Introduction

The argument of the assignment is that Human Resource Management (HRM) can be applied in all workplace in any country. HRM is formed as to be able to fit any workplace situations such as place and culture. This argument is applied to the country in regards of how well HRM is able to fit the culture, legislation and deal with situations of the country. It shows the challenges that were faced by previous firms that have invested in an organization in China or the Chinese state-owned enterprises. There is also a small part indicating the good that will come with the learning of new HRM system in China, where organizations could improve workplace environments and recruitment process. The structure of the main body is first the explanation of HRM and workplace in general. Then a country overview is given to show a brief understanding of the country that is being studied. This is to establish how the country operates and deals with HRM. Then an analysis of is given to strengthen the argument of whether HRM is able to be applied in any country is taken. The arguments are supported by case studies.

Main Body
Human Resource Management (HRM) is the operation of managing people through administrative activities, which are associated with human resources planning, recruitment, selection orientation and training (managementstudyguice.com , businessdictionary.com). HRM aims to develop people through the employment of an organization. The HRM is heavily influence by the thinking of the west particular the US-style management practices (Brewster 2004). The common interest that is being produce through the relationship of the employer and employee is making both parties satisfied by meeting both needs. The need of the employer is to have diligent workers and for the employee is by having to work in a content workplace. A workplace is a space where employees perform their delegated tasks that will produce economic value. It is also the area where exchange of knowledge and information is undergone. The environment of the workplace depends on what the organization is trying to portray to the employees. China is one of the largest countries in the world that has the highest population, which the consumption of wide range of products for the citizens has grown steadily. State-owned enterprises, collective companies, joint ventures and privately owned companies are the categories, which divides the organizations in China. China has attracted Foreign Direct Investments since the 1970s due to their low wages for labour. Foreign investments does not only lead to the import of new products into the country but technology, advanced management expertise and human resource management systems and practices (Gamble, 2006). The foreign investors that invests in the country has learnt that there are a number of challenges awaits when dealing with Chinese workers and that HRM is one of the main factors for businesses to succeed in China (Ahlstrom, Bruton, Chan 2001). There are also difficulties that were not in relation towards HRM like fluctuation in currency issue. HRM is difficult to be applied in countries other than United States and Europe. This is due to the contrast in the organizational structure, cultural values and

legislative regulation, which make practice of optimal HRM in other countries hard (Verburg, 1996). The differences in organizational structure in China are the relationship between employer and employee, where in China there is segregation between high rank officers and workers. The barrier that forms would make employees communicate only among the same rank and there would be less room for growth that would slow down the companys growth as well. State owned companies still prefer to employ graduates rather than experienced workers. The culture values that the Chinese follow would be of the teaching of Confucius, which is there is a hierarchical view towards society and power is only given to those who are educated. Graduates are directed to certain professions based on their test scores, this made small room for development of their skills. This teaching would make the people who are less educated feel pressured as to be looked down with their peers. It is also important for foreign investors to learn language skills and culture of how the Chinese undergo their business. This is to prove the interest that is being showed to the company. Universities in China are moving towards business-orientated courses and not encouraging people on courses of technical skill. This would be difficult in the future for current firms and enterprises that plan to invest there. The employee needs to be develop in providing the firms the level of skill required. Investing firms are more prone to develop managers first rather than educating employee, this could be to the fact that employers understand that workforce in China are likely to change to another job. Another culture followed is that Chinese managers are prone to look after the employees and their families, within the organization as well as personal issues. There is a large number of employees from the state owned enterprise were laid off from their jobs where the Chinese government are pushing the foreign investors to employ (Ahlstrom, Bruton, Chan 2001). It was also known that, there is a high demand for skilled workers in China and these demanded individuals have high switching rate for jobs. The investors realized that the employees that are being hired showed doubtful working habits and lack of working skills; it is also hard to retain workers, which showed considerable potential. It was one of the challenges that faced with investors to retain, develop

and recruit workers. The people in China are not able to stay in any areas they desire, this is due to the requirement of permit to live in certain areas. This legislation has diminished their career development and has made hard for organizations to seek proper level of work skills for their employees. The Chinese government compensate for the permit requirements by giving comprehensive work-unit based that included schooling, nursing and lifelong health care (Ahlstrom, Bruton, Chan 2001). The pay in China is made quite even and incentive or motivational pay was uncommon. This made it hard for employers to attract people through higher pay as wages in China is differentiated through seniority. Another culture characteristics that have affected HR in China is the employment security where workers are afraid of getting laid off this brought to the nature of collectivism (Ahlstrom, Bruton, Chan 2001). There distinct separation made between foreigners and local colleague (Lu, Bjorkman 1999). Individuals are afraid of standing out of the group as afraid of making mistakes. Workers in China understand that failure to would result to punishment. This would make employees not want to increase their work skill or there is lack in motivation to improve. The workers also understand that there needs to be connections in order for an individual to be hired or promoted, where a good personal relationship between the employers and subordinates can help the subordinate to improve his rank in the organization. The joint venture there would have both parties express and learn new working culture to improve the organizational economical status . Both parties could learn each other working habits and behavioral norms in the workplace as to not offend each other (Gamble 2006). Mutual trust is critical for the host country and foreign manager as both needs to accept change. As both parties needs to understand that changes needs to be with dealing with parties of a different background. Nepotism, is the selection of hiring an employee based on family ties is being practice in China (Bjorkman, Lu 1999). The organization that employs workers through nepotism would incur difficulties in expanding the company, as

preference of employing is not given based on experience or the education of the individual. This would set a limit on the companys capability of expanding as of the lack of educational and skilled resources. In China the business culture practices the Chinese cultural value of face and harmony (Bjorkman , Lu 1999). Face and harmony refers to individuals who are not able to accept criticism thus losing face and disturbs the harmony. It is trying to say that employees are not able to accept criticism in a constructive manner thus making it hard for managers to provide feedback on the performance of the employee. In the Westerm HRM performs appraisal based on the performance but for the Chinese culture it is more norm for indirect form of communication where there would be a lesser possibility of an employee to lose face. This is due to because Chinese managers are concerned with the social result of dismissing or damaging an employees face (Leung, Kwong 2003). The legislative aspect of China is changing rapidly due to the rapid growth of development (Verburg 1996). This change can be seen drastically in the area of labour law, where several new regulations are being launched. This means that organizations, which have intentions of investing in China needs to always be aware of the changing legislation. The western view of HRM is that the employee is a valuable resource that needs to be properly nurtured, that combines training and development or socialization culture into the corporate culture (Bjorkman, Lu 1999). These characteristics are seldom found in the Chinese business culture.

Conclusion
The discussion has shown the challenges and benefits with applying HRM in China. It is shown that there would be more challenges with adopting a Western style of human resource rather than benefits. The difficulties arise due to the challenge of adopting with the culture and legislation of the country. Changes are to be made to comply with the culture as so that the people of the country are able to accept how they are treated in the workplace. It can be said that human resource is a culture of a country which has build over the years of how the country deal with employment. It would be hard to change a mind set that has is followed and can be regarded as a way of living or a norm of the country. Adaptation of HRM can be applied to a country by understanding the needs and finding a way to improve the system without disapproving the people. Thus applying HRM to a country is not impossible but time is needed to accept change.

References
Ahlstrom D., Bruton G., Chan E.U. 2001 HRM of foreign firms in China: The challenge of managing host country personnel Business Horizons, Vol. 44 No. 3 pp. 59-68 Bjorkman I., Lu Y. 1999 The Management of Human Resources in ChineseWestern Joint Ventures Journal of World Business, Vol. 34 No. 3 pp. 306-324 Brewster C., 2004 European perspectives on human resource management Human Resource Management Review, Vol. 14 pp. 365- 382 Businessdictionary.com 2010, viewed 4 September 2010 <http://www.managementstudyguide.com/human-resource-management.htm> Gamble J., 2006 Introducing Western-style HRM practices to China: Shopfloor perceptions in a British multinational Journal of World Business, Vol. 41 pp. 328-343 Leung K., Kwong J.Y.Y 2003 Human resource management practices in international joint ventures in mainland China: a justice analysis Human Resource Management Review, Vol. 13 pp. 85-105 Managementstudyguide.com 2009, viewed 4 September 2010 <http://www.managementstudyguide.com/human-resource-management.htm> Verburg R., 1996 Developing HRM in Foreign--Chinese Joint Ventures European Management Journal, Vol. 14 No. 5 pp. 518-525