dc.description.abstract | Since Global Economic was getting improved by 2009, many Chinese enterprises were facing labor shortage because of full load capacity. At same time, most of provinces have to be increased their minimum wages. As an earliest, Jiangsu province increased their basic wage by 13% from February 1st, 2010. Most of Taiwanese and other enterprises were facing a huge pressure of cost up and labor shortage. Labor shortage along the coast became more and more serious since the secondary/third class cities of China Middle-West development rapidly. And then, transforming of regional economy structure is obvious. This study is focusing on one of intensive industry for labor shortage handling, analysis and more study.
By labor transfer theoretical mode analysis and verification, from labor supply and demand point of view, population structure of Chinese had been changed by one child policy. And caused of the Labor Shortage is decreasing labor supply year by year from year 2009. On the other hand, by deep analysis of Chinese Labor Market shortage problem, we can understand labor supply/demand status on Chinese Labor Market. And then, according to Labor Floating theoretical mode and Dual Economical Theoretical Mode are clear to understand the consequences on competitive, operation mode and how to cope it. It is as a single case study for future policy initiation and decision making.
By this single case study, purposes are:
1. Development and discussion future of Chinese labor market
2. Sampled company how to cope the dilemma of labor shortage by Chinese Labor transfer flow
3. How to compare the operation mode as a Taiwanese company in China
Three aspects to analysis caused of labor shortage by investment policy, man power rationalization and recruitment improvement.
1. Investment Policy Change: to merge two operation sites as one, and to estimate low gross product transfer to inner China or surrounding region in order to distribute the risk of investment and reduce labor cost
2. Man Power Rationalization: man power structure has to be reviewed for efficiency improvement by procedure or flow simplification with less man power to get a good performance. To build up a concept as good payment, telnet people and good effectiveness
3. Recruitment Improvement: part of employee recruited as oursouring. Labor cost can be control in a certain level, and recruitment and employment can be done more flexible.
To cop the labor shortage as a case study for C company, suggestions propose as below:
1. Investment Policy Change: to merge two operation sites as one. To accelerate transfer plan with better Milestone schedule with dedicated PIC(Personal in charge) in order to achieve the merge process. To form a team for have detail study as location selection, and any other comparison study as part of operation transfer to inner China or surrounding region in order to distribute the risk of investment and reduce labor cost
2. Man power Rationalization Policy: first, to increase productivity with automation improvement. To re-organize equipment and instrument by specification of product in a period time. Post process change to semi-automatic or fully-automatic process. Third, sub-contract deployment for low value added process. It is for concentration on own strengths with more resources of company, and outsourcing normal process that C company is not good at competitive product.
3. Recruitment Policy Strategy Improvement: to establish apprenticeship training program with some technology institutes, either from overseas or inside as part of management training program.
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