||More and more companies start to recognize the importance of human resource management. The role of HR is turning from supportive administration to strategic partnership. We want to explore how the industry type, ownership and region differences affected the HRM, and most of all, what causes these differences. |
We selected nearly 40 enterprises of private, state-owned and foreign ownerships in Mainland China & Taiwan, and most of them are leaders or first-tier in each industry. The semi-structured in-depth interview was conducted at the 22 major reference companies, while information of the other 15 minor reference companies was collected through telephone interview, company websites and so on. The mass survey data was then carefully categorized, coded and analyzed.
Study found that HRM in traditional industry was more systematic and professional which revealed an inclination to competency-oriented training and a close connection with business operations and strategies. Under the needs for efficiency and effectiveness, HRM in China state-owned and private enterprises were transforming towards professionalization and institutionalization in a fast pace; while the HRM role was changing towards service and integration with business in Taiwan as contrast. Foreign companies, however, have been making great effort in localization and adaptation in order to gain more market-share and, at the same time, maintaining highly standardized protocol policy in branches around the world.
As a developing country which keeps a high growth rate in economy, China constantly revises the laws to satisfy its requirement in labor use condition. This in turn leads to an unremittingly change and adaptation of HR policy and practices to cope with the New Labor Contract Law and its amendments. As a result of wealth redistribution in social security system, both employer and employees are imposed with heavy taxes in China. Yet these are rare situation in developed country like Taiwan. Another notable distinction is that companies in China draw support from executive search agencies more extensively in recruitment than do in Taiwan due to the bigger market, higher specialization and faster expansion in China.
Under the concept of globalization and flat world, knowledge of HRM in different circumstances could better serve the HR professionals and enterprises in field of human capital planning and management. This paper aims to provide the most valuable and practical research result on HRMs across the Strait.
Key Words: China & Taiwan, HRM, strategic HR, business partner, transformation, industry, ownership, labor law, policy