1. Guess Who Is Coming To Lunch: Factors Affecting the Promotion of Chinese Managers in China-Based Taiwanese Companies Ted Tsai ( 蔡錫濤 ) Professor, IHRD, NTNU Jade Lin ( 林碧玉 ) HR Specialist, MediaTek

2. Background of the Study Taiwanese companies are heavily investing in China. Developing host country managers is a trend for Taiwanese companies having operations in China. Performance appraisal and promotion are important issues of these companies in the process of developing host country managers

3. Taiwan’s FDI in China

4. Taiwan & China Same language Similar ethnicity Similar culture & life style? One side one country or be united?

5. Research Purposes Investigating the ways for developing Chinese managers in China-based Taiwanese companies (CBTC). Studying the policies for promoting Chinese managers in CBTC. Identifying the roles of Taiwanese managers in the process of developing Chinese managers. Identifying the factors that affecting the promotion of Chinese managers.

6. Research Design Method: A qualitative multi-case case study Instruments: An self developed interview questionnaire and the researchers Data Collection: Interviewing 10 Taiwanese managers and 12 Chinese managers of 11 CBTC in Shanghai and vicinity cities, China.

7. Data Analysis Recording the interview Transcribing the recorded data Reading the transcript carefully Highlighting the key sentences and concepts Coding & classification Comparing cases Presenting the results

8. Research Findings (I) China-based Taiwanese companies often inherit the essence of the parent company’s promotion systems and make improvements based on local circumstances. Internal promotion is always given a higher priority than external recruitment.

9. Research Findings (II) Policies of promotion often resemble that of the parent company in Taiwan. Actual frequency of promotion varies from company to company. Promotion in most companies takes place once or twice a year, but promotions in some companies occurred far more frequently because of the rapid development of the industry.

10. Research Findings (III) The roles Taiwanese managers played in the process of developing Chinese managers: Valuable helper Mentor Friend

11. Key Factors Affecting the Promotion of Chinese Managers Seven competence factors Six advantageous factors Eight obstacles Other important factors

12. Seven Competence Factors Attitude Motivation Personal traits Technical abilities General abilities Leadership abilities Interpersonal abilities

13. Six Advantageous Factors Policies of hiring HCNs as managers Stronger motivation Lower salary Easier to communicate with local governmental agencies Better understanding of local cultures, laws and regulations. Better communication with workers.

14. Eight Obstacles Less experience Bad communications with Taiwanese managers Narrow minded Thinking inside the box Irresponsible Localness Careless Poor in foreign language

15. Other Important Factors Demographical factors Province where someone comes from Sex Department worked Seniority Organizational factors Superior’s preference Person-organization fit Job performance.

16. Conclusions Global Integration vs. Local Responsiveness Efficiency vs. Flexibility Expatriate from Headquarters vs. Local Development

17. Thank you !