The Discrepancies in Pay Satisfaction between Employees of Taiwanese Enterprises in China and Employees in Taiwan－The Automobile Industry as an Example

• Main Authors: Wu Quan Chen, 吳坤成
• Other Authors: TSAO, KUO HSIUNG
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/02643040666713202105

碩士 === 中原大學 === 企業管理研究所 === 89 === This study explores differences in pay satisfaction due to cultural differences between employees of Taiwanese firms in China and employees in Taiwan. Given Taiwan’s impending entry into the World Trade Organization (WTO), Taiwanese firms must meet the challenge of the internationalization by strengthening pay systems in order to allow employees of different cultures to fully realize their productive potential. This study also examines the impact of employees’ personal characteristics, pay perceptions and pay-for-performance perceptions on pay satisfaction. Cultural characteristics were considered as an interference factor. Six hundred and twenty subjects from twenty-five automobile and automobile parts companies, 332 employees in Taiwan and 288 employees in China were surveyed. Major finding were: 1.There was no significant difference in the perceptions of employees in Taiwan and China regarding the relationship between performance and pay. However, there was an extremely large difference in perceptions of fairness regarding performance-related pay in practice. 2.Employees in Taiwan and China exhibited a high degree of difference in three aspects of pay-for-performance perceptions. 3.Employees in Taiwan and China showed big differences in their conceptions of power distance, uncertainty avoidance and masculinity / femininity. However, there was no significant difference with regard to individualism. 4.There was a high degree of difference in pay level satisfaction between employees in Taiwan and China. However, there was no significant difference in satisfaction levels regarding pay raises or pay structures and administration. 5.There was a positive correlation between age and satisfaction with pay levels of employees in Taiwan and China. 6.Employees in Taiwan and China showed a high degree of positive correlation among the three aspects of pay perception and the three aspects of pay satisfaction. 7.There was a significant positive correlation between attitudes regarding the accuracy of incentives and the level of satisfactions with pay raises, pay structures and administration. 8.There were clear relationships among the uncertainty avoidance and individualism with pay satisfaction in employees in Taiwan and China. 9.Cultural differences between employees in Taiwan and China did not interfere significantly with relationships among personal characteristics, pay perceptions, pay-for-performance perceptions and pay satisfaction. Firms must consider employees’ perceptions of fairness, their value systems and their attitudes towards linking performance with pay when designing multinational pay systems aimed at increasing employees’ pay satisfaction and allowing employees to fully realize their productive potential, thereby increasing the competitive advantage of the firms. Keyword: cultural characteristics, mainland, pay satisfaction, pay perceptions, pay-for-performance, perceptions