ABSTRACT
This chapter examines human resource management (HRM) in the newly developed economies of Hong Kong, Macau, and Taiwan, which have been undergoing major changes in their industrial and institutional environments in recent years. It provides the cultural, economic, and industrial structure of those three economies. The presence of foreign multinational corporations (MNCs) has exerted influence on Hong Kong's institutional structure through contract law and commercial conventions brought from other countries and accepted locally. HR practices in the earlier commercial development of the three regions were strongly influenced by Chinese cultural values such as recruiting criteria based more on propinquity, loyalty, and the reliance on referrals from personal connections. Recruitment and selection management play a key role in attracting the necessary talent in the services and small-and medium-enterprise (SME) sectors, which are so important in Hong Kong and Macau. Institutional permissiveness refers to loose and informal regulatory institutions in the labor market that help to maintain harmonious industrial relations.
