HRM in China

HUDABIYA NAREJO :62

HUMA BALOCH :63

KIRAN IMTIAZ :80

MARVI QAZI :87

SABA PERVAIZ :137

TEN HOT TOPICS ON
HRM
Nice Reminder 温馨提示

“Tell me, and I will forget,

　 听到，我会忘记，
　 Show me, and I may
remember,
　 看到，我会记住，
　 Involve me, and I will
understand.”
　 参与，我会明白。

Confucius
　　　　　　　　　　　　　
 INTRODUCTION &
FIVE HOT TOPICS ON HRM
 INTRODUCTION
• Peoples republic of china is one of the
oldest continuous civilization.

• The “Open Door Policy” adopted by China

in 1979 has brought about enormous growth
in the industrial output as well as economy
as a whole.
 1. Legal Requirements
• China government gradually raised
the level for normalizing the labor
market and enforcing the laws.

• Facing the competition challenges and

managing becomes more and more
multiple and flexible, company human
resource management should meet
the government legal requirements.
 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

• Company’s layoff brings

challenges to the employee
relations.
 5. Labor Market and
College Graduates
• College graduates feel more
difficult to find jobs
 Four issues in HRM are:
• Culture
• Concept
• System
• Methodology
 CULTURE

Under traditional Chinese culture,

organizations first considers
equality in compensation system,
not motivation.

China is a society paying much

attention to the issues of face,
network, and guanxi.
 Human Resources: the Core of
Cross-Cultural Management

- Cultural
differences affect
the efficiency of
organizations
through people’s
minds, values and
behavior.
 For Example:
Multinational Staffing Policies

Four
Approaches:

Ethnocentric
Polycentric
Geocentric
Regiocentric
 Concept
• Many HRM problems caused by unclear concepts.

HRM is the theory, techniques, methods,

and tools for studying the adjustment of
people and their relations in the
organization, connection between work and
its relations, matching the people and work
in order to fully develop HRM, motivating
people, promoting the work efficiencies and
meeting the organizational objectives.
 System

• Companies do not have prefect

governance.

• Many state-owned enterprises have

no core competencies.

• Private firms are managed by family

members and relatives, it is difficult
to practice human resource
management system.
 Methodology

At present, organizations
start to pay attention to
HRM, but they do not
know how to do it.
Many HR managers are
learning different kinds
of new methods and
tools, such as KPI, 360
degree feedback, balance
score card, etc.
HUMAN RESOURCE POLICIES IN
CHINA
INFLUENCE OF MNC’s ON HR
POLICIES
&
 STRATEGIC HRM MODEL
• 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?
• What have been the consequences of different HRM
practices or systems in China?
• HR policies in China are
divided in accordance
with national laws and
local laws.
• Human Resource
policies in China for
general HR issues like
Recruitment,
Termination are
HR POLICIES IN CHINA
 Recruitment policies in China

• Recruiting Locals
• Recruiting Non
Resident Chinese
• Recruiting foreign
nationals
• Recruiting
Repatriates
• 1) A 30 days notice citing the cause
of termination.
2) The causes for termination:
incompetence, violation of company
rules or criminal offence,
bankrupting the employer and
redundancy.
3) Reasons not applicable for
termination: Pregnancy/nursing,
disabilities, injuries, illness, etc.
• 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 world’s
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.
• After 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.
• 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
• MNC’s 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
• It has been difficult to recruit people from different parts
of the country because of a strict residency policy.
• 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.
 Strategic HRM Model
Strategic Competency
Integration, restructuring, acquiring, and
using resources in order to adapt the
Evolution market change and operation ability of Renewal
Evolution Renewal
HRM
HRMPractices,

creating market change.

Core
Core Competence
training,
training,performance

Learning and Innovation

Practices,such

Knowledge
compensation,

Knowledge Knowledge
compensation,etc.

Knowledge
performancemanagement,

Competence
Change Knowledge Transformation
Change Knowledge Transformation Integration
Creation Integration
Creation
Value
Value
suchas

Rare
Rare
Intellectual Capital
Difficult
management,

System Difficult
asrecruitment,
etc.

totocopy
copy
recruitment,

Store
Store
Human Resources Organized
Customer
Social Psychological Organized
Human
Capital Capital
Capital
　 　 Capital
 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.
 How to Use Multi-
level Analysis
• INDIVIDUAL LEVEL ANALYSIS

• ORGANIZATION LEVEL ANALSIS

 The Individual Level
• Traditionally, micro
Analysis
HRM research has explored the
impact of HR practices on individuals. It entails
manipulating relevant HR practices in an experimental
format, and then examining the impact on individuals
or assessing individuals on some characteristic (skills,
abilities, attitudes, etc.) and relating the assessments to
some performance measure (productivity, absenteeism,
turnover). In all cases, however, the goal of the
research is to identify and account for variance among
individuals.
 The Organization Level
Analysis
• More recent macro HRM research examines the
impact of HR practices using the organization
(corporation or business unit) as the level of analysis.
Most often this research assesses variables through
asking an informed respondent to provide the relevant
value for his/her organization. This kind of research
tends to focus on the variance in relevant variables
across organizations, assuming relative uniformity in
the variable within the organization.
• As such, despite an increased strategic view of HRM,
organizations have been outsourcing HRM functions
such as training (Ford).
Thank you ！