Agam_hrm Env Ppt

7/30/2019 Agam_hrm Env Ppt

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Submitted By:Agam Sehgal

1HRM Environment


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2HRM Environment

Personal

Management

Human

Resource

Management

Strategic

HRM


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3HRM Environment

UnionCulturalConflicts

HRM

Political &Legal

Technological

Economic

Cultural


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Political &

Legal

Legislature

Economic

Suppliers

Customers

Executive

Judiciary

Competitors

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Exploring and pottering (1949-1978)

TVEs had a limited role and were restricted to the production of iron, steel,

cement, Chemical fertilizer, hydroelectric power, and farm tools.

By 1978, TVEs were employing 28.26 million local labors and producing

more than 49 billion yuan outputs.

5HRM EnvironmentSOEs TVEs


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Steady growth (1979-1988)

Farmer income was stagnating by the mid-1980s.

Political requirements of local governments.

During 1984-1987, the central committee provided a series of instructions,

encouraging and financially supporting private enterprises.

6HRM Environment

In 1978, 28.26 million

Labors, 49 billionYuan o/p

In 1988, 95.95 million

Labors, 701 billionYuan o/p


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Land Reforms of 1978

A variety of governance and ownership forms appeared.

1. Responsibility system (2 out of 20):

holds managers accountable for both the profits and losses of their firms.

2. Lease contracting (2 out of 20):

to general manager

7HRM Environment


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3. Joint Ventures (3 of 20):

All three companies were originally set up before

1980, and formed JVs in the 1990s.

Objective:

To enter into strategic alliances with foreign firms to seek foreigninvestment, introduce advanced production equipment, update products,

and build up management expertise.

8HRM Environment

Resulted into =


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4. Joint Stock Companies:

5. Public Listed Companies:

Bring public capital to meet the needs of the

firm's expansion.

Force the company to formalize its management

and accounting systems.

9HRM Environment

60%30%

10%

Sales

Public

Local

Govt


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1. HRM functions

The larger firms with more formal corporate structures tended to have more

comprehensive human-resource function.

HRM Environment 10

No of Firms out of 20 Level of HRM8 No HRM dept at all.9 Personal Dept.3

Separate HRM Dept.


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2. Recruitment:

They recruited migrants as the line workers.

The ratio was 3:7 (Local: Migrants)

Due to the lack of professionals in the local labor

market, they searched and hired on campus from

reputed universities.

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3. Training and development

4. Reward system:

Line Workers: Fixed salary with little or no bonus.

Marketing Staff: Commission based.

General Managers:

a) Floating income

b) Basic salary and rest at the end of the yearc) Basic salary plus dividends.

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5. Social Security:

Pre-reform scenario: ''guaranteed life-long employment

and "cradle-to-grave welfare, labeled the "iron-rice-bowl.

Post-reform scenario:

While SOEs were deeply in debt with a vast amount of medical

and pension obligations, TVEs provided very little social protection for

their workers.

Only when the 1994 Labor Law was implemented did TVEs start to abideby the minimum legal obligations.

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5. Party, trade unions, and worker's congresses:

Either no trade unions or dominated by the State

Party.

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Investment environment (1989-1991):

Lack of control of credit and government budgeting and social disorders.

SOEs suppressed TVEs using their political advantages.

In 1999, a 120 billion yuan credit relief operation was initiated to write-off

SOEs inter-enterprise loans

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Stimulating export-oriented production (1992-1996)

Established Special Economic Zones along

the coastal areas..

Adopted preferential taxation regimes.

Cooperation between eastern regions and

western regions.

HRM Environment 16

By 1996, 135 million

labor, adding 1.8 trillion

yuan to output, exporting600.8 billion yuan.


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Gradually declining growth (1997 onwards) Declining Paradox:

The TVEs Law, 1997.

The 1998 Asian Financial Crisis accelerated such process.

In 2003, the Central government enacted Promotion Law, aiming to save

TVEs from practical financial difficulties.

HRM Environment 17TVEs

TVEs


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The scenario of 2007

HRM Environment 18


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HRM Environment 19


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HRM Environment 20


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Findings of the analysis:

Private enterprise contributed more gross revenue, but less tax.

Limited Liability Corporations employed more workers, contributed more

to value-added and productivity;

Most of the TVEs are in manufacturing industry, on the basis of no of

workers, value-added, total outputs and gross revenue, but it is the least

profitable.

Mining is the most profitable one;

In Construction industry, workers enjoy more profit allocation.

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Positives Negatives1. The emergence of ruralentrepreneurs and enterprises. 1. Large number of TVEs privatizedand fragmented the industry.2. Provided massive employment,

economicgrowth and narrowed the urban-ruralincome gap.

2. Dominated by manufacturing

industry.3. Hardly an outcome of any carefullydesigned policy or plan 2. Labor intensive , government notable to expand hi-tech methods all

over the country.3. Inability to identify the problemcorrectly.

HRM Environment 22


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Proceedings of the 2nd International Conference on Corporate

Governance

An Overview of Township and Village Enterprises in China during

1949-2009 by Yongqiang Li

International Studies of Management & Organization, Vol. 34, No. 1, The

Asian Financial Crisis: The Impact on Human Resource Management

HRM in China After the Asian Financial Crisis Beyond the State

Sector by Daniel Z. Ding, Gloria L. Ge, and Malcolm Warner

HRM Environment 23

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