Human Resource Management In China Case Study

1. HUMAN RESOURCE MANAGEMENT IN CHINA

1.1 Introduction

The people Republic of China is one of the world’s most rapidly growing and developing economies. The introduction of China to foreign direct investment has given rise to a huge wave of multinationals from around the globe, establishing some important forms of operations and working in mainland China. (China Mike, n.d.)
This growing presence of foreign investments in China, along with a few changes in government policies, such as the one child policy, has created some unique problems with regards to their human resource management. It has had a negative impact on the small and medium scale industries, foreign companies, as well as the State owned enterprises. (Dessler, 2004)
1.2 Challenges

The industries are heavily stuck with low qualified employees, as most of the top class employees are attracted by the other large scale multinationals. Moreover, these small and medium scale companies usually do not have enough funds to train and develop their workforce. They are afraid that once the employee is trained, he/she may lose the loyalty towards their company. This has severely affected the efficiency and the effectiveness of the small and medium scale industries in China. (Huang,

HUMAN RESOURCES MANAGEMENT IN JAPAN

2.1 Introduction

For several decades, Japanese companies were quiet successful in regards to their human resource department. The traditional traits of Japanese HRM included lifelong employment and seniority based wage and promotion system. These systems were considered the key to the good performances of Japanese companies. However, several changes in the recent years, such as, international competition, evolutions in service sector, old and ageing workforce, and changes in the mind-sets of the younger workforce, are compelling modifications in Japanese companies.
2.2 Global Competition

During the global competition age of the 1990’s, there was a reduction in the intake of freshmen as there was excessive labour. This compelled the managers to abandon the approach of lifetime employment. Employers started believing in outsourcing the labour from other manpower supply companies as it allowed them to control and manage the level of workforce according their requirements.
2.3 Current Situation

To reduce costs, the perks and benefits of the jobs were slowly cut down. The reduced costs helped the companies to compete with the foreign firms. Instead of the amount to time the employees worked, the companies started paying them according to the performance, which is referred to as the piece rate