Topics: Human resource management, Management, Human resources Pages: 9 (1966 words) Published: October 12, 2014
Di Hong
Final Paper
Professor Zhao
Thesis: HR management in China

This paper presents the importance of human resource in China as well as what the foreign enterprises should pay attention to. These are the factors to be known to do business in China. China has become one of the fastest-growing economies in the world recently. China has transformed itself from a command economy to a market one. Its management systems have changed in many aspects. China’s market contains foreign enterprises, domestic stated owned companies, and private companies. The human resource systems are extremely different among them. The change in different types of enterprises is in different directions. There are still many problems in human resources management, and to some extend become a restriction for the enterprises. With the features of competition for talent in the 21st century, human capital has become the most important capital. The training of human resources is extremely important in the survival and development. It plays the key role to maintain the invincible position in the competitive market. There are important questions to be discussed in current Chinese human resource management, including staff-company relations, HR model development and HR strategies. Currently, with the globalization of economy, more and more corporations involved in the international competition. Therefore, the Human Resources exploitation and using is a key factor for improving the international competitiveness and economic prosperity. Nowadays, Human Resource Management demands that should improve it to a point of view that configuration and management. SIX modules of Human Resource Management include Human Resource planning. Recruitment and allocation, Training and development, Performance appraisal, salaries and benefits, Staff Relations All of them play a significant role in business management. In recent years, some of china’s major corporations have realized that human resource play an increasingly important role in enterprise management.  Challenges for foreign companies

HR is the biggest challenge for foreign companies doing business in China. There are many factors to be concerned, such as economic situation or currency and financial risks, human resource management continues to be the top one business challenges for foreign companies doing business in China. According to the professional statistics, China HR profession was only focused on the administrative function, including recruiting, dismissal, paying taxes and so on. Enterprises are still new the concepts of talent management, organizational development, training, test drive, organizational culture, and corporate strategies. These new concepts are very helpful in decision making for management department. These are adapted through many years of practice and study by professionals. It is also crucial to know that the legal environment is also different from what we have in US and in China. Foreign enterprises face big challenges dealing with regulations and the so-called domestic rules in China. For example, in the Chinese organization, a supervisor can often hire people directly since they are the professionals. They do not go through specially designed test and interviews designed by HR department. This causes the recruit team very hard to manage the new comer, and it’s even harder to make sure they are recruiting the first tier employees. However, this is a situation hard to be changed. In foreign companies, the recruiting processes are often very standard. The specially designed procedure makes sure that the person can fit in the organization very well, and the person is also equipped with specialties that the company requires. The challenge for foreign companies is that they are not local people, and they don’t know the relationship with government. A lot of times, getting documents approved can take a long time, if you do not know anybody in the government. So my...
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