China is one of the world’s oldest civilisation and with over 1.3 billion people, the largest country in terms of population. The country has been under Communist Party rule since 1921 and has experienced at least two major cultural and economic changes between then and the present time. After World War II, the party under Mao Zedong established a dictatorship that while ensuring China’s sovereignty imposed strict controls over everyday life and security. Starting in 1978, his successor Deng. Xiapong gradually introduced market-oriented reforms and decentralised economic decision-making. Political controls however, remain tight even while economic control continues to be relaxed.
As one would expect from the large size of their country, the Chinese are a very diverse nation with a variety of ethnic groups, languages, religions and regional cultures. However, as in the case of India discussed above, there are however some common cultural threads going through many of the values and attitudes that people hold a long imperial history and traditional heritage, a communist political regime since 1920s, predominance of the “Han” ethnic group and the overwhelming influence of the Confucian philosophy. You will note in table 6.2 that all these have left their imprints on the national culture and at the micro-level on employee-management relationships and HRM in organisations.
National Culture
Yin and yang philosophy and traditional values:
● opposites are inseparable parts of a larger whole, integrating with each other
● high-context culture: meanings often derive from relationships, authority and context
● Reserved, collectivistic, but also individualistic and expressive depending on the circumstances
● personalised loyalty: loyalty to a particular individual
● Guanxi: personal networking, using extended family and other developed relationships and connections to gain co-operation and to get things done.
● Attitude to time: both long-term and short-term orientation depending on the situation
● ji: a carefully devised scheme with which to cope with difficult situations and gain psychological and material advantages over the opponents.
advantages over the opponents
Confucian values:
● Moral cultivation, importance of interpersonal relationships, family-orientation, respect for age and hierarchy, need for harmony and concept of face
● li shang wang lai: Confucian attitude toward interpersonal relationships, ‘courtesy demands reciprocity’
Legacy of communism:
● State in full political control, but a great deal of economic liberation especially in coastal regions
● centralised economic planning and control structure, unsophisticated legal system, lack of technology and capital,
underdeveloped infrastructure, large population, low average education level, low to medium per capita living standard,
Ongoing reforms, and fast changes
● bargaining as a way of life within bureaucratic institutions
HRM and other employee related values and practices
● Workers live and work within a Communist structure
● Older employees: not proactive or bold when making decisions, and they often do not offer independent opinions on particular decisions.
● Younger employees: basically more adaptable, and have not been subject to traditional working practices
● Local government exerts control on internal affairs such as HRM
● Managers are reluctant to share information, to take risky decisions, worry much more about political relationships in
organisation, not as much about organisational goals and how to achieve them
● Short-term planning horizons
● Communist Party hierarchy in every firm gradually being replaced by the firm’s trade union leaders
● Managers, especially the young ones, tend to seek their personal gains first in any decision made within the company
● Reliance on rules and procedures
● Management is centralised, authoritarian, charismatic, personalised, hierarchical, and consensus seeking
● Employees lack pride in and identity with their employer organisations
● Absence of personal contribution to organisational objectives
● Time is not of the essence, not much concern for schedule
● Short supply of local managerial and technical skills
● High value on morals, discipline, flexibility, and information collection
● Interpersonal relationship (guanxi) within the firm.
● Older managers expect younger members to respect them
● Age and seniority are accorded some priority in discussions and decisions
● Relationship-oriented approach to conflict management.
PLEASE SUMMARIZE HUMAN RESOURCE IN CHINA
1 answer
Human Resource Management (HRM) in China is profoundly influenced by the country's unique historical, cultural, and political context. China, being the most populous country with a rich civilization, has undergone significant transformations under Communist Party rule since 1921, transitioning from a strict, controlled regime under Mao Zedong to a more market-oriented economy initiated by Deng Xiaoping in 1978. This shift has led to certain complexities in HRM practices.
Key Aspects of HRM in China:
Cultural Influences:
Confucian Values: HRM is characterized by moral cultivation, respect for hierarchy, the importance of interpersonal relationships, and the need for harmony. Loyalty is often personalized, with emphasis on face-saving and maintaining relationships.
Guanxi: Personal networking plays a crucial role in business operations. Relationships and connections are leveraged for cooperation and achieving objectives.
Yin and Yang Philosophy: Opposing forces are seen as complementary. This manifests in a balance between collectivism and individualism, with adaptability based on circumstances.
Workforce Characteristics:
Older employees may be more reserved and less likely to voice independent opinions, reflecting traditional practices. In contrast, younger employees tend to be more adaptable, having grown up in a rapidly changing economic landscape.
There is often a lack of pride and identity among employees concerning their organizations, with minimal personal investment in organizational goals.
Management Style:
Management tends to be centralized, hierarchical, and authoritarian, with a focus on consensus-seeking rather than on innovative decision-making.
Managers often prioritize their personal gains and maintain control over information, leading to a conservative and cautious decision-making environment.
Regulatory and Political Context:
The Communist Party retains a significant influence over business operations, with local governments exerting control over HRM practices.
The legal and institutional framework remains underdeveloped, impacting the workplace environment and HR practices.
HRM Practices:
Short-term planning horizons are common, and there's a reliance on established rules and procedures.
Managers are often more concerned with political relationships within organizations than with achieving long-term organizational goals.
Challenges:
There is a short supply of local managerial and technical skills, impacting the effectiveness of HRM.
Ongoing reforms lead to organizational changes and a dynamic environment that HRM must navigate.
In summary, HRM in China reflects the complexities of a rapidly evolving society that balances traditional values with modern economic practices, creating a unique landscape for managing human resources.
