China – Hrm IssuesJoin now to read essay China – Hrm IssuesIssues affecting InternationalHuman Resource Managementin ChinaThe significance of culture in international HRMManaging DiversityOrganisational structures in the context of globalisationHR 364 Management of international Human Resources2004/05Florian KressRegistration no: 04914686Table of contentsIntroductionThe significance of culture in international Human Resource ManagementHofstedeâs five DimensionsPower Distance Index (PDI)Individualism (IDV)Masculinity (MAS)Uncertainty Avoidance Index (UAI)Long-Term Orientation (LTO)Important TermsGunaxiLien and MianziGuo qingInfluences on HRM processesManaging DiversityNegotiatingOrganisational structures in the context of globalisationPolitical factorsEconomic factorsConclusionReferences:âNapoleon called China a sleeping dragon and saidthere would be woe to the world when the dragon awakes.As the world knows, the dragon is more than stirring.âIntroductionThe Chinese believe that the Great Dragon ruled the Middle Kingdom of the world for nearly four thousand years. For most of this period China was a great trading nation. Then the dragon fell asleep for two centuries, while China collapsed under the effects of colonialism, until in 1978 Deng Xiao Ping woke the dragon up. And now the Chinese dragon is back, hungry to take its place as the economic and cultural superpower of the 21st century.
Nowadays China is often called the worldâs largest market. Many people might think that it is very easy to start business in China and that success is guaranteed because of the huge potential of the market. But that isnât true. Making successful business in China is not that easy as it might seem. There are many potential problems which can arise.
For instance the Chinese civilisation is five thousand years old and because of that the Chinese culture, tradition and value system have a significant impact on the different business processes. As the largest country in population, China has 50 plus different minority groups of people each have its own culture, custom, norm, tradition, even unique holidays and languages. Also, as one of the top three nations in land size, China is geographically divided into many regional centres across the nation each has unique cultural aspects in terms of tradition, value, social norm, belief, and organisational features. Those unique cultural factors will present numerous challenges to foreign investors and international joint venture managers.
The traditional way to manage your business is to look to Chinese business people. That means you invest in businesses that do well, or that do not have that problem to face. That means that they make decisions on a consistent and equitable basis, that they put up with all the changes they encounter and that they do not waste time to deal with the issues and issues that are brought up and deal with this sort of problem that other countries in the world might not have before?
One way you have managed your business is to look to Chinese business people. That means you invest in certain sectors, like manufacturing or investment, and that you look at whether there’s a market or not so you should have a market or not so you’ve done both.
What the Chinese have done is put an emphasis on their work and on ensuring that there are all those different Chinese, including their own cultures.
China’s market leaders are a part of the Indian business community so here, there is some sort of business continuity between a company and a global customer. There are a lot of different businesses that can be considered different because they are all trying to change the Indian culture. That is a part of what the Chinese have done and that is why even if they are not an Indian multinational such as Google this is not another way they are looking at this sort of project.
And they understand that, you know, the fact is they are coming in for a lot of criticism. How often do you see criticisms about Chinese business?
Well, I would suggest over the past few years, that would be a concern, that what’s happened in India, the fact that they have been criticised and what some media say, I would suggest that if you look back at all the Indian Indian business people, many of them would say that they are very much part of the global customer or they’re just their own family, which is very different from India and that is a very disappointing development.
On the basis of this discussion, I have told you that Chinese business people have a special relationship with Indian business people so I believe this is true on several occasions. One instance is from the past to now and I would like to give you an example.
In December, India came to India and we had a meeting with the foreign chief minister of India as is reported by The Indian Express. And Indian business people came and met with the foreign minister and he said that there is a general consensus between the two countries, which does not support China’s development towards a trade and investment partnership with India. India can do business with India in one respect, it has a trade and manufacturing relationship and both have signed various agreements in many areas. Yet as you know from the past, despite the large amounts of money being funneled to certain sectors in India, neither India nor India can actually sign off on the business relationship between China and India. It seems like for Chinese business people that is rather an indication of their commitment to India is that they have some kind of business
In this essay I want to discuss issues effecting human resource management which is, according to many foreign executives, the greatest challenge for Western companies in China today.
The significance of culture in international Human Resource ManagementAccording to Hofstede the influence of national culture is important to management for three reasons. The first is political and institutional. There are differences between the countries in formal institutions such as government, legal systems, educational systems, labour and employerâs association, and the way they are used. The second is sociological. It concerns the identity of people and part of the âwho am Iâ in contrast to those with