Results Of Questionnaire

Resul ts of Qu est ion na ir e: Three ways of Recruitment process in Chinese companies: Guanxi, Human Resources and Corruption.

Descrip tion of questionnair e: The questionnaire was written on base of reviewed literature, what was limited in case of the research question, and my own creativity to find answers correlated to China. My travel to China helped me to form this questionnaire. Questionnaire was written in English, and then translated into Chinese. The Questionnaire was sent to 3881 Chinese enterprises by using special designed email with unique link for every addressee and 5 friends by using own Guanxi network what had construction as normal link what leads to webpage with survey. The questionnaire was built in SurveyMonkey.com webpage, what helps with distribution and collecting results. Finally, the questionnaire was formed based on following online survey pages:     

Survey Page 1: Introduction webpage with questions designed to describe respondent’s background Survey page 2: Guanxi ( 关系 ) - means relationship, title for the webpage had to explain shortly the meaning of Guanxi and introduced a short overview for respondent. Survey Page 3: Human Resources means recruitment and management employees, title allowed to explain content of page. Survey page 4: Corruption means corrupting process, short introduction of term corruption, corruption has many faces but process of corruption is constant. Thank you page to describe my appreciation for spending a time on survey. The project was designed to ask very sensitive questions in the end of the survey to make respondents comfortable with starting questions. The survey asks some critical questions to Chinese culture, what are not easy to reveal. The beginning with starting pages had to be introduced very gently to keep attention of respondent on all questions in survey.

Intr odu ctio n webpage with questions des cribe respondent’s background (O Page 1)

desi gned to nline S urv ey

The first part of the survey has started with question about background of respondents, who were taking apart in survey, these questions included: 1. Description of job, position at the company and age 2. Educational background 3. Type of the enterprise 7.

The first question of the online survey asks respondents about their position in organization: Main group of 20 respondents is from Human Resource department. Aim during the process of collecting email database was find addressee who are involved in recruitment process to provide the most valuable answers from competent people. The second largest group are general managers with number of 11 respondents. High positions such as HR director, Administrative director are occupied by respondents who are experienced and are over 35 years old. Average percent of respondent’s age is 32. Participants under 30 years old are 57 percent of all responses.

12.

Respondents were asked to verify the quality of responses received by checking their educational background. I was expecting a participation in survey people with higher education and qualifications attained. The best group would people involved in recruitment process such as Human Resources staff, these answerers can give great feedback what expected. Figures are not surprise and for about over than 90 percent are people with at least bachelor’s degree. One option that has not been ticked by anyone was “primary school”, and only 2 percent are respondents with high school educational background. I was very pleased with these results, that’s the prove that China is changing and is leading towards superpower based on talented and phenomenal cadres.

55% 60% 50% 40% 30% 20%

18% 8%

11% 7% 1%

10% 0%

1.



Wholly Foreign Representative P ublic limited Owned Office company Enterprise

P artnership (joint-stock company)

Limited liability company

J oint Venture

Type of enterprises in China and entrepreneurial positions of answerers

According to China Statistics Yearbook 2003, a Sector of State-owned enterprise is still the biggest in China with over 71 millions people employed in these business public units in 2002. Survey confirmed this thesis, and over 55 percent of respondents were employed in State-owned enterprises. However, significant change could be observe in sector foreign investment which includes 3 types of organizations what can be that can be established and registered in China by foreign investors. Respondents who represent foreign enterprises are playing more and more important role in Chinese economy and survey confirmed that 33 percent was representation of enterprises with foreign investment operating in China, what is significant change to compare period during 90s.

Gu anx i means relations Pa ge 2 )

hip ( Online S urvey

The second part of the online survey had goal to indentify Guanxi network and ask respondents about their experience with this subject. Questions were started with profile of Guanxi and their impact on business relationship in China, especially during recruitment process. These questions included: 1. Description of quality of Guanxi. 2. Type of Guanxi 3. Profits gained when used Guanxi. 6.

The first question of Guanxi part of the survey asks respondents about short description of their current Guanxi position. very good quite good Neither good nor bad Quite bad Very bad

7%

1%

10%

39% 43%

Quality of Guanxi network



3.

Respondent’s answers were quite surprising, 39 percent of respondents have not stable thoughts or confidence about their Guanxi, 43 percent have answered that their Guanxi is very good.10 percent have declared very good Guanxi network in contrast to 7% with quite bad Guanxi. During comparison these with very good Guanxi and very bad Guanxi, only one percent stated that they have a very bad Guanxi network. It’s well known that if your Guanxi network is better you can gain more profits with doing it, more friends more favours. If better Guanxi, the more complicated cases could be solved. Type of Guanxi.

1

47%

0%

20%

24%

40%

60%

16%

80%

13%

100%

120%

Friendship Kinship Relationship with authorities Relationship with other business organizations





This question was significant in case of research, respondents were asked about type of their Guanxi network. Answers were possible to anticipate, the most popular is Guanxi based on friendship. In China, there is specific network of friends, colleagues and classmates. In China, 24 percent of respondents could agree with this statement. The most valuable Guanxi network in China are relationship with authorities, It’s interesting results that 6 out of 13 respondents who declared relationship with authorities came from foreign investment such as WFOE and Representative Office, that’s prove how important role for foreign investors plays relationship with government officials. Profits gained by using this kind of network will be proved later in this survey.

1.

Profits achieved during Guanxi.

Profits achieved during Guanxi

0%



2%

21% 15%

34%

20%

100%

40%

60%

32%

80%

28%

2%

100%

Job

Promotion

Higher salary

Friend

Gain new customers

Keep existing customers

Family business

the knowledge

In this question, respondents were asked for profits and benefits what they could achieve when they have used Guanxi network. Recipients could mark more than one answer, and all of them ticked “Friend” as option of benefit from Guanxi what explains whole spirit of Guanxi based on relationship. More than 1/3 respondents got job and almost the same percent of people gained promotion when used Guanxi. This question is strictly related to the subject of recruitment process and shows how important network of relationship is Guanxi in China. Job and promotion is material process, it’s exist in reality and lead to the visible effects such as employment and better standard of life.

Respondents who have relationship with authorities and benefits from them

Keep existing customers, 33%

Job, 42%

Job Gain new customers, 50%

Promotion, 33%

Promotion Higher salary Friend Gain new customers Keep existing customers

Higher salary, 33%

Friend, 75%

Relationship with authorities and benefits based on this kind of relationship 

This Chart underlines importance of good and valuable network of Guanxi. Relationships with authorities are controversial subject, and some people are hiding it from publicity but respondents were revealed this secret, and results are surprising and prove that relationships with right people are beneficial and very important. 42 percent of all answers hit job as the profit from Guanxi, over 80 percent of all responses were involved in customers keep existing ones or gain a new customers during Guanxi with government officials. 1/3 of respondents declared a higher salary as profit from Guanxi. These all results show highlights of using Guanxi and how important it is to share network of Guanxi with right people who have rights and power.

Human Res ources me ans recruitment and manageme nt em ployees ( Online S urv ey Page 3) This part of the online survey is about the Human Resources and how is perceived 15 years after 90s reform in China. Section of the survey what is related in to Human Resources is seeking answer if Chinese Human Resource Management grew up and is mature enough to compete with western HRM. This area if research includes following: 1. Knowledge about iron rice bowl employment system and passage of new labour law 2. Methods used during recruitment process 3. Knowledge about employment’s rights 4. Methods of selection during recruitment process and type of test used during selection process. 9.

First and the second question of section Human Resource Management of online survey asks respondents about past and what they know about history and reform – a crucial factor what had a great impact on current Human Resource Management system in China. Do you know about passage of Labor Law of the People's Republic of China in 1994, what is unofficial beginning of HR in China?

Yes, 60%

Have you heard about iron rice bowl employment system (lifetime employment)?

No, 40%

Yes, 85%

0%

10%

20%

30%

40%

No, 15.49%

50% Yes

No

60%

70%

80%

90%

100%

Most of respondent confirmed that they heard about “iron rice bowl employment system”, what is associated with Marxist era. Lifetime employment was the main system of employment in China. 60 percent respondents declared that they know about a new Labour Law from 1994. 30 percent of respondents who didn’t know the answers were the group related to foreign investors. 5.

Methods adopted during recruitment process. E-recruitment practise: job portals, online agencies

Methods adopted during recruitment process

Recruitmeng agency 59%

Newspaper advertisement Employee Referrals scheme (references from previous employers) Campus Recruitment

75%

15%

33%

45% Head Hunters/Consultants 27%

33%

Job Fairs

75 percent respondents admitted to use online recruitment practises such as job portals, online agencies or direct applying to the company trough its internet webpage. The second place is for Job fairs, this method is much more popular in China than UK, job fairs are daily routines such as Job Centre in UK, and job fair and employers there can examine and interview candidate in the same place during short period of time, then candidate can get employment or is invited for the second meeting. Campus recruitment is also very popular technique to recruit talented, young people and is big opportunity for students to find employment when is a huge competition in the employment market.

1.

Knowledge about employment’s rights Respondents affirm strong support for option “yes” with overwhelming majority of 89 percent, but 11 percent of respondents don’t giving their employees full information about work conditions what is quite alarming.

6.

Methods of selection during recruitment process and type of test used during selection process. 76% Screening of Applications

65.33% 60%

58.66%

Preliminary interview Selection test Employment interview

33.33%

Assessment Centres

25.33% 14.66% 6.66%

9%

Job silmulation Background analysis Placement as probation period

Type of selection techniques used by respondents during recruitment process

Evaluation process as providing f eedback to candidates

Respondent's choice of selection test as recruitment technique

Ability tests

28% 52% 9%

Aptitude test Intelligence test Personality test

40%

Graphology test 12%



40%

Medical test

These all above methods are the most popular as recruitment methods in western countries, they are symbol of modern Human Resource Management. Before 1979, when reforms hit China and changed completely, employee were related to one position and one enterprises for whole their working life. Over 60 percent of respondents are using 2 interviews as recruitment techniques, however 18 percent declared that preliminary interview is sufficient to get successful results and whether to give employment to right candidate or not. For about 65 percent of answerers ticked “screening applications” what is quite normal because this technique is the most popular and is base to further recruitment techniques. Interesting fact is that over 58 percent of respondents are interested in “placement as probation period”, its evidence that employers are not happy with offering and permanent basis contract but they want to check if it’s a right candidate in right place. Respondents’ response in terms of selection test is certain. 52 percent of answerers are using ability test as selection technique, and 40 percent are using personality tests and aptitude tests, rest of them are less important for audience of this survey.

Corruption mea Page 4) 

ns corrupting proces

s (O nline S urve y

This is fourth section of the online survey is about corruption, this research seeks answer what has changed over the years in China and what is unchangeable or will change in the future, problem of corruption is serious pain of every country, especially these one who can call itself as developed countries. China is the most developed country in the world now. 3 persons who approached previous three sections didn’t give any answers and skipped section about corruption and they were filtered and removed from group of respondents. Last part of the online survey includes:

1. Opinion of representation of Chinese people about westerner’s statement “Corruption is common practice in China”. 2. Direct question to respondents “What did you say if asked for a bribe?” 3. Request to choose the best anticorruption system. 7.

Opinion of representation of Chinese people about westerner’s statement “Corruption is common practice in China”. Do you agree with westerner's opinion that "Corruption is common practice in China"?

Disagree, 38%

Strongly disagree, 1% Strongly agree, 20%

Agree, 41%



China was hit by serious corruption during rapid and intensive and economic growth. Corruption was in that time known as “common” in public sector. According to PERC (2008) ranking in terms of corruption, China is one of the most corrupted country in Asia with 7.98 points out of ten, what is very high result; more corrupted counties are Indonesia, Thailand and Philippines. But during comparison of economies China is the most corrupted country among the biggest economies in the world. Economic growth is so quick that officials with less experience and placed not high positions are able to collect illegal fortunes and become very reach during short period of time. The second ranking was provided by China’s National Audit Agency, what offers another measuring process of corruption. “The NAA’s audits from 1996 to 2005 uncovered 1.29 trillion Yuan ($170 billion) in misappropriated and misspent public funds (illegal practices include overstating the number of staff, setting up slush funds, misappropriating special funds, and collecting illegal fees). By this measure, misused government funds represented about 8 percent of the on-budget spending for this period.” Minxin Pei (2007)



This above statement allowed me to form a following question: “Do you agree with westerner's opinion that "Corruption is common practice in China"? Most of the respondents agreed with this statement, however 38 percent of the didn’t agree, it could be result that some respondents have high self-esteem and they are proud to be a Chinese, and they don’t accept other point of view, but it’s hypothesis only.

1.

Direct question to respondents “What did you say if asked for a bribe?”

What did you say if asked for a bribe?

0%

No, 75%

20%

40% No

Yes , 25%

60%

80%

100%

Yes

In this question, I have tried to attempt respondents with direct inquiry: “What did you say if asked for a bribe?” Results are very interesting because as much as 25 percent answered that they agreed to receive a bribe, what is very worrying statement. If research could be estimated to whole population, 1/4 of working population in China is corrupted, however these comparison are speculative only. I’m glad that respondents were brave enough and revealed truth.

1.

Result of request of choosing the best anticorruption system.

120% 100%

100% 79%

80% 60%

50%

40% 20%

12.50% 2%

0% What anti-corruption system is the best for your company? Creating or improving existing system control to prevent corruption Special training against corruption for employee. Senior managerial staff is good examplar for young colleagues Declaring inner rules on control and discipline at the company severely punished



China started a new campaign in 2006, campaign what had huge media coverage was formed to prevent receiving bribes and punishing corrupted officials, however campaign was good beginning, According to PERC (2008), level of corruption has increased one year later from 6.29 point to 7.98. Punishments would be very serious such as life-imprisonment but corruption is still attractive for brave officials and other people who are involved in illegal practices. All Respondents admitted that the best anti-corruption system would be creating a new system to prevent corruption or improve existing one, 50 percent declared that senior colleagues and managerial staff is good model for their younger colleagues, almost 80 percent answered that declaring inner rules and better discipline would help to prevent a corruption. 1 person wrote its own reflections, that only huge punishment can be useful for people involved in corruption.

END Thank you for your time and hope that results were interesting for you. If you have any further questions do not hesitate to contact me: [email protected] Slawomir Maj University of Aberdeen 阿伯丁大学 英国