An empirical study of human resource management policies and practices in foreign-invested enterprises in China: the case of Shenzen Special Economic Zone

Information about human resource management (HRM) practices in foreign-invested enterprises (FIEs) in China has been limited to studies involving a small number of cases. This study provides an empirical assessment of HRM practices used in 158 FIEs operating in Shenzen Special Economic Zone (SEZ) of the Guangdong Province in southern China. Results suggest that FIEs have moved away from centrally planned job allocation, life-time employment and egalitarian pay towards open job markets at management and non-management levels, contractual employment where pay and longevity are based on individual worker and company performance and compensation plans that recognize differences in skills, training and job demands. These practices seem to reflect the influence of the economic reform in China. Other aspects of HRM practices used by FIEs, such as approximate equality of pay for men and women, limited differences between management and non-management salaries and widespread provision of housing and other benefits for employees, seem to reflect the influence of the Chinese socialist ideology.     

Globalization,labour markets and human resources in Asia-Pacific economies: an overview

Abstract This article argues that the impact of globalization on labour markets and human resources on the Asia-Pacific economies may be recognizable but is as yet relatively limited. The sheer variation of geography, population, economies, labour markets, IR and HRM systems there, as well as of values and the like, makes it difficult to talk of 'hard convergence'. We thus emphasize the notion of 'soft convergence'. The article develops a number of empirical propositions regarding the uneven impact of globalization on economies in the region. It concludes that any generalization on this theme should be greatly qualified.     

Human resource management,trade unions and empowerment: two cases from India

This paper discusses the introduction of schemes aimed at employee empowerment within a context of strong industrial relations in India. The pressure put on profit margins by a competitive business environment is forcing an increasing number of Indian enterprises to view employee empowerment as a serious strategic option. Getting workers to take responsibility for shop-floor decisions over quality, safety, productivity and material use appears, at first sight, an alluring prospect. It would seem that men and women at the bottom of the pyramid cannot but be warmly appreciative of power-sharing arrangements from which they have something to gain, but there are forces at work which can actively obstruct or quietly subvert attempts at redistributing power. In this paper the focus is on some of the motives a trade union might have to do so.     

HRM practices in China-Western joint ventures: MNC standardization versus localization

In recent years, multinational corporations have become increasingly ascendant in the world economy. The HRM strategies that these corporations adopt may blend global integration with local responsiveness. This paper examines the compatibility between MNC standardization and localization of different HRM practices in a sample of Sino-Western joint ventures. The findings indicate that various HRM practices have different responses to MNC standaridization and localization.     

Line and HR executives' perceptions of HR effectiveness in firms in the People's Republic of China

This paper examines the differences in perceptions of the importance and effectiveness of human resources (HR) practices in firms operating in the People's Republic of China. The major finding is that while there are no significant differences between HR and line executives' perceptions of the importance of each functional area in human resource management (HRM), there are significant differences between line and HR executives' perceptions of the effectiveness of these areas. Line and HR executives both view the issue of securing, developing and maintaining human resources as a critical issue for the execution of daily operations and long-term strategic plans. However, line executives perceive HR performance effectiveness as significantly lower in these functional areas than HR executives do. Therefore, HR departments are not meeting the performance expectations of line executives. There are three possible reasons for the poor performance of HR departments. First, government intervention may limit HR departments' ability to act strategically. Second, HR departments may not have enough power to act strategically. Third, HR departments may have few capabilities to respond to line executives' demands.     

Personal characteristics and adjustment of Chinese mainland business expatriates in Hong Kong

Chinese mainland business expatriates assigned to Hong Kong were surveyed assessing their socio-cultural and psychological adjustment. The investigation explored the association of a variety of personal characteristics with adjustment to work and life in the territory. The main results of the study showed that expatriates from the neighbouring Guangdong Province, male expatriates, younger expatriates and expatriates who were accompanied by their spouses were better adjusted in Hong Kong than others. On the other hand, expatriates recruited directly from universities were less well adjusted than those hired from other sources. Implications of these findings are drawn and future avenues for improving and extending this kind of exploratory research are discussed.     

The impact of economic reform on the role of trade unions in Chinese enterprises

The movement of the Chinese economy towards a market orientation has been characterized by high levels of foreign direct investment, the diversification of forms of public ownership and the growing economic significance of the private sector as the PRC joins the global economy. These changes have clearly had a significant impact over time on the Chinese labour-force. This study, based on a geographically dispersed sample of sixty-two enterprises, both state-owned and joint venture, examines the effect of these economic reforms on industrial and labour relations, and in particular on the role of trade unions at plant level.     

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 impact of SARS on China's human resources: implications for the labour market and level of unemployment in the service sector in Beijing,Guangzhou and Shanghai

In this paper, we examine the effects of SARS (Severe Acute Respiratory Syndrome) on China's human resources, its labour-market and its level of employment and unemployment, looking specifically at what was one of its economically most vulnerable points, the hotel industry. The paper hypothesizes that the greatest impact would be on human resources in the service-industries and on particular sub-sectors, such as employment in hotels, located in three main cities in the PRC, in Beijing, Guangzhou and Shanghai, catering to both overseas as well as domestic tourism. It tentatively concludes that the almost dramatic demand and supply ‘shocks’ may have directly affected both the demand for and the supply of labour in the sub-sector, with discernable employment consequences.