Human Resource Management (HRM) in China – a cross ... · Human Resource Management (HRM) in...

Presentation of Master Thesis by Dr. Oliver Prüfer at Management School of Fudan University on October 19th, 2007

Human Resource Management (HRM) in China –a cross-cultural approach

for successful HRM strategies of Western MNEs in China

Oct. 19th, 2007Human Resource Management (HRM) in China – a cross-cultural approach

for successful HRM strategies of Western MNEs in China 2

AGENDA

1 Introduction: HR Problems of Western MNEs in China

2 Cross-cultural approaches: towards a better understanding

3 Labour law issues in China - culture again

4 Cultural impressions of Chinese workplace behaviour

5 Western MNEs: The challenge of HRM in China

6 Q & A



AGENDA






6 Q & A



1 INTRODUCTION: HR PROBLEMS OF WESTERN MNEs IN CHINA

Adaptation problems

of expatriate

managers

HR PROBLEMS

Job-Hopping

RecruitmentEmployee‘s overall

performance

RetentionPromotion

Training

Misunderstanding

of Chinese market

requirements

Figure 1: Examples for current HR problems of Western MNEs in China



Two goals of this master thesis

● To contribute to a better understanding of HR problems ofWestern MNEs in China by exploring fundamental crosscultural phenomena

● To give general recommendations for future HRMstrategies of Western MNEs in China

1 INTRODUCTION: HR PROBLEMS OF WESTERN MNEs IN CHINA



AGENDA






6 Q & A



1. Edward T. Hall

“Most of our difficulties stem from our ignorance. Honest and sincere people in the field

continue to fail to grasp the true significance of the fact that culture controls behaviourin deep and persisting ways, many of which

are outside of awareness and therefore beyond conscious control of the individual.”

(Hall, 1990, p. 25)

2 CROSS-CULTURAL APPROACHES: TOWARDS A BETTER UNDERSTANDING



“The best reason for exposing oneself to foreign ways is to generate a sense of vitality and awareness –

an interest in life which can come only when one lives through the shock of contrast

and difference.”

(Hall, 1990, pp. 29-30)




2. Fons Trompenaars & Charles Hampden-Turner


The outer layer:

Artifacts and products

(explicit)

The middle layer:

Norms and values

The core:

Assumptions about

existence (implicit)

Figure 2: A model of culture (Trompenaars & Hampden-Turner, 2004, p. 22)



Trompenaars & Hampden-Turner: Five dimensions

1) Universalism vs. particularism (rules vs. relationships)2) Communitarianism vs. individualism (group vs. individual)3) Neutral versus emotional (range of feelings expressed)4) Diffuse versus specific (range of involvement)5) Achievement versus ascription (how status is accorded)

“These five value orientations greatly influence our ways of doing business and managing

as well as our responses in the face of moral dilemmas.”

(Trompenaars & Hampden-Turner, 2004, p. 29)




1) Universalism vs. particularism„Percentage of respondents opting for a universalist system

rather than testifying in favor of a friend“:

USA 93%, Germany 87%, Japan 68%, China 47%

2) Communitarianism vs. individualism„Percentage of respondents opting for individual freedom“:

USA 69%, Germany, 53%, China 41%, Japan 39%

3) Neutral vs. emotional „Percentage of respondents who would not show emotions openly“:

Germany 35%, USA 43%, China 55%, Japan 74%

Research results: Three examples

(survey with 30.000 international managers)





Figure 4: Three Levels of Uniqueness In Mental Programming (Hofstede, 2005, p. 4)

PERSONALITY

CULTURE

HUMAN NATURE

Specific toindividual

Inherited and learned,individual

Learned

Specific to group or category

Universal Inherited

3. Geert Hofstede




Geert Hofstede: Five dimensions

1. Power Distance (More Equal Than Others)2. Individualism vs. Collectivism (I, We, and They)3. Masculinity vs. Feminitiy (He, She, and (S)he)4. Uncertainty Avoidance (What is Different is Dangerous)5. Long-term vs. Short-term Orientation (Yesterday, Now, or Later)




29 (31)31 (25-27)118 (1)80 (4-5)5 Long-term

Orientation

46 (62)65 (43)30 (68-69)92 (11-13)4 Uncertainty

Avoidance

62 (19)66 (11-13)66 (11-13)95 (2)3 Masculinity

91 (1)67 (18)20 (56-61)46 (33-35)2 Individualism

40 (57-59)35 (63-65)80 (12-14)54 (49-50)1 Power

Distance

USA

score (rank)

Germany

score (rank)

China

score (rank)

Japan

score (rank)

Country/

Dimension

Table 1: Scores/ranks of some Western and East Asian countries for Hofstede’s five dimensions




4. Richard E. Nisbett: Four dimensions

1. Stability vs. Change

2. Causal attribution East and West

3. Categories vs. relationships

4. Either/or vs. both/and




Figure 5: What goes with this? Nisbett, 2003, p. 141

One example:











AGENDA






6 Q & A



3 LABOUR LAW ISSUES IN CHINA – CULTURE AGAIN

About labor law and culture

● Historical context

● Economic dimension

● Importance and some characteristics of PRC Labor Law

● Recent development: New Employment Contract Law

● Particular rather than universal enforcement of law

Recommendations for HR managers of Western MNEs in China

1) Importance of knowing relevant laws and regulations (Jungheinrich)

2) It is better to fulfill the most restrictive requirements

3) Keep guanxi in mind – it helps (Microsoft)!



AGENDA






6 List of references



4 CULTURAL IMPRESSIONS OF CHINESE WORKPLACE BEHAVIOUR

Results from the analysis of Chinese workplaces in FIEs

● Hierarchy and loyalty

● Ambiguity of harmony and competition (Confucianism and use of stratagems)

● Practicality and emotion

● Problems of German expatriate managers in China

Implications

1) Cultural roots will further shape Chinese employees‘ behaviour

2) A sophisticated practice of handling relationships is crucial

3) Western desire for universal rules should be partly set aside



AGENDA






6 Q & A



5 WESTERN MNEs – THE CHALLENGE OF HRM IN CHINA

Global Business Strategy

& Strategic HRM

China Business Strategy &

Local Strategic HRM

Country C’s Business Strategy & Local HRM

Country B’s Business Strategy & Local HRM

Country D’s Business Strategy & Local HRM

Cross-cultural communication channels

between local units and global unit

Cross-cultural communication

channels between local units

Figure 6: A cross-cultural communicative model for strategic HRM (Prüfer, 2007, p. 98)




Three questions

1) What are adequate goals, structures and methods of future HRM strategies of MNEsin China?

2) What makes a good HR Manager in a MNE in China?

3) What are the requirements for developing such cross-cultural qualities and competencies of future HR managers in China?



1) What are adequate goals, structures and methods of future HR strategies of MNEs in China?

Goals

1) Focus on a long-term strategy

2) Adapt all HRM policies to Chinese cultural foundations of itsbusiness and working environment

Structures/Methods

1) Clear hierarchy, but without high-rank/low rank attitude

2) Sensitive awareness for the actual situation/changes of atmosphere

3) Focus on quality of supervisor-subordinate relationship (loyalty/trust)

4) Creating harmony through business and private relationship focus

5) Strategic career planning (management development, e.g. job rotation)

6) Retention measures: Creating a motivating company atmoshphere




2) What makes a good HR manager in an MNE in China?

1) Proficiency in dealing with legal matters (e.g. knowledge of relevant laws and regulations on national and local level, willand ability to act responsibly concerning the fulfillment of the most restrictiveregulations)

2) Recruitment skills: Hard and soft factors (e.g. very good intuition to forecast a candidate’s abilities and potential, goodnetwork of relationships)

3) High training related skills (e.g. in identifying training necessities, choice of training method, choice of trainingexpert, good network of relationships, clear quality evaluation skills, trans-culturalcompetency)

4) Ability to continuously shape development (e.g. handling retention and promoting issues, strategic management developmentplanning, flexible creation of new positions according to market requirements)




„Success takes place, following the beliefs of quite a few expatriates,

especially if both the Chinese and the German side is able to create an

integrative company process, which in the best case is extended into private

life or which is initiated in the private life with positive effects for the

working together in the company.“

(Wittkop, 2006, pp. 186-187)


Success is to a great extent a question of trust




3) What are the requirements for developing such cross-cultural qualities and competencies of future HR managers in China?

Future Chinese HR managers

1) Intensive period of personal development and learning in the globalbusiness unit/headquarter

Future Western HR managers

1) Deep interest in Chinese culture

2) Long-term orientation

3) Good preparation for China

(e.g. readiness for personality change, professional preparation, cross-culturaldevelopment, also based on practical experiences, improvement of English andChinese proficiency, willingness to learn more about Chinese philosophy andtradition)



AGENDA






6 Q & A



謝謝謝謝謝謝謝謝 THANK YOU VERY MUCH 謝謝謝謝謝謝謝謝 THANK YOU VERY MUCH 謝謝謝謝謝謝謝謝

Q & A



LIST OF REFERENCES FOR PRESENTATION

References (1)

[1] Adler, N.J. and Bartholomew, S. (1992): Managing globally competent people, in: Academy of Management Executive, 6: 3, 52-65.

[2] CEIBS (2006): OBI China: Going, Going, Gone – The Beavers's Failure to Break the Cultural Boundary. http://www.ceibs.edu/knowledge/casestudy/14561_3.shtml

[3] Chow, Daniel C. K. (2002): A Primer on Foreign Investment Enterprises and Protection of Intellectual Property in China. Chapter Six: Employee Issues and theWorkplace in China, The Hague, London, New York: Kluwer Law International, 97 - 121.

[4] Fernandez, J. A. and Underwood, L. (2006): China CEO. Voices of ExperienceFrom 20 International Business Leaders, Singapore: John Wiley & Sons (Asia) PTE LTD.

[5] Hall, E. T. (1989): Beyond Culture, New York: Anchor Books.

[6] Hall, E. T. (1990): The Silent Language, New York: Anchor Books.

[7] Hall, E. T. and Reed Hall, M. (1990): Understanding cultural differences, Yarmouth, Main: Intercultural press.



References for (2)

[8] Hofstede G. (2005): Cultures and organizations: software of the mind/Geert Hofstedeand Gert Jan Hofstede, New York: McGraw-Hill.

[9] Lauffs, A. (2004): Labor Law, in: Freshfields (ed.): Doing Business in China, Vols. 1, 2 & 3 (loose- leaf service) (2004) (hereafter DBIC), Chapter 6.

[10] Nisbett, R. E. (2003): The Geography of Thought. How Asians and Westerners think differently . . . and Why, New York, London, Toronto, Sydney: Free Press.

[11] Perlmutter, H.V. (1969): The tortuous evolution of the multinational corporation, in:Columbia Journal of World Business, 4: 1, 9-18.

[12] Perlmutter, H.V. and Heenan, D. (1979): Multinational Organization Development, Reading, MA: Addison-Wesley

[13] Prüfer, O. (2007): Human Resource Management (HRM) in China - a cross-cultural approach for successful HRM strategies of Western MNEs in China. Shanghai.




References for (3)

[14] Shen, J. (2005): Towards a generic international human resource management (IHRM) model, in: Journal of Organisational Transformation and Social Change, volume 2, number 2, 83-102.

[15] Trompenaars, F. and Hampden-Turner, C. (2004): Riding the Waves of Culture. Understanding Cultural Diversity in Business, London: Nicholas Brealey Publishing.

[16] Wittkop, T. (2006): Intercultural competency of German expatriates in China. Qualitative analysis, modelling and praktische Empfehlungen, Wiesbaden: Deutscher Universitätsverlag.This title was translated into English, published only in German under the original title:Wittkop, T. (2006): Interkulturelle Kompetenz deutscher Expatriates in China. Qualitative Analyse, Modellentwicklung und praktische Empfehlungen, Wiesbaden: Deutscher Universitätsverlag.




謝謝謝謝謝謝謝謝 THANK YOU VERY MUCH 謝謝謝謝謝謝謝謝 THANK YOU VERY MUCH 謝謝謝謝謝謝謝謝

Date post:	08-Jun-2018
Category:	Documents
Upload:	dangdieu
View:	228 times
Download:	1 times

Human Resource Management (HRM) in China – a cross ... · Human Resource Management (HRM) in...

Documents