Human Resource Management ( Hrm ) Is The Art Of Managing People Within An Organization

1783 Words Oct 27th, 2015 8 Pages
Introduction

Human Resource Management (HRM) is the art of managing people within an organization. HRM focuses itself on the following sections namely staffing, work design of employee and employee compensation and benefits. This is in order to boost the productivity of an organization by improving the effectiveness of its employees. (Inc.com)
HRM tends to work differently world over. Each country might have its own set of rules and regulations (Laws). This is mainly due to the Political, Economical and Social factors which play an vital role. For example in Asia, China and Japan tend to have a different process of HRM.
HRM in China

China is the 3rd largest country and the most populous in the world with a population of 1.37 Billion (As of 2014). The GDP of China was 10360.10 Billion US dollars in 2014 and its GDP value accounts for 16.71% of the world 's economy. (Travelchinaguide, c2015), (Tradingeconomics, c2015)
One of the significant features that keep China 's Human resources intact is the State-owned enterprises. There is an 'iron rice bowl ' philosophy which provides a guaranteed job security and a steady income. To back up the philosophy, there is enormous social pressures to keep large numbers of employees in the company.
In state-owned enterprises there are three components to remuneration. They are:
A monetary wage: This is where employees gets their base pay, group bonuses and other allowances such as shift work, cost of living etc.
A social wage: This…
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