Under the command economy, the government at different levels conducted human resource planning and then allocated labour to enterprises. TeleCo itself therefore had not handled this function before the reforms. However, when this case study was conducted in 1994, i.e., 15 years after the commencement of reforms, TeleCo still did not have formal human resource planning. Instead, it had a list of quotas for its employees specified by the Post Bureau. The factory was allowed no more than 120 cadres, including 5 senior managers (e.g., director and Party secretary, and deputy directors), 5 senior engineers, and 25 engineers. The rest were managerial and technical staff. Those graduates with tertiary education all belonged to the category of cadres; technical school graduates (equivalent to Year 12 graduates) could be cadres or workers, depending on their job position and the availability of cadre quotas. That is, if there was no available quota for a cadre, the technical school graduate could take a cadre’s job without the usual wage scales and benefits for cadres. While the quota for cadres was strictly controlled by the Post Bureau, the total number of workers was also under the state’s control because the total wage bill had been fixed by the Municipal Labour Bureau since 1986. The factory could alter its number of employees as long as the total wage bill was not compromised. Only when the governing authority assigned new employees to the factory could the total wage bill be increased.