05-07-2013, 02:00 PM
HR Practices in CHINA
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Introduction
IHRM?
China has become the world's fastest growing major economy.
Over the past 25 years of economic reform in china have led to impressive growth and significant integration.
China is now the largest recipient of foreign direct investment (FDI) in the developing world.
Due to these developments, it resulted in major changes in the management of industrial enterprises and hold considerable implications for human resource (HR) practices in the nation with the largest workforce in the world.
Chinese are beginning to adopt a more individual-led management culture and give employees more responsibilities and rights.
One of the major challenges faced by the companies i.e. both MNC’s & domestic companies are to acquire talented employees.
Country’s Overview
China- People's Republic of China (PRC).
Location- East Asia
Capital city- Beijing
Population -1.3 billion people.
Language - Mandarin Chinese
China is governed by the Communist Party of China (CPC) under a single-party system.
China is the world's largest exporter and second largest importer of goods.
HR Practices
In china, Human Resources in the industrial sector were classified into two groups:
Cadres-administrative staff or white collar employees such as managers, engineers and senior technicians in government organizations and in enterprises.
Workers- lower level employees.
Due to this division, there had been difference in –wage scale, performance appraisal.
Changes in Traditional HR practices
The responsibility for labour allocation has shifted from a centralized planning authority to forecasting and planning departments within enterprises
A contract labour system has replaced traditional lifetime employment
Productions and reward systems moved from emphasizing equality to rewarding efficiency and performance.
MOTIVATION & REWARD SYSTEM
To increase the quality and quantity of production of their companies and greater development of the company.
Rewards comprise the incentive systems such as promotions and stock option.
Stock option has emerged as the latest method.
Human resources are managed by two methods- positive and negative.