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EMPLOYEE RECRUITMENT AND SELECTION TERM PAPER
On
Start up of retail store from
recruitment perspective
SUBMITTED BY:
PALLE PRIYANKA - 09235
SHALINI.E.S. - 09248
SUSHRUTHA.M - 09251
VEENA NEELANAJI.M - 09255
HANUSHA SEETHARAM. G - 09261
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TABLE OF CONTENTS
INTRODUCTION TO RETAIL INDUSTRY .......................................................................................... 3
GROWTH DRIVERS FOR RETAIL SECTOR IN INDIA: ..................................................................... 3
STATISTICS OF INDIAN RETAIL INDUSTRY ................................................................................... 4
KEY FUNCTIONS OF THE OPERATIONS DEPARTMENT IN A DEPARTMENTAL STORE: ......... 5
HIERARCHY OF THE OPERATIONS DEPARTMENT OF OUR RETAIL STORE.............................. 6
CSA (CUSTOMER SERVICE ASSOCIATE) ..................................................................................... 7
TEAM LEADER: ................................................................................................................................ 8
DEPARTMENT MANAGER: ............................................................................................................. 9
JOB GRADE: First Level Management................................................................................................ 9
JOB TITLE: Department Manager....................................................................................................... 9
REPORTS TO: Floor Manager............................................................................................................ 9
Each floor is divided into zones and a departmental manager is made responsible for these zones. ........ 9
ROLES AND RESPONSIBILITIES: ................................................................................................... 9
FLOOR MANAGER: .......................................................................................................................... 9
ASSISTANT STORE MANAGER.................................................................................................... 10
STORE MANAGER:......................................................................................................................... 11
AREA MANAGER: .......................................................................................................................... 12
GENERAL MANAGER:................................................................................................................... 12
ZONAL MANAGER:........................................................................................................................ 13
CHIEF OPERATING OFFICER:....................................................................................................... 14
LEGAL CONSTRAINTS TO SET UP THE ABOVE DEPARTMENTAL STORE IN CHINA: ............ 15
HR POLICIES IN CHINA:........................................................................................................................... 19
RECRUITMENT AND SELECTION PROCESS IN CHINA: ..............................................................................20
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We have chosen to set up a retail store and the following the reasons for which we have
selected the retail industry.
INTRODUCTION TO RETAIL INDUSTRY:The India Retail Industry is the largest among all the industries, accounting for over 10
per cent of the countrys GDP and around 8 per cent of the employment. The Retail Industry in
India has come forth as one of the most dynamic and fast paced industries with several players
entering the market. But all of them have not yet tasted success because of the heavy initial
investments that are required to break even with other companies and compete with them. The
India Retail Industry is gradually inching its way towards becoming the next boom industry.
Though initially, the retail industry in India was mostly unorganized, however with the change oftastes and preferences of the consumers, the industry is getting more popular these days and
getting organized as well.
GROWTH DRIVERS FOR RETAIL SECTOR IN INDIA:
Rising incomes and improvements in infrastructure are enlarging consumer markets anaccelerating the convergence of consumer tastes.
Liberalization of the Indian economy Increase in spending per capita Income. Advent of dual income families also helps in the growth of retail sector. Shift in consumer demand to foreign brands. Consumer preference for shopping in new environments. The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in
creating awareness about global products for local markets.
The increasing share of young population in total population of India.
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STATISTICS OF INDIAN RETAIL INDUSTRY
With growing market demand, the industry is expected to grow at a pace of 25-30% annually.
The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000
crore by the year 2010. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross
Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by
2010.
The BMI India Retail Report for the third-quarter of 2010, forecasts that the total retail sales will
grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014. With the expanding middleand upper class consumer base, there will also be opportunities in India's tier II and III cities. The
greater availability of personal credit and a growing vehicle population to improve mobility also
contribute to a trend towards annual retail sales growth of 11.4 per cent. Mass grocery retail
(MGR) sales in India are forecast to undergo enormous growth over the forecast period . This is
a consequence of India's dramatic, rapid shift from small independent retailers to large, modern
outlets
Moreover, for the 4th time in five years, India has been ranked as the most attractive nation forretail investment among 30 emerging markets by the US-based global management consulting
firm India's retail market is expected to be worth about US$ 410 billion, with 5 per cent of sales
through organised retail, meaning that the opportunity in India remains immense.
Above are the strong reasons for choosing retail industry and in retail industry we have decided
to set up a departmental store.
A department store is a retail establishment which specializes in satisfying a wide range of the
consumer's personal and residential durable goods product needs; and at the same time offering
the consumer a choice multiple merchandise lines, at variable price points, in all product
categories. Department stores usually sell products including apparel, furniture, home
appliances, electronics, and additionally select other lines of products such as paint, hardware,
toiletries, cosmetics, photographic equipment, jewellery, toys, and sporting goods.
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Thename of our departmental store is PRETTY SELECTIONS
In our department store named PRETTY SELECTIONS we have decided to set up
operations department first because for any departmental store operations department is a
back bone and all the other departments act as support functions and all the front end
operations of the store are under the control of operations department.
KEY FUNCTIONS OF THE OPERATIONS DEPARTMENT IN A
DEPARTMENTAL STORE:
Track and measure retail store performance. Guides and evaluates staff's performance by providing timely feedback Manages inventory and cash to meet established guidelines Responsible for daily financial, accounting, and inventory control Implement store promotions and achieve sales and financial objective, within a timely
manner.
Efficiently managing all operational functions including receiving/back room, inventory,merchandising and store maintenance.
Effectively managing sales and profitability of assigned departments. Actively maintaining a team approach in the day-to-day management of store associates Ensure each customer receives exceptional service by providing an open, friendly
environment which includes greeting and acknowledging every customer, maintaining
exceptional standards, solid product knowledge
Control shrinkage through day-to-day management of store Responsible for merchandise set up and display maintenance Develop, communicate and implement plans to maximize sales Ensure compliance with all policies and procedures through regular store management.
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HIERARCHY OF THE OPERATIONS DEPARTMENT OF OUR RETAIL
STORE
COO
ZONAL MANAGER
GENERAL MANAGER
AREA MANAGER
STORE MANAGER
ASSISTANT STORE MANAGER
FLOOR MANAGER
DEPARTMENT MANAGER
TEAM LEADER
CUSTOMER SERVICE ASSOCIATE
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TEAM LEADER:
JOB GRADE: First Level Management
JOB TITLE: Team Leader
REPORTING TO: Department Manager / Assistant Department Manager
ROLES AND RESPONSIBILITIES:
y Supervising the customer service associatesy Scheduling the shift timings and break timings of CSASy Addressing to their problems and any customer issues if necessaryy Ensuring the proper display of merchandise.
JOB SPECIFICATION:
EDUCATIONAL QUALIFICATION: Minimum SSC Passed
WORK EXPERIENCE: Minimum of 18 24 months of experience in the same retail format as a
CSA or Team Leader
COMMUNICATION SKILLS: Excellent communication skills which includes ability to speak
Hindi and English and proficiency in vernacular language.
Ability to manage teams efficiently.
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DEPARTMENT MANAGER:
JOB GRADE: First Level Management
JOB TITLE: Department Manager
REPORTS TO: Floor Manager
Each floor is divided into zones and a departmental manager is made responsible for these zones.
ROLES AND RESPONSIBILITIES:
y Monitor the day to day sales of the merchandise in his department.y Monitor the rate of growth and de- growth of each brand in his department.y
Prepare a day to day report on fast moving brands and slow moving brands in hisdepartment to floor manager.
y Co-ordinate with the vendors and communicate with them effectively about theperformance of their products.
JOB SPECIFICATION:
EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.
WORK EXPERIENCE: Minimum of 4 years experience in the same retail format
FLOOR MANAGER:
JOB GRADE: First Level Management
JOB TITLE: Floor Manager
REPORTS TO: Assistant Store Manager
ROLES AND RESPONSIBILITIES:
y Monitoring the sales of the entire floor.y Monitoring the movement of stock size wise, department wise, brand wise.
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y Maintaining a day to day report of the fast moving and slow moving brands in eachdepartment of a floor.
y Maintaining contacts with the vendors and the brand managers of the merchandise ofthe entire floor.
y Coordinate with sales force.JOB SPECIFICATION:
EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.
WORK EXPERIENCE: Minimum experience of 4-5 years as a floor manager or department
manager in the same retail format.
Excellent communication skills
ASSISTANT STORE MANAGER
JOB GRADE: First Level Management
JOB TITLE: Assistant Store Manager
REPORTS TO: Store Manager
ROLES AND RESPONSIBILITIES:
y Supporting all the departments (Marketing, HR, and Visual Merchandising) of thestore.
y Coordinates with the marketing department and visual merchandising department toensure the proper organization of events and displays in the store.
y Assists the store manager in his duties.JOB SPECIFICATION:
EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.
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WORK EXPERIENCE: Minimum of 6-7 years of experience in the same retail format as a
department manager or floor manager.
STORE MANAGER:
JOB GRADE: First Level Management
JOB TITLE: Store Manager
REPORTS TO: Area Manager
ROLES AND RESPONSIBILITIES:
y Monitors sales figures of all the brands in the store on a weekly basis.y Monitors level of shrinkage in the store and takes necessary actions to over come
shrinkage.
y Maintains the track record of all performing brands and non performing brands inthe store and there by estimates the future sales.
JOB SPECIFICATION:
EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.
WORK EXPERIENCE: Minimum of 8-9 years of experience in the same retail format as a
Assistant Store Manager or Floor Manager.
Experience is measured in terms of square feet handled, staff handled, product knowledge and
growth of the previous store where he has worked.
Excellent communication skills.
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AREA MANAGER:
JOB GRADE: Middle Level Management
JOB TITLE: Area Manager
REPORTS TO: General Manager
ROLES AND RESPONSIBILITIES:
y Holds responsibility for all the stores allotted to him.y Monitors the state wise profit and loss of the store and take necessary actions.y Reports to General Manager about the prospects of expansion in that state.
JOB SPECIFICATION:
EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.
WORK EXPERIENCE: A Minimum of 10-11 years of experience in the same retail format as a
Store Manager or an Assistant Store Manager.
GENERAL MANAGER:
Each zone is divided in to two sub zones and General Manager is made responsible for each sub
zone.
JOB GRADE: Middle Level Management
JOB TITLE: General Manager
REPORTS TO: Zonal Manager
ROLES AND RESPONSIBILITIES:
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y Monitors the sub zone wise profit and loss of the stores and take necessary actions.y Reports to Zonal Manager about the prospects of expansion in that sub zone.
JOB SPECIFICATION:
EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.
WORK EXPERIENCE: A Minimum of 12-13 years of experience in the same retail format as an
Area Manager or Store Manager.
ZONAL MANAGER:
The country is divided in to four zones and Zonal Manager is made responsible for each zone.
JOB GRADE: Middle Level Management
JOB TITLE: Zonal Manager
REPORTS TO: Chief Operating Officer
ROLES AND RESPONSIBILITIES:
y Monitors the zone wise profit and loss of the stores and take necessary actions.y Reports to Chief Operating Officer about the prospects of expansion in that sub zone.
JOB SPECIFICATION:
EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.
WORK EXPERIENCE: A Minimum of 14-15 years of experience in the same retail format as a
Zonal Manager or General Manager.
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CHIEF OPERATING OFFICER:
JOB GRADE: Middle Level Management
JOB TITLE: Chief Operating Officer
REPORTS TO: Chief executive Officer
ROLES AND RESPONSIBILITIES:
y Monitors profit and loss of the stores in the entire country and take necessary actions.y Takes strategic decisions regarding the expansion of the stores.y Maintains the vendor relationships and acquires new vendors for the company.
JOB SPECIFICATION:
EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.
WORK EXPERIENCE: A Minimum of 18-20 years of experience in the retail industry.
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LEGAL CONSTRAINTS TO SET UP THE ABOVE DEPARTMENTAL
STORE IN CHINA:
From 1 December 2004, a new investment vehicle has been made available to foreign investors
by the Chinese government by allowing and encouraging foreign investors to set up "Foreign
Investment Commercial Enterprises" (FICEs) in China to conduct wholesale, retail and other
permitted businesses. This type of business entity possesses the total right of trade and business.
The FICE is a limited liability company wholly owned by a foreign investor. It is a legal person.
The foreign investor has sole responsibility for its profits and losses. The liability is limited to
the amount of registered capital injected into the entity. The FICE is able to implement strategies
that effectively conform to the interests of its overseas parent company. To carry on differenttrading businesses, it must have the required permits and certificates.
To establish a FICE (Retail Shop) in Shenzhen, a foreign investor has to submit the necessary
incorporation documents to various authorities for registration. It is advisable for the foreign
investor to entrust an authorised consulting body or agency to handle the tedious submission and
application processes.
Capital Contribution:
A FICE's minimum registered capital has to conform to relevant provisions of the Company
Law. In accordance with prevailing laws and regulations, the minimum registered capital
required for a retailing business are RMB500,000 and RMB300,000 respectively.
In addition, the registered capital has to match the actual business activities.
The amount of the initial capital contribution cannot be less than 15% of the registered capital or
the minimum statutory amount of registered capital.
The investor is allowed to contribute registered capital in cash, in kind, or in the form of
technology/intellectual property rights, or other non-monetary properties that may be assessed on
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the basis of currency. The amount of the capital contribution in cash can be no less than 30% of
the registered capital.
According to the "Administrative Measures on Foreign Investment in Commercial Fields, for
FICEs engaged in the retail business, import of commodities for marketing and purchase of
domestically-made products for export are allowed.
REGISTRATION
Step 1: Choosing a business name
The Chinese name should be in the following format:
y First part - company namey Second part activity- If the company is in the retail business, it has to use the Chinese
words "shang mao", meaning "business and trade")
y Third part - Shenzheny Fourth part - company structure.
Use of "China", "Sino" and "International" are not permitted in the Chinese name unless
permission is given, although they are permitted in the non-Chinese name.
Step 2: Reservation and Application of Name
Prior to any of the following applications, the investor should reserve a name for its prospective
FICE with the Shenzhen Administration of Industry and Commerce.
Step 3: Registration of Approval Certificate
After completion of the Name Approval Notification, the Approval Letter and Approval
Certificate are the next to be registered.
(1) For a FICE intending to be in the retail business, approval from the Shenzhen Economic
Committee is required. The Articles of Association, Feasibility Report, Lease Agreement of the
proposed store, etc. should be submitted at the time of application.
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(2) The foreign investor has to apply using similar documents such as the Articles of
Association, Feasibility Report etc for the Approval Letter and Approval Certificate from the
Shenzhen Administrative Bureau for Trade and Industry. The municipal approval authority will
review all documentation.
(3) If the documents are in order, the authority is able to approve and issue the certificates in 5
working days.
Step 4: Registration of Business License
Within 30 days of obtaining the Approval Certificate, the foreign investor will need to register
and apply for a Business License for the FICE from Shenzhen Administrative Bureau for
Industry and Commerce. The foreign investor is also required to submit similar documentation to
the Shanghai Foreign Economic Relation and Trade Commission for approval and filing.
Once the Business License is issued, the FICE is deemed to be a legal person duly organized and
existing under PRC laws. It will have full operational rights to operate a business in China within
the scope of its Business License.
Step 5: Registration of Organization Code Registration Certificate
This is purely a procedural step. The Organization Code Bureau will issue certificates within 1-3
working days.
Step 6: Registration of Tax Registration Certificate
Once your Organization Code Registration Certificate is approved, you may apply for a Tax
Registration Certificate at the local tax authority. At the same time, you should also apply for thecompany seal and legal representative seal. Together with the Approval Certificate, Business
License and other documents, the formal application form affixed with the seals should be
submitted to the authority for examination and approval.
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Step 7: Other Certificates
y Statistics Registration Certificate issued by the Statistics Bureauy Foreign Exchange Registration Certificate issued by the Foreign Exchange Supervision
Bureau
y Finance Registration Certificate issued by the Finance Bureauy Customs Registration Certificate issued by the Customs Bureau.
Others
Having obtained approval from the tax and foreign exchange authorities, you are legally entitled
to open USD Capital and RMB Basic Accounts. You may then proceed with capital injection,
capital verification and certificate renewal.
For Establishing a Store
Existing foreign investment commercial enterprises applying to establish a store have to meet the
following conditions:
1) Meet relevant regulations on urban development and urban commercial development2)
Participate on time and pass the joint annual review on foreign investment enterprise
3) The registered capital of the enterprise has been paid up.The procedure of establishing a store is the same as an enterprise set-up. The existing FICE is
required to obtain a series of certificates for the proposed store. The following documents are to
be submitted:
y An application lettery
Articles of Association modified accordinglyy Feasibility Report pertaining to opening of the storey Board's Resolutions on opening of the storey Lease Agreement of the store and a copy of the Real Estate Certificate (landlord)y Capital Verification Report of the FICEy Copy of latest Audit Report of the FICE
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y Copy of the Incorporation Certificate of the FICE investor.
TIME AND GOVERNMENTAL CHARGES
y The processing time is within 60 working days if all supporting documents and additionalinformation are provided.
y The total government charges for the establishment of a FICE in Shenzhen are estimatedto be between USD250 and USD350.
y The total government charges for establishment of a FICE and a store together areestimated to be between USD400 and USD500.
HR POLICIES IN CHINA:
HR policies in China are divided in accordance with national laws and local laws. This format
has made the implementation of HR policies complicated and thus, varies between firms. In
recent years, Chinese labor laws have undergone certain changes in accordance with the laws of
developed countries like USA and UK. The transition of Chinese economy from a closed one to
a market economy has been the reason for this shift in labor laws. HR policies in China for
general HR issues like Recruitment, Termination is as follows:
HR RECUTIMENT POLICIES:Types of employees recruited by companies/firms in China include on a broad category of
Locals, Non Resident Chinese seeking jobs in China, foreign nationals trying to establish
themselves in China.
Recruiting Locals Various firms, particularly outsourcing, joint ventures or Multi Nationals
prefer local population because of the lower cost to company even for high ranking management
positions.
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Recruiting Non Resident Chinese Non Resident Chinese are often preferred by companies
because of a mixed combination of local knowledge and foreign expertise.
Recruiting foreignnationals Foreign companies setting up branches in China seek foreign
nationals in the beginning. More precisely people from Hong Kong and Taiwan are preferred.
HR TERMINATION POLICIES:
Although laid down very briefly in both national and local legislations, termination policies have
been a complicated issue in China. However, in recent years implementation of these laws has
been more rigorous owing to a rise in labor rights consciousness. The laws for termination
include the following primary guidelines:
1) A 30 days notice citing the cause of termination has to be given.
2) The causes for termination will include: incompetence, violation of company rules or criminal
offence, bankrupting the employer and redundancy.
3) The following reasons are not applicable for termination: Pregnancy/nursing, disabilities,
injuries, illness.
RECRUITMENT AND SELECTION PROCESS IN CHINA:
The nature of work in China is greatly affected by some of the traditional Chinese cultural values
such as guanxi, face and harmonious relationships that require employers, state or private,
to recognise their obligation to find or create suitable jobs and retrain surplus staff for newpositions . In China, whilst there are financial incentives for those who employ surplus workers,
the practice of human resource management is largely based on relationships. Furthermore,
although the job for life tradition may be diminishing, it still has a significant place in Chinese
psyche and human resource practice.
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Historically, it has been difficult to recruit people from different parts of the country because of a
strict residency policy (UPS 2003). However, these rules are being relaxed in major cities and
city authorities, keen to attract more talented workers, are becoming more flexible.
Nevertheless, there are four outstanding features of Chinese culture as it relates to Chinese
management practices and organizational behavior; each factor needs to be considered by
organizations in the practice of recruitment and selection.
1. Respect for age and hierarchy.
The concept of showing respect for superiors or seniors in a family originates from Confucian
beliefs. It is one of the basic requirements within a Chinese family, and to respect the superiors
of a different family is recognition of an individuals social standing and position (Bond, 1991).
In the business environment, respect for authority will result in unquestioned centralized
decision-making and the recognition of hierarchy.
2. Face and harmony.
Face and harmony are significant features of social life in China (Bond, 1991). Saving face is a
key point when reaching consensus within a group. For example, if a manager criticises a
subordinate in the presence of other employees, this can cause that employee to lose face. A loss
of face will break down all personal relations and will destroy communication between managers
and employees and influence the internal management process (Sudhir, 1993). Gao (1996)
explained that the indirect Chinese communication style is an attempt to minimise the loss of
face and keep harmonious relationships.
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3. Group orientation.
Bond (1996) indicated that Chinese individuals tend to identify themselves to be part of a group,
team or unit and they consciously form a distinction between insiders and outsiders due to the
collectivist culture.
4. Personal relations orGuanxi.
Guanxi can be regarded as customarily dealing with mutual favors and string pulling between
organizations and authorities. However, it is also important to know that guanxi exists within an
organization. A good personal relationship can promote more open and frank communications
between managers and subordinates. Thus, a close guanxi can facilitate the management
development process in the organization and can create ties and loyalty between employers and
employees.
RECRUITMENT TECHNIQUES
Since new labor laws were introduced in 1995 and a new employment contract system was set
up, recruitment policies have changed .Enterprises, especially the state-owned enterprises, have
the power to hire and fire employees almost at will; however, the new labor laws protect the
individual rights of each job seeker, whatever their gender or ethnicity, thereby giving graduates
the right to seek their own jobs. State-owned enterprises can recruit both graduates and people
with experience from other companies However, these laws do not always counteract the cultural
influences surrounding equality and rights of the job seeker. It is almost impossible to change
organizational norms and values because there is such a strong power structure and interpersonal
system of guanxi prevalent in almost all organizations whether they are state- or privately-
owned. Hence, it is often difficult for externally recruited employees to integrate into an existing
organization, no matter how well educated or skilled they are.
The informal labor market where priority is given to children and relatives of existing employees
is prevalent despite the lip service that is paid to the concept of unbiased, objective recruitment
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practices. A study by Ip (1995) indicated that about 80% of respondents had found their jobs
through references from friends and relatives; the figure was found to be similarly high in a study
conducted by Ding et al. (1997). Chatterjee and Nankervis (2003) reported that nepotism was
still prevalent at department and work unit level although it was less obvious at top management.
The implication is that, although the economic climate may have changed and there has been a
demand for more Western style HR procedures, recruitment practices in China have changed
little.
Advertisements:
It is common that employers use newspapers for their employment advertisements, although
recruitment advertisements are not permitted in the news media without the prior approval of
the local labor and social security department. The strategy is used to provide an information
channel for potential workers. Many companies attract high quality applicants through
newspapers. Many small service-oriented or retail companies use help wanted signs in store
windows to save advertising. Advertisements are usually placed in local papers or specialized
industry publications. In general, company names and place of origins are listed because
corporate reputation is a key to attracting job seekers to respond to an advertised position.
Job Fairs:
The common recruitment avenues are the labor market, personnel exchange seminars that are
called lao dong li shi chang (free labour market. The job fairs are sponsored by the Labor
Bureau. In todays intensively competitive business environment, more and larger job fairs are
being held in cities in China; fairs often play host to hundreds of companies and attract thousands
of job-seekers, even though job seekers are admitted for a fee
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Campus recruitment:
To recruit potential applicants, many companies regularly go to college or university campuses
to interview students. They can negotiate the job terms directly with the students. If both come
to an agreement, the student will be given an offer after he/she graduates. The campusrecruitment season normally runs from October to December.
Global image:
Since the advent of the new century and the development of technology parks and technology
development zones in China, there has been a concomitant growth in the use of Western HR
strategies among multinational companies; the strategies are closely related to those used in
branches around the world.
Business Management Services:
While China has excellent technical education, there is a dearth of managerial training because,
in the past, managers were promoted on the basis of their political party allegiance, and many
parts of the country remain provincialized as shown in the HR inflexibility such as the hukou
(residence) policy. Thus, although China may be becoming more open, there remain strong
cultural imperatives which must be addressed and respected by business management services.
Corporate Co-ordination:
International Communications and PR companies are developing offices throughout China to
assist local and overseas businesses work together effectively to meet the demands of Eastern
and Western markets. Chinese customers, employees and suppliers are managed by the ICPR
companies which also provide technical support in dealings with Chinese government officials.
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SELECTION TECHNIQUES
Interview:
The interview is a common selection tool for many companies and is the dominant method used.
Punctuality is very important in China and in greeting the applicant the employer will not look at
them directly because lowering of eyes shows respect.
Tests:
There are a series of tests that often are used by Chinese companies, such as technology tests,
technical tests, problem solving tests and English proficiency tests. Traditional companies rarely
use psychological or aptitude testing because they result in a potential loss of face for applicants;
however, psychometric testing of abilities and attitudes, interests and motivations, needs and
aspirations and/or personal management style has been adopted from Western HR practices,
especially in the Healthcare industry.
Behavioral Event:
Interactive role play, simulation exercises and leaderless group discussion (LGD) are behavioral
events which are increasingly popular in the task of selecting the most appropriate employees.
There is an emphasis on identifying values and experience because companies are seeking to
have an excellent working relationship among staff and that is considered to come from staff
having common education, culture and norms.
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BIBLIOGRAPHY:
A book named Essentials of human resource management and industrial relations by SubbaRao
An interview from Mr.Srinivas, Head HR, Coupons, Kukatpally
www.chainabusinessreview.com www.citehr.com