What are the Differences and Similarities of Shortage of Managerial Talent between International Firms and Domestic Firms?

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Abstract

The main aim of the research is to identify the differences and similarities between the Chinese domestic and international in terms of the managerial talent and its shortage. According to surveys and past trends analysis, there is an increase in the shortage of managerial talent in China. With an increase in globalization and competition, several multinational firms are establishing their business practices in China. In addition to this, the domestic firms in China are are trying to compete these MNCs. This has raised an issue related to shortage of talent at the top level. This thesis conjectures that there is a difference between shortage of managerial talent in domestic and international companies in China. Through interviews of managers, the study will attempt to evaluate it research questions.

Key Words: Talent management, Guanxi Construct, managerial talent, local hires.

TABLE OF CONTENTS

ABSTRACTII

1.Introduction1

1.1 Background1

1.2 Significance of the Study2

1.3 Plan of the Study3

2.Literature Review4

2.1 Introduction4

2.2 Overview of Shortage of Managerial Talent4

2.3 MNCs managerial talent shortage5

2.4 Domestic firms Managerial Talent Shortages5

2.5 Difference in International and Domestic Local Hires6

2.6 Literature Gap8

2.7 Summary8

3.Research Method and Data Collection9

3.1 Research Method9

3.2 Hypothesis Statement9

3.3 Data Collection10

3.4 Interviews10

3.5 Data Analyses Techqniue10

3.6 Strengths and Limitations of the Research Design11

4.Analysis of Data and Research Finding12

5.Concluding Remarks13

APPENDIX16

Introduction

1.1 Background

Talent management has been a focus of attention for researchers during recent years, which has emerged as a support for strong practitioner discussion. Different studies and publications coming from the professional organizations, management consultancies, scholars and researchers have significantly highlighted the important role played by talent management. With the importance highlighted for talent management in this research, it is necessary to understand the importance of managerial talent and its availability within the business environment (Cooke, 2009).

With a huge number of multinational companies entering into China, already expanding foreign firms in China, and the fact that local Chinese companies are making efforts to bring their management systems and mechanisms up to international standards indicate that there is a strong need for managerial talent in China. With the increasing competition between the local and international companies in China, there is a strong demand rising for talent in the country. Despite of having almost an inexhaustible labor supply, China is facing a shortage of skilled talent and employees with management experience. It has been estimated by the McKinney Global Institute that between the year 2003 and 2008, Chine will be having 15.7 million university graduates (which excludes the number of students graduating from medical universities) (Cooke, 2009). Yet only 1.2 million graduates will possess equitable skills suitable enough to be employed in any multinational corporation (MNC). Further, it is estimated that out of these, the multinationals will employ around 75000 graduates only. This means that in future the number of people graduating will be higher as compared to the number of people being employed based on their level of skills. Moreover, it is important for the companies to manage their relations with employees having managerial skills ...