International Human Resource Management in China

Selection and performance management programs that are designed for organizations that have expanded their U.S. workplace to other countries must be designed to take in many other considerations that normally wouldn’t make a difference if all the employees were from the same origin. Expatriate employees and their families should be assisted to help with adjusting to their new culture. Performance management and selection programs should be designed to incorporate the differences in ethical and cultural backgrounds that match the employees and or applicants who are overseas. This paper further examines what is necessary for selection and performance management programs for a U.S. based organization that is expanding overseas to China.

While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the

This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.

Human resource management functions in multinational companies are incredibly complicated by the need to adapt policies and procedures related to personnel, to differences between the countries, which is one of the branches. In particular, the countries cultural differences, differences in economic development and legal systems may require an international company adaptation programs of hiring, firing, training and remuneration for

Managing HR in MNC is different from the way the HR is being managed in the country, According to Morgan (1986) there are three factors that differentiate between IHRM and domestic HR: First, the countries of operations such as the -country where a subsidiary may be located, the host-country where the subsidiaries are located, and other countries. Second, the different types of employee, in international environment the HR management have to deal with the host-country nationals (HCNs), expatriates or home-country nationals (PCNs) and third country nationals (TCNs), for example if L’Oreal hired an Indonesian employee in their Indonesian subsidiary the employee is a HCNs, and when manager from L’Oreal Headquarter in France came to work in Indonesian subsidiary the manager is a PCNs, and if L’Oreal employs manager neither from Indonesia nor France to work in their Indonesian subsidiary the manager is TCNs. Third, is the way HR practices (eg. staffing, compensation, training, and etc) are conducted. Although IHR practices seems to have the same activities as domestic HR, in IHR the manager will be dealing with different environment and diversity of employees from different cultural background. Moreover, as mentioned earlier dissimilarities between domestic and international HR management mostly due to profound differences between host and home countries in term of culture,

The study of human resource management becomes a major topic of the science of management at the beginning of 20th century and keeps attracting researchers’ attention (Merkle, 1980). The new models of human resource management derive from the advance of management theories and the accumulation of practices and experiences. With the development of global economy, the economic situation of each country deeply affects the world and becomes closely connected. In addition, the needs of customers vary and differ from one another. Within organizations, the role, function, and content of human resource management have greatly changed. This change and reform starts from the US. One of the critical reasons that the US organizations lead the world is that they implement successful and effective human resource management, which is a major drawback in Chinese organizations that hinders their development. Therefore, it is imperatively important to understand the differences between human resource management in the US companies and Chinese counterparts. In this way, the article could reach conclusions that help improve the efficiency of Chinese human resource management.

Hofstede based his framework on five basic dimensions – power distance, individualism collectivism, uncertainty avoidance, production orientation, and Confucian dynamism (Ahlstrom & Bruton, 2010, p. 47). Some of these dimensions can be used to analyze some of the different cultural issues that affect HRM and explain why issues exist between cultures.

Differences in management culture will influence organization performance. With the above six dimensions of cultural difference, we can find that there are similarities and differences value between United States and China. Even Asian and western countries, there is might have similarities occurs. Koontz and O’Donnell (1968) classify the five function of management which is planning, organizing, staffing, coordinating and controlling. This paper is using these five functions differences to elaborate the practices of HRM of both country and comparing the result.

The environment in which business competes is rapidly becoming globalized. More and more companies are entering international markets by exporting their products overseas, building plants in other countries, and entering into alliances with foreign companies. Global competition is driving changes in organizations throughout the world. Companies are attempting to gain a competitive advantage, which can be provided by international expansion. Deciding whether to enter foreign markets and whether to develop plants or other facilities in other countries is no simple matter and many human resource issues surface. (Noe, Hollenbeck, Gerhart, and Wright; 534)

Von (Von Glinow & Teagarden, 1988) proposed the transfer of western HRM to the joint ventures active in China. The compensation structure reforms (Shenkar & Chow, 1989) and reforms related to the education system especially management and training were assessed (Warner, 1986; Borgonjon & Vanhonacker, 1994) when the reforms were taking place; and how the policies of Chinese state planning impacted the overall staffing practices was assessed by Holton (Holton 1990). Many scholars were forecasting and depicting regarding the future of HRM as what will

The Chinese system can still be classified as bureaucratic and rigid. In order for employees to join foreign companies their personal files need to be released by their current work units or employers, which causes hindrance and leads to wastage of time and resources. Joint ventures between foreign enterprises and SOE’s are overstaffed and leads to opportunity cost of having better and more skilled employees. Foreign organizations usually overspend on their HR and training budget because training and development is a powerful motivator for employees in China. Using connections or networks in order to land a job for

Every country has different management practices. They all have unique approaches that have been found to be the most adequate or efficient way in accomplishing specific objectives. We have heard the English terms culture, management terms, and business culture, which are commonly used business terms in America. Nonetheless, we don’t have much knowledge about international business terms. International business terms such as “wa”, “quanxi”, and “ inhwa”, which are essential management terms in Japan, China, and South Korea. In this paper I will be analyzing my findings on the words culture, management terms, business culture, “wa”, “quanxi”, “inhwa”, what would be similar terms to describe American management practices, and if these terms sufficiently capture American management practices.

Globalisation, as an integrated and independent world economy, has contributed to the rapid expansion of international trade and world’s economic growth (Paik & Vance, 2006; Mutsuddi, 2012). The increase presence of global firms is shifting domestic HR towards global HR in addition to carry out a wider span of HR responsibilities (Losey, Meisinger & Ulrich, 2005; Rao, 2010; Jie, 2011; Mutsuddi, 2012). The generation of cross-border labour market also had brought human resource management into an international context (Mutsuddi, 2012).

• It is generally accepted that, to be effective, the expatriate employee must adapt to and not feel isolated from the host country.

Human Resource Management is one of the most important functions in an organization designed primarily for the management of people within the organization, focusing on systems and policies. Also known as HR it typically undertakes a number of activities such as employee recruitment, employee benefits, training & development, rewarding and performance appraisal. With Human Resource being so complex it also faces a lot of challenges especially when the company wants to open a branch in another city/country than the home country. Most of these challenges are relating to cultural differences, fundamental differences etc. In this report we talk about two such countries namely China and Japan. We look into HRM in China and Japan and compare the similarities and differences between them.