From boom to bust: the challenges of managing people in Thailand

Abstract

This article critically analyses the theory and practice of human resource management (HRM) in Thailand. Thailand emerged against all expectations as the most impressive of the 'tiger economies' with unprecedented growth rates of 8 per cent and above in the 1980s and early 1990s. This paper examines the human resource challenges associated with the industrial expansion during the period of transition from the boom era to the subsequent economic downturn that saw the collapse of the economy in 1997. Based on in-depth interviews with managers across eleven major industrial sectors, observations of office and factory practice, this paper attempts to characterize the diversity of approaches available and how they reflect the social-cultural and economic realities in Thailand today. Three generic HR models are identified: traditional , transitional and progressive . We assess the key definitive features of these models, identify some major thematic differences, and examine the relative importance of these models in the commitment to develop a competent and innovative workforce. Finally, we identify some possible avenues for further research, and set out a number of managerial and policy implications.