HUMAN RESOURCE MANAGEMENT ESSAY. ECONOMY OF CHINA. FREE ESSAY SAMPLE

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In the recent decade China turned from a fast growing economy to a powerful economic force and a regional if not global economic leaders. Still, the western managers and managers view the Chinese system as very peculiar and unique with respect to the treatment of human resources. Some even argued that it would be inaccurate to call the current approach as Humana Resource Management. The following essay will analyze the nature of HRM, its functions and see if indeed it is not used in China.

HRM (human resource management) has many functions that strive to create more value for the organization by properly meeting the organization people’s needs. HRM is all about management activities and influence people in a given company.

HRM has the following functions:

1. Employment which is seen in planning and staffing functions of HRM.

2. Development which is seen in training and performance management functions of HRM.

3. Reward systems which are seen in compensations and benefits functions of HRM.

4. Labor-management functions which are seen in collective bargaining and other labor relations.

5. Support which is seen in safety and health and wellness functions.

6. Compliance with the existing affirmative action (Byars 122).

As Yan and Malcolm (2001) noted in their article Sino-foreign joint ventures versus wholly foreign owned enterprises' in the people's republic of China, foreigners liked China for its large market and potential and used traditional modes of entry such as "export trade, licensing, franchising, joint venture and wholly foreign-owned enterprise" (p.2). In all cases, the foreign investors needed to engage in hiring procedures, something that HRM does on a regular basis.

HRM strives for the long term benefits offered for a company which comprise the following:

1. Productivity increase. HRM has to properly motivate the employees to work better.

2. Quality of work life. HRM has to contribute to the environment conducive for working, cooperation and trust.

3. Profit increase. HRM has to use the human resources to increase profits of an organization (Dessler 211).

Job analysis is a part of the employment function for which HRM is responsible. Proper job analysis will allow the HRM to know what people should be hired and what qualifications they should possess. The proper job analysis will allow the company to avoid wrong candidates and thus will allow the company to avoid inefficiencies.

Another article by Wang, Cindy, titled HRM in Transition, A Study of MNEs in China, noted that currently all labor is managed in accordance with the new Labor Law of 1994 (Wang, 5). Furthermore, China appears to be different with respect to Hofstede's factors as it is collectivist, masculine, with large power distance and low uncertainty avoidance. The US and European countries typically are individualistic, with small power distance and unafraid to change (p.7).

Currently there are several models according to which companies behave on a daily basis, and as one might find it surprising, Chinese corporations do use at least one of them:

1. Autocratic/authoritarian - This model assumes that the major power rests with the formal managerial authority. The employees are thus expected to show respect of authority, obedience and dependence on their chief honcho. The performance result is not as important as obedience to authority (Mondy, 41). This model is believed to be used at most Chinese organizations, taking into account the low efficiency and effectiveness of production achieved primarily through menial labor of uneducated workers.

2. Custodial - This model of Organizational Behavior is based on the corporate economic resources with a strong managerial orientation towards money. The workers, thus are oriented towards job security, safety, fringe benefits and dependence on the whole organization rather then on their boss. The performance results in a passive cooperation which is not very beneficent for the company.

3. Supportive - This model of Organizational Behavior is based on the formal leadership with a strong managerial orientation of support. The company's workers thus are directed towards outstanding job performance and active participation. The employees working in this Organizational Behavior model need corporate status and formal recognition. The company's performance usually results is awakened drives and desire to get some formal thanks (Mondy, 95).

4. Collegial - This model of Organizational Behavior is but a partnership with a managerial orientation of teamwork. The workers are directed towards responsible behavior, teamwork and self-discipline. The employee strive to reach self-actualization, thus making company's performance result in enthusiasm.

Here it is vital to note that although there appear to be four models of Organizational Behavior, no single company uses exclusively one of them, but rather one dominant model and one or two supporting models that are used for resolving various corporate situation. The authoritarian/autocratic model as used in Chinese companies started during the industrial revolution time, with the managers adhering to the Theory X of McGregor. The subsequent models (Custodial, Supportive and collegial) use the Theory Y of McGregor and are equal in their popularity and effectiveness (Messmer, 43). One should add here that since the Chinese by nature are quiet, obedient, respective to authority, disciplined and family-oriented, it makes sense to use authoritarian management style (Wang, 8).

In conclusion, one should note that China has been influenced historically by communism, religion (Confucianism) and isolation from the rest of the world. By nature Chinese employees differ from their European and American counterparts so to make them work more effectively a different approach is necessary. As companies enter China through the "open door policy" they want to minimize costs and get as efficient as possible. Authoritarian managerial style with decent level of respect being paid to the employees and the management appears to be working well in China despite the fact that some might argue that this approach cannot be considered a true HRM. I believe that HRM does exist in China yet in a country-specific version. Just like the HRM is different in Germany, Russia, USA and Brazil, so it is different in China

Bibliography:

Wang, Cindy, HRM in Transition, A Study of MNEs in China, http://www.ribm.mmu.ac.uk/wps/papers/wp02_08.pdf

Yan, Daniel, Warner, Malcolm, Sino-foreign joint ventures versus wholly foreign owned enterprises' in the people's republic of China,

http://www.jbs.cam.ac.uk/research/working_papers/2001/wp0111.pdf

Byars, Lloyd, Human Resource Management, Prentice Hall, 2003.

Messmer, Max, Human Resources Kit for Dummies, McGraw Hill, 2002.

Dessler, Gary, Human Resource Management (9th Edition), NY Random House, 2003.

Mondy, Wayne, Human Resource Management (8th Edition), Wiley and sons press, 2003.

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