HRM Practice

HRM Practice

HRM Practice

Introduction

China maintains a technical standards and conformity assessment regime to ensure product quality and safety, to protect consumers' well being, and to safeguard the environment. Its system has evolved considerably since the establishment of the first standards-related regulatory bodies in 1949 and the first commodity inspection procedures in 1984. Subsequent adjustments to the system have been made with an eye toward adopting and helping to set international standards. But the changes are as much about installing a system that bolsters the competitiveness of Chinese products in overseas markets as conforming to international practices.(Carroll,1997,478)

Nowadays, over 50,000 multinational companies (MNCs) enter the Chinese market every year, attempting to find, recruit and retain the talented people they need to run their businesses.

Although paradoxical at first sight, world-class talent is limited in China. The skills shortage is especially severe in the managerial sector, where estimates forecast that China will need over 75,000 qualified managers in the next ten to fifteen years. However, only 5000 are currently available on the labor market. Multinational companies, which Chinese employees have traditionally preferred as employers, now find themselves competing against restructured national companies. For this reason, they now need to develop effective talent management strategies. Under these circumstances, talent management has become a major concern for western MNCs operating in China. (Gamble 2006, 328-343)

Discussion

Employees with previous work experience contrasted UK Store's expatriates favorably both with other foreign managers and Chinese managers they had encountered. A decorative materials department deputy supervisor stated, “The UK managers are very polite, we like working with them, they're easy going and treat us as equals. Chinese managers in other companies are separated from the masses and aren't willing to interact with workers.” Similarly, a showroom customer assistant remarked, “there's not a feeling of distance between workers and leaders, we feel close. Leaders have a feeling for us, this encourages workers; it makes people willing to work hard.”(Guirdham,2005,48)

A store manager recalled how, as a supervisor, he had trained every day for three months alongside the first two expatriates. The deep impression this had left on him was clearly evident four years later. He was impressed by their attitude to work, the skills they had taught him and the personal concern they had shown for his career development.

This study indicates, then, that mentoring and the example set by expatriates can be effective even if they lack local knowledge. However, it is important to ensure that expatriates regard developing local managers as a top priority and receive incentives for successfully doing this. At UK Store it was part of both expatriate managers' and their local successors' evaluation to develop their successors. Firms with operating units across China can set up a scheme of “local expatriates”. This strategy, adopted at UK Store, can help retain talented local staff and reduce the high costs associated with foreign expatriates. (Carroll,1997,478)

Employees cited visible symbols of company culture such as the single status uniform and use of English first names for all staff as both indicative of ...