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HRM in China

HRM in China. Presented by Thomas Li-Ping Tang, Ph.D. at IAE de l’ Universite de Nantes. HRM in China. Presented by Thomas Li-Ping Tang, Ph.D. at University of Valencia. Outline. The Global Challenges Culture Differences The Chinese Culture Some Selected Research Findings

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HRM in China

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  1. HRM in China Presented by Thomas Li-Ping Tang, Ph.D. at IAE de l’ Universite de Nantes

  2. HRM in China Presented by Thomas Li-Ping Tang, Ph.D. at University of Valencia

  3. Outline • The Global Challenges • Culture Differences • The Chinese Culture • Some Selected Research Findings • Implications

  4. Global Challenges • Too little change leads to stagnation, too much change leads to chaos. • Working in today’s organizations is like a raft trip through permanent white water. • In a time of rapid change, the unconventional often wins. • Innovation

  5. Global Challenges--People • Demographic Variables, Age, Sex, Race • Education, Knowledge • Attitudes, Values--Work, Leisure, Family, Money, Time • Expectations--Quality, Speed, Value, Service

  6. Technology • Communication--Information, Data • Speed and Accuracy • Quantity and Quality • Computer • Internet, E-mail, Fax • It Changes the Way We Do Business • Opportunity for Innovation. GetRich.Com

  7. Global Changes • Reunification of Germany • Restructuring of the Former Soviet Union • The Formation of European Union • The Single Currency--The Euro • The North American Free Trade Agreement (NAFTA) • Less Trade Barriers

  8. The Triad Market • 3 Regional Free-Trade Blocs • Asia, • North America, and • Western Europe

  9. World Management Theory • Theory, Research, and Practices • A Good Theory Must Have 4 Elements: • 1. What • 2. How • 3. Why • 4. Who, Where, and When • Theory for the World (Same, Different) • Cross-Cultural Comparisons

  10. Culture • Study People • Anthropology, Sociology, Psychology • Country-East/West; North/South; Old/New • Region • Organization • Group, Team (e.g., Family)

  11. Definition of Culture • Culture is defined as the pattern of basic assumptions that the group has invented, discovered, or developed in learning to cope with its problems of external adaptation and internal integration (Schein, 1986)

  12. Levels of Culture • Artifacts--Signs, Symbols • Patterns of Behavior--Personal Enactment, Ceremonies, Rites, Stories, Rituals. • Values--Consciously Articulated Beliefs • Assumptions--Deepest, Unconscious, Fundamental Beliefs

  13. Assumptions • Organization’s relationship to environment (Dominance, submission, harmonizing) • Nature of reality, truth, time (linear, cyclical, monochronic--one kind only, polychronic--several different kind), space • Nature of human nature (Good, evil, neutral; Theory X or Theory Y) • Nature of human activity • Nature of human relationship (Cooperative, competitive)

  14. Understanding Culture Differences • Geert Hofstede, Dutch researcher • 160,000 Managers and Employees of IBM • 60 Countries • Individualism vs. Collectivism • Power Distance • Uncertainty Avoidance • Masculinity vs. Femininity

  15. Cultures • Masculine Power Uncertainty Individualism • 8 UK 7 HK 1 China 1 USA • 13 USA 8 France 7 France 3 UK • 17 HK 18 Taiwan 9 Spain 11 France • 27 Taiwan 19 Spain 20 Taiwan 14 China • 29 France 20 China 32 USA 21 Spain • 30 Spain 26 USA 35 UK 32 HK • 40 China 31 UK 37 HK 36 Taiwan • Ranking of China based on Cragin (1986), the rest on Hofstede (1984).

  16. PRC • 1.2 Billion people • Most people live in the crowded river-valleys and coastal areas • 25 cities with more than 1 million inhabitants • 50 years of Communist rule • Cultural common denominator--Confucianism

  17. Confucianism • A major force in the Chinese culture • Confucianism is basically authoritarian and it places great emphasis on status differences. • It guides the correct and best way of handling interpersonal relationships and is accepted at all levels of the hierarchy (Bond, 1991; Bond & Hwang, 1986; Hofstede & Bond, 1988; Yang, 1986).

  18. Chinese Leadership • Autocratic leadership style • Superiors expect subordinates to show respect and obedience to them • Both superiors and subordinates maintain a social distance from one another

  19. Chinese Leadership • Delegation of power is limited • Loyalty of managers to the Communist Party (“Red” > Expert). • Communication is mostly top-down • Despite the personal and centralized managerial style, managers’ individual responsibility for their authoritarian decisions is lacking (Worm, 1997).

  20. PRC-General Background • Based on the extended family, Chinese collectivism renders little confidence in out-group members. • In-group vs. Out-group • Establishment of interdependent personal relationships, guanxi, based on exchange of services.

  21. PRC • This kind of personalization is related to several social habits, e.g., • Nepotism • Corruption • Cliques • Use of middlemen • Voice of America (9/21/99)

  22. PRC (Swaak, 1995, CBR) • The rule-of-man is more powerful than the rule -of-law. • Loyal to a person vs. Loyal to an organization.

  23. PRC • The Chinese ignored McDonald’s 20-year lease and threw the firm’s restaurant out of Tianamen Square to make space available for someone else. • China is still a communist country. • The success of economic changes depends on the changes of Political, Legal, and Value Systems.

  24. Where “Money” Talks • Time, June 10, 1996 p. 24 • Most Corrupt Least Corrupt • 1. Nigeria New Zealand • 2. Pakistan Denmark • 3. Kenya Sweden • 4. Bangladesh Finland • 5. China Canada • 6. Cameroon Norway

  25. PRC • Small in-groups • Anti-social attitudes • Face consciousness • Indirect communication • My HK Friend who has a business in PRC: People will inform you in the evening: There is a problem. Response: Fix it before 9 am.

  26. PRC • The younger generation’s growing interest in making money is eroding Communist Party ideologies. • An elite group of bright Chinese who survived the Cultural Revolution are moving into positions of power and influence.

  27. PRC • China’s 1.2 billion consumers represent 1/5 of the world’s population. • It is the second-largest consumer market in Asia after Japan. • 15 million prospective new consumers are born in China every year. • China has more than 1 million Millionaires.

  28. PRC • In 1994, China was visited by 43 million tourists. • By 2010, Shanghai will become one of the world’s most modern financial trade centers. • The long-term future is bright for the world’s most-populous country.

  29. Alicia Leung & Carolyn Erdener(1996) HKBU • Gender Differences in Business Ethical Decisions in Hong Kong and China: Implications for the Masculinity/Femininity Dimension in Hofstede’s Theory

  30. Masculinity • Pursuit of Material Objectives • Assertive, Competitive • Achievement-Oriented • Materialistic • Money and Possessions are Important

  31. Femininity • Pursuit of Social Goals • Concern for Others • Nurturing Role • Quality of Life is Important • People and the Environment Are Emphasized

  32. China vs. Hong Kong • China is Classified as Feminine • Males and Females Hold Similar Values • Hong Kong is Classified as Masculine • Males and Females Hold Different Values

  33. Hypotheses • Males and Females in Masculine societies (HK) hold different values. • Males and Females in Feminine societies (China) hold similar values. • Differences HK vs. China for males. • No Differences HK vs. China for females.

  34. Sample • China, n =99 • Male = 55, Female = 44 • Hong Kong, n = 127 • Male = 82, Female = 45

  35. Vignette • Bill Smith has recently accepted a job with a young vigorous micro-computer manufacturer that engages in intense competition. Smith was led to believe that he was hired based on his management potential. Smith received a memo from the president: “Please meet with me tomorrow at 8:15 for the purpose of discussing the developments your former employer has made in microcomputer software.”

  36. Measure • 1. If you were Smith, what are the chances you would provide your new employer with the software information? • 0 1 2 3 4 5 6 7 8 9 10 Definitely Definitely Would Not Would

  37. Issue: Important? • 2. Unethical for Smith to provide and unethical for employer to ask • 3. Unethical for employer to mislead • 4. Protect Smith reputation** • 5. Provide some but not all information** • 6. Depends on security agreement • 7. To keep job; loyalty to new employer • 0 1 2 3 4 5 6 7 8 9 10 • Not Important Very Important

  38. Male vs. Female • 1. 4.37 5.18* (Would) • Other Differences were not significant.

  39. China vs. Hong Kong • 1. 4.07 5.17* • 2. 5.49 6.21* • 3. 5.17 6.20* • 4. 6.81(Reputation) 6.49* • 5. 4.96 5.63* • 6. 4.08 6.31* • 7. 4.19 5.36*

  40. Male vs. Female • China • 1. 3.35 4.97* • Males and Females agreed on all 6 issues. • Hong Kong • 1. 5.06 5.38 ns • 5. 6.05 (Provide some) 4.94* • Males and Females disagreed on Item 5.

  41. Male (China vs. Hong Kong) • 1. 3.35 5.06* • 2. 5.98 6.49* • 3. 5.60 6.45* • 4. 7.51(Reputation) 6.65* • 5. 4.62 6.05* • 6. 3.29 6.34* • 7. 3.42 5.20*

  42. Female (China vs. Hong Kong) • 1. 4.98 5.38* • 2. 4.87 5.73* • 3. 4.64 5.78* • 4. 5.93 6.21* • 5. 5.39(Provide some) 4.94* • 6. 5.07 6.27* • 7. 5.16 5.63*

  43. Conclusion • Males and Females in Masculine societies (HK) hold different values. Item 5 • Males and Females in Feminine societies (China) hold similar values. All but Item 1 • Differences HK vs. China for males. Supported • No Differences HK vs. China for females. Not Supported

  44. Conclusion • China vs. Hong Kong • People in China score higher on “Protecting Smith’s Reputation” than do those in Hong Kong • Protect one’s FACE. • Another study on FACE--

  45. Intrinsic Motivation Study • Tang, T. L. P. (1989). Factors affecting intrinsic motivation among university students in Taiwan. Journal of Social Psychology, 130 (2), 219-230.

  46. Culture • Students in Asian countries (Japan, PRC, and Taiwan) have performed better than those in the USA (Husen, 1967; Stigler, Lee, Lucker, & Stevenson, 1982). • Chinese esteem “scholarly endeavor and toil”, i.e., effort (Hess et al., 1987). • Hard work offers the main route to accomplishment and competence in the Chinese culture.

  47. Culture • Effort is considered one of the major ingredients of academic achievement. • The virtues of industriousness, ambition, and ascetic life that condemns laxity and laziness (PWE, Weber, 1904-05/1958) are also strong values in the Chinese culture and can be traced back to educational principles advocated by Confucius and other revered scholars (Hess et al., 1987).

  48. Goal Setting • Specific, difficult goals produce higher performance levels than easy goals (Locke & Latham, 1990). • Difficult goals also produce relatively high levels of arousal (Wright & Brehm, 1984).

  49. Perceived Demand Characteristics (PDC) • One factor affecting the amount of mental effort invested in a task is a person’s perceived demand characteristics (PDC) of the stimulus, task, or context. • The more demanding PDC is, the greater the amount of mental effort that will be expended. (Salomon, 1984, JEP)

  50. Salomon (1984) • Watching TV vs. Reading a Book • Low PDC vs. High PDC • High PDC--High Performance

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