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YJO C49 lec 6. Chinese business, culture and management. Chinese Human Resources Management. History of Chinese HRM. Sun Tsu, The Art of War “understanding counterparts for every success” Philosopher Mencius: quantitative measurement of the mind (300 BC)
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YJO C49 lec 6 Chinese business, culture and management
History of Chinese HRM • Sun Tsu, The Art of War “understanding counterparts for every success” • Philosopher Mencius: quantitative measurement of the mind (300 BC) • Legalist Han Fei: performance measurement (230 BC) • Interviews for personnel measurement 220-265 AD • First civil servant exams 587 AD • Tang dynasty improved examination level to the highest in the world
History of Chinese HRM • 1949 Mao Zedong, tie wan fan, the model of the Iron rice-bowl • Life long employment • Life long social insurances • Danwei, the work-unit • three guarantees: • guarantee of a job assignment, • guarantee of pay irrespective of performance, and • guarantee of tenure of senior positions
Why Human Resources Policies are important • HRP is the operational, tangible level • A solid HRM strategy can been implemented succesfully or unsuccesfully • Critical phase in implementing company strategy • Culturally dependant • The actions of peoplederive from their cultural bacground
Why Human Resources Policies • Understanding helps to form cohesive, harmonious and synegic groups
What is selection of manpower • Selection of manpower consists of all the actions needed to hire the necessary staff to make the company’s vision come true. • Explicit and implicit sets of values in selection situation, that differ between different cultures emphasized selection criteria • Both manager and the employee should have an understanding of the emphasized attributes to make a right selection
What are the reward systems 1/2 • Reward systems help the company to motivate their personnel. They can be divided as follows: • monetary rewards (pay increase, merit pay), • other rewards of monetary value (telephone, car, house), • non-monetary (status increase), • training, • increased responsibility, and • promotions (Strömmer 1999).
TYPES OF REWARD Group-related Security-driven: - Lifetime jobs - Corporate prestige Tradition-driven: - Cost of living increases - Perks Non-money-related Money-related Employability-driven: - Training and development - Personal career plans Contribution-driven: - Performance-related pay - Merit bonus Individual-related What are the reward Systems 2/2
What is performance appraisal 1/2 • Structured or non-structured interaction between superior and subordinate • process of assessing, summarising and developing the work performance of an employee and a superior • Evaluation of both should be as objective and honest as possible to produce the best possible outcome • Performance appraisal can be one-way or two-way appraisal • requires counselling and dealing with emotions of both participants
What is performance appraisal 2/2 • each company should resolve three issues from their own perspective: • How is performance defined? • Why is performance measured? • How is it measured? • These issues especially important in Cross-cultural context, because of different views of good performance
What is participative management 1/2 • Participative management includes the actions performed by different level people throughout the company in organizational decision making • Mayo (1933) and Levin (1947) the pioneers of participative management studies • is best suited to technological companies, which need their employees to be • creative, • intrinsic motivation towards their work, • stronger affiliation with their discipline than their organisation, and • sensitivity to directive management
What is participative management 2/2 • Tendencies in today’s participative management are • relationship between participative management and new flexible more organic and networked organisations, • improved information and communication technology, and • greater stakeholder decision making in organisations.
Differentiating Human Resources Policies traditional China, modern China and Finland
Attributes of a good employee 7/10 9/10 7/10
Attributes of a good worker 1/2 • Modern • good working attitude, • loyalty, • eagerness to learn, • positivity, • openness, and • contribution to the company • shift towards western type of appreciating more individualistic, self-learning ways of working, although some familiar aspects to Chinese culture, such as loyalty and contribution to the company can be found
Attributes of a good worker 2/2 • Finland • enthusiasm, • initiative, • individual work, • individual problem solving, • willing to take responsibility, • trustworthiness
modern interviews should be implemented carefully requires patience of the interviewer Chinese see people as more complex beings Take time to reveal the real self of the applicant Finland first impression extremely important requires good communication skills from the applicant Finnish people look for few attributes eliminates unimportant attributes applicant can be put to a tough situation Interviews of a job-applicant
Impact of age in selection • Literature stresses the importance of age between Chinese people. Confucian teachings of respecting the old. • mod: No evidence of elder people special favoring in selection situation • Finland: Discrimination of elder workers in selection situation. Ageism or age discrimination.
modern: Still rare Female managers can’t see the big picture are keen on little details independent personalities pregnancy creates problems tougher on the employee than male managers suitable for middle-level managers Finland: equality of sexes female president and prime minister in Finland women get almost the same respect as men discrimination only in wages problems in combining the family and career Situation of Female managers
modern: Internet Work fair technical schools headhunting guanxi Finland: Internet orientation evenings labour bureau universities and polytechnics Recruiting channels
Practical implications to modern • No problems getting employees, because • massive supply of Chinese workforce • salary level competitive • Loyalty problems arise • working attitude of some workers • Reference checks not effective
What to eat in China • Shui jiao dumblings • Suan la tu dou si hot and spicy potato strips • Gan zha li ji deep fried pork • La zi rou spicy pork • Ge le shan la zi ji deep fried peppers with chicken • Gong bao ji ding kung pow chicken • Xingjiang yang rou spicy mutton (xingjiang style) • Cong you hai hou onion fried fish • Dan chao fan fried rice with egg • Mapo doufu spicy beancurd • Hong shao niu rou red braised beef
What to drink in China • Ka fei coffee • Cha (lu =green, hong=red) tea • Shui water • Ke kou ke le coke • Bai shi ke le pepsi • Pi jiu beer • Hong jiu red wine • Er guo tou strong Chinese alcohol • Bai jiu chinese spirit
Miscellaneous • Fu yuan waitress • Bei zi cup • Kuai zi chopsticks • Can jin zhi napkin • Gan bei bottoms up • Ce suo toilet