hr practices in china

1. H R practices in Sneha Mittal

2. HRM: a strategic function concerned with consequences of all organizational
decisions for human productivity and for the well-being of the entire work force. It
is a distinctive approach to employment management which seeks to achieve
competitive advantage through the strategic deployment of a highly committed and
capable work force, using an integrated array of cultural, structural and personnel
techniques.
3. HRM practices in China: Concepts of Chinese culture affecting HRM practices in
China the respect for age and authority maintenance of harmonious human
relations the favour of personal relations group orientation the concept of face,
which suggests that one should avoid losing face - shame and indignity in public.
4. Areas of HRM: Recruitment Training Performance appraisal promotion
criteria financial reward
5. Recruitment Inheriting the existing workforce of local parent partner Quick to
start the local partner provide welfare and supporting facility old organizational
culture. Merits and defects of recruiting from labour market selecting the best
candidates creating new organizational culture and management style lack loyalty
and high turnover rate difficult to persuade local partner to accept this practice.
6. Training: Generally most joint ventures in China recognize the importance of
training and devote a large amount of resources to training Overseas training
regarded not only as knowledge acquisition, but also as part of the strategy to
retain good employees
7. Performance appraisal Performance appraisal Share similarities to that of home
HRM practices than to those of local firms Use of objective appraisal criteria;
qualitative criteria are used as complimentary Top-down appraisal system; unlike
the practice in local firms, managers are not rated by subordinates
8. Promotion Promotion Most similar to home HRM practices the GM has
important power to determine the appointment of middle managers and other
subordinates, while in local firms promotion typically involves collective actors
promotion as a strategy to prepare for greater localization usual conflict between
foreign and local partners over promotion
9. Financial rewards Financial rewards Joint ventures often offer much higher pay
than local firms the difference of pay for worker and manager is larger in joint
ventures pay and bonus are geared to individual contribution

10. Why localize? High cost of maintaining expatriates greater long-term

effectiveness of local managers Need to attract and retain high potential
employees Best use of human resource assets available locally
11. Challenges for localization in China Few qualified people Selecting
appropriate personnel Need for accelerated training Managing the expectations
of local employees Managing internal politics and resentments Ensuring the
transfer of knowledge and skills by expatriates Lack of comprehensive localization
strategy
12. Developing high potential employees Developing local leaders in the training
classroom Coaching and mentoring by someone who understands how to execute
business strategies through people Trial and error experimentation by local
managers
13. Cont.. Coaching by expatriates positioning: to position local managers
properly within the organization, both in China and in the eyes of their western
colleagues back at the headquarters rotating jobs: moving from various types of
functional areas to develop broad base of experience
14. The roles of expatriates To transfer technical and managerial knowledge
General management: to provide strong leadership, build up organizations, and
push for changes To communicate with the headquarters To safeguard the
companys interests Hence, a certain amount of expatriates are needed because
some roles are very difficult to be taken up by local managers