RECRUITMENT AND SELECTION AND HUMAN RESOURCE MANAGEMENT IN THE TAIWANESE CULTURAL CONTEXT by Yu-Ru, Hsu, MBA (Cardiff) A Thesis Submitted to the University of Plymouth in Partial Fulfilment for the Degree of DOCTOR OF PffiLOSOPHY Business School University of Plymouth March 1999 ABSTRACT Recruitment and Selection and Human Resource Management in the Taiwanese Cultural Context Yu-Ru, Hsu The focus of this research is upon human resource management and recruitment and selection practices in the Taiwanese cultural context. The samples were primarily focused upon manufacturing industry in Taiwan. The postal questionnaire was chosen for data collection. The 500 manufacturing companies randomly selected for this research were sent two questionnaire each. The questionnaire on HRM and recruitment and selection (HRMRS) was addressed to HR manager whereas the questionnaire on work-related values of national culture was addressed to non-managerial employee. The research results indicate that there is a general desire among HR professionals in manufacturing organizations that HRM polices are integrated with corporate strategies and that HRM should be involved in decision making at board level. Evidence was also obtained that some HRM decisions are shared between line management and HR specialists and that line managers had a particularly influential role in decisions regarding recruitment and selection, training and development, and workforce expansion/reduction. There was also some evidence supporting an assertion that certain recruitment and selection practices were culturally sensitive and this was supported by evidence of association between practice and country of ownership. ii The research also suggests that work-related values in Taiwan have changed over the last twenty years since Hofstede's original work and that in particular there had been change in the direction of Individualism and Masculinity. However, there was also evidence that traditional Chinese/Confucian values were still important to employees. These cultural findings have implications for the practice of HRM including appropriate recruitment and selection policies and practices. There was also some evidence that wok-related values vary with ownership pattern, company size, as well as with gender, age, and levels of educational attainment. This research contributes to the body of knowledge through the findings detailed above and these were used to develop an analytical framework of HRM in Taiwan which encompasses work-related values as part of both the internal and external organizational context and which might also form an appropriate base for comparative analysis. Ill TABLE OF CONTENTS PAGE TITLE PAGE .................................................................................... ABSTRACT....................................................................................... 11 TABLE OF CONTENTS. .. .. .. .. .. tv LIST OF FIGURES............ ................ .......... .... .... .............. ............... xv LIST OFT ABLES .. ········ .................................... ································ XVII ACKNOWLEDGEMENTS................................................................. xx DECLARATION................................................................................ XXI DEDICATION.................................................................................... XXII INTRODUCTION Theoretical Issues and Research Hypotheses ....................................... I. HRM and Recruitment and Selection .............................................. 2. Work-Related Values ofNational Culture........................................ 4 Methodology....................................................................................... 8 Results................................................................................................ 10 Response Rate and Reliability Analysis......................................... I 0 Characteristics of Sample ..... :....................................................... I 0 Findings.............................................................................................. 1I I. HRM and Recruitment and Selection............................................... 11 Responsibility for HRM Functions/Activities............................... 12 Recruitment and Selection Practices............................................. 13 Recruitment Methods................................................................... 13 Recruitment Methods by Ownership Pattern and Company Size... 14 Other Practices Associated with Recruitment................................ I 5 Selection Techniques.................................................................... 16 Selection Techniques by Ownership Pattern and Company Size.... I7 2. Work-Related Values ofNational Culture........................................ 19 Power Distance and Leadership Style........................................... I9 iv Uncertainty Avoidance and Security ofEmployment.................... 20 Individualism vs. Collectivism and Femininity vs. Masculinity....... 20 Traditional Chinese/Confucian Work-Related Values.................... 23 The Effects of Ownership Pattern, Company Size, Gender, Age, and Educational Level on Work-Related Values........................... 23 Different Perceptions ofthe Importance of Work-Related Values 25 Conclusions and Implications............................................................... 27 I. HRM and Recruitment and Selection............................................... 27 Strategic Approach to HRM....................................................... 27 Responsibilities of Line Management............................................ 29 Contribution ofPersonnei/HR managers to the Organizations....... 30 The Proactive and Strategic Role of HR managers........................ 30 Recruitment Practices................................................................... 31 Selection Practices........................................................................ 32 2. Work-Related Values ofNational Culture............. ......................... 34 Power Distance............................................................................ 34 Uncertainty Avoidance................................................................. 35 Individualism vs. Collectivism and Femininity vs. Masculinity....... 36 Chinese/Confucian Work-Related Values...................................... 39 3. Developing a Framework for Examining HRM in Organizations in Taiwan............................................................................................ 40 4. Limitations of the Study and Directions for Future Research............ 43 Structure of the Study......................................................................... 44 CHAPTER I THE CONTEXT OF TAIWAN 1.1. Background ofTaiwan.......... ... ........................ ....... ...... ... .... .. ... 48 1.2. Current Economic Development..................... ............................. 49 1.3. Employment Conditions.......................................... ..................... 52 1.4. Labour Law and Regulations........................................................ 54 1.5. Education and Training Systems.................... ............................ 56 1.6. Human Resource Management in Taiwan..................................... 59 V 1.7. The Influence ofConfucianism and Family-Based Culture............. 61 1.8. Summary........ ................................... ........................... .. ... 63 CHAPTER 2 THE CONCEPT OF HUMAN RESOURCE MANAGEMENT 2.0. Introduction ............................................................................... 64 2.1. Reasons for the Emergence of HRM.................. ........................... 64 2.2. Definitions ofHRM.............. ... ................................................... 68 2.2.1. Guest Definitions ofHRM.......................... ...... ................ 68 2.2.2. 'Soft' and 'Hard' 1-IRM...................................................... 70 2.2.3. The Territory ofHRM........................... ............................ 72 2.3. Philosophies and Characteristics ofHRM...................................... 73 2.3.1. Philosophies ofHRM.......................................................... 73 2.3.2. Characteristics ofHRM......... .............. ........... ................. .. 74 2.4. Is Human Resource Management Significantly Different from Personnel Management?............................................................... 76 2.5. HRM Activities and the Role of HR Managers/Specialists............. 80 2.6. Evaluation of the Theoretical and/or Analytical Models ofHRM and Strategic HRM. .. .. .. .. .. .. .. .. ....... .. .. 84 2.6.1. The Harvard Model............................................................ 84 2.6.2. Guest's Normative Model ofHRM..................................... 86 2.6.3. A European Models ofHRM.............................................. 89 2.6.4. The Matching Model.......................................................... 92 2.6.5. The Model of Strategic Change of Human Resource Management....................................................................... 94 2.6.6. Criticisms of These Models.. ............ ... ..... .......... .......... 96 2.7. Contradictions in HRM: A Critical Analysis.................................. 98 2. 7 .I. The Problem of Integration................................................. 98 2.7.2. The Problem oflntemal Inconsistencies.............................. 101 2.8.