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China's Transition Economy and HRM Practices

The assignment is about the challenges faced by foreign firms in managing Chinese workers in China.

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Added on  2023-04-11

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This article discusses the challenges and strategies for HRM practices in China's transition economy. It explores topics such as selection, training, appraisal, reward systems, retention, and socializing. The cultural context and the need for modification in HRM practices are also highlighted.

China's Transition Economy and HRM Practices

The assignment is about the challenges faced by foreign firms in managing Chinese workers in China.

   Added on 2023-04-11

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HUMAN RESOURCE MANAGEMENT
China's Transition Economy and HRM Practices_1
Table of Contents
1.0 China's Transition Economy and HRM Practices.....................................................................3
2.0 Selection....................................................................................................................................3
3.0 Training......................................................................................................................................3
4.0 Appraisal....................................................................................................................................4
5.0 Reward Systems.........................................................................................................................5
6.0 Retention....................................................................................................................................5
7.0 Socializing.................................................................................................................................6
References........................................................................................................................................7
Page 2 of 7
China's Transition Economy and HRM Practices_2
1.0 China's Transition Economy and HRM Practices
The fact that China has been experiencing a transition economy with respect to HRM functions,
the global framework of HRM practices may not be applicable in the country without modifying
the same. I understand that the “Iron Rice Bowl” system that ensures guaranteed job with
sufficient monetary benefits, as prevalent in China, has created issues for the foreign companies
to devise appropriate HR strategies for the business. The article provided suggests that presently
all human resource issues are followed through a top-down approach and dominated by the
preference of the management (Cooke 2018, p. 150). Thus, I feel a need to change the system in
line with the global HRM dynamics and also from the viewpoint of the cultural context also so
that the necessary modification may lead to a potential integration between the HRM functions
and the overall business objectives.
2.0 Selection
The international companies might face challenges while the selection of potential candidates for
the business operation. By reading the relevant pieces of literature in this regard, I have gathered
the insight that the degree of education, language and thought process vary in China as compared
to the global standards. Chinese people do not react in the same way as others as the
communication process of Chinese people is poor compared to the English speaking country,
which might create an obstacle in daily communication at the workplace (Glaister et al. 2018, p.
150). These factors may need to be taken into account while designing the selection criteria for
the potential staffs of the operations.
3.0 Training
The management of a company may need to be careful while training the Chinese workforce.
Unlike Western training culture, Chinese employees are accustomed to taking notes during the
Page 3 of 7
China's Transition Economy and HRM Practices_3

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