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Human resource management PDF

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International Human Resource Management
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International Human Resource Management
Business in China has been performing positively. Additionally, China has been opening
new doors for foreign investors. As an illustration, empirical evidence show that China is
allowing foreigners to invest in trust companies, financial leasing and other avenues of
investment. The increase investments have led to increase employment of people (Briscoe,
Tarique & Schuler, 2012). The key pillars in driving Chinese foreign trade is the support from
the government and low interests’ rates which have made borrowing easier. At this rate
organizations have been able to buy raw materials and also be in a position to invest in other
The government policies on trade have been favorable. With these, many foreigners have
been in a position to invest without external interferences from government in regards to
government regulations. China has also been able to operate in different countries. With this,
there has been a collection of different cultures of different ethnic background and tradition. The
existence of diversity in China is a source of traction. The culture of the country being able to
embrace different people has opened doors for different investors to inject capital and resources
into the country (Child & Lu, 2018).
With increased business activities in china, there are major challenges that are being
faced by human resource management practitioners employed by foreign enterprise which
operate in China. These challenges can be classified based on the following perspectives:
Economic, political and legal, social and cultural perspective and technological perspective.
When it comes to the economic perspective, there has been an increased shortage of labor hence
increasing the amount being paid on wages and salaries. Empirical evidence shows that it has
come to the level in which people are swapping folks and increasing the amount of salaries
(Moore & Jennings, 2017). According to the report that was released by BCG, it was discovered
that the average wage rate in China is valued at 36%. By the end of 2010 it was discovered that
the wage gap had reduced to 48%. With increased labor costs, human resource management
practitioners will spending more when it comes to cost of production.
Increased labor cost will affect the overall cost of production. This may also affect the
final product that are to be produced by these firms. In a foreign environment, there will be an
opportunity to hire experts with an objective of managing operations or legally represent their
business in China. HRM practitioners will be required to spend large sums of money when hiring
an expert to represent their business. This may reduce the amount of money being made by these
foreign organizations in a host country.
These foreign companies also have challenges dealing with management and developing
Chinese employees. This is an initiative which will involve collective use of financial resources
predominantly. First, HRM, practitioners will have to work on boarding and training which will
involve provision of adequate on boarding and continuous training to their employees. In
Chinese, knowledge and education are highly valued (Gutierrez-Gutierrez, Barrales-Molina, &
Kaynak, 2018). There is also the issue of employee motivation and offering incentives.
Employees having low morale will affect the work performance of employees.
Therefore, HRM practitioners should be in a position to have adequate resources which
will cater for all the needs of the employees. As a result, there should be a scenario in which
employees are financially taken care of in terms of salaries and compensation packages. Without
a clearly defined protocol of compensating the employees, the foreign firms will have a difficult
moment training these employees. This, means that, without adequate human capital to support
the organizational activities, there will be complete collapse of the organization.
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