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AM Lecture 4

Management > Asian Management > Culture-organisational background > Laoban characteristics > Structure > Effectiveness of structure > Guanxiqiye > Management problems > Problems and solutions

 

Problems and solutions

Perceived problems, a summary:

  • Poor salary and benefits structure
  • Low employee loyalty
  • Low internal management efficiency
  • Lack of an auditing system

Implementation of a solution proceeds as follows:

  1. System establishment and education. Keeping workers in the loop was difficult, as they were not used to being expected to know what was going on. Education in general was not a common feature in Laoban, as often the manager had far more practical experience than an education. He would have typically begun as an employee and worked his way up.
  2. Organisational adjustment. Those who were not happy with the organisation were allowed to leave. Lots of staff left at this point.
  3. Transformation of the enterprise. The whole system was changed and production improved, leading to a return in employee numbers.

 

Implications for management

Internationalisation of Taiwanese firms

Superior strategies

Further superiority

 

 Copyright Heledd Straker 2006

Go placidly amid the noise and haste