Developments in Asian HRM

7/28/2019 Developments in Asian HRM

1/38

CHALLENGES FACING HRM FUNCTION IN ASIA AND RESEARCH AGENDA

At present globalization is changing the stable workplace systems in the region. This

is evident in many countries. Thus, the effects of changes created by the globalization posemajor challenges for HRM in the Southeast Asian region. For instance, in China and India

there is some evidence that economic liberalization arising from globalization and

competitive pressures is changing the pattern of HRM, employee relations and industrial

relations and labour legislation. Some of these changes are occurring both in the private and

public sectors in both countries. In China, it is argued that the emergence of market economy

is undermining the nanny employer image of organizations as the re is a concerted effort to

shift the huge welfare burden from employers to individuals. In line with this approach, then,

the downsizing of organizations and changing recruitment and retention practices have

resulted in insecurity for workers in China. It is expected that a similar pattern will emerge in

countries like India where many of the state owned firms have surplus labour. However,

unlike China, downsizing in India will be strongly resisted by both trade unions and

opposition political parties.

Similarly, the changing business environment in Japan has put tremendous pressures

on employers to change their traditional employment practices in order to survive.

Accordingly, Japanese employers are restructuring their employment systems in response to

low growth, globalization and international competitiveness. The major elements of the

Japanese style HRM - lifetime employment, seniority promotion system, enterprise unions,

keiretsu and sub-contracting relations developed essentially in response to rapid and high

economic growth during the post-war industrialization boom are being fundamentally

transformed.

This transformation is by no means will be smooth, especially against a background of

low growth, recession and rising unemployment, Japanese employers are experiencing


2/38

significant HRM problems. Consequently there are calls for a critical re-evaluation of the

basic framework of the established Japanese HRM model. In this regard, for a country famous

for providing lifetime employment, this is a major transformation with fundamental and

long term challenges for HRM. The deep-seated challenges are not limited to Japan, China andIndia as they are occurring through out the region. The challenge facing HR managers who

are dealing with the global forces is how they can minimize the threats posed by global

competitive pressures on HRM while at the same time taking advantage of the opportunities

created by globalization to restructure their HRM and employee relations practices. This also

provides a great opportunity for researchers and should be considered as an important

research agenda.

Globalization and international competitiveness can pose significant threat to the

productivity and morale of employees. In an attempt to explore these challenges, Rowley and

Bae have proposed the use of Rousseaus (1995) three -fold typology of psychological

contracts as an analytical tool. This is quite pertinent in view of the impacts of globalization

and competitive pressures on HRM discussed earlier. Throughout the Asia-Pacific region, the

changes in traditional employment practices have crucial consequences for HRM. These

include increased stress, declining job security - as a result of downsizing and rising

unemployment - as companies adopt labor flexibility strategies to reduce labor costs

(Wiseman 1998). In such a changing environment, employees still expect to be treated fairly,

rewarded equitably, provided growth opportunities, to know what is expected of them and be

given fair and constructive feedback on their performance (Armstrong, 2001). This is

particularly the case in Japan, China, India, and Vietnam. In the last three countries there are

internal changes pertaining to privatization of state-owned enterprises (SOEs), which have

resulted in insecurity for workers. In the case of Japan the insecurity arises from changes in

the external economic environment.

For many employees in Japan, China, India and Vietnam the move away from


3/38

traditional employment practices constitute a violation of the psychological contract. Thus,

the challenge for HR managers is how to be able to deal with the outcome of employees

responses to the perceived violation of the psychological contract - such as reduce effort on

the job or output and reduced contributions in the form of loyalty and commitment. In the Asian context, there is the need for research to ascertain what constitutes violations of

psychological contract. It is also necessary to explore the contextual patterns and diversity of

responses to psychological contract violations.

Perhaps this is going to become a much bigger challenge in information technology

enabled services (ITeS) providers such as call centres and business process outsourcing (BPO)

firms where problems relating to psychological contract and job stress become prominent

after a while. For example, in the case of India, majority of call centre employees are full of

enthusiasm when they start their first job. However, after a while the dark side of the rosy

picture starts to emerge and the level of staff morale declines considerably (see The Economic

Times, 2003). To a great extent, the lack of talent development initiatives is held responsible

for this (Chowdhry, 2003) as the lack of career structure provides a good opportunity to

competitors to poach talented people (Prabhakar, 2003). Such emerging trends pose

challenges to HR managers regarding both their recruitment and retention policies and

practices. Here, there is the need for researchers to provide insights into the causes of

dissatisfaction in call centre work in emerging economies and what can be done to promote

growth and development of workers in the sector.

Another essential challenge in HRM in the Asia-pacific region is the effects of the

transition from collectivism to individualism in HRM practices in countries such as Japan,

India, China and Vietnam. Here, along with the manageria l responses to employees

perceived violation of the psychological contract is the need for managers to develop a new

11culture where promotion, pay and other organizational benefits will be based on individual

contributions rather than group characteristics. In this regard, it appears that globalization and


4/38


5/38

the region as they move towards knowledge-driven economies in their attempts to compete in

the global economy. The management of knowledge workers thus provides considerable

challenges for HR managers.

Across the South-East Asia region, governments are trying to develop biotechnology

industry. Many of the ambitious projects are in India, Singapore, South Korea, Taiwan and

China. Many cities in these countries already have thriving high-tech industries and want to

ride the next big wave by creating life-sciences centres/hubs. Singapore, for instance, is

pouring money into Biopolis, a science park for biomedical and other knowledge-based

industries. In India, Hyderabad is witnessing a gathering of the elements needed to create a

life science hotspot to match its IT industry (Merchant, 2003). South-east Asian countries,

particularly China, Korea and Taiwan are building biotech clusters to attract back to their

native (East Asian) countries expatriate scientist trained overseas (mainly US).

As these biotech clusters take hold in Asia, the need for knowledge workers will

increase. The companies that are able to attract expatriate scientists must be capable of

harnessing the knowledge of the scientists. In this respect, HR managers need to contribute

effectively to knowledge management by exhibiting expertise in the area. In a changing

psychological contract environment, HR managers need to be able to promote values and

norms, which emphasize the importance of sharing knowledge, commitment and trust. In

relation to that, HR managers must be capable of developing compensation and career

development structures that can not only motivate but also retain knowledge workers. In

addition, HR managers must be able to develop performance management processes and

13organizational and individual learning programmes for knowledge workers in organizations

(Armstrong, 2001).

Yet another challenge for HRM managers in the region is the issue of diversity

management. In recent years, diversity management has been a burning issue in the


6/38

management of HRs in the Asian region. The issues relating to gender, age, ethnicity among

others, have assumed increasing importance. However, against a background of labor

shortage problems in many Asian countries, the governments are urging more women to enter

the labor market. In view of the declining birth rate in many East Asian countries it isanticipated that the female labor force participation rate will continue to grow. If this trend

continues as predicted then HR managers face the challenge of developing a safe and secure

working environment for women. It must be realized that in order for organizations to be able

to recruit, motivate and retain female employees, HR managers need to confront the issues

relating to the discrimination of women in the labor market.

Perhaps the most daunting scenario regarding diversity management in Southeast

Asian countries is the looming demographic time bomb. As Holland (2003) asserts, Asians

are getting older. This is a slow, silent and unstoppable revolution which is reshaping Asian

societies. It is claimed that in the mid-1950s, old people (65 years and above) were a rarity in

most East Asian societies. However, with better health care, higher standard of living,

better educated people and increase in life expectancy in recent years there has been a

considerable increase in old people. At the same time most East Asian countries are

experiencing decreasing birth rates, ageing workforce and hence labor shortages. It is

estimated that by 2050 nearly a quarter of East Asias population will be aged 65 or over

(Holland, 2003).

Japan is particularly affected by the problems of ageing population. Currently, one in

six Japanese is older than the mandatory retirement age of 65. But with a fertility rate of just

1.3 children per woman - way below the birth rate of 2.1 needed to maintain a stable

14population - and a life expectancy of more than 80 years and rising, it is estimated that by

2050 more than 36 percent of the Japanese population will be above retirement age (Holland

2003).


7/38

While some countries such as Singapore and Japan have made efforts in the legislative

arena to tackle the problem others have paid little attention to it. However, ageing population

poses serious challenges to HRM in the Asian region (See Debrah, 2002; Snape and Redman,

2003). How each country responds to the issues relating to an ageing workforce depends onthe severity of the problem but it is likely that some countries would have to import labour or

rely on immigration in order to sustain economic growth. For instance, it is anticipated that

Japan will need 6 million immigrants in the next 25 years but immigration is bitterly opposed

by those who equate it with crime (Pilling, 2003). Even if East Asian countries manage to

delay or resist limited or large scale immigration from both within and outside the region, the

countries would most likely need migrant workers.

Currently there are legal migrant workers from labor-surplus countries such as

Indonesia and Philippines to labor-receiving countries such as Hong Kong, and Singapore.

There are also low-paid legal migrant workers from countries such as India and Bangladesh in

Singapore and Malaysia. In many workplaces in the construction industry in Singapore, for

instance, it is possible to find migrant workers from different countries working together in a

team. The management of such multicultural work teams is one of the challenges facing HR

managers. Going by current demographic trends, it is possible that the use of migrant workers

is likely to increase in future with multiple implications for the management of HRM in the

South-East Asian region. Hence, researchers need to conduct more research on equal

opportunities and diversity management issues. Here, research can focus on single countries

and various aspects of discrimination and diversity management. It can also focus on these

issues as the pertain to a particular sub-region.

Other interesting HRM challenges are emerging in the region. One such challenge is

the HRM issues relating to the outsourcing of service jobs from industrialized countries to the

developing world. In the last decade, advancements in information communication

technology and availability of high skilled workforce in some developing countries have


8/38

made it possible for some developing countries to attract white collar jobs from developed

countries. It is estimated that 3.3 million jobs in the US and 2 million in Western financial

services will be lost as result. In the UK, 200,000 jobs losses have been predicted by 2008 (FT,

2003). Asia has been the major recipient of these jobs.

Lower cost locations such as India, the Philippines and China are now attracting

outsourcing of much higher value-added services such as medical diagnostics, treasury

management, and software development (FT, 2003). Bibby (2003) also points to the offshore

outsourcing of architectural services. For instance, a British company Atlas Industries- has

set up an office in Vietnam to work entirely for the UK market. The Vietnamese employees

produce drawings and 3D computer-generated designs for buildings at a relatively low cost.

The work is assigned or finished product transferred through email or a password-protected

website (Bibby, 2003).

In India, the main activities or areas covered by the call centres include customer care

(such as remote maintenance, help desk and sales support), finance and administration (for

example, data analysis, medical transcription, insurance claims and inventory management),

HR and payment services (such as payrolls, credit-card services, cheque processing and

employee leasing) and content development, i.e., digital content, R & D, LAN networks and

application maintenance (for more details see Chenggapa and Goyal, 2002). As the

competition, both nationally and internationally, to get business contracts has increased

considerably in recent years; HR managers working in the sector are facing enormous

challenges in attracting and retaining the best employees.

At another level, HR managers face significant challenges in their attempts to utilize

internal labor markets (ILMs) in organizations. Appropriate ILMs are known to be

conducive to the development of long-term employment relationships, bind employees to the

organization and also help to reduce employee turnover (see Osterman, 1994). It is also


9/38

known that ILMs make it possible for HRM practices to be consistent with a systematic and

rationalized employment system. However, in the case of countries like India and China (and

many other Asian economies); ILMs are generally based on social connections, political

contacts, caste, religion and economic power. Thus, in the context of present businessconditions in India and China, the efficiency of the established traditional ILMs is

questionable. The challenge, however, is how HR managers can engineer such a macro level

change without alienating powerful members of their organizations.

The existing ILMs system has been linked to corruption in Asian countries. It is

argued that ILM system, where informality, social networks and power distance are essential

elements tends to engender corruption in organizations (see Luo, 2002). This has serious

implications for efficient HRM system and HR practitioners need to pay due attention to it.

Yet another challenge revolves around the quality of research in the Asian context. In

his analysis of the main limitations of research conducted in the region, White (2002)

suggests that too much of research effort has been limited to simplistic comparisons,

correlational analyses providing no insight into underlying processes, and skewed,

idiosyncratic sampling. Such research, it is argued, does not contribute significantly to theory

development. Accordingly, White (2002) highlights the need to increase both rigour and

relevance of research efforts in the Asian context.

In response to this suggestion, Lau (2002) recommends the adoption of Asian

developed constructs to study local and global issues and calls for development and validation

of new constructs so as to get into the depth of Asian-based issues. Similar suggestions have

been made by many others. For example, focusing on cultural values, Kao et al. (1999) stress

the need to indigenize management practices in Asian organizations. Due to the strong

influence of the socio-cultural context, the authors question the applicability of Western

management and organization theories in the Asian context. To a great extent this is a core

issue for Western firms operating in the Asian context (see Kidd et al., 2001) and sends a


10/38

clear message to researchers in the field.

CONCLUSION

The challenges facing HRM in the South-East Asia are clearly complex and daunting.Majority of these challenges have emerged due to the changes in the economic environment.

In particular, globalization and international competitiveness have brought to the fore the need

for organizations to adopt appropriate HRM practices in their quest for competitive advantage.

In this globalized era, competitive pressures have laid bare the limitations of the traditional

models of management in some Asian countries. Clearly, there is some indication that HRM

is undergoing transformation in the region but it is unclear what the outcome of this

transformation would be. Early indications are that there is a move towards individual basis in

employment systems. However, it is too early to see a clear model or approach emerging.

Possibly, a hybrid system (based on a mixture of both traditional Asian characteristics and

Western rationalized system) would emerge. However, it is important that any HRM system

that emerges in the Southeast region should be context based. The research conducted on the

above raised challenges/agendas can significantly contribute in this regard.

RECRUITING AND HUMAN RESOURCES IN A COMMUNIST COUNTRY

Overview

China's economy is growing at a phenomenal pace. In fact, by early next century, China will

surpass the United States to become the largest economy in the world. As China has grown so

quickly, the number of qualified managers in China has been unable to keep pace. This staffing

shortage in China is so severe that one Motorola supervisor quoted by the Journal of Commerce

remarked that, "We couldn t bring over enough Taiwanese or Hong Kong managers, wed just

drain the rest of the world dry." This statement succinctly summarizes the dilemma human

resources in China currently faces. In some industries, there are as many as ten available jobs


11/38

for each qualified candidate. The shortage of skilled professionals has led to high job turnover

rates and rapid wage inflation.

The lack of educated professionals stems from problems within the Chinese education system.

Chinas educational system stagnated during the years of the Cultural Revolution (1966-1976).

During this period, all schools in China were closed for several years and then subsequently

operated at such low levels that nothing substantial was taught or learned. Universities did not

resume normal entrance examinations and regular curriculums until 1978. Thus, any diploma

received during this time means very little in terms of knowledge acquired by the holder. A fifty-

year old today would have been eighteen when the Cultural Revolution began, and almost thirty

when it ended. He or she would not have had the opportunity to attend formal college until

1978, many years after completing his or her secondary education. Moreover, a thirty-five year

old candidate may have missed his or her elementary and high school education completely.

Beyond this 15-year lapse in education, there are other problems related to education in China.

In general, the current education system emphasizes technical skills over business skills. Due tothis focus on technical skills, many (although not all) of Chinas top students pursue technical

programs, which do not include any business training in the curriculum. Therefore, the pool of

candidates holding the equivalent of an MBA or another business degree is miniscule. Thus,

many foreign invested enterprises (FIEs) have employees who are excellent engineers but do

not have management skills.

The rapidly growing economy only extenuates the problems caused by the shortage of qualified

candidates. Chinas annual growth over the last 15 years has often approached or exceeded

double digits. In the more dominant coastal cities, growth has consistently reached a staggering

13-15%, fueled primarily by foreign investment. There were only 48 wholly foreign owned


12/38

enterprises (WFOEs) and 190 equity joint ventures (EJVs) in China in 1983. By 1995, there were

57,114 WFOEs and 157,739 EJVs in China, and the number continues to grow. As a result, the

demand for qualified professionals has skyrocketed, while the supply has remained relatively

stagnant. Because of this, finding the right qualified professionals is an unenviable task.

Furthermore, a carefully prepared strategy is required to retain qualified employees.

Due to the labor shortage, candidates in many managerial and business fields, such as

accounting, human resources and others, often can receive two or three calls a day from

headhunters. Many have more than one job offer at any given time. There is frequent

"poaching" of key personnel by other foreign companies in China. Foreign companies are

constantly losing key personnel, and are trying to develop strategies to retain their employees.

While foreign invested enterprises (FIEs) denounce "poaching," almost all of them practice it.

Given the current market, a company that initiates a successful, comprehensive human

resources strategy will have a huge advantage over its competitors.

Recruiting

General HR and China Executive Recruiting Strategies

Joint Ventures (JVs) in China should include HR planning in the earliest stages of their business

development. HR planning should include the following:

A preliminary HR Strategy for JVs as an integrated part of their overall future strategic planning.

Thorough due diligence with regard to HR in China , investigating the local partners talent and

overall availability of local talent. This should be done as part of the initial discussions and site

survey with a potential Chinese partner.
http://www.pacificbridge.com/services/hr-consulting/http://www.pacificbridge.com/services/hr-consulting/http://www.pacificbridge.com/services/hr-consulting/http://www.pacificbridge.com/services/hr-consulting/http://www.pacificbridge.com/services/hr-consulting/http://www.pacificbridge.com/services/hr-consulting/


13/38

A clear agreement should be made, giving the foreign partner complete control of

management, including staffing. This is often the most difficult to achieve, but neglecting to do

so will surely lead to future conflicts.

The next step an HR manager should take is to define the type of candidate needed. A job

description of the various positions within the organization should easily accomplish this task.

While keeping the company s needs in mind, it is important not to be overly ambitious; given

the shortage of qualified personnel in China, it is important to focus on the necessary rather

than the desirable qualifications for each position. Clear, precise job descriptions will help both

the company recruiter and the candidate determine whether or not there is a match. However,

human resource managers must bear in mind that the shortage of qualified professionals is

such a problem in China that it is often necessary to look beyond Chinas borders when

recruiting and hiring. Companies searching for professionals to staff their Chinese operations

usually have four options:

Local Chinese employees;

Chinese returnees;

Overseas Chinese; and

Expatriates.

Each group presents different challenges and problems for recruiting and human resources

professionals. These challenges are exacerbated for foreign companies with limited experience

in China.


14/38

Local Employees

Recruiting

There are a number of reasons why foreign firms operating in China are increasingly looking to

local Chinese to fulfill their staffing needs. While salaries for local Chinese workers at foreign-

invested enterprises generally run higher than the average at Chinese-run or State-owned

firms, the cost of these employees remains substantially less than for their Western

counterparts. Local candidates may also have valuable connections with local institutions or

government bodies. A company that has been established in China for a few years may seek to

localize staff by hiring local Chinese nationals, which is a common goal after the initial start-up

years. Locals bring a variety of benefits to international companies. For example, their expertise

with the language, culture, and organization of Chinese society can be quite valuable.

Despite their advantages, the shortage of qualified professionals in China makes the right local

employees very difficult to come by. Often, the firm must hire semi-qualified workers and train

them. If the firm is lucky, it can hire someone who is truly qualified. Once such an employee is

hired, the firm must also find a way to retain him or her.

For companies wishing to hire a local candidate, there are several methods available in order to

proceed with the search. These methods include using:

State owned staffing companies, such as Foreign Enterprises Services Company (FESCO);

Private recruiting companies;

Local newspaper advertisements;

Personal and business contacts (networking); and

University recruiting.


15/38

Another alternative is to use a local recruiting firm. There are a myriad of advantages to using

such services. In addition to having contacts in the field, they usually have a database of

potential candidates. This allows them to expedite the search process considerably. Top local

recruiting firms also check the credentials of potential candidates.

In general, newspapers are an expensive and time-consuming method of recruiting local

workers. Chinese papers often have a two to six month backlog of classified advertisements,

which is inefficient if one is searching for an immediate opening. Once the advertisement is

actually posted, it will often draw more than 100 resumes, most of which will not have any

credentials relevant to the job description. In certain specialized areas where there is an

extraordinary shortage, advertisements may result in only 30 resumes, none of which match the

desired and necessary qualifications. As fabrication of credentials is a serious problem in China,

it is very important to check the credentials of all potential candidates thoroughly. To further

complicate the situation, references from State-owned enterprises do not bear any resemblance

to references from western companies. The communist system does not emphasize

"references," individual critiques or evaluation, thus making the credential checking process

very time consuming.

Recruiting through personal and business contacts is another possibility. However, hiring

companies must be cautious, as they run the risk of hiring incompetent personnel who have

been introduced and praised by "friends." These workers may be difficult to fire without

creating conflicts among existing employees or associates.

Finally, universities are a good source for entry-level personnel. In order to assist in the search

process, several universities have even begun to set up employment centers. Recruiting directly

from Chinese universities may also help reduce the issue of false resumes, as the candidates


16/38

credentials are easily verifiable. However, recent graduates will not have the necessary

experience to fill middle and upper management positions, and will need extensive training to

get them up to western standards. Nevertheless, university recruitment programs are

increasingly popular in China, and can provide a solid source for entry-level personnel.

Training

Recruiting is just the first step in creating a qualified employee base. Due to the serious lack of

business education in China, companies must often offer extensive training to their employees.

Thus, although local Chinese employees may initially appear inexpensive, training programs will

significantly boost the cost of these employees. Nevertheless, training employees is a necessary

and vital aspect of conducting business in China.

Training programs ensure that the Chinese employees feel valued by the company, which in

turn makes the company seem more appealing. Establishing a formal in-house training program

will not only help to train workers to perform their jobs better, but it can also be a useful tool

for staff retention. However, companies do need to make specific provisions that will assure

them that after providing this training, the Chinese employees will continue to work there and

not leave and take their newly developed skills elsewhere.

While it may be an attractive option for larger corporations, not every company will have the

resources to establish an in-house training program. Some companies may send employees

abroad to foreign universities for training. Smaller companies may elect to train their new

employees at one of the various foreign training companies that have begun to operate in most

of Chinas major cities. However, a company must be aware that the quality of these programs


17/38

varies and they may cost as much as thousands of dollars per employee per day. In some

cases, it may actually be cheaper to hire a returnee than to train a local employee.

While training can be very expensive, employers must realize that there is more at stake than

just money. Training is an effective retention tool. If employees do not feel that that their

employer is willing to invest in them, then they may be more likely to accept a job at another

company that will. Similarly, if employees see that the company is willing to invest in them, they

are more likely to remain with their current company.

Returnees

Returnees are people who were born in China, and who currently reside abroad for employment

or educational purposes, but who wish to return to China for employment opportunities. The

advantages they offer to multinational companies operating in China are clear: they are usually

the only candidates who possess knowledge of western business, English language skills,

knowledge of the Chinese language, and local business practices. However, this is only a

superficial analysis. There are many complexities associated with hiring Chinese returnees.

First and foremost, hiring returnees can be expensive. Although returnees are generally paid

less than expatriates are, they still require both a higher base salary as well as a more generous

benefits package than local workers.

Returnees are usually concerned with visas and immigration. If a candidate is living abroad on a

student visa, he or she is usually required to return to China within one year of graduation.

These returnees are easier to recruit and less expensive, as they do not have as many options

available to them. If a returnee has a green card or comparable documentation, however, he or


18/38

she may be less willing to return, may request a higher salary, or may ask the company to

sponsor them for citizenship. Visa status may also affect the candidates compensation package.

In addition to compensation issues, there are also other considerations. Perhaps the most

important is the potential effectiveness of the returnee as an employee. A returnees possession

of a western MBA is not a solid indicator that he or she will be able to operate effectively in

China. In fact, the most common complaints local workers have about returnees are that they

occasionally come across with a superior attitude and that they may also have a poor

understanding of the current situation in the local market.

In general, the returnee must bring some kind of special skill to justify the extra expense in

hiring him or her. If the returnee has no special skills to offer, but is paid more or given more

responsibility than other workers, he or she is likely to draw resentment from the local

workforce. Returnees are often more successful in positions which allow the local staff to assess

the benefits which the person will bring to the company more easily. Technical positions such as

those in the accounting or engineering fields fall into this category. Also, many successfulreturnees have worked for consultancy firms rather than for a manufacturing JV.

The process of actually recruiting returnees is often very arduous and time consuming. Posting

an advertisement in an overseas Chinese newspaper may suffice, although it may be easier to

use the services of a Chinese executive search firm that specializes in recruiting returnees.

Companies must also be flexible in their expectations when recruiting a returnee. It may be

exceptionally difficult to hire a "brand name" returnee (i.e. someone with a degree from a top-

notch U.S. university and work experience with a Fortune 500 company), and the cost of hiring

such a candidate may be excessively high.
http://www.pacificbridge.com/countries/china/http://www.pacificbridge.com/countries/china/http://www.pacificbridge.com/countries/china/http://www.pacificbridge.com/countries/china/


19/38

Finally, hiring the right returnee is unfortunately far more complicated than it might first appear.

Foreign companies need to be aware that the fact that the returnee speaks English as well as

the local Chinese dialect, and has an MBA is not a sufficient condition for success. It is vital that

foreign companies understand the dynamics associated with hiring returnees and are aware of

possible pitfalls in the process.

Overseas Chinese

The advantage to hiring Overseas Chinese is similar to that of hiring returnees: they often

combine Western business know-how with knowledge of Chinese culture and language. Yet, like

returnees, there is a risk that they will run into status conflicts with local workers who do not

feel that their higher pay is justified simply because of their overseas experience. Again, hiring

Overseas Chinese will fit in only if they are humble enough to adapt to the local Chinese

business environment and have some kind of unique skill to offer.

Another feature that Overseas Chinese share with returnees is an often large price tag.

Overseas Chinese typically require a little less than expatriates but generally require higher pay

than local workers. The home country of the Overseas Chinese candidate is an important factor

in determining salary. An Overseas Chinese employee from Taiwan may receive a comparable

salary and benefits package to a returnee who has lived in the U.S., whereas an overseas

Chinese employee from Southeast Asia will typically receive a lesser compensation package.

However, it is difficult to generalize, and employers must tediously examine each candidates

situation and qualifications on a case-by-case basis. The exact determination of their pay and

benefits will often be a function of both their qualifications and where they have lived previous

to their China experience.


20/38

The process of recruiting Overseas Chinese employees is similar to the process of recruiting

returnees. While an advertisement in a Chinese paper abroad may suffice, it is not always an

effective method. Generally, an executive search firm may prove to be a more realistic, cost

effective, and relatively hassle-free option for many companies looking for these types of

candidates.

While hiring an overseas Chinese employee is, in many respects, similar to hiring a returnee,

there is a very significant difference: Most Overseas Chinese have not lived or worked in China

for a significant amount of time, if at all. This means that they will not have the same kind of

contact network and knowledge of the local market as local workers or returnees -- an

important difference.

Expatriates

Expatriates are typically quite expensive; it is not uncommon for expatriate packages to be

worth a total of US$300,000 - US$600,000. The cost includes a salary of about US$75,000 -

US$150,000, as well as health benefits, housing assistance, allowances to relocate, educational

benefits for dependent children, and more. Due to their exorbitant cost, expatriates should, in

general, represent a very small part of a foreign companys professional team in China.

Aside from their expense, there are many other disadvantages to hiring expatriates. Because

they tend to lack the necessary cultural and language skills, expatriates may not be able to

function effectively in the Chinese workplace. Additionally, while there is no shortage of

westerners with extensive business qualifications, there is a dearth of expatriates who are

fluent, or even proficient, in any Chinese dialect. Even among those who are fluent in spoken

Chinese, there are very few who can read or write Chinese.


21/38

However, this does not mean that there is no reason to hire expatriates for China. For startup

operations in China, it is usually necessary to hire a few experienced expatriates who have the

ability to train Chinese managers, a thorough understanding of the business, or who have

particular technical skills. However, foreign companies must be careful to hire expatriates with

an appropriate attitude towards Chinese business culture. An expatriate who comes across as

disdainful of China and the local people may make dealing with local bureaucracies, employees,

and joint venture partners considerably more difficult. Companies must weigh the special skills

the expatriate has against both the their enormous price tag and their personal qualities.

Compensation

Foreign employers must be flexible with their compensation packages in order to retain key

personnel. Often, they must provide remuneration above the regular scale. At the very least,

employers must pay competitive salaries if they wish to keep employees of whom they think

highly. "Competitive" does not mean that salaries must be significantly higher than those

offered by competitors, but they should be comparable to or slightly higher than salaries forsimilar positions at other foreign companies.

In general, smaller companies in China normally have to pay higher salaries to retain staff.

Larger organizations that offer more opportunities for job advancement or are better known

may sometimes find it easier to retain staff without offering high salaries. Employers should also

be aware that salaries are discussed openly in the Chinese workplace, and that every employee

probably knows the salary of all his or her co-workers. Hence, setting an employee s salary

requires discretion so that it does not have a damaging effect on the morale of other staff

members and their relationships with one another.


22/38

Foreign companies must also deal with the rapidly rising labor costs in urban China. In 1994,

salaries rose between 28% and 35% in urban parts of China, according to a Towers Perrin

Company survey. While inflation has slowed somewhat over the past few years, it is still

consistently in excess of 15% and often more than 20% annually in major cities. Rapid inflation

of salaries (above 20%) is something for which foreign companies must be prepared. According

to the US-China Business Council, foreign companies in China must typically raise their

employee s salaries two to four times a year in order to effectively combat job-hopping.

Special types of compensation are also becoming more common in China. For example, some

companies are beginning to offer stock options. Including stock options in a compensation

package for Chinese employees, however, it is a lot more complicated than in the west, as stock

knowledge is less common. Because financial markets are relatively new in China, there is a low

level of understanding about how the stock market works. Stock compensation programs should

be supported by education on the fundamentals of financial markets and frequent updates on

the stock values.

Benefits

While base salary is a very useful tool with which to lure qualified candidates to a foreign

company, it is very important not to underestimate the importance of benefits. According to the

William Mercer Company, an international human resource consulting firm, benefits in China are

often worth up to 200% of the employees base salary. In contrast, benefits in the U.S.

commonly amount to roughly 35-40% of the base salary. Therefore, it is important for

employers in China to recognize just how useful benefits can be for both retaining and

recruiting crucial employees.


23/38

The structure of benefits has changed over the past few years. The Chinese government

launched a plan in 1995 to standardize all social benefits, including retirement, unemployment,

and medical insurance. While housing is still left to the discretion of the employer, the current

housing problems in China make it a vital benefit that should not be forgotten.

Housing

Although housing benefits are quite rare in the United States, the situation is very different in

China. Housing is one of the most important and desirable benefits a Chinese employee can

receive. In a survey conducted by Pacific Bridge, Inc., when asked, "What do you dislike most

about your present employer,"40% of the respondents stated that the lack of employee housing

was their most serious complaint. Under the Communist regime in China, housing was provided

by the State. Because foreign companies are still a relatively new phenomenon in China, many

Chinese employees expect similar treatment from private enterprises. Unfortunately, foreign

companies often fail to meet their employees housing expectations.

Companies differ in the type (if any) of housing assistance they provide. Options include

company built or rented housing, housing allowances, housing funds and loans for employees,

among others. Companies must consider their budget and goals when deciding which housing

option is most suitable. Company-built or rented housing is one solution, but is costly and could

meet resistance from the companys headquarters. Housing allowances, which involve paying

employees a certain amount to lessen their housing costs, are simpler but generally less

effective as retention tools. Housing/savings funds provide a range of policy advantages (i.e.

employee responsibility, generation of capital, framework for employee savings, etc.) and are

possibly the best long-term option with the widest applicability, but they can also be complex

and difficult to operate.


24/38

A study by Towers Perrin Company on housing in China rated the different types of housing

according to their effects on retention. Company built and rented housing, housing loans, equity

sharing, and company housing funds all had a positive effect on retention, while housing

allowances and city housing funds (where employers contribute to a city-run local housing

agency that employees can use for housing purchases or renovations) had a negative effect.

The survey also found that company savings/housing funds and housing loans were considered

"effective," while city housing funds were "ineffective."

Retirement Benefits

Retirement benefits are a very recent phenomenon in China. Until the drive for modernization in

the early 1980s, 80% of Chinas workers resided in rural areas. Rural residents generally relied

on their families to take care of them in their old age. For urban workers, danwei (work units)

offered formal retirement benefits, and most retired employees continued to live in work-unit

housing and receive medical insurance, plus 70-100% of their former salaries.

As part of its plan to standardize benefits on a national level, the central Labor Ministry decreed

that enterprises are no longer required to pay retirement benefits directly to employees.

Instead, both enterprises and employees now pay into general funds that are administered by

city and provincial agencies.

At present, neither pension benefits, nor employee-employer contributions are uniform; each

Chinese locality sets funding levels and payouts, and also decides the percentage of salary to be

contributed by the employee and employer. In general, employers contribute 20 - 30% of the

employees salary to local retirement plans, and employees contribute 3 - 8%. In addition,

some employees have Individual Retirement Accounts to which they contribute 2% of their


25/38

base salary, with an increase of 1% every year, which caps out at 8%. However, as mentioned

earlier, contribution levels are hardly uniform in the various regions of China.

While pension levels necessarily vary according to local living standards, enforcement of

regulations also seems to oscillate between regions. Many enterprises have failed to pay

retirement benefits or contribute to government pension schemes with little, if any, penalty. To

rectify this problem, Beijings China Reform has recommended that the central government

develop a plan to coordinate enforcement of employer retirement contributions from national

government agencies.

Perhaps of more urgent importance are the problems presented by new economic reforms. As

inefficient State-run enterprises are phased out and the one-child policy turns the population

pyramid upside down, the number of retirees in need of coverage will grow substantially. It is

an arduous task for one child to support two parents and four grandparents. In addition, there

is now a huge gap between government retiree funds and projections of the number of retirees

in the near future.

Any retirement strategy will have to take into account the reluctance of Chinese government

agencies to hand over control of major portions of any social benefits plan to private entities. In

addition, private companies in China that have any experience in managing retirement

investments are scarce, and very few government agencies exist with the capacity to oversee

such investment companies. It is safe to assume that a mixed public/private system, with a

primary emphasis on the public side, will continue for some time.


26/38

Health Benefits

At present, there are no clear national legislative guidelines that spell out medical insurance

requirements for foreign companies operating in China. However, this arrangement may not last

for long. The government has extensive plans to overhaul medical insurance and standardize

coverage nationwide. In the meantime, in an effort to compensate for the lack of national

guidelines, many provincial and municipal authorities have imposed regulations of their own,

which require FIEs to contribute between 7% and 8% of basic payroll to a municipally managed

fund. In addition, employees must contribute 1% of their base salary to this fund.

Under the 1995 Labor Law, the Chinese government called for local governments to establish a

maternity and workers compensation fund. Sometime in the near future, the central

government also plans to set nationwide guidelines for medical insurance. The guidelines will be

based on what has become known as the "Two Jiangs" model. In 1994, the cities of Zhenjiang

and Zhujiang began to experiment with HMO-style medical insurance plans. Prior to 1994, the

cities operated under a scheme that required employers to pay a lump sum of 250 RMB perworker per year to hospitals, which were then required to provide unlimited medical treatment.

Under both systems, some companies elect to add supplemental insurance benefits to the

government scheme. Such benefits may take the form of extending insurance to dependents or

increasing reimbursement rates. Some companies also provide in-house clinics for their

employees.

Other Benefits

Finally, special perks may be used to entice potential employees. Foreign companies in China

often use this method. Club memberships, superior medical insurance plans, pension or savings


27/38

plans, and business trips abroad are some of the benefits used by companies to recruit and

retain top-level personnel.

In order to use perks as a retention strategy, companies must utilize them, rather than just

offer them. Putting minimum time limits on when some of these benefits begin so they start

after an employee has proved him/herself loyal (after one or two years of employment) is one

way of using perks for retention.

Taxes

Individual income taxes became a significant source of government revenue for the first time in

Chinas history in 1997. In the past, income taxes were used primarily to adjust social inequities,

but they are now big business for the Chinese government. Within 30 days of receiving a

business license to operate in China, foreign companies must apply for tax registration. The

process is usually fairly straightforward, and takes about a day to complete.

Foreign companies in China pay the employees taxes from withholding accounts. Under Chineselaw, companies are considered "income taxpayers" with virtually the same responsibilities as

employees in what is called a "double declaration system." Accordingly, the employer must file

monthly withholding reports, and both employees and employers are required to file annual

employee income tax returns.

Tax calculation in China is much more straightforward than in the United States. All employees,

regardless of their dependents or marital status, pay taxes according to income only. Taxation

regulations are different for expatriates. An expatriates income tax liability is dependent upon

his or her residence status. Any expatriate who remains in China for more than 90 days is

subject to income tax. For stays of 90 to 183 days, the expatriate is taxed only for income from


28/38

"Chinese sources" (i.e., income earned from work performed in China). Foreign residents of less

than a year may be liable for taxes on work performed outside of China, unless the work is

clearly differentiated by a separate work contract. Employees residing in China for one to five

years can be taxed on a prorated day-in/day-out basis. Long term expatriates of five years or

more are subject to taxes on all their income regardless of its source.

If taxes are not paid punctually, the government will assess 0.2% per day on the arrears,

effective on the due date. This is a problem for foreign investors who have received special "tax

breaks" from a township, district, or even a provincial government. Even though tax breaks are

spelled out in writing, the local tax bureau is not bound to adhere to them. The approval of "tax

reduction" commitments is the sole purview of the tax bureau at the appropriate level. Tax

authorities are allowed to disregard your company s tax calculations and may set the amount of

taxes themselves if a company s account books are in disarray.

Unions

Chinese labor unions bear little resemblance to their counterparts in the west. All unions are

created and controlled by the All China Federation of Trade Unions (ACTFU), and are very much

creatures of the central government. On paper, these unions all appear very powerful. All

Chinese workers are automatically members of trade unions in their workplaces, and it is

mandatory for enterprises to pay fees equal to 2% of wages to support local trade unions.

However, the right to strike was removed from the most recent Chinese constitution, and labor

disputes are most often resolved through discussions with officials from local trade or labor

ministries rather than through negotiations with unions. Thus, the effectiveness of unions in

settling labor disputes varies More often, Chinese trade unions exercise the bulk of their

influence from behind the scenes. Union leaders are often loyal Communist Party members and


29/38

are well represented in the National Peoples Congress. Thus, in spite of the fact that more than

65% of foreign enterprises are unionized, Chinese labor unions are generally not

confrontational, and have yet to become a force to be reckoned with.

Termination

Termination is a very sensitive issue in China. The Chinese work culture long considered

employment to be a permanent entitlement. While foreign investment has helped to spur

changes in the laws regarding termination, attitudes have been slower to change. Under Chinas

1995 Labor Law, the government codified rules and regulations concerning the rights of

employees should termination become necessary. Still, termination is far more difficult than it is

in the United States. Foreign funded or joint venture enterprises are required to demonstrate

that a terminated employees disciplinary violation had a serious impact on the business, that

the employee had been counseled about his behavior on numerous occasions, and that the

employee still had not rectified the problem. FIE regulations require that labor unions be

notified and consulted with regard to the termination. FIEs are also required to provideseverance pay of one month of salary for each year the employee has worked. This

requirement is waived if the employee is fired for disciplinary reasons or resigns.

Culture

Many foreign companies enter the Chinese market in search of cheap labor and high profits.

However, they must recognize the complexities of staffing an operation in China. Aside from the

shortage of qualified professionals and problems with staff retention, foreign companies must

also be aware of cultural issues. Superimposing Western standards onto a people that have a

different upbringing and set of beliefs may cause conflicts. It is important, therefore, for


30/38

companies to approach management with a certain degree of cultural sensitivity and

understanding.

One legacy of communism is that many manufacturing workers are accustomed to a

guaranteed job and substantially less personal responsibility. For example, Boeing Corporation

had serious quality control issues because Chinese aviation inspection teams were accustomed

to working in groups and preferred to take responsibility for problems and shortcomings as a

collective unit rather than admit individual fault. This system allowed a lack of individual

responsibility to prevail in an industry that requires it. When Boeing imposed western standards

on the local workers, it had to not only change the organization of the inspection teams, but

also instill the concept of individual responsibility at every level through ongoing training. While

the Boeing example demonstrates that transplanting key features of American corporate culture

is certainly not out of the realm of possibility, imposing such ideas requires a great deal of

delicacy and patience. Implementing other typically western ideas, such as merit-based pay and

advancement will also require a great deal of effort and diplomacy.

Another factor western companies must be aware of is the important role that personal

relationships play in conducting business in China. Vertical relationships and absoluteness of

authority connected with senior positions are important Chinese cultural characteristics. Thus,

loyalty to supervisors is often stressed over loyalty to the company. If a key person decides to

leave a company, his actions may result in a rush to the exits by employees who are loyal to

this leader.

Foreign companies must cautiously define exactly what their corporate culture is and what is

expected of employees due to the vastly different business practices. If they do not, then they

may experience serious problems in the near future.


31/38

Conclusion

The current Asian economic crisis has received widespread publicity, but despite worries to the

contrary, it has had little to no effect on the Chinese economy. While growth in China this year

will be slightly less robust than usual, it will still be extraordinarily high by Western standards.

While U.S. economic growth in 1998 is expected to be around 3%, growth in China could be as

high as 8%. Shanghai and a number of other cities should experience growth in excess of 12%.

Although unemployment is slightly higher than last year, it is still very low and in most major

cities, virtually nonexistent.

Thus, while the Asian economic crisis is certainly newsworthy, it is not particularly applicable to

China, and has almost no relevance to the Chinese human resource market over the long term.

Over the short term, professionals may be slightly more reluctant to make the leap to another

company, but not that reluctant. Turnover rates are still very high, and the basic structural

problem of high demand and short supply of qualified employees remains. In order to achieve

success, it is important for foreign companies to go into China with clear expectations and awell-defined human resources strategy.

PARTICIPATIVE LEADERSHIP/DEMOCRATIC STYLE OF HUMAN RESOURCEMANAGEMENT

Lewins study found that participative (democratic) leadership is generally the most effective

leadership style. Democratic leaders offer guidance to group members, but they also participate

in the group and allow input from other group members. In Lewins study, children in this group

were less productive then the members of the authoritarian group, but their contributions were

of a much higher quality.


32/38

Participative leaders encourage group embers to participate, but retain the final say over the

decision-making process. Group members feel engaged in the process and are more motivated

and creative.

ARE DEMOCRATIC LEADERS EFFECTIVE IN LARGE COMPANIES?

The democratic style of leadership is one in which every employee has a voice and decisions are

made through consultation and cooperation. Democratic leadership in large companies has

many benefits as well as some serious drawbacks, and here we'll discuss both sides of this

managerial style.

Hearing Thoughts of Everyone

Democratic leadership is a style of leadership that is based on sharing responsibilities and

decision-making throughout the company. This style of leadership is differentiated from an

autocratic type of leadership by four primary factors:

1. In a democratic leadership environment, consultation is sought from members throughout

the company before decisions are reached.

2. Managers delegate responsibilities and, in so doing, give full control to those responsible for

task completion.

3. Feedback is welcomed and encouraged.

4. Employees are continuously encouraged to develop into leadership roles.
http://www.brighthub.com/office/home/articles/74956.aspxhttp://www.brighthub.com/office/home/articles/74956.aspx


33/38

Benefits

Leadership that is democratic in style offers four primary benefits. First, it contributes to a

positive work environment. By allowing employees to take full responsibility for delegated tasks,

the employee is able to take ownership and, in so doing, becomes invigo rated and motivated

by the project or task at hand. Motivated, fulfilled employees are happier, eager to work, and

have a better perspective about their work environment and managerial team.

Second, the process of consultation and feedback tends to result in better decision making. The

reason for this is all persons involved are able to participate and provide feedback in a decision.

In this way, a decision proposed by management can be tweaked or changed to provide a

benefit to all departments as opposed to one or two.

For example, if management proposes changing shipping companies, customer service can

weigh in on the decision as can the shipping department and the distribution department.

Because employees feel empowered by their involvement in the decision making process, they

are more likely to support the final decision.

Third, this leadership styles allows for a free flow of ideas and room for efficient improvements.

When various departments and employee classes interact together, barriers to efficiency can be

discussed, monitored and amended.

Fourth, it reduces employee turnover. Employees tend to feel more empowered, more valued,

and more respected when their ideas and opinions can be voiced, and they are encouraged to

do so. Employees feel vital and important to the overall success of the company, and managers

find it makes their roles easier and less time consuming because there are fewer problems with

dissatisfied employees.
http://www.brighthub.com/office/entrepreneurs/articles/55274.aspxhttp://www.brighthub.com/office/entrepreneurs/articles/55274.aspx


34/38

Disadvantages

However, for as many benefits as a democratic style of leadership carries with it, there are also

several drawbacks:

First, decision making can take a long time, at times long enough to erode some of the benefit

of making a particular decision. In worst case scenarios, decision making may be permanently

delayed or stalled and projects could fail or incur cost overruns because of the delays.

Second, and sometimes subsequently, managers may end up creating a pseudo-participation

environment, by where employees are encouraged to voice their opinions but their suggestions

are never implemented. When this type of environment exists, employees feel deceived or

betrayed and may rebel against all decisions made by management because of their built-up

resentments.

Lastly, employees may have the right ideas but implementation can be costly, particularly if the

company is very large and employees numerous. If this is not properly communicated to the

affected employees, it can cause miscommunication and ill-feelings.

Effectiveness of the Democratic Style

This leads to the question of whether or not the democratic style of leadership is effective. Well,

the reality is that the democratic style of leadership is one of the important elements employed

by the Big Four to facilitate effective leadership so it seems to work very well in that industry

segment.


35/38

For the large manufacturing company, this type of leadership is very effective. By listening to

each employee, each step in the product cycle has a voice. As such, employees can explain

where inefficiencies exist in their realm of the manufacturing process and provide suggestions

for remedying the situation. Those suggestions can be discussed by the company as a whole

and the process tweaked.

A democratic style of leadership is also very effective in creative industries and nonprofit

organizations. The former benefits through the flow of ideas, strategies, and concepts afforded

by the democratic leadership style, while the latter enjoys the benefits of creative solutions to

cost-cutting, fundraising, and budget stretching.

Traditional corporations can also enjoy the benefits of a democratic style but only if the focus of

the company is on effective leadership and employee development.

The rise of HRM

The election of a Conservative Government under Margaret Thatcher in 1979 marked a change

in shift from collectivism to individualism. Legislation was introduced to control the perceived

abuse of union power by banning sympathy strikes and removing the concept of the closed

shop, where union membership was compulsory. High unemployment of over three million,

and the decline of the manufacturing industries, also led to decline in the strength of the

unions.

The 1980s also saw the term human resource management (HRM) introduced to the UK

from America. The meaning of the term has led to many debates and academic discussions, as

can be seen below. To some, it was seen as a way of minimiz ing the trades unions inuence,

and the name change from personnel symb olized this. Others saw HRM as a more strategic

role in the achievement of organizational objectives, with an HR director at board level. Before


36/38

moving on to the personnel management versus human resource management debate,

developments through the 1980s and 1990s, such as the rise of the training specialist, as well

as there ward, resourcing and diversity specialists that exist in many large organizations are

now seen as an important part of the personnel function.

As can be seen throughout the last century, the role of the HR professional continues to

evolve, develop and have a signicant impact on the effectiveness of organizations.

The different functions of HR

The HR manager has to juggle the different functions of HR in the internal environment of the

organization while keeping an eye on what is happening in the external environment.

Below is a brief overview of each of these functions.

Planning, Resourcing and Retention

Managers need to know how many staff they will need in order to achieve the organizational

goals. They need to identify where the staff will be needed, how many and at what times. This

is especially important in organiz ations where business uctuates, such as the retail andhospitality sectors. Managers also need to be able to identify the level of skills required. The

general manager of your local company knows that Friday and Saturday are likely to be the

busiest days. She/he can look back at the past sales history and identify peak times. The store

manager will ensure that s/he has trained checkout operators available, extra customer service

staff and shelf packers to replace items. This is part of the planning and resourcing process.

The retention of staff is also important, as recruiting staff is an expensive and time-consuming

process. A manager needs to ensure that staff are happy in their work as not only will they be

more productive, they will also be more likely to remain with the organization.

Recruitment and Selection

When the need for people has been ascertained, the next task is to nd them, and ensure that


37/38

the right people are selected and recruited for the organization. If the wrong people are

recruited then there could be difculties in achieving organiz ational goals and business could

suffer. Employees may be over- qualied for jobs and leave, or under- qualied and not be able

to perform adequately. This could have serious implications for the organization.Finally, as part of the new people management structure, a number of personnel activities

have been devolved to line managers. The bank has pursued this policy quite vigorously,

emphasiz ing the move from a support to a specialist role for the function. Yet people

management has helped managers through the change process.

Overall, this process revealed a very positive response to the new HR model. Some of the

feedback was inevitably backward looking and many employees thought that communication

could have been better. More pertinent perhaps is the view that there was too much emphasis

on structure and not enough on the skills in the HR community necessary to operate it.

The skills needs of both generalist and specialist people management staff in their new roles

clearly need to be examined. This links to the question of career paths. The switch to a shared

services environment disturbs traditional development routes and they need to be reinstated in

a new form.

Training and Development

In order to get the best from employees they need to be trained. Training is done to ll gap

between the skills and knowledge they have at present and the skills and knowledge the

organization wants them to have in order to f ulll set goals. It ensures that employees are able

to perform to the required standard. Whenever someone new is employed they need to be

trained; this may take the form of an induction program to make the new employee feel

welcome and orientate them to the culture and working methods of the organization.

Remuneration and Reward

Employees need to be paid so that they are able to live. Pay needs to be adequate and


38/38

Documents

Developments in Asian HRM