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
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
Human Resources Management in China 22 22 3 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 25 25 25 27 28 28 32 34 34 36 36 4 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 39 39 39 42 44 45 46 47 48 48 49 49 VIII
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 58 60 61 6 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 73 74 ' 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 81 82 IX
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 103 104 Appendix: The organisational structure of CCAC 106 106 9 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 117 117 118
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 125 126 126 11 Human resource problems in a high-tech business incubator 129 Introduction 129 Literature review 129 The organisation 131 The problems 133 The solution 134 136 137 12 Staff retention, motivation and commitment at the China Electrical Components organisation 139 Introduction 139 Literature review 139 The organisation 141 The problems 141 XI
Human Resources Management in China The solutions 142 The morale and motivation of staff 144 Other operational improvements 148 148 149 13 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 159 160 160 14 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 168 173 174 xii
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 175 175 176 176 179 179 181 181 182 183 183 16 Performance management at International Air Transport Introduction Literature review The organisation The problem The solution The result of the changes 185 185 185 187 187 190 192 192 193 17 195 Index 199 XIII