HRM IN CHINA

Presented byVinod Manghani

MIB 008

Nice Reminder
Tell me, and I will forget, Show me, and I may remember, Involve me, and I will understand. Confucius

INTRODUCTION OF CHINA

INTRODUCTION
Peoples

republic of china is one of the oldest continuous civilization. Open Door Policy adopted by China in 1979 has brought about enormous growth in the industrial output as well as economy as a whole.

The

FIVE UNIQUE FEATURES

1. LEGAL REQUIREMENTS
China

government gradually raised the level for normalizing the labor market and enforcing the laws. the competition challenges and managing becomes more and more multiple and flexible, company human resource management should meet the government legal requirements.

Facing

2. SELF INNOVATION

Chinese government proposes to establish Innovated nation, the key is the talent. How to improve self innovation and creation motivation through management is a very important subject to HRM.

3. INTERNATIONALIZATION OF TALENT
China

needs more internationalized talents

Method

for internationalized talents

4. LAYOFFS
Companys

layoff brings challenges to the employee relations.

5. LABOR MARKET AND COLLEGE GRADUATES

College

graduates feel more difficult to find jobs

HUMAN RESOURCE POLICIES IN CHINA

TOPICS NEEDED TO BE RESEARCHED

What

is the current state of HRM practices/ policies in China?

How do multinational companies influence HRM practices in China? What processes may lead to or what may account for any similarities or differences in HRM practices or systems between the MNCs and the Chinese firms? have been the consequences of different HRM practices or systems in China?

What

HR POLICIES IN CHINA
HR

policies in China are divided in accordance with national laws and local laws. Resource policies in China for general HR issues like Recruitment, Termination are stringent.

Human

HR POLICIES IN CHINA

RECRUITMENT POLICIES IN CHINA

Recruiting

Locals

Recruiting

Non-Resident
foreign nationals

Chinese
Recruiting

Recruiting

Repatriates

HR TERMINATION POLICIES
A

30 days notice citing the cause of termination. causes for termination: incompetence, violation of company rules or criminal offence, bankrupting the employer and redundancy. not applicable for termination: Pregnancy/nursing, disabilities, injuries, illness, etc.

The

Reasons

INFLUENCE OF MNCS ON HR POLICIES

INFLUENCE OF MULTINATIONAL COMPNIES ON HR PRACTICES IN CHINA

Western practices (of recruitment and selection) are not transferable, easily or automatically, by multi-national or local companies entering in the economically vibrant Chinese market.
China has become one of the fastest growing economies in Asia, after it has been introduced as a Market Economy in 1978. GDP had been increased since 1978, after devolution of control and power to local authorities. And with its entry into the WTO in 2001, China was immediately recognised as one of the worlds economic superpowers.

 Less

is known about changing HR issues in China, as introducing new policies in a MNC is far more easier than introducing change to traditional state-owned enterprises. But the development of HRM in China is still at an embryonic stage due to the socialist regime.
change in economic system in China, sustaining adequate job growth for millions of workers laid off from previously state-owned enterprises has proven to be a challenge to the central government.

After

Another major concern is that China is now one of the most rapidly aging countries in the world. This factor alone has significant ramifications for employment opportunities and practices in China MNCs should learn the Chinese culture that affects Chinese management practices and organisational behaviors and then implement that knowledge into local human resource management practices instead of trying to impose the Western processes from their home country.

 nature

of work in China is greatly affected by some of the traditional Chinese cultural values such as guanxi, face and harmonious relationships that require employers, state or private, to recognise their obligation to find or create suitable jobs and retrain has been difficult to recruit people from different parts of the country because of a strict residency policy.

It

In

China, surface learning (or rote learning) ensues from family enculturation and teacher-centred pedagogical processes; it is reinforced through repetition, group harmony and regurgitation of knowledge.

International Human Resource Management in China

Human Resource Management that the company needs to implement in the establishment of a branch in China. Various aspects that are to be undertaken are staff relocation, recruitment and in understanding the Chinese Culture and policies.

Staff Relocation
The company will have to transfer some of its employees to China to initiate the start up operations. Employees to be transferred will be responsible for the following tasks: Establishment of the operation. Transfer of technology to China branch. Development of a common organizational culture. Training and development of local managers.

Recruitment Approach
Several factors are to be considered including the following: Participation rate of men and women. Number of people that are expected to apply for the job Required education for the particular job. Sourcing of the Human Resources from the labor market. Skill training and career structure. Organizational culture to elicit employees commitment and loyalty.

In a study in (2001), it is revealed that State owned banks in China are losing their talented employees to foreign banks in the country. The primary reason for this is that Chinese employees perceived foreign corporations as a good venue to utilize their skills. Additionally, the high income was the second important consideration (2004).

Implications of Culture and Policies

The operations of the Company will have to adjust to comply with the legal requirements and services that reflect the Chinese culture. The lack of knowledge and sensitivity on their culture will likely result in frequent mistakes on business and personal interactions.

In terms of recruitment, the regulations are focused on eliminating gender discrimination. Employments are sought by individuals in a labor market flooded with candidates.