwanese companies, and hierarchical linear modeling was used to test the hypotheses. Results show that NA was positively related to workplace deviance. In addition, the rules climate weakened the relationship between NA and workplace deviance, and both the instrumental climate and the caring climate strengthened the relationship between NA and workplace deviance. Managerial implications and future research directions are also discussed.     

Multinational corporations as institutional entrepreneurs: the dynamic interplay between automobile firms and the Turkish vocational education and training system

This article analyses the two-way relationship between multinational companies (MNCs) and Turkey's vocational education and training system through case studies of Japanese and German MNCs in the automotive industry. Drawing on semistructured interviews, it addresses the initiatives the MNCs have taken to guarantee skilled employees and their interaction with the Turkish vocational education and training system. The analysis shows how the MNCs have been ‘institutional entrepreneurs’ by introducing new practices. This was possible as the host environment has been open to change but also a requirement where strong industrial relations systems constituted an essential but missing home country institution.     

Work and pay in small Chinese clothing firms: a constrained negotiated order

Small clothing factories in China represent ideal conditions to find regimes characterised by market despotism. Yet studies of similar firms in other countries suggest that ‘negotiated paternalism’ is a better characterisation and that work relations have a large degree of cross‐national similarity. Using interview data from seven small case firms and 63 employees in 12 small clothing firms in Guangdong province, this article finds important parallels with other countries in terms of pay system and negotiated order. Workers could negotiate relatively high wages, albeit at the cost of very long hours. This situation reflected booming economic conditions, a non‐rationalised production system that left space for individual and informal collective bargaining, and close personal ties between workers and managers. Work relations in small firms are more nuanced than the sweatshop image allows, and extreme exploitation is more likely in Taylorised workplaces run by large corporations.