From traditional personnel management to HRM

1. From traditional personnel management to HRM traditional personnel management: concerns mostly issues related to industrial relations and administering employees HRM: a strategic function concerned with consequences of all organizational decisions for human productivity and for the well-being of the entire work force. It is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable work force, using an integrated array of cultural, structural and personnel techniques.

2. HRM practices in China Still in a primary stage, and still under heavy political interference prior to reform, most personnel issues of enterprises were controlled by administrative agencies. For example, recruitment of employees were restrained by quota and there was little freedom for employees and employers; wages were fixed according to government grades

3. HRM practices in China During the reform period, there have been many changes in personnel management in enterprises. For example, enterprise managers now have more freedom in recruitment and pay and bonus determination. The progress was limited by intervention of local governments, which are eager to avoid unemployment.

4. HRM practices in China Concepts of Chinese culture affecting HRM practices in China the respect for age and authority maintenance of harmonious human relations the favor of personal relations group orientation the concept of face, which suggests that one should avoid losing face - shame and indignity in public.

5. Challenges for joint ventures Sources of HRM practices for joint ventures in China home practices practices in local firms how to adapt the home HRM practices to a different institutional and cultural environment? which source has been dominant in shaping the HRM practices in joint ventures in China?

6. Areas of HRM Recruitment Training Performance appraisal promotion criteria financial reward

7. Recruitment Source of recruitment transferring the existing workforce from the local parent partner recruiting from the labor markets

8. Recruitment Merits and defects of inheriting the existing workforce of local parent partner quick to start the local partner provide welfare and supporting facility old organizational culture old group adherence

9. Recruitment Merits and defects of recruiting from labor market selecting the best candidates creating new organizational culture and management style lack loyalty and high turnover rate difficult to persuade local partner to accept this practice

10. Training Generally most joint ventures in China recognize the importance of training and devote a large amount of resources to training overseas training regarded not only as knowledge acquisition, but also as part of the strategy to retain good employees

11. Performance appraisal Share similarities to that of home HRM practices than to those of local firms use of objective appraisal criteria; qualitative criteria are used as complimentary top-down appraisal system; unlike the practice in local firms, managers are not rated by subordinates

12. Promotion Most similar to home HRM practices the GM has important power to determine the appointment of middle managers and other subordinates, while in local firms promotion typically involves collective actors promotion as a strategy to prepare for greater localization usual conflict between foreign and local partners over promotion

13. Financial rewards Joint ventures often offer much higher pay than local firms the difference of pay for worker and manager is larger in joint ventures pay and bonus are geared to individual contribution

14. Why localize? High cost of maintaining expatriates greater long-term effectiveness of local managers need to attract and retain high potential employees best use of human resource assets available locally

15. Challenges for localization in China Few qualified people selecting appropriate personnel need for accelerated training managing the expectations of local employees managing internal politics and resentments ensuring the transfer of knowledge and skills by expatriates lack of comprehensive localization strategy

16. Developing high potential employees Developing local leaders in the training classroom coaching and mentoring by someone who understands how to execute business strategies through people trial and error experimentation by local managers

17. Developing high potential employees Coaching by expatriates positioning: to position local managers properly within the organization, both in China and in the eyes of their western colleagues back at the headquarters rotating jobs: moving from various types of functional areas to develop broad base of experience

18. The roles of expatriates Expert role: to transfer technical and managerial knowledge general management: to provide strong leadership, build up organizations, and push for changes to communicate with the headquarters to safeguard the company�s interests Hence, a certain amount of expatriates are needed because some roles are very difficult to be taken up by local managers