Management and Economic Development The Case of Taiwan

The ping-pong diplomacy and its aftermath discussion, coupled with the entry of communist China into the United Nations and the subsequent expulsion of Taiwan, will generate considerable political dialogue about the changing balance of power and the fate

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STUDIES IN SOCIAL LIFE XVII EDITOR:

GUNTHER BEYER

ADVISORY BOARD: P. J. BOUMAN, University of Groningen JEAN GOTTMAN, University of Paris WALTER HOFFMANN, University of Munster LIVIO LIVI (t), University of Rome

MANAGEMENT AND ECONOMIC DEVELOPMENT THE CASE OF TAIWAN

by

ANANT R. NEGANDHI, PH. D.

MARTINUS NDHOFF / THE HAGUE /1973

To our son, Amin

© 1973 by Martinus Nij/wfJ, The Hague, Netherlands All rights reserved, including the right to translate or to reproduce this book or parts thereof in any form ISBN-13: 978-90-247-5142-6 001: 10.1007/978-94-010-2482-2

e-ISBN-I3: 978-94-010-2482-2

T ABLE OF CONTENTS

PREFACE

IX

1.

ENTERPRISE MANAGEMENT AND ECONOMIC DEVELOPMENT

2.

LONG-RANGE PLANNING

18

3.

POLIcy-MAKING AND CONTROL MECHANISM

31

4.

ORGANIZATION

43

5.

THE WORKER AND HIS Boss: THE LEADERSHIP STYLES IN TAIWAN

65

6.

MANPOWER MANAGEMENT

77

7.

MANAGEMENT AND ENTERPRISE EFFECTIVENESS

98

8.

SUMMARY AND CONCLUSIONS: MANAGEMENT TRANSFER: FEASIBILITY AND USEFULNESS

APPENDIX A

1

120 143

Interview Guide ApPENDIX B

Questionnaire

168

LIST OF TABLES

1-1 Number of Employees in Companies Studied 1-2 2-1 2-2 2-3 2-4 3-1 3-2 3-3 3-4 4-1 4-2 4-3 4-4 4-5 4-6 4-7

(Interview Sample) Industrial Classification of Companies Studied (Interview Sample) Planning Orientations of the U.S. and Japanese Subsidiaries and Local Firms in Taiwan Participation and Information-Sharing in the Planning Process International Comparisons of Planning Orientations Impact of Environmental Variables on Long-Range Planning Practices in the Five Underdeveloped Countries (Interview Responses) Major and Functional Policy-Making in Companies in Taiwan Policy Areas of Concern (Questionnaire Survey) Standard Settings in the American and Japanese Subsidiaries and Local Firms in Taiwan Scope and Types of Controls in American and Japanese Subsidiaries and Local Firms Organization of Specific Departments Staff Positions and Service Departments Organizational Characteristics Decision-Making for Major and Functional Policies Decentralization Indices for the U.S. and Japanese Subsidiaries and Local Firms in Taiwan Decentralization Index for the U.S. Subsidiaries and Local Firms in India Executives' Views on Decentralization (Questionnaire Survey)

12 13

23 25 27 28 35 36 38 39 46 49 54 55 57 58 63

LIST OF TABLES

5-1 Leadership Styles at Three Managerial Levels in Taiwan 5-2 Leaders' Perceptions of Subordinates' Abilities 5-3 Managers' Attitudes on Leadership Role in American and Local Companies in Taiwan (Questionnaire Survey) 5-4 Leadership Styles: International Comparisons 6-1 Aspects of Manpower Management and Personnel Practices in the 15 U.S. Parent Companies 6-2 Manpower Policies: Formulation, Objectives, and DecisionMaking 6-3 Organization of Personnel Department 6-4 Personnel Practices in Taiwan 6-5 Types of Training Programs at Various Levels 6-6 Compensation at Various Levels 6-7 Human Resources in Taiwan (1964 Census) 6-8 New Employees Needed in Period Covered by Taiwan's Fourth Economic Development Plan (1965-