HRM practices in foreign MNCs operating in China.

Thèmes abordés

Human resources, china, METRO Cash & Carry, Danone

Résumé du document

This study focuses on the impact of the specific culture related variables on HRM policies adoption by multinational companies during their implantation in China. Precisely, we will analyze the influence of the cultural factors on local management and workforce, and the adaptation of expatriation facing the new standards.

This paper will review several studies dealing with people management and expatriation in China and emphasizes on the lack of research pertaining to the establishment of an adequately qualified and talented management for the implanted operations. Many writers have studied the adaptation of local management skills to human resource management (HRM) practices adopted by foreign subsidiaries and MNCs in China. In fact, the specifications of the PRC (People's Republic of China) regarding the workforce market presents several key challenges for the successful running of MNC operations in China.

Faced with an inadequate educational system that churns out very few skilled managers, the rising number of MNCs in China, the lack of top Chinese management due to international expatriation, the labor limitations for hiring and retention policy completion, foreign companies are faced with veritable challenges to magnetize, hire, form and empower the local workforce. In fact, they have to create a well-balanced relationship between local workforce management and expatriation from other countries to promote a credible long-term relationship. Through theoretical articles, references and in-depth case studies concerning the success of the German company METRO Cash & Carry and the failure of the French company DANONE in China, this paper explores how Human Resources Management can implement the right mix to facilitate a successful penetration of Western companies in China regarding employee adaptation.

Extraits

[...] The case of: DANONE & Wahaha joint venture According to Stewart Hamilton and Jinxuan Zhang ( Danone & Wahaha A bitter-­‐sweet partnership) : main causes of conflict seem to derive from different attitudes towards key issues in the formation and operation of the joint venture, suggesting major differences in business culture and expectations as to how business should and is being conducted.” Group Danone is a French company considered as one of the most famous food and beverage groups in the world with 90,000 staff members. The company has developed its business through 120 countries dealing with three main categories: beverages, fresh dairy products, and biscuits (which one has been bought by Kraft Food). Created in 1966, Danone has pursued an active development strategy throughout the world since the 1990s. [...]

[...] Sources: PRC National Bureau of Statistics, PRC Ministry of Commerce, and Hewitt Asia Pacific Salary Increase http://www.google.com/url?sa=t&source=web&cd=3&ved=0CCcQFjAC&url=http%3A%2F%2 Fwww.chinabusinessreview.com%2Fpublic%2F0603%2FChinaData.pdf&rct=j&q=China%E2% 80%99s%20Tight%20Talent%20Market&ei=JgaQTdSdEYOI0QGqlICiCw&usg=AFQjCNE2v6hSK V9zfZYxYUmpoN80H_eV4Q&cad=rja M Warner (2000) _ The future of China's Human Resource management in its Asia Pacific context : a critical perspective _ University of Cambridge http://www.google.com/url?sa=t&source=web&cd=1&ved=0CBsQFjAA&url=http%3A%2F%2 Fwww.jbs.cam.ac.uk%2Fresearch%2Fworking_papers%2F2000%2Fwp0029.pdf&rct=j&q=TH E%20FUTURE%20OF%20CHINA%E2%80%99S%20HUMAN%20RESOURCE%20MANAGEMENT %20IN%20ITS%20ASIA%20PACIFIC%20CONTEXT%3A%20A%20CRITICAL%20PERSPECTIVE&ei =1gaQTc7OEMSx0QGJuOGtCw&usg=AFQjCNHHOwdcdtiXJa51t0IrYj2P33u1Hw&cad=rja Zhu, C. J. & Dowling, P. J. (2000). Managing Human Resources in State-­‐Owned Enterprises in Transitional Economies: A Case Study in the People's Republic of China, Research and Practice in Human Resource Management, http://rphrm.curtin.edu.au/2000/issue1/china.html En Li, Wei Lu, Rui Zhang _ A study on the perceptions of Human Resource management in China _ College of Economics and Management, Shanghai Jiao Tong University, Shanghai. [...]

[...] The lack of brilliant local management and particularities of the labor Chinese system have pushed MNCs to consider people dimension” as a key element in their implementation. (Child 1994; Warner 1999) In international HRM literature, we often meet the ambivalence between global standardization HR applications and the local adaptation of those practices. According to Rowley and Benson 2004,this global standardization due to a convergence of HR practices has to be taken into account faced to some determinants divergence in order to find the right mix of collaboration for MNCs in China. [...]

[...] Diverse writers have studied the adaptation of local management skills to human resource management (HRM) practices in foreign subsidiaries and MNCs in China. In fact, the specification of the PRC (People's Republic of China) working force market presents several key challenges for the achievement of multinational companies business operation in China. Faced to the late educational system creating some competitive and well skilled managers, a rising number of MNCs present in China, the lack of top Chinese management due to their international expatriation, the labor limitations for hiring and retention policy completion, foreign companies have to compete with important challenges to magnetize, hire, form and empower local workforce. [...]

[...] Warner (1995) translates that as the know important aspect in Chinese working life and careers. People sharing the same will evolve in a long term trusting relationship whereas people out of it will be considered as simple intermediate, only presenting a useful interest regarding the situation. These notions help us to understand how some exchange can be easily than some others. In fact if those cultural notions are not correctly taken into account in the implementation of global HR, work staff relationship and management will irremediably suffer from that. [...]