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› Introduction

› Country·s Overview

› HR Practices

Recruitment & Selection

Training & Retention

Motivation & Reward System

Work culture

Expatriate management

› Case study & its analysis

› An articles abstract

› Conclusion
9
 

› IHRM?

› China has become the world's fastest growing major economy.

› Over the past 25 years of economic reform in china have led to impressive growth and significant
integration.

› China is now the largest recipient of foreign direct investment (FDI) in the developing world.

› Due to these developments, it resulted in major changes in the management of industrial

enterprises and hold considerable implications for human resource (HR) practices in the nation
with the largest workforce in the world.

› Chinese are beginning to adopt a more individual-led management culture and give employees
more responsibilities and rights.

› One of the major challenges faced by the companies i.e. both MNC·s & domestic companies are
to acquire talented employees.
| 

  
› China- d
   

   d

› ‰ocation- x  

› Capital city-    

› Population -·  
 
 

› ‰anguage - 3    

› China is governed by the 
  d
   d under a single-

party system.

› China is the world's largest exporter and second

largest importer of goods.
|
^^
› China is the world's second largest economy by both nominal GDP
and purchasing power parity (PPP).

› It is a member of United Nations Security Council, multinational

organizations, WTO, APEC, BRIC, Shanghai Cooperation
Organization, and G-20.

› China has been characterized as a potential superpower - academics,

military analysts, and public policy and economics analysts.
6  
› In china, Human Resources in the industrial sector were
classified into two groups:
›  -administrative staff or white collar employees such as
managers, engineers and senior technicians in government
organizations and in enterprises.

› J
 - lower level employees.

› Due to this division, there had been difference in ²wage scale,

performance appraisal.
|

 
6 
 
› The responsibility for labour allocation has shifted from a
centralized planning authority to forecasting and planning
departments within enterprises

› A contract labour system has replaced traditional lifetime

employment

› Productions and reward systems moved from emphasizing

equality to rewarding efficiency and performance.
3 6  
|

› Recruitment & Selection
› Training & Retention
› Motivation & Reward System
› Work culture
› Expatriate management

| 93


|9 
› Companies in china recruit candidates mainly on basis
of:
› Skills

› Employment history

› Total work experience

› ‰anguage abilities

› Career goals

 
› Companies in china face an overall talent pool that can be
broken into three general categories of employees.
› º   

› 

  

› 

 

› Each category has different      


 
  


‡ Advertisements are not permitted in the news media without ´the prior approval of the local labour and social security
departmentµ.
Advertisem
ents ‡ Advertisements are usually placed in local papers or specialised industry publications.

‡ The common recruitment avenues are the labour market, personnel exchange seminars
Job fairs ‡ The job fairs are sponsored by the ‰abour Bureau.

‡ To recruit potential applicants, many companies regularly go to college or university campuses to interview students
Campus ‡ They can negotiate the job terms directly with the students
Placements

‡ The development of technology parks and technology development zones in China, there has been a
Global concomitant growth in the use of Western HR strategies among multinational companies.
Image

‡ China has excellent technical education, there is a dearth of managerial training because, in the past, managers were promoted
Business on the basis of their political party allegiance, and many parts of the country remain ¶provincialzed· as shown in the HR
manageme inflexibility.
nt services

‡ International Communications and PR companies are developing offices throughout China to assist local and
Corporate
Co- overseas businesses work together effectively to meet the demands of Eastern and Western markets.
ordination



‡ The interview is a common selection tool for many companies and is the dominant
method used. Punctuality is very important in China and in greeting the applicant the
Interview
employer will not look at them directly because lowering of eyes shows respect.

‡ Technology tests, technical tests, problem solving tests and English proficiency tests.
‡ Traditional companies rarely use psychological or aptitude testing, psychometric
testing of abilities and attitudes, interests and motivations, needs and aspirations
Tests and/or personal management style has been adopted from Western HR practices,
especially in the Healthcare industry.

‡ Interactive role play, simulation exercises and leaderless group discussion (‰GD).
Behavioural
Event
 99

9 

› Some of the major training methods are:

› Technical training(both expatriates & ‰ocal employees)

› ‰anguage training( expatriates)

› Pre ² departure training(expatriates)

› Training on work culture( expatriates)



 
Use global
resources
Use non
Be aware of
compete
reluctance
agreement
to relocate
s

Keep HR Considerati
communica Retention on of
tion office space
channels strategies and
open location

Invest in
Plan social
working
gatherings
Establish condition
communi
ty service
programs
3 99 
 

3
› To increase the quality and quantity of production of their
companies and greater development of the company.

› Rewards comprise the incentive systems such as promotions

and stock option.

› ×



 has emerged as the latest method.

› Human resources are managed by two methods- 
  

  

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 9
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› From top executive to professional, the % of expatriate from western, expatriate from
Hong Kong and expatriate from Taiwan is decreasing, but % of expatriate from Asia
Pacific and locally hired foreigner is increasing.
› 15% - 23% of companies planned to reduce hire of expatriate in 2009, but almost the
same amount of companies also indicated the intention to hire more expatriates in
2009. About 35% of companies would like to increase hire of locally hired foreigner
and locally hired returnee respectively.
› 
  ! managing expatriation cost, localization
› 
 
 

!
› Home country/balance sheet approach is very popular for expatriate.
› mixed approach is an alternative way for expatriate from Hong Kong .
› local plus approach is an alternative way for expatriate from Taiwan.

›  
 x! Expatriate from western countries, Expatriate from Asia Pacific
but outside Greater China, Expatriate from Hong Kong, Expatriate from Taiwan,
‰ocally Hired Foreigner, ‰ocally Hired Returnee


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|9

› To demonstrate the effect on the internationalization
process of a company, of corporate HRM practices such
as selection processes, re-entry and succession planning.

› To illustrate the importance of HQ support for expatriate

employees.

› To demonstrate the effects of drastic changes in a

corporation's internationalization strategy on expatriates.
| 

› An apparent failure on the part of Controls Inc.

to understand the negotiation process for JV
contracts in China

› No proper structure/method of selection

process
· |  
 

 
|
 9


› Selection process was haphazard(chaotic)

› No formal process

› No proper planning, Co-ordination which is

governed by organizational politics.
 u  
 !  !  
  
 !




› Randolf was a very good choice for this position.

› But, Randolf selection seems more accidental than based

on an understanding of what was required for the
position by HQ.

› Conventional wisdom suggests that one should not

generally send a 50-year-old employee on a first-time
expatriate assignment as a senior manager.

|  

› Technical Criteria,

› Management Skills

› Personal Attributes

› Cultural Skills
 Î 

 !


 


 
› Company should include international
management experience as an integral
management development strategy.

› Unlikely to develop managers who can function

effectively as global leaders.