Best Practice HRM in Taiwan Essay Example | Topics and Well Written Essays - 2500 words

Best Practice HRM in Taiwan - Essay Example The aim of the paper is to the transition of human resource management in Taiwan, and to propose recommendations for MNCs that are facing human resource management shift. The best practice model is usually applied to reward system management. Pfeffer develops and describes the impact and importance of HR policies for effective performance and motivation. Following Pfeffer (1998a), "labor markets are far from perfectly efficient, it is nonetheless the case that some relationship exists between what a firm pays and the quality of the workforce it attracts" (p. 80). The aim of this model is to attract and retain the best employees able to create competitive advantage and meet the needs of organization. Motivation factors are the core of this theory. "If the organization enjoys increased profitability and performance as a result of the efforts of its people, then considerations of equity virtually demand that the entire workforce, not just some senior managers share in the returns through higher pay' (Pfeffer 1998a, p. 220). The "best practice" approach helps to achieve effectiveness of performance and specific goals including maintenance of high standards in order to deliver customer satisfaction. Unique talents among employees, including superior performance, productivity, flexibility, innovation, and the ability to deliver high levels of personal customer service are ways in which people provide a critical ingredient in developing an organization's competitive position (Chandler and Mcevoy 2000). People also provide the key to managing the pivotal interdependencies across functional activities and the important external relationships. It can be argued that one of the clear benefits arising from competitive advantage based on the effective management of people is that such an advantage is hard to imitate. An organization's HR strategies, policies and practices are a unique blend of processes, procedures, personalities, styles, capabilities and organizational culture. "Pfeffer (1994) maintains certain employment practices, including internal career ladders, extensive training, worker discretion, extensive training, generally contribute to high levels of organizational performance" (Lawler et al 2003, p. 4). Discussion Section The transition of human resource management in Taiwan is based on the need to adapt the economy and HR practices to changing economic and political environments and create strong workforce. Multinational corporations are often regarded as a potential source of convergence in international HRM in that they are expected to use their international perspective to promote the diffusion of 'best practice' HR techniques. One of the most important consequences of 'best practice' in joint ventures has been the introduction of a more systematic management approach in that the systems were defined in writing, standardized and operated on a regular basis (Chandler and Mcevoy 2000). "Taiwan is particularly noted for its small and medium-sized firms, both in the high-technology sector and in more traditional industries. One advantage of being small is that such organizations can be highly flexible and thus much more responsive to rapidly shifting and unpredictable economic conditions" (Lawler et al 2000, p. 5). A majority of MNCs have placed a