Hsu 2000
Hsu 2000
Hsu 2000
To cite this article: Yu-Ru Hsu & Mike Leat (2000) A study of HRM
and recruitment and selection policies and practices in Taiwan, The
International Journal of Human Resource Management, 11:2, 413-435, DOI:
10.1080/095851900339936
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Int. J. of Human Resource Management 11:2 April 2000 413-435
Abstract In this paper, the authors present and discuss the ndings of a survey of
human resource management (HRM) and recruitment and selection policies and practices
in a sample of manufacturing industry in Taiwan. The results indicate that there is a
general desire among HR professionals in participant companies that HRM policies are
integrated with corporate strategy 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 in uential
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 recruitment and selection practices and
country of ownership.
Introduction
The globalization of product markets and enhanced multinational activity of business
organizations has encouraged a greater degree of interest in human resource
management (HRM) and its cultural relativism and transferability. In the academic
literature, many of the prominent theoretical or analytical models of HRM and strategic
HRM have been developed by either American or European researchers, e.g. the
Matching Model (Tichy et al., 1982), the Harvard model (Beer et al., 1984), Guest’s
model (1989a), Hendry and Pettigrew’s model (1990), the European model of HRM
(Brewster and Bournois, 1991), the Storey model (1992) and the 5-P model of strategic
HRM (Schuler, 1992). Many of these models re ect the particular cultural character-
istics of their country of origin and this raises questions about the applicability of these
Western-oriented models in a different cultural and contextual environment (in this case
Taiwan).
A number of recent researchers on HRM practice in Taiwan (Yeh, 1991; Chu, 1990;
He, 1993; Chin, 1993; Hsu, 1993; He and Yang, 1993; Tsai, 1995) seem to have
adopted Western models of HRM without critical evaluation of their suitability or
transferability and none of them has developed an analytical framework to facilitate our
understanding of the concept of HRM in the Taiwanese context. Therefore, in this
article, the authors seek to develop an appropriate framework for examining HRM in
Yu-Ru, Hsu, 6th oor, 16 Lin Nan Street, Kaohsiung, Taiwan, ROC (fax: 1 886–7–2519603) .
Mike Leat, Plymouth Business School, University of Plymouth, Drake Circus, Plymouth
PL4 8AA, UK (e-mail: [email protected]).
The International Journal of Human Resource Management
ISSN 0958-5192 print/ISSN 1466-4399 online © 2000 Taylor & Francis Ltd
414 The International Journal of Human Resource Management
organizations in Taiwan. The framework proposed in this paper may then be used as a
base for a more comprehensive study of HRM in Taiwan and for further international
and comparative studies.
A number of British academics (Krulis-Randa, 1990; Sisson, 1990; Armstrong, 1992)
have suggested that HRM has a number of distinctive characteristics and values or
philosophies underpinning the concept. For example, there is an assertion that HRM
represents a strategic approach because it tends to emphasize the importance of
integrating HRM policies and practices with corporate strategy (Guest, 1989a, 1989b),
and that the locus of responsibility for people management is devolved to line
management; the role of personnel specialists is to support and facilitate line
management in this task, not to control it (Armstrong, 1992). These two central features
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Research hypotheses
Based upon the issues referred to above, seven hypotheses (H1 to H7) were devised.
H1 There would be a devolution/sharing of responsibility for HRM functions/
activities to line management.
Hsu and Leat: Recruitment and selection policies in Taiwan 415
H2 Recruitment and selection processes would vary signi cantly with ownership
pattern.
H3 Recruitment and selection processes would vary signi cantly with company
size.
H4 Recruitment methods would vary signi cantly with ownership pattern.
H5 Recruitment methods would vary signi cantly with company size.
H6 Selection techniques would vary signi cantly with ownership pattern.
H7 Selection techniques would vary signi cantly with company size.
Methodology
The samples for this research focused on manufacturing industry in Taiwan due to its
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remarkable contributions to the economic growth over the last decades.1 The postal
questionnaire was chosen as the main vehicle for data collection. The questionnaires
concerning HRM and recruitment and selection (HRMRS) were sent to personnel/HR
managers in 500 manufacturing companies randomly selected from the Taiwan Trade
Yellow Pages. The content of the questionnaire was partially adapted from the ‘Price
Waterhouse Cran eld Survey’ questionnaire designed by Brewster and Hegewisch
(1994). The main reasons for adapting Brewster et al.’s questionnaires are that they are
the leading European authorities who specialize in the eld of human resource
management and that their questionnaire on HRM incorporates a range of HRM issues,
for example, recruitment and selection policies and practices, which are relevant to this
research, and thus their questionnaire is very helpful in this respect.
The research upon which the article is based was conducted between July 1996 and
April 1998. The questionnaire was initially designed in English and, in order to
facilitate the understanding of Taiwanese respondents, this English version was
translated into Mandarin Chinese with the assistance of a group of Taiwanese HR
specialists, who are also the ISO (International Standardized Organization) assessors at
the Bureau of Commodity Quarantine and Inspection, the branch of Kaohsiung,
Taiwan. These HR specialists were requested to check the linguistic and content
validity of the English and Chinese versions. They all agreed that the question items in
the HRMRS questionnaire were relevant to this research and that the question items
would elicit answers that could provide the necessary data for hypothesis testing. To
increase the response rate of this research, a follow-up letter was sent to the companies
which did not respond to the initial mailing. Appropriate statistical techniques such as
one-way analysis of variance (ANOVA) and Duncan test were employed to test the
research hypotheses.
Response rate
Of the 500 questionnaires, 156 usable responses were received after the initial mailing.
An additional twenty-four usable responses were received after the follow-up
procedures. The total of usable response was 180; and the overall response rate for the
study was 36 per cent, which could be considered as reasonable since the response rate
appears to meet the criteria established by Black and Champion (1976) and Moser and
Kalton (1985).
Characteristics of sample
Respondents were asked to identify the size and ownership of the company which they
worked for. Company size was categorized into three main groups: small, medium-
416 The International Journal of Human Resource Management
sized and large businesses, according to the number of employees. Ownership pattern
was also classi ed according to two sets of variables: (1) Taiwanese-owned, Japanese-
owned and Western-owned and (2) Taiwanese family-owned, Taiwanese non family-
owned and foreign-owned companies. The data shows, that 65 per cent of the com-
panies in which respondents were employed were small and medium sized. One hundred
and forty (77.8 per cent) of the companies were Taiwanese-owned, eighteen (10 per cent)
were Japanese-owned and twenty-two (12.2 per cent) were Western-owned companies.
Of these 140 Taiwanese-owned companies, ninety-one (65 per cent) were family-owned
and forty-nine (35 per cent) were non family-owned businesses. Of the ninety-one
Taiwanese family-owned companies, sixty-one (67 per cent) were small and medium-
scale. Family-owned businesses would appear to be one of the major organization forms
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in Taiwan and most of them in the sample are small to medium in size.
The respondents (HR managers/specialists) were 121 (67.2 per cent) male and fty-
nine (32.8 per cent) female. Most of the respondents were aged from 30 to 39 (40.6 per
cent) and 40 to 49 (34.4 per cent). Only 11.1 per cent and 13.9 per cent of the respondents
were aged from 20 to 29 and 50 to 59 respectively. Re ecting the emphasis on education
in Taiwan (Hsu, 1999), the majority of respondents at least held a diploma (junior
college) (27.2 per cent) or rst/masters degree (48.9 per cent). Only a small proportion of
respondents (23.9 per cent) had graduated from junior high or high school.
Totals and
Functions/activities (1) (2) (3) (4) (5) (6) percentages
covered in the survey (see Table 1, columns 2 and 4), more HR managers said decision
making was shared, in the sense of being the product of consultation between the HR
department and line management, than responded that it was solely with either HR or
line management. In the main, primary responsibility remains with the HR department
but there were some interesting differences. Line management appeared to have more
devolved responsibility in the areas of workforce expansion/reduction (workforce size),
recruitment and selection, and training and development. However, even in these areas,
the HR department retains primary responsibility in a minimum of 52.8 per cent of the
respondent companies (see columns 1 and 2). Line management appeared to have least
responsibility in the area of decisions concerning pay and bene ts, health and safety,
and industrial relations – in each of these areas, line managers had primary
responsibility in less than 23 per cent of the companies (see columns 3 and 4).
We cannot tell whether there have been changes over time and whether the degree of
shared decision making and consultation in these areas is greater or less than it was. To
some extent, these responses may give an indication of line-management preferences as
well as HR managers’ preferences for involvement in these HRM functions/activities.
These responses may also re ect differences in the locus of responsibility for individual
and collective or company-wide issues and those areas in which it is felt that decision
making may be most appropriately decentralized. Certainly one might expect line
managers to be more concerned in decisions relating to staf ng, the size of the
workforce working for them and training and development issues relating to that
workforce.
make the job offer to applicants. This may be consistent with the moderately high
Power Distance Index scores in Taiwan (Hsu, 1999).
Among the stages in the recruitment and selection processes, recruitment is the only
item that appears to be varied with rm size (see Table 2b). Although an F test or
analysis of variance can tell you that there is a signi cant difference between the means
of the three groups of rm size with respect to ‘recruitment’, it does not tell you where
the differences lie. Hence, a Duncan multiple comparison test was conducted to
determine which rm size differs signi cantly from which other. The results showed
that the means of large rms (group 3) appear to differ from the means of small (group
1) and medium-sized (group 2) rms. This means that large rms tend to consider
‘recruitment’ to be more important than do small and medium-sized rms. Except for
recruitment, the rest of the stages and activities in the recruitment and selection
Mean
Recruitment and selection processes N 5 180 SD
Recruitment methods
The research results showed that a range of recruitment methods shown in Table 3a
have all been used to varying degrees by the responding rms in Taiwan for attracting
candidates at the managerial, professional and entry levels. When it comes to
managerial and professional recruitment, the responding rms in Taiwan appear to use
‘promotion-from-within ’, ‘transfers’, ‘advertisement in the media’, ‘job rotations’, and
‘direct applications’ more frequently. Other methods and potential sources, such as
‘employee referrals’, ‘colleges/universities’, ‘private employment agencies’, ‘public
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Table 3b Recruitment methods that varied with ovnership pattern – one way analysis of
variance
Managerial level
Promotion-from-within 3.86 4.06 3.64 1.46 0.24 0
Transfers 3.53 3.72 3.19 2.34 0.10 0
Job rotations 3.16 3.11 2.77 1.49 0.23 0
Employee referrals 2.67 2.11 2.36 2.87 0.06 2–1
Colleges or universities 2.31 2.06 1.64 3.52 0.03* 3–1
Private employment agencies 2.06 2.44 2.45 2.43 0.09 0
Public employment agencies 2.77 2.33 2.05 0.59 0.56 0
Recruitment consultants 1.96 1.78 3.05 11.63 0.00** 2–3, 1–3
Executive search consultants 1.79 1.50 2.95 13.52 0.00** 2–3, 1–3
Direct applications 3.11 2.83 2.73 1.214 0.30 0
Advertisement in the media 3.49 3.56 3.18 0.67 0.51 0
Professional/technical
Promotion-from-within 3.64 3.83 3.55 0.80 0.45 0
Transfers 3.30 3.50 3.18 0.77 0.46 0
Job rotations 3.19 3.17 2.77 2.22 0.11 3–1
Employee referrals 2.74 2.61 2.68 0.18 0.84 0
Colleges or universities 2.79 3.06 2.50 1.49 0.23 0
Private employment agencies 2.14 2.56 2.36 1.77 0.17 0
Public employment agencies 2.24 2.61 2.41 1.30 0.27 0
Recruitment consultants 1.89 1.67 2.77 9.42 0.00** 2–3, 1–3
Executive search consultants 1.66 1.44 2.55 12.24 0.00** 2–3, 1–3
Direct applications 3.13 2.83 3.27 0.77 0.46 0
Advertisement in the media 3.71 4.00 3.55 0.82 0.44
Entry level
Promotion-from-within 3.06 2.89 2.95 0.25 0.78 0
Transfers 3.12 3.11 3.09 0.01 0.99 0
Job rotations 3.10 2.78 2.82 1.44 0.24 0
Employee referrals 2.99 3.28 3.27 1.44 0.24 0
Colleges or universities 3.16 3.83 3.36 3.81 0.02* 1–2
Private employment agencies 2.12 2.22 2.18 0.10 0.91 0
Public employment agencies 2.37 2.61 2.68 1.39 0.25 0
Recruitment consultants 1.84 1.44 2.00 1.55 0.22 0
Executive search consultants 1.64 1.33 1.68 0.10 0.37 0
Direct applications 3.34 3.39 3.59 0.44 0.64 0
Advertisement in the media 4.06 4.39 3.86 1.45 0.24 0
Notes
* represents signi cance level p , 0.05; ** represents signi cance level p , 0.01.
Hsu and Leat: Recruitment and selection policies in Taiwan 421
These results may be indicative of support for the culturally relativist arguments that
recruitment practices are culturally sensitive across national boundaries and that the
results are consistent with the ndings of Easterby-Smith et al. (1995) and Lawler et al.
(1995). Based on the particular types of recruitment method used by the Japanese-
owned and Western-owned companies, it could be inferred that these foreign
Table 3c Recruitment methods that varied with company size – one way analysis of
variance
Managerial level
Promotion-from-within 3.66 3.87 4.06 4.55 0.01** 1–3
Transfers 3.27 3.48 3.81 7.46 0.00** 1–3, 2–3
Job rotations 2.79 3.11 3.48 8.73 0.00** 1–3, 2–3
Employee referrals 2.55 2.63 2.57 0.08 0.92 0
Colleges or universities 2.35 2.35 1.92 2.95 0.06 3–1
Private employment agencies 2.23 2.20 2.03 0.72 0.49 0
Public employment agencies 2.18 2.39 2.24 0.63 0.53 0
Recruitment consultants 2.21 1.93 2.03 1.01 0.37 0
Executive search consultants 1.92 1.70 2.03 1.24 0.29 0
Direct applications 3.01 3.30 2.86 1.85 0.16 0
Advertisement in the media 3.52 3.52 3.35 0.40 0.67 0
Professional/technical
Promotion-from-within 3.44 3.70 3.84 5.44 0.01** 1–3
Transfers 3.10 3.24 3.59 6.64 0.00** 1–3, 2–3
Job rotations 2.87 3.11 3.46 8.12 0.00** 1–3, 2–3
Employee referrals 2.51 2.87 2.86 3.19 0.04* 1–3
Colleges or universities 2.65 2.87 2.86 0.95 0.39 0
Private employment agencies 2.24 2.28 2.11 0.46 0.63 0
Public employment agencies 2.11 2.43 2.40 2.00 0.14 0
Recruitment consultants 1.94 1.83 2.11 1.16 0.37 0
Executive search consultants 1.76 1.59 1.84 1.13 0.32 0
Direct applications 2.96 3.17 3.25 1.22 0.30 0
Advertisement in the media 3.62 3.67 3.87 0.90 0.41 0
Entry level
Promotion-from-within 2.83 3.26 3.10 2.22 0.11 0
Transfers 3.00 3.15 3.22 0.92 0.40 0
Job rotations 2.87 3.28 3.03 2.42 0.09 1–2
Employee referrals 2.85 2.93 3.37 5.71 0.00** 1–3, 2–3
Colleges or universities 3.01 3.24 3.54 4.78 0.01** 1–3
Private employment agencies 2.17 2.26 2.02 0.79 0.46 0
Public employment agencies 2.21 2.57 2.49 1.85 0.16 0
Recruitment consultants 1.89 1.85 1.71 0.49 0.61 0
Executive search consultants 1.62 1.65 1.59 0.07 0.93 0
Direct applications 3.07 3.80 3.41 6.06 0.00** 1–2
Advertisement in the media 3.90 4.09 4.25 2.19 0.11 1–3
Notes
*p represents signi cance level p , 0.05; ** represents signi cance level p , 0.01.
422 The International Journal of Human Resource Management
subsidiaries in Taiwan tend to adopt Perlmutter’s (1969) ethnocentric approach to
management, particularly with regard to recruitment practices (these are re ective of
home-country practices).
In addition to ownership pattern, recruitment methods also vary with company size.
The results showed that ten of the thirty-three items vary signi cantly with company
size (p, 0.05 and p, 0.01), thus the ndings support the H5 (see Table 3c). According
to the results, medium-sized rms tend to use ‘direct applications’ more frequently than
do small rms for entry-level recruitment. Large companies tend to use ‘transfers’, ‘job
rotations’, and ‘employee referrals’ more frequently than do small and medium-sized
companies for managerial, professional and entry-level posts (see the signi cant levels
and Duncan test in Table 3c). As compared with small rms, ‘promotion-from-within ’,
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the internal recruitment method, is also used more often by large rms for lling
vacancies at managerial and professional levels. This may be a re ection of the
respective size of internal labour markets and the fact that a greater variety of
recruitment methods are used by larger organizations.
Selection techniques
As with the recruitment methods, a range of selection techniques, identi ed in Table 4a,
have also been used to varying degrees by the responding rms in Taiwan. It appears
that ‘application forms’, ‘one-to-one interviews’, ‘skill or knowledge tests’, and ‘panel
interviews’ are the dominant selection techniques that the responding rms used at all
levels (managerial, professional and entry) though the latter two are used less frequently
at entry level. Other techniques, such as ‘medical examinations’, ‘aptitude tests’ and
‘references’, are seldom used by the responding rms. ‘Psychometric tests’ and
‘assessment centres’ seem to be used least at all levels and this may be a re ection of
the relative newness of these techniques, or it may be that these are approaches that do
not t comfortably in a Chinese/Confucian-based culture.
Hsu and Leat: Recruitment and selection policies in Taiwan 423
Table 4a Selection techniques
Professional level
Application forms 4.27 4.22 4.55 0.98 0.38
Aptitude tests 2.58 2.50 2.82 0.41 0.66
Psychometric tests 2.28 2.44 2.36 0.19 0.82
Skill or knowledge tests 3.71 3.83 3.50 0.43 0.65
One-to-one interview 4.04 4.17 4.36 1.00 0.37
Panel interview 2.99 2.61 3.45 2.30 0.10
Assessment centres 2.19 2.06 1.73 1.65 0.16
References 2.41 2.22 2.14 0.94 0.39
Medical examinations 2.83 2.89 3.45 1.86 0.16
Entry level
Application forms 4.11 3.83 4.41 1.36 0.26
Aptitude tests 2.38 2.22 2.45 0.18 0.84
Psychometric tests 2.14 2.39 2.05 0.47 0.63
Skill or knowledge tests 3.09 2.83 3.09 0.33 0.72
One-to-one interview 3.97 4.17 4.41 1.86 0.16
Panel interview 2.72 2.33 3.14 1.97 0.14
Assessment centres 2.01 1.56 1.55 3.00 0.05
References 2.29 1.89 1.91 2.11 0.12
Medical examinations 2.90 2.83 3.59 2.20 0.11
cent) was indicated by 58.9 per cent of HR managers altogether (see Table 5). This
situation suggests a considerably greater role for line management in the nal selection
decisions than was indicated for recruitment and selection as a whole (28.9 per cent, see
Table 1, columns 3 and 4). This may imply that HR specialists are more responsible for
recruiting/attracting candidates and early screening processes, but that, when it comes
down to the decisions about who to appoint, line managers are very much involved and
have a dominant role.
Promotion criteria
Among the promotion criteria, ‘technical competence’ (mean 5 4.27), ‘leadership’
(mean 5 4.19) and ‘past performance’ (mean 5 4.08) tend to be considered by HR
Hsu and Leat: Recruitment and selection policies in Taiwan 425
Table 4c Selection techniques that varied with company size – one way analysis of
variance
Small firms Medium Large firms
Mean (1) Mean (2) Mean (3) F F
Selection techniques N 5 71 N 5 46 N 5 63 ratio prob. Duncan
Managerial level
Application forms 3.79 4.09 4.24 2.41 0.09 1–3
Aptitude tests 2.07 2.48 2.84 7.09 0.00** 1–3
Psychometric tests 1.92 2.33 2.52 4.80 0.01** 1–3
Skill or knowledge tests 3.17 3.39 3.48 1.04 0.36 0
One-to-one interview 4.04 4.26 4.33 1.29 0.28 0
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Professional/technical
Application forms 4.23 4.13 4.51 2.86 0.06 2–3
Aptitude tests 2.20 2.65 3.02 7.83 0.00** 1–2, 1–3
Psychometric tests 1.96 2.43 2.60 5.87 0.00** 1–2, 1–3
Skill or knowledge tests 3.37 3.85 3.95 4.86 0.01** 1–2, 1–3
One-to-one interview 4.17 3.91 4.13 0.91 0.41 0
Panel interview 2.73 3.02 3.32 3.69 0.03* 1–3
Assessment centres 2.03 1.98 2.32 1.61 0.20 0
References 2.32 2.26 2.46 0.63 0.54 0
Medical examinations 2.73 2.87 3.14 1.42 0.24 0
Entry level
Application forms 4.08 4.09 4.19 0.18 0.83 0
Aptitude tests 2.00 2.39 2.78 6.94 0.00** 1–3
Psychometric tests 1.87 2.22 2.43 4.03 0.02* 1–3
Skill or knowledge tests 2.83 3.24 3.21 2.05 0.13 0
One-to-one interview 4.04 3.89 4.16 0.89 0.41 0
Panel interview 2.39 2.80 3.06 4.79 0.01** 1–3
Assessment centres 1.77 1.87 2.10 1.56 0.21 0
References 2.14 2.22 2.25 0.20 0.82 0
Medical examinations 2.72 2.87 3.35 3.28 0.04* 1–3
Notes
*p represents signi cance level p , 0.05; ** represents signi cance level p , 0.01.
niques did not. However, the Japanese-owned companies’ more frequent hiring of
graduates directly from ‘universities/colleges’ and Western-owned companies’ greater
use of ‘recruitment consultants’, ‘executive search consults’, ‘psychometric tests’ and
‘assessment centres’ suggest that recruitment and selection practices may be culturally
sensitive. Therefore, the research ndings provide some support for the culturally
relativist view of HRM, particularly in the area of recruitment and selection. In addition
to ownership pattern, company size also has signi cant effects upon some of the
recruitment methods and selection techniques used. It could be anticipated that, as the
company expands or grows bigger, the greater the variety of recruitment methods and
selection techniques the company is likely to use.
Implications
The results of the present survey showed that HR managers of the responding rms in
Taiwan generally felt that it is important to have HR managers on the board
participating in the development of corporate strategy and that it is important to
integrate HRM policy fully with corporate strategy. It has been suggested that, at the
conceptual or theoretical level, HRM can be seen as a strategic approach, because it
focuses on the importance of ‘strategic integration (or t)’, where HR polices and
practices are closely linked to the strategic objectives of the rms (external integration/
t) and are coherent and consistent among themselves (internal integration/ t) (Guest,
1989a; Brewster and Bournois, 1991; Storey, 1992; Armstrong, 1992; Legge, 1989,
1995).
According to Lengnick-Hall and Lengnick-Hall (1988), the integration of HRM with
business strategy has four advantages: (1) it provides a broader range of solutions for
solving complex organizational problems; (2) it ensures that human, nancial and
technological resources are given consideration in setting goals and assessing
implementation capabilities; (3) organizations explicitly consider the individuals who
comprise them and who implement polices; and (4) it ensures that human resource
considerations contribute to, rather than are subordinate to, strategic decisions. In
response to Lengnick-Hall and Lengnick-Hall’s last point, Legge (1995) also makes a
similar comment that HRM policies should not be passively integrated with business
strategy, in the sense of owing from it, but should be seen as an integral part of
strategy, in the sense that they underlie and facilitate the pursuit of a desired
strategy.
This nding, however, seems to stand in opposition to the view generally held by a
group of researchers (Devanna et al., 1982, 1984; Ackermann, 1986; Miller, 1987) that
Hsu and Leat: Recruitment and selection policies in Taiwan 427
HRM should in some sense ‘follow’ corporate or business strategy. For example, as
Devenna et al. note, ‘human resource management has been largely missing from the
general strategic management process. . .the critical managerial task is to align the
formal structure and the HR systems so that they drive the strategic objectives of the
organization’ (1982: 47). Purcell and Ahlstrand (1994) also argue that HRM policies are
not developed and implemented independently of corporate strategy. Rather, they
constitute ‘third-order’ decisions that follow from decisions on strategy ( rst-order) and
structure (second-order), and should be closely linked to them. This step implies that
HRM is the dependent variable and the corporate strategy the independent variable in
this relationship. The underlying assumption of this view is that HRM in some sense
becomes strategic only when it closely follows the corporate strategy.
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However, in the context of the present ndings and as far as ‘strategic integration’ is
concerned, it would appear that HR managers of the responding rms in Taiwan would
prefer or desire a tight t between HRM policy and corporate strategy, although this
research is not able to produce empirical evidence on the extent to which strategic
integration taken place.
The research results showed that around 73 per cent of the responding rms in Taiwan
have a personnel/HR management department/manager to deal with personnel func-
tions. However, only 33 per cent of the responding rms have a written HRM policy,
with 59 per cent of companies claiming to have an unwritten HRM policy or to have no
HRM policy at all. This nding implies a considerable degree of scope and opportunity
for personnel/HR managers to develop a strategic dimension to their role and to
emphasize this by the formulation of written HR policies and practices and to do so in
the context of their rms’ overall organizational objectives and business plans.
428 The International Journal of Human Resource Management
In some cases, for example, in smaller rms, there may not be much of a need for
formalized and detailed HRM policies due to the simple nature of tasks and limited
organizational functions. But in large companies where organizational structure and
activities are more complex, it may be more important to establish formal and explicit
HRM policies and practices, so that they can be communicated to employees at all
levels and guide them in the achievement of desired organizational and HR
outcomes.
As the research evidence has shown, HR managers of the responding rms felt that it
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Recruitment practices
The research results showed that internal recruitment methods such as ‘promotion-
from-within’, ‘transfers’ and ‘job rotations’ are commonly used by the responding rms
in Taiwan. The implication for practice is that the good use of the internal recruitment
methods may not only motivate current Taiwanese employees to perform better and
increase their commitment towards the organization, but may also improve their job
security through upward or lateral career opportunities (potentially desired HRM
outcomes). Using internal personnel sources effectively may also allow management to
observe and assess the abilities of employees accurately given the accrued knowledge
gathered over the employment relationship (Sparrow and Hiltrop, 1994).
Although the ndings showed that ‘recruitment consultants’ and ‘executive search
consultants’ (the external recruitment methods) have not yet been commonly adopted in
Taiwan, a small number of the survey rms (including local, Japanese-owned and
Western-owned) are turning to such rms to look for potential candidates with
specialist knowledge, technical or managerial skills for the most senior posts. As an HR
manager/specialist, it may be important to bear in mind that using a ‘search rm’ to
recruit a senior executive or a manager with rare technical or managerial skills should
be considered to be as important as planning the career development of a company’s
existing high-potential managers and should be handled with the same careful planning
and attention to detail. While the ‘search rm’ is assisting with recruitment, the HR
manager may need to retain responsibility and accountability for the overall success of
the service. This requirement means that he or she should be able to act as the in-
company project manager monitoring and guiding the work of the consultant at every
stage of the assignment. The combination of a well-connected and professional search
consultant working closely with an involved and fully accountable company HR
manager may minimize the risk of failure and achieve the desired results (Adshead,
1990).
Hsu and Leat: Recruitment and selection policies in Taiwan 429
Selection practices
Among the selection techniques, the research evidence showed that ‘application forms’,
‘knowledge or skill tests’ and ‘one-to-one and panel interviews’ appear to be used most
frequently by the survey rms in Taiwan. ‘Psychometric tests’ and ‘assessment centres’
seem to be used least. This nding may arise because such Western-oriented selection
instruments are still new to local Taiwanese rms and hence may not be used as widely
in Taiwan as in the USA and/or in Europe. It should be noted that, although the use of
a psychological or psychometric test may have a positive effect on organizational
effectiveness (e.g. reduce employee turnover rates), this technique can be quite costly
if the organization (e.g. small rm) does not have trained and quali ed staff and
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requires the help of professional psychologists from outside the rm to administer and
interpret the test results.
Personnel/HR managers should recognize that the types of selection technique they
utilize to select the right employees for the jobs are critical to their rms’ success. The
misuse of any kind of instrument may be costly to the organization and may also be
demoralizing to the employee who may nd himself or herself in the wrong job and
consequently de-motivating to the rest of the workforce (undesired HRM outcomes).
Further, when making the nal hiring or selection decisions, HR managers/specialists in
Taiwan should look for potential candidates whose quali cations, characteristics and
work-related values and attitudes most closely conform to the requirements of the open
positions and who can t well with the organization’s needs and culture, and can
effectively carry out required tasks and collaborate well with other colleagues.
On the whole, HR managers/specialists need to ensure that the type of recruitment
and selection practices they adopt is coherent and consistent with their rms’ business
strategies and with other associated functions of HRM such as HR planning, training
and development, pay and bene ts, etc. In other words, recruitment and selection need
to be considered as an integrated process rather than a marginal, ad hoc activity. Since
recruitment and selection are the rst stages of a dialogue between applicants and the
organization that form the employment relationship, HR managers/specialists in Taiwan
may need to realize the importance of the formation of expectations during the
recruitment and selection processes. If they fail to do so, this may result in the loss of
high-quality applicants and set the initial level of the employment relationship at such
a low level as to make the achievement of potentially desired HRM outcomes (e.g.
increasing employee performance and commitment, etc.) most dif cult (Gold, 1994).
Conclusions
The ndings and implications above enable the study to develop an appropriate
framework for examining HRM in organizations in Taiwan. As is shown in Figure 1,
this framework has a number of signi cant features, which are highlighted in the
following paragraphs.
The rst feature is that this framework is partially based on empirical evidence; and
most of the models of HRM and strategic HRM (e.g. the Harvard model, matching
model, Guest’s model and Hendry and Pattigrew’s model, etc.) were not. The second
feature is that, at the macro-level outer context, Figure 1 takes into account the current
external environmental contexts of organizations in Taiwan. Examples of these external
contexts and in uences at a macro level include Taiwan’s recent economic achievement
430 The International Journal of Human Resource Management
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policies and practices and may also have some potentially important implications for
recruitment and selection practices. For example, employees’ emphasis on ‘security of
employment’, ‘job advancement’, ‘high earnings’, ‘challenging tasks’, ‘full use of skills
and abilities’ and ‘job recognition’ imply that the organizations’ focus on the internal
labour market and their effective use of ‘promotion-from-within ’, ‘transfers’ and ‘job
rotations’ (the in-group recruitment practices) and ‘performance’ and ‘competence’-
based promotion may be able to ful l the wishes and values of their current employees.
Moreover, given the ndings (Hsu, 1999) which emphasize the importance of Chinese/
Confucian work-related values such as harmony, industry, co-operation, perseverance,
etc., the implication may be that the traits, attributes and work-related values of
potential employees should be taken into consideration in selection/hiring decisions.
Although the Harvard model also includes employees as stakeholders, it does not seem
speci cally to take their work values and attitudes into consideration.
The fth notable feature of Figure 1 is that, in addition to the ‘pyramid of people’
form of organizational structure (given the combination of the moderately high scores
on the Power Distance and Uncertainty Avoidance dimensions in Taiwan) (Hsu, 1999),
the ‘family’ form is also common among organizations in Taiwan due to the profound
in uences of Confucian ideology. As the empirical evidence of this research has shown,
most of the responding rms are family-owned businesses and are small to medium in
size. Other previous studies (Silin, 1976; Redding and Wong, 1986; Whitley, 1990;
Hwang, 1990; Oh, 1991; Chen, 1995) also suggested that the authoritarian or paternalist
type of leadership style tends to be adopted most by the owners or managers of family
rms. It is in these smaller companies that there is a greater likelihood of absence of
formal rules and procedures and impersonal written communications due to the simple
nature of tasks or limited organizational functions. This form of organization may be
more consistent with Hofstede’s ‘family’ model (Hofstede, 1991).
As far as the organization is concerned and given the present ndings that emphasize
strategic integration, a range of HRM policies/activities outlined in Figure 1 are placed
closely with corporate strategy. These HRM policies/activities were identi ed on the
basis of the current ndings. Like the Harvard model, Guest’s model, the European
model and Hendry and Pettigrew’s model, Figure 1 also incorporates the assumption
that HRM policies/activities should be designed to achieve certain desired HR and
organizational outcomes. Except for ‘strategic integration’, the present study is not able
to specify what these desirable outcomes are because of the lack of empirical evidence.
However, this could be pursued in further research.
The last feature which is worth mentioning is that Figure 1 provides a dual-way
feedback loop to each and between the components: ‘« ’ indicates a continuously
interactive ow of communications, planning, adjustments and/or evaluations. This
432 The International Journal of Human Resource Management
dual-way feedback loop seems to be neglected in those models of HRM mentioned
earlier.
As is noted in the beginning of this paper, a number of relevant studies on HRM
practices among employing organizations in Taiwan have been conducted by a group of
researchers (Yeh, 1991; Chu, 1990; He, 1993; Chin, 1993; Hsu, 1993; He and Yang,
1993; Tsai, 1995). However, none of these researchers has actually developed an
analytical framework of HRM to facilitate our understanding of the concept of HRM in
the Taiwan context. They seem to adopt the Western models of HRM without critical
evaluation of their suitability or transferability. The framework in Figure 1 could form
a base for a more comprehensive study of HRM in Taiwan and for further comparative
analysis.
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The current study was centred on in-depth manufacturing industry analysis. Therefore,
the ndings related to HRM and recruitment and selection should not be generalized
outside the manufacturing sector covered in this study. However, future study of HRM
policies and practices could be extended to cross-industry (e.g. public vs private sectors
or manufacturing vs service sectors) and cross-national (e.g. Taiwan and USA, or
Taiwan and UK) comparisons.
In the present study, HR managers generally felt that having an HR specialist on the
board participating in the development of corporate strategy was important, as was the
integration of HRM policies and corporate strategy. Future research could develop more
speci c, complex and in-depth questions regarding whether those HR managers who do
have a place on the board are actually involved in the development of corporate strategy
from the outset, at a consultative or implementation stage, or not consulted at all and
whether the strategic integration is actually obtainable between those corporate
strategies and those relating to HRM issues. This may require longitudinal research
through the combinations of case study personal interview, questionnaire survey, and
document study.
Moreover, the areas concerning the relationships between HRM polices and practices
and desired HR and organizational outcomes, although not examined in this study, may
well be worth further exploration.
Notes
1 Manufacturing industry in Taiwan has played a signi cant role in Taiwan’s economic
development. In particular, petrochemicals, computers, electronic components and consumer
goods, and pharmaceuticals have received special attention and support from the Taiwanese
government. The ratio of heavy chemical and technology-intensive industries in the total
production value of all manufacturing industries has increasingly steadily, rising from 56.54 per
cent to 73.26 per cent, a growth of 29.6 percentage points for the period of 1982 to 1995
(Current Status of Economic Development, Ministry of Economic Affairs, Taiwan, 1995; Hsu,
1999).
2 The concept of Confucian dynamism was developed by Hofstede and Bond in the 1980s, an
attempt to overcome the potential Western bias in the Hofstede’s original IBM surveys and
analysis. This dimension was composed of values taken from the teachings of Confucius.
Hofstede (1991, 1993) indicates that the values on the long-term orientation pole (e.g.
perseverance, ordering relationships by status and observing this order, thrift, and having a
sense of shame) are more oriented towards the future and they are more dynamic, whereas the
Hsu and Leat: Recruitment and selection policies in Taiwan 433
values on the short-term orientation pole (e.g. personal steadiness and stability, protecting your
‘face’, respect for tradition, and reciprocation of greetings, favours and gifts) are more oriented
towards the past and present and they are more static.
3 Hofstede’s (1991) original ndings indicated that the culture of Taiwan exhibited relatively
high ratings on collectivism and moderately high ratings on Femininity. However, the results of
the empirical study conducted by Hsu (1999) showed that Taiwanese people, in some respects,
have become more Individualistic and Masculine in their orientations than was the case two
decades ago when compared to Hofstede’s analysis. This may be an indication of cultural
change or change of work-related values of Taiwanese people within the society and
subsequently may have some in uences or impose constraints upon an organization ’s HRM-
related policies and practices, such as promotion criteria.
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