Human Resource Management in China (lesson March 12th)

1. What did I learn?

The human reosurce management in China is strongly tied to the chinese culture. China is considered as a "millenarian" culture, actually it is the oldest civilization i nthe world, that is why, traditions pass over the time. Moreover, chinese culture stands on the meritocracy issue: Something "deserve" to someone.

One cultural leader was Mao zedong who with his cultural revolutions stated several aspects in the chinese culture, for instance is the "Iron rice bowl".

Business talking, in china there are three kinds of companies:

a. SOE´s - state owned enterprises, which are those companies controlled by the government.

b. TN´s-Transnational Enterprises, which are those foreing companies stablish in China,

c. FIE´s- Foreing investment enterprises, which start with a global strategy and its employees have converged with a lot of the company´s practices, and

d. Non- SOE´s- Non state owned enterprises, which are those private chinese companies,; in which training is very important as well as working relationships and skills improvement.

In addition, due to the fact ig globalization trendy; the main aspects to keep in mind in order to do business with Chinese people are: Punctuality, trust, hierarchical structure, long-term relationship, win-win negotiation, and collectivism.

For chinese businessmen, it is important to keep eye contact to the interlocutor,refer to people in a very polite way (title and last names), in the contrary, it is not recommendable to assume that a "no" is a sign of agreement, actually asian people take long to close a deal. To show off a lot of emotion, chinese must feel very uncomfortable. It is relevant to understand first the chinese business culture before getting there.

To sum up, the human resource managem,ent techniques change along the economy and nowadays, the chinese model has inlfuenced a lot of models around the world.

2. Why the transnational companies desire to be listed in China?

3. Answer: The experts indicate that an important reason is their desire to highlight the integration with local companies and to accelerate the rhythm of locating of the businesses by means of its entrance in the markets of local actions.
One of the reasons of why the transnational companies seek to participate in the stock market of China is that they consider that the future development of the new Chinese market is very promising. Another aspect is that the transnational companies also expect to encourage to the personnel of local management by means of international media used commonly as options of list and actions and to highlight the cohesion of the members of the staff.

• SOURCE: http://spanish.people.com.cn/
• Human Resources Management presentation.