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Interviews of 40 Taiwanese factory managers in China reveal problems with local workers, unanticipated because of the assumed shared language and culture. Problems include poor job commitment or work discipline, high turnover rates, disinterest in learning new skills or job advancement, pilferage, intergroup hostilities and poor training and education. Unable to import worker management methods and systems they had been using in Taiwan, the managers have adopted production‐based remuneration, fines, employee education, and attention to employee welfare and satisfaction.

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