A Comparative Study of Human Resource Management Practices between Local and Multinational Companies in Taiwan’s Information Technology Industry

Abstract

Human resource management which is the “attraction selection retention development and use of human resources in order to achieve both individual and organizational objectives” (Cascio 1998 p2) is an important issue in the information technology (IT) industry in Taiwan as it is shifting from a manufacturing economy to a knowledge economy When both MNCs and domestic companies are competing in the IT product market in Taiwan a question rarely discussed is how the different types of company in this market compete to attract and retain talent This research aims to explore the differences on HRM practices implemented in Taiwan by MNCs’ subsidiaries and local firms focusing on the practical operations of HRM between these two groups Case studies were adopted in this research and HR professionals from both MNCs and local firms in the Taiwan IT industry were interviewed The main findings are as follows: first in terms of staffing it is observed that MNCs in Taiwan and local Taiwanese firms reveal different HR practices in their recruiting channels selection methods employee referral programs internal transfers and outsourcing of staff Second in terms of compensation MNCs and local firms have different preference towards their compensation portfolio and pay based on education level Third regarding performance management MNCs and local firms differ in their key performance index (KPI) settings performance feedback performance rating distribution and working flexibility Fourth MNCs and local firms were also observed to have different methods of training and talent management and different models of employment relations for example in the composition of employee welfare committees and in internal communication The findings were also summarized in a single table which it is hoped will provide useful information for HR professionals job seekers and senior managers/executives of MNCs who are seeking to enter the IT market in Taiwan

Date of Award	2014 Sept 10
Original language	English
Supervisor	Hui-Ching Sana Hsieh (Supervisor)