Human Resource Management Individual Research: Taiwan s E.SUN Securities Investment Trust as an Example

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1 Human Resource Management Individual Research: Taiwan s E.SUN Securities Investment Trust as an Example Shuo-Fang Liu Assistant Professor, National Cheng Kung University, Taiwan Chen-Yuan Kao Ph.D. Graduate Student, National Cheng Kung University, Taiwan Wen-Cheng Wang, Lecturer, Hwa Hsia Institute of Technology, Taiwan ABSTRACT Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. In this study, we focus on the E.SUN Securities Investment Trust Co., Ltd. to analyze human resource management. Discussion of six parts of E.SUN is analyzed in our study, namely: work system, recruiting, staffing, compensation, strategic planning, and employee retention. The human resource management of E.SUN could find many advantages that we could learn and research. And the disadvantage parts also give me a challenge to find it and solve it. As a result, E.SUN s human resource management could be the one of great SITC in Taiwan. HUMAN RESOURCE MANAGEMENT Human Resource Management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business (Armstrong, 2006). The terms Human Resource Management and Human Resources (HR) have largely replaced the term Personnel Management as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is Fit, i.e. a HRM approach seeks to ensure a fit between the management of an organization s employees, and the overall strategic direction of the company (Miller, 1989). Postmodernism plays an important part in Academic Theory and particularly in Critical Theory. Indeed Karen Legge in Human Resource Management: Rhetorics and Realities possesses the debate of whether HRM is a modernist project or a postmodern discourse (Legge, 2004). Critical Theory also questions whether HRM is the pursuit of Attitudinal Shaping (Wilkinson, 1998), particularly when considering empowerment, or perhaps more precisely pseudo-empowerment - as the critical perspective notes. Many critics note the move away from Man as Machine is often in many ways, more a Linguistic (discursive) move away than a real attempt to recognise the Human in Human Resource Management. E.SUN BACKGROUD E.SUN was established by Huang, Y. L. in It was just a bank at that time. The leader Huang had plenty experience and knowledge in financial theory, administration, and management. He introduced the slogan of Do the Best, and Ambition the Best. In 2001, E.SUN was established a subsidiary about asset management. The subsidiary is E.SUN Securities Investment Trust Co., Ltd. Now, E.SUN SITC is one of the famous asset management companies in

2 Taiwan, and it is also owned by famous financial scholar, commercial bank and some other profession financial institutes. E.SUN manages about NT 33 billion asset come from major in mutual fund. E.SUN s performance of mutual funds and asset management business are excellent by their professional investment regimentation and experienced team members. E.SUN SITC also got the National Quality Prize in 2001, too. That great history made E.SUN s regimentation that has to continue the quality service and keep the enterprise honor in every employee mind, even in every customers mind. Working in E.SUN was steady. The company offered every employees labor or worker s insurance, health insurance, and have prime rate on deposit (about 7-9% for a time deposit). The most important things are that E.SUN gives the new employee up to NT30000 of month, more than other SITC. E.SUN also gives new employee the education of asset management before in to the work, and it all for free. That could made new employee will work efficiently, and quickly. But all of employees enjoying are the year-end bonus, three part bonus (NT 5000, 5000, 10000), and 7 days leave of a year. There is less individual bonus because of E.SUN is a company that focus on team work. And team work also made E.SUN got a lot of prize (Table 1): Table 1: The Prize of E.SUN SITC (Since, 2001) Prize National Quality Prize National Quality Prize of individual (Huang, Y. L.) National Quality Prize The securities investment trust industry in Taiwan is highly competitive. There are more than 45 securities investment trust companies and 21 trust enterprises in Taiwan. The total mutual fund size in Taiwan is more than NT 1.9 trillion, the size of private fund is about NT 45 billion, the size of the discretionary investment services is over NT 510 billion. Many trust companies were merged and owned by the large financial holding groups (like Mega International Commercial Bank is combined by Chinese International Commercial Bank and Traffic Bank).Today, the independent securities investment trust companies are not only have to advance it quality and employee, but also have to made a difference CIS(Corporate Identity System) to compartmentalize other SITC (For example, E.SUN invites the NYY pitcher- Chang-Ming, Wang. who is come from Taiwan to be a advertisement model that move up E.SUN corporate image). E.SUN s WORK SYSTEM E.SUN is a big enterprise of securities investment trust company, so its management must to be more efficiently and actually. Like most of big enterprises, E.SUN has a complete organization chart that could make all of the part to work more accurate. E.SUN work system could divide into nine important parts: financial holding headquarter, inspect and audit office, asset owned and owed management committee, quality management committee, strategy development committee, human resource development committee, investment management committee, risk management committee, and information technology strategy committee. Down is the work system chart of E.SUN (Figure 1):

3 Figure 1: E.SUN s Work System RECRUITING AND STAFFING Recruiting and staffing is one of the important parts in enterprise process. It could advance team worker keep in an accredited quality, and make the constructive competition on all of the employees. So, if an enterprise wants to be successful, it must to focus on recruiting and staffing at the first. E.SUN expertise transacts the human recruiting once a year. Every year, they needs about 150 employees of the recruiting. And there are some conditions of the employees have to be conformed. For example, the basic conditions are You have to graduate from university or college and Could say or listens some Taiwanese. If the candidates want to be a professed worker (like the accountant or financial manager), they must get the license of the specialty that the job need (like the national technology license or International license). According to the data of history, the person who has more license and experience of big SITC will be easy to be recruited than other people. The same circumstance is happened in E.SUN, too. So, if you want to get more competitiveness to win all of the recruiting, the professional ability, license, and good experience are more important than high education degree. Besides, personality and attitude are the same important conditions. In general, the person who has a sunny and benevolent personality will better than the person who don t have those elements. The most popular employments of E.SUN are Management Associate (M.A.), financial specialist, consumer banking of manager, financial risk manager, phone sales, payment manager, industrial researcher, enterprise financial manager, and financial engineering worker (Table 2). However, the human resource source is base on the recruiting and staffing, so that could easy to know how is serious part on it. Table 2: The Popular employments of E.SUN employments content Management Associate It s an important job for SITC. Financial Specialist With popular of bank insurance, it becomes popular, too. Consumer Bankingof manager Include the loan on car, house, and cash card. Financial Risk Manager Give 344 hr education a year and 12 months of bounty. Phone Sales The most vacancy. Payment Manager To popularize the product, like cash card or credit card.

4 Industrial Researcher Enterprise Financial Manager Financial Engineering Worker Do the research on industry and enterprise. New integration employment. Sell the extended financial product. COMPENSATION Compensation is a good incentive of worker. If it could appease the demand of employees, that will make work more efficiency and propitious (about labor or worker s insurance, health insurance, and basic salary). E.SUN s basic salary is about NT30000 (graduate from university or college), and master is about NT It s all more than other securities investment trust company pay.besides, year-end bonus is always be interested by employees, too. Year-end bonus could make employee to get more pay in the end of year. E.SUN s year-end bonus is according to the enterprise benefit of a year, but it more than 2 months at least. The special compensation in E.SUN is the three part bonus and enterprise travel. The E.SUN s Three Part Bonus is about NT20000 ( ). Because of E.SUN is an enterprise that attach great importance to Team Work, so company hope employees could process the travel to be more consolidated and companionate. But E.SUN s has no independent individual bonus on compensation. Because E.SUN wants the employees could work together and be a team. So, all of bonus is own for a team. It is difference to other enterprise. E.SUN is a team work group, so it has a division of labor on minuteness. And all of the works are correlative and step by step. In E.SUN, managers just has to manage the department that in their responsible range. The work system will work step by step. If any one department has problem, the team for help system will be done, and give the support at the same time. The work and manage system could see the Figure 1. The performance management of E.SUN is established on group. So everyone is responsible to the enterprise. Therefore, maybe E.SUN has no hero to manage all of the things, but it has a team of cohesiveness and shoulder to shoulder. That could bring a big force to help E.SUN manages, and performance management will be more efficiently. Training is very important part to employees on development and advance. For example, a new employee always has no experience on the professional job. Process of the training will help new employee enter the job quickly and do more actually. E.SUN has a completed training for all of the employees. When new employee is coming, E.SUN will take him to study the lessons for 6 months. The Lesson s content includes many conditions. For example, enterprise will tell employee what is the process and system of financial industry. And then, employee will be taught of the professional knowledge and skill. Final, the employee has to practice work in the real environment, and piling up the experience by work. After 6 months, the employee will be a good worker on his job, and be a good teammate to other employees. E.SUN is not begrudgingly to provide a good chance for the new employees. Because E.SUN knows that a good employee is worth to investment. STRATEGIC PLANNING Strategic planning is the way that is difference to other enterprise and could compete with other enterprise. If the strategic planning is not very complete, it will make enterprise at an environment of bewilderment. Therefore, workforce adaptability policies and practices create uncertainty and threaten employment and compensation security of employees. So, we could know enterprise competitive advantages that construction through the effective deployment of human resources and the complete of strategic planning. According to the E.SUN s Human resource system, we could analysis the strategic planning to some thrusts: A. The Basic Compensation Must better than Other Competitor When research the basic compensation of all the SITC in Taiwan. You could find that E.SUN s compensation is the best. First, the salary of a month is about NT (graduate from university and college), more than the average (about NT26000). And then, the E.SUN s year-end bonus is according to the enterprise benefit of a year, could more than 6 months, 2 months at least (average is about 2 month). The advantage of the planning could recruit the good new employees more than E.SUN s competitor. That could assure E.SUN will get more and excellence human resource.

5 B. Team Spirit Work Union is Strength, Union is Power is not just an old saying, it could reality prove by E.SUN. E.SUN s team spirit work is famous in Taiwan of SITC. The team spirit has many advantages that like help each other, advance the relationship between employees, and learn the skill from each other teammate. But just focus on the Team Spirit still has some problems. For example, when happened a clamant or all of a sudden condition, the key man who has chief specialty will be useful than team work. So, E.SUN have to reinforce the part of manage. That will make the team work performance the best force and be better than before. C. Complete Training for Employee Most of the enterprises always make the new employees work immediately. But that is not a good way to do for the freshman. E.SUN provides the training for employees more than 6 months (average is about 3 months). Contrast to the other competitors, E.SUN s maybe pay a lot on those freshmen, but the markedly effect will be notice after the training finished. We could find that E.SUN s human resource strategic planning is doing a long investment. But there still have some risk of the long training for employee. Maybe the employee will leave or move to another SITC. So, E.SUN has to institute a complete system to prevent the condition like that. If the problem could reduce, the investment of training will be worth. D. Wang, Chang-Ming stream When ask to the people what do you think of E.SUN? Most of the people will say: Chang-Ming, Wang! E.SUN use Wang to be a model that is the metaphor of matronly, benevolent, professional (Chang-Ming, Wang is the one of great pitcher in MLB), and true-hearted. But the most influence of Wang is his good fame and popular. That is not only make the client want to use E.SUN s financial product, but also could make E.SUN s employees feel honorably and of one mind. EMPLOYEE RETENTION Employee retention is the way how to keep the excellent human resource in the self-enterprise. According to the human resource management of E.SUN, we could understand what part is the problem of employee retention. Maybe the team work is E.SUN s advantage, but it still attend some elements are detrimentally to employee retention. For example, team work is difficult to promote, because there is no individual behavior or deed. There is just has the honor for the all of teammates. So, if an employee who has many professional skill and knowledge, maybe he doesn t want to stay E.SUN for a long time. As a matter of fact, E.SUN just has to establish an extra system of promotion, which will make more human resource want to stay in E.SUN. CONCLUSION Human resource management plays a very important role in the enterprise. It affects many parts such like work efficiently, new employees recruiting, and management chart or method. And it also still has logic and knowledge could be discussed and changed. The human resource management of E.SUN could find many advantages that we could learn and research. And the disadvantage parts also give me a challenge to find it and solve it. As a result, E.SUN s human resource management could be the one of great SITC in Taiwan. REFERENCES Armstrong, Michael (2006), A Handbook of Human Resource Management Practice, 10th edition, London: Kogan Page. ISBN Legge, Karen (2004), Human Resource Management: Rhetorics and Realities, Anniversary Edition, Basingstoke: Palgrave Macmillan. ISBN Miller, P. (1989), Strategic human resource management: what it is and what it isn t, Personnel Management l (10): Wilkinson, A. (1988), Empowerment: theory and practice, Personnel Review 27 (1):