Localizing management in foreign-invested enterprises in China: practical,cultural, and strategic perspectives

The business case for the rapid localization of management has often been argued. This paper takes a critical look at the assumptions underlying such arguments. This exploration utilizes data gathered from a variety of Japanese, Korean, Hong Kong, and European ventures in China. Evidence from these case studies is incorporated within a broader exploration of Chinese cultural values and attitudes derived from ethnographic research and approaches to the strategic management of multinational enterprises. It is suggested that localization is likely to proceed at a much slower pace than its main advocates may wish or anticipate, and that there are practical, cultural, and strategic factors which may, and perhaps should, inhibit rapid localization. Such factors range from the lack of suitably qualified local managers, to control and surveillance functions and expatriates' roles as trainers, co-ordinators, and relatively neutral 'outsiders'. It is proposed that the development of a core of culturally literate expatriates can become a valuable resource for MNEs and that their selection, support, and compensation packages should be considered as an investment in firms' long-term strategic development.     

The human resource barriers to managing quality in China

China has one of the fastest growing economies in the world. The challenge for the future is likely to be the extent to which Chinese operations can utilize modern management techniques to improve product and service quality. This paper explores some of the problems that were affecting the management of quality within two foreigninvested enterprises (FIEs) based in the Shenzhen region of China. The paper argues that the provision of new factories and machinery was not sufficient in itself to ensure the maintenance of quality standards. Quality management in the West has become synonymous with increased employee involvement and developing customer-orientated cultures (Rees, 1998). The success or otherwise of quality management initiatives therefore depends upon the co-operation and enthusiasm of employees (Wilkinson et al ., 1998; Oliver and Wilkinson, 1992). Quality management within the case companies was hampered by the prevailing work ethic and was hindered by inadequate human resource and management systems. The study highlighted poor standards of training, dissatisfaction over levels of remuneration, and poor communication within the case companies. The paper argues that the problems experienced by the companies were inextricably linked to aspects of China's historical development. This history has helped to engender employee attitudes and behaviours that are poorly understood. Models of quality management are needed which are sensitive to the Chinese operating context.     

Human resources in Sino-foreign joint ventures: selected case studies in Shanghai,compared with Beijing

This article examines HRM in joint ventures (JVs) in Shanghai compared with those in Beijing using a case-study approach. It focuses primarily on issues relating to labour contracts, rewards and benefits, social insurance, trade unions and personnel policies, and describes current developments in China in each of these areas. In order to place these JV human resource practices in context, we also draw on interviews in state-owned enterprises (SOEs) in Shanghai and Beijing. Taking as a starting point a summary of traditional SOE 'iron rice-bowl' ( tie fan wan ) practices in the management of personnel, we ask to what extent HRM in the present JV sample differs from traditional methods and to what extent 'iron rice-bowl' practices continue despite foreign ownership. The extent to which HR practices in JVs are distinct from those in contemporary SOEs is also examined. We conclude that, although, as one would expect, foreign ownership has modified traditional practice, the degree and extent to which this is true varies widely. There is strong evidence of institutional and organizational continuity in 'iron rice-bowl' practices in both JVs and SOEs. Finally we propose a framework for categorizing the companies investigated in terms of their distance from traditional 'iron rice-bowl' HR practices and proximity to 'imported' practices. This consists of two 'pure' and two hybrid categories: pure 'iron rice-bowl'; hybrid I (predominantly local); hybrid II (predominantly imported): and, finally, pure imported. In this schema, the companies examined do not however group neatly according to whether they are JVs or SOEs.     

Cultural barriers in the transferability of Japanese and American human resources practices to developing countries: the Turkish case

Multinational enterprises can be expected to increase their chances of success by understanding the socio-cultural systems of the regions in which they operate. This paper examines the applicability of Japanese and American human resources management practices in Turkey within a socio-cultural perspective. Emphasizing the contextual differences between developing and industrialized countries and comparing work-related values of the three countries, the paper argues that Japanese human resources practices are more compatible with Turkish societal characteristics than are their American or Western counterparts.     

A clash of human resource management cultures: a micro-state case study

When resorting to Greek divine mythology to purchase original insights on management styles, Handy (1991) identifies Apollo and Dionysius as representative of two ideal types which can be developed and fine-tuned to highlight one relatively under-explored area of inter-cultural human resource management. This concerns the cultural interface between alien, imported management styles and local, home-grown practices in the context of small and island states. This paper argues that indigenous behaviour patterns in the unfolding of labour-management relations cannot be discounted. Indeed, these home-bred practices will both place imported 'textbook' management strategies in sharp relief as well as debilitate their purposed efficacy. Such a proposition suggests that this is one expression of how globalization will necessarily find itself textured and infected by indigenous cultural material, even that forthcoming from possibly the least expected quarter: that of micro, insular jurisdictions. Case-study material exploring and illustrating this cultural clash is drawn from seminal, empirical fieldwork carried out in the Indian Ocean island state Republic of the Seychelles.     

Change and development in pluralistic settings: an exploration of HR practices in Chinese township and village enterprises

Very few systematic studies have been conducted on the managerial practices of Chinese Township and Village Enterprises (TVEs) despite their increasing contributions to China's economic development. Focusing on the HRM practices in ten different TVE organizations in a new city in Southeastern China, this study aims at filling a gap in the literature by exploring the general HRM practices in those organizations. Results show that HRM practices in TVEs, although still relatively primitive compared to those in state-owned enterprises (SOEs), have been much more formalized recently. Employees are now mostly selected rather than referred by existing employees or ' guanxi ' as they were previously. New employees in many large TVEs are now trained through formal procedures rather than through apprenticeships, and pay is tightly linked to performance and skill levels. However, in smaller TVEs, HR practices are less formalized. The study points out that the firm size may be an institutional factor affecting the implementation of formal HRM practices. Yet, regardless of the form of personnel management, HRM practices are shown to be a very important factor in the economic success of TVE firms. Further studies are necessary to understand HRM and other managerial practices in TVEs and to test the relationships between HRM practices and firm performance among the TVEs.     

How new venture initial public offerings benefit from international operations: a study of human resource value

When internationalization goes beyond simply having international sales to having international operations, organizations can benefit from diversity of ideas and knowledge. Our study focuses on a special class of companies called new venture firms. As younger organizations, they may be well equipped to embrace the unique benefits of international diversity. However, new ventures may not be equal in this regard; therefore, our study also explores the moderating effect of human resource value for these firms.     

Human resource management practices in Nigeria: challenges and insights

This paper generated current knowledge on aspects of human resource management practices in Nigeria from a sample of 185 human resource management professionals employed in over ninety-six corporations located in three major cities in Nigeria. Furthermore, the convergence/divergence/cross-vergence perspective was utilized to provide theoretical insights on the human resource management practices. The findings support a cross-vergence perspective as evidenced by the blend of human resource management practices reflecting both generalized or standardized practices and localized practices. Implications and direction for further studies are discussed.     

On the shoulders of giants: a meta-review of strategic human resource management

Abstract

Recent years have witnessed significant growth in the field of strategic HRM. This article summarizes the literature in this field by conducting a meta-review, a review of the reviews that have covered various topics of strategic HRM. In doing so, the authors highlight theoretical frameworks and empirical findings of studies in the field over the past three decades, identify methodological issues and challenges in the previous research, and discuss recent trends in the field of strategic HRM. The author concludes by suggesting some interesting and important directions for future work.     

A study of HRM and recruitment and selection policies and practices in Taiwan

In this paper, the authors present and discuss the findings of a survey of human resource management (HRM) and recruitment and selection policies and practices in a sample of manufacturing industry in Taiwan. The results indicate that there is a general desire among HR professionals in participant companies that HRM policies are integrated with corporate strategy and that HRM should be involved in decision making at board level. Evidence was also obtained that some HRM decisions are shared between line management and HR specialists and that line managers had a particularly influential role in decisions regarding recruitment and selection, training and development, and workforce expansion/reduction. There was also some evidence supporting an assertion that certain recruitment and selection practices were culturally sensitive and this was supported by evidence of association between recruitment and selection practices and country of ownership.     

A comparative analysis of certification in human resource management

This comparative analysis explores the certification process in three leading organizations in the USA, Canada and the UK. The findings show considerable similarity across countries concerning the major stakeholders and certification criteria. Conversely, they reveal major differences with respect to the basic assumptions underlying the programmes, the standards and qualifications, the programmes' complexity and the programmes' integration with the government, industry and academia. Dissimilarity also exists in the certification process. Hence, certification programme models for each organization are advanced to illustrate the process. Moreover, an overall strategic programme framework is developed for all the agencies collectively. Finally, suggestions for future research are provided.     

An international comparison of human resource management objectives and activities

The paper reports on mailed surveys of human resource professionals in Canada, South Africa and Zimbabwe who were asked for their views on the priorities they set in terms of human resource objectives and activities. Respondents were also asked to indicate the challenges facing the field and the resulting changes that may be required in each country. The results indicate considerable agreement between the three countries on the need for flexibility and cost effectiveness, but disagreement on priorities among some other activities. There are major differences between perceptions of immediate and long-term priorities to be set. There is a concern that short-term efficiency may be accorded a priority which prevents due consideration being given to future development and societal issues.     

Ethnicity and human resource management practice in sub-Saharan Africa: the relevance of the managing diversity discourse

The paper explores issues of human resource diversity in the multi-ethnic societies of sub-Saharan Africa, arguing that ethnicity constitutes a primary dimension of diversity. The influence of ethnicity on employment relations in organizational life in this region is examined and whether the discourse of managing diversity could be applied to manage such diversity. The paper argues that, if the ethnic diversity found in African organizations is well managed, this could enhance organizational harmony and effectiveness. Further, if organizations in Africa deliberately embrace approaches of 'inclusion' rather than 'exclusion' in managing their human resource and appreciate the inherent employee 'difference', it could improve the image and effectiveness of organizations operating here. At the same time, there is a need to adapt such approaches to the cultural specificity of local contexts.     

Human resource management in Botswana: approaches to enhancing productivity in the public sector

Public-sector productivity is an issue that is now squarely on the agenda in the global arena. In recent times it has also emerged in the research and literature on human resource management and development as a significant aspect of the advocacy for re-engineering or re-inventing government, entrepreneurial government, quality management in the public sector, public sector efficiency and so on. This paper discusses and analyses productivity in the public sector in Botswana, the current approaches being employed to enhance it, and advocates, from a human resource management perspective, policy areas which can be beneficial for the sustainable enhancement of that productivity in the country.     

Variations in human resource management in Asian countries: MNC home-country and host-country effects

This paper investigates the determinants of HRM strategy in a random sample of firms operating in Korea and Taiwan. Both indigenous and foreign-owned firms are studied. HRM strategy is measured in terms of the company's reliance on high-performance, versus more traditional, HRM policies and practices in several different areas, including staffing, employee influence, employee rewards and employee autonomy. Independent variables include the firm's country or region of origin (USA, Japan, Europe, Korea or Taiwan), the host country (Korea or Taiwan) and the internal culture of the firm, as measured by upper management's perception that human resources constitute a significant source of value for the organization. Pronounced differences are found across countries of origin and between the two host countries. Managerial values and various organizational characteristics that serve as control variables are also found to impact on HRM strategy.     

Understanding 'individualization' in human resource management: the case of 'skill-based pay' in France

'Individualization' in personnel practices has long been considered as an essential component of 'modern' human resources management, but the empirical complexities of its definition, implementation and impact within firms have not been analysed in considerable depth. This paper adds to this analysis by reporting on research into one form of individualization - 'skill-based pay' - adopted in different sectors in France. The crucial institutional context for this adoption is explained and then it is shown how different models of skill-based remuneration have emerged as a result of both sectorial contingencies and specific industrial relations processes.     

Managing human resources across cultures: a comparative analysis of practices in industrial enterprises in China and The Netherlands

Abstract Although researchers and practitioners have come up with many good ideas for improving the employment relationship, there is no evidence for universally applicable practices. Prior theoretical work and research in the area of (international) human resource management indicate that cultural and contextual constraints are responsible for the problematic nature of transference of practices. This study illustrates and explains the contextual as well as cultural boundaries through a direct comparison of practices as used in a matched sample of industrial companies in China (n=97) and The Netherlands (n=47). It is argued that differences in organizational structure, cultural values and labour regulations account for the variation between countries. The results show considerable differences between China and The Netherlands in the HRM practices of industrial enterprises. Also, the organizational culture of the companies studied varies between the two countries and the differences found are clearly in line with differences on the national cultural level.     

Managing human resource for competitive advantage: a study of companies in Singapore

We see two major streams of research in the strategic human resource management literature: (1) the link between strategy and human resource (HR) practices and (2) the link between HR practices and firm performance. There is a plethora of theoretical perspectives on the first link. Unfortunately, there is not much empirical work. The second link has seen a spate of empirical studies. However, most of them embrace the universal perspective and the role of strategy as a contingency has not been adequately addressed. This could potentially result in the underestimation of the impact of HR practices on organizational performance. This study addressed the above two weaknesses in previous research in the strategic HR management field. Using a sample of about 200 of the largest companies representing all major industries in Singapore, we found that organizational strategy affects HR practices. Moreover, findings suggest that the strategy-HR interaction accounts for more variation in firm performance than the main effect of HR. Implications of the findings are discussed.     

Organizational context and human resource management strategy: a structural equation analysis of Hong Kong firms

Previous studies to explain why companies utilize particular human resource management (HRM) strategies have not adequately addressed the influence of contextual variables such as size, location, ownership, competitive pressure, technological change, age and growth. In this study, we investigate the extent to which these contextual variables are related to HRM strategy in seventy-six private-sector firms located in Hong Kong. Our analysis uses structural equations to examine the relationships among contextual variables and HRM strategy to develop and retain managers. The results show that contextual variables have both direct and indirect effects on an organization's HRM strategy. The indirect effects occur through the top management involvement of the HR function within an organization. Use of a human capital development HRM strategy reduces organizational uncertainty about having an adequate supply of managers to meet firm objectives. Contrary to our expectation, in Hong Kong firms, greater reliance on internal development and promotion tends to increase uncertainty and greater competition tends to reduce training investment. Both of these unanticipated relationships may reflect the high mobility of managers peculiar to the Hong Kong labour market.     

Correlates and consequences of high involvement work practices: the role of competitive strategy

Illustrative of world-wide trends, New Zealand has undergone drastic product and labour market reforms in an attempt to stimulate economic growth and national competitiveness. Towards this goal, firms have been urged to emphasize differentiation strategies in their approach to their markets and also to become more progressive in their management of human resources. This study finds that whereas more intensive use of high involvement work practices promotes firm effectiveness, this effect depends on the competitive strategy being pursued. The use of high involvement work practices is positively associated with performance in firms competing on the basis of differentiation and shows no relationship in firms pursuing a strategy of cost leadership.