Workforce Flexibility and Organizational Performance of the Subcontractors in the Steel Industry--the Example of China Steel Co''s Cooperative Subcontracting System

• Main Authors: Mei-chi Yang, 楊美琪
• Other Authors: Jhy-jer Ko
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/39437534055317252255

碩士 === 國立中山大學 === 人力資源管理研究所 === 90 === As various forces rendering the business environment more dynamic, organizations nowadays must rapidly correspond to changes in order to survive and prosper. Observing the flexible use of manpower, Atkinson (1987) proposed the flexible firm model and attempted to draw clear demarcation among core, peripheral and external workforces. Such flexible deployment of different workforces are not uncommon in the cooperative subcontracting system in Taiwan’s steel industry (Chang, 2001). In his exploratory research, Chang (2001) discusses the deployment of different workforces in the cooperative subcontracting system, however, the discussion of the relationship between workforce flexibility and organizational performance is neglected. In order to provide a more complete understanding of workforce flexibility, it is important to conduct further research. Hence, this research intends to continue Chang’s research and collect more data to analyze the relationship between workforce flexibility and organizational performance among the China Steel Co.’s subcontractor. Among 183 questionnaires distributed, 118 were collected and 108 were considered effective. The return rate is 59.02%. Analyzing the data, the research discover the following findings: (1) Significant differences on functional flexibility were found among different organizational traits. It is found that subcontractors with more than 3 divisions rated themselves better on the Development of Multi-skill than subcontractors with 3 divisions. (2) Significant differences on numerical flexibility were found among different organizational traits. Subcontractors with capital over 80 million dollars outsource more than subcontractors with capital under 20 million dollars. Engineering subcontractors outsource more than labor subcontractors. (3) Significant differences on wage flexibility were found among different organizational traits. Subcontractors with 60-80% dependence on CSC have more flexible wage design than subcontractors with 20-40%. (4) Significant differences on subjective organizational performance were found among different organizational traits. Subcontractors with capital over 80 million dollars were rated higher on the operational performance than subcontractors with capital under 20 million dollars. Labor subcontractors and cleaning subcontractors were rated higher on production performance more than labor subcontractors. Significant difference on production performance was also found among subcontractor of different numbers of division. Significant difference on customer satisfaction was found among subcontractors of different degree of dependence on CSC and different sizes of capital. Labor and cleaning subcontractors rated higher than engineering subcontractors. (5) Significant differences on objective organizational performance were found concerning organizational traits. Subcontractor of 60-80% dependence on CSC have higher turnover rate than subcontractors of 0-20% dependence. (6) Functional flexibility has significant positive influence on organization performance. Horizontal and vertical transfer has significant positive influence on operation performance and production performance. The development of multi-skill has significant positive influence on production performance. (7) Numerical flexibility has significant influence on organization performance. The higher the proportion of temporary workers, the lower the operation performance. The higher the proportion of temporary workers, the higher the turnover rate. (8) Wage flexibility has significant influence on organizational performance. Flexible wage design has negative significant influence on operational performance and customer satisfaction. Variable wage ratio has positive significant influence on customer satisfaction. Thus far, it is suggested that the cooperative subcontractor can (1) continue enhance measures that promote functional flexibility, (2) consider the skill difference when promoting functional flexibility, (3) hire cooperative skilled engineers or technicians for core workers, (4) implement training programs to help core workers develop multi-skills, (5) analyze business trends and maintain suitable ratio of contingent workers, (6) pay attention to legal issues regarding contingent workers, (7) consider the use of temporary help service (THS) as the substitution of hiring temporary worker by the company itself, (8) carefully evaluate the influence of wage flexibility.