PRINCIPLE DIFFERENCES IN HRM BETWEEN CHINA AND UK

Principle Differences In Hrm Between China And Uk

Abstract

China has a talent shortage within its senior management, with this in mind I want to look at this talent shortage in context with the current economic situation that the world is currently experiencing. On the other hand UK has a better HRM infrastructure and practicing great principles of the HRM. The study explores the principle differences in HRM between China and UK and how they effect complete trying to impact in China. The People's Republic of China has changed dramatically since the late 1970s when it began to allow direct investments by foreign corporations into the country. The level of foreign direct investments began to increase rapidly after 1992 and China stands today as one of the world's largest recipient of direct investments from abroad. Concomitantly with the influx of new units owned by multinational corporations (MNCs), the context within which these companies operate has changed significantly. However, although several observers have pointed to significant shifts in the Chinese business context, few in-depth analyses have been conducted on the behavioral changes that have taken place regarding MNC operations in China over time. In this paper we examine the changes that have occurred between 1996 and 20061 in the Human Resource Management (HRM) practices of European-owned units in China.

Recognizing the impact of social, institutional and cultural factors on organizations, institutional theorists point to the influence that socially constructed beliefs, rules and norms exert over organizations. A common point of departure for most 'new institutionalists' is that organizations are under pressure to adapt and be consistent with their institutional environment. They are assumed to search for legitimacy and recognition, which they do by adopting structures and practices defined as and/or taken for granted as appropriate in their environment. Hence, isomorphism occurs between organizations in the same context.

Table of contents

Abstract2

Chapter I Introduction5

China's growing talent shortage5

Research Questions8

Hypothesis of the Research8

Chapter II Literature review10

The internationalisation process of China's MNCs13

Chinese HRM14

China Recruiting and Retention Issues37

Recruiting in China38

Sourcing Options and Recent Trends38

Recruiting Strategies42

Retention in China45

Compensation StandardsError! Bookmark not defined.

Housing BenefitsError! Bookmark not defined.

Career Advancement and Job Titles45

Performance Reviews in the Chinese Context46

Boss-Employee Relationships47

Chapter III Methodology50

The method of investigation50

Samples51

Questionnaire54

Measures55

Analyses and result59

Reliability analysis59

Construct validity60

Assessment of model fit61

Test of hypotheses62

Managerial implications67

Limitations and future research68

Chapter IV Results70

Findings UK HRM practice70

Determinants of integration and devolvement77

Strategic integration dynamics86

Strategic devolvement dynamics90

Practical and ethical issues90

Chapter V Summary And Conclusion96

References102

Chapter I Introduction

China's growing talent shortage

The imbalance between business opportunities in China and qualified executives to manage them will get worse — a lot worse — before it gets better. In this excerpt from the McKinsey Quarterly, the authors discuss ways some companies are successfully navigating the country's skilled-talent shortage.

Kevin Lane and Florian Pollner have written a survey on how to address the talent shortage. Kevin Lane is a principal in McKinsey's Singapore office, where Florian Pollner is an associate principal. The full report from the McKinsey Quarterly originally appeared in July ...