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HRM Flow

HRM Flow. Recruitment. Network-based ( guanxi ) Qualified sons/daughters of current employees Graduates who have had an internship - Managerial staff recommended by government - Employee referrals. Mass Media - Newspapers - TV advertisements - Ad messages in broadcasting

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HRM Flow

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  1. HRM Flow

  2. Recruitment • Network-based (guanxi) • Qualified sons/daughters of current employees • Graduates who have had an internship • - Managerial staff recommended by government • - Employee referrals Mass Media - Newspapers - TV advertisements - Ad messages in broadcasting - Offers in magazines and journals • Networking is more frequently used than mass media • Main factors: time invested and quality of hire • HR managers felt using networks had better outcomes • 1) Better Pool – referrer enlarged qualified pool and “pre-screens” • 2) Better Match – referrer acts as middleman to relay information • 3) Social Enrichment – pre-established connection between employer and hire

  3. Recruitment 关系 guānxì WHO you know in addition to WHAT you know The value of guanxi is to facilitate favours and being able to obtain things not readily available in the market place (ie. goods, services, information) Modern Roots ofGuanxi - 1950's institutional environment: state job allocation and assignment - Network bridges to reach a contact that might have influence over recruiter - Used ties for influence to get job, not just information about it - Jobs were usually assigned by officials as favours to those who were connected to their social networks

  4. Recruitment • Use of Guanxi Today • Guanxi-based recruitment is still the norm • - previously had been used to influence actually getting a position • - nowadays relied on for information - stronger ties had quality information • As state control pulls back and interferes less directly with hiring • - firms can hire in any way • - formal practices still only emerging • Both factors often result in defaulting to the norm of relying on networks • Issues: • Clique forming among employees • Bringing in non-work-related matters • detrimental to workplace dynamics

  5. Recruitment Other Recruitment Trends - Internet recruiting becoming popular since mid 2000's - Campus recruiting also very popular - Annual job fair in major cities draw immense crowds

  6. Recruitment • Selection Process may utilize: • Application forms, resumes/CV’s • Knowledge and skills testing • Interviews

  7. Training • Major Issues • Skills mismatch and labour demand attribute to qualified candidate shortages • New grads plentiful, but skilled middle managers hard to find • Lack of business education requires much training to be productive in a western business environment, particularly for locals • Fresh grads not being equipped with the right skills (ie. strength in memorizing rather than creative thinking)

  8. Training • Forms of training include: • In-house program • Education abroad to foreign universities • Use of new foreign training companies that operate locally • Popular Areas of Training • Foreign language • Business writing • Public speaking and presentation • Job specific • MBA classes to executives

  9. Retention • Salary attractiveness • Bonuses • Performance based • Annual bonuses around the Lunar New Year • Housing • Housing allowance, rent reimbursement, mortgage assistance, employee condos • Training • Employee feels valued if company is willing to invest in him/her

  10. Retention • Career Advancement and Titles • Expectations to be rewarded immediately • Performance Reviews • Workplace Relationships • Employer regarded like extended family and needs to establish emotional connection • Importance of ‘face’ and not making employees lose ‘face’ • Good Company Reputation

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