BUSINESS MANAGEMENT

Business Management

[Name of the Institute]Business Management

Task 1: Country Profile 'China'

In the context of the current global business environment China can be adequately identified as one of the most economically attractive countries. The capitalistic and entrepreneurial activity in the country has been strengthened by the recent relaxation policies adopted by the governing bodies, which has presented a more favorable business environment for the majority of the non Chinese multinational organizations. In the traditional perspective China adopted a highly restricted economic policy where the element of foreign investment was very difficult to maintain, as the adequate infrastructure was not present. This environmental acclimate become a restrictive factor for the multinational organizational investment in the country. In the recent socio political developments in the country the business environment has become more attractive for the foreign investors leading to a massive influx of multinational organizations in the country. Even though the business environment and the regulatory authorities have ensured that the foreign multinational originations are presented with a favorable and conducive business environment, there are several HR related challenges that exist for the abundant amount of foreign multinational organizations (Goenka, 1998).

HR Issues in Chinese Business Environment

The biggest HR related dilemma that is present in the Chinese national business environment can be identified as the lack of relevant national talent. The foreign organizations operating in the country have to primarily rely on the workforce that is assimilated in the national environment, as the process of importing the foreign employees can be very expensive and challenging activity. The employees who are placed in the off shore Chinese offices have to experience several dilemmas and their productivity is dependant on the investment and training efforts made by the management. These employees usually have to be placed in the country for an extended period of time and this may become serious issues in terms of the personal lives of these foreign employees. The company has to make a substantial investment in the accommodation of the entire family of such employees, as majority of these individual prefer to relocate with their immediate families. Hence the process of training and accommodating the foreign employees in the Chinese business units can become a highly difficult and challenging task. The lack of domestic talented employee pool is a serious concern for the majority of the multinational organizations, and they have to make serious investments to ensure that the organizational objectives can be achieved through the imported employees from the parent countries. This requires attracting the employees, and providing them with competitive salaries, growing opportunities and a chance to learn and develop their skills (Ulrich, 1997).

The HR functions are evolving in China like many other countries, and this is another issue that the HR managers face Chinese business environment. In the past, the HR functions were limited to administrative, recruiting and dismissal of employees in organizations. When the organizations started to grow and develop, time to time changes were brought in the functions of HR managers. Later, the functions of HR evolved in ...