Human Resources Management in China

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1 Human Resources Management in China Cases in HR practice DOUG DAVIES AND LIANG WEI, WITH CONTRIBUTIONS FROM XIE YUHUA AND ZHANG XINYAN CP CHANDOS PUBLISHING Oxford Cambridge Philadelphia New Delhi

2 Contents About the authors Acknowledgements List of figures and tables xv xvii x/x 1 Introduction 1 Method used 1 Literature review 3 Issues discussed in the studies 3 2 Succession planning in the Chinese subsidiary of a multinational enterprise 7 Introduction 7 Literature review 8 The organisation 11 The vision 11 0E0 in China 12 Demographics 12 Succession planning 12 Candidate selection 14 Learning needs 14 Programme results 15 The competencies 16 Measurement of the competencies 21 What was learnt? 21 vii

3 Human Resources Management in China Staffing issues in a furniture exporting organisation in Ningbo Introduction Literature review The organisation The problems Staff satisfaction Supply problems Recruitment of staff Alternative supplier and delivery problems Human resource problems at the US Vehicles motor factory in central China Introduction Literature review The organisation The problems Resolution of the problems - conflict management Training Compensation and performance Cross-cultural conflict Expatriates VIII

4 Contents 5 IVIanagement and staffing at a start-up regional airlines company 51 Introduction 51 Literature review 51 The organisation 53 The problems 54 The solution 57 The structure Human resource problems during a merger and acquisition 63 Introduction 63 Literature review 63 The organisation 65 The problems 66 Mergers and takeovers 70 Student recruitment issues 72 Expatriate leadership 72 Industrial relations issues ' 75 7 The compensation system reform of the multi-purpose workgroup in a heat-treatment workshop 77 Xie Yuhua Introduction 77 The organisation 77 The problems 78 The solution 80 The implementation IX

5 Human Resources Management in China 8 The balanced scorecard in the Credit Card Association of China 83 Introduction 83 Literature review 83 The organisation 85 Company mission and responsibilities 86 The problems 86 To boost the inter-departmental communication - the horizontal committee system 87 To align corporate goals with departmental activities - the balanced scorecard 89 The establishment of a strategy map 91 Five criteria to evaluate the effectiveness of the measures 101 Six criteria for screening initiatives 103 Sample matching grid of initiatives Appendix: The organisational structure of CCAC Staff turnover in a pharmaceutical and healthcare company 109 Introduction 109 Literature review 109 The organisation 111 The problems 111 The solution 113 The results

6 Contents 10 Staff retention in the hotel industry 119 Introduction 119 Literature review 119 The organisation 120 The problems 121 Remuneration and motivation 122 Culture within the hotel 123 Promotion and retention 124 Staff turnover 125 Other incentives Human resource problems in a high-tech business incubator 129 Introduction 129 Literature review 129 The organisation 131 The problems 133 The solution Staff retention, motivation and commitment at the China Electrical Components organisation 139 Introduction 139 Literature review 139 The organisation 141 The problems 141 XI

7 Human Resources Management in China The solutions 142 The morale and motivation of staff 144 Other operational improvements Remuneration and retention in a privately-owned technology company 151 Introduction 151 Literature review 151 The organisation 153 The problems 154 The solutions 156 'Flow-back' 157 Core employee plan 158 Government assistance Organisational change at a multinational gas corporation in Shanghai 163 Introduction 163 Literature review 163 The organisation 165 Areas of change/challenge 165 Authorisation policy 167 The objective xii

8 Contents 15 Compensation strategies as a motivational and retention tool 175 Doug Dawes, Liang Wei and Zhang Xinyan Introduction Literature review The organisation The problem Continuing changes Organisational changes and the compensation problems Stock option plan The benefits and problems of the stock option plan Further organisational changes Performance management at International Air Transport Introduction Literature review The organisation The problem The solution The result of the changes Index 199 XIII