HRM Issues in China
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HRM ISSUES IN CHINABy,Shilpa Susan PhilipKinshoo ShahRavi Teja6/17/2010
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Contents
• US Expatriate Failure in China• Issue Under Focus• Trend• Cross Cultural Analysis• Glimpses of Chinese Culture• Proposed IHRM Strategy & Model• Benefits -Cross Cultural Training For Expatriate• Implications for the Firm• Conclusion• Reference6/17/2010
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Reason for US Expatriate Failure In
China6/17/2010
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• Negotiation & Communication Issues• Cross Cultural Diversity Issues• Behavioral & Working Style Adjustment
Issues• Language Barriers• Life Style Issues• Ethical Issues in Business
Few Issues Faced
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Issue Under Focus
Managing US Expatriate Failure Due To
Cross Cultural Diversity Issues
In China
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US - Cross Cultural Training Trend
Trained Prior To Departure –32 % [Tung, 1982, P55-56].
68% Sent Without Training
[Tung, 1982, P.66].
10- 40% US Expatriate Failure In China
Statistics referenced from AIB-SE (USA) 2010 Annual Meeting report6/17/2010
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US & China- Cross Cultural Analysis(Hofstede Model)
0
20
40
60
80
100
120
China World USSource of statistics research:www.customerthink.com
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Do not use large hand
movements.
Personal contact must be avoided at
all cost
It is illegal to give gifts to government
official
You should taste all the
dishes you are offered.
Source: http://www.cyborlink.com/besite/china.htm
Punctuality is a key.
Tipping is considered insulting.
Bowing or nodding is the
common greeting.
Use formal titles.
Snap decisions are considered an
insult
Chinese value rank and status.
Looking in the eye while addressing is
considered as lack of confidence.
Preference to local language
Glimpses of Chinese culture
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Process flow - Identifying HRM Strategy
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KTS-IHRM StrategyFor
Cross Cultural Diversity Management
(Developed By Shilpa, Kinshoo, Teja)
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Strategy (Developed by Shilpa, Kinshoo, Teja)
• .
Review
current expatriate practices.
Identify the expatriate success/failure rates
Identify the sources of expatriates success/failure
Expatriate audit ,
Cultural diversity audit
Refine expatriate selection procedures
Identify duration of assignment
Provide cross-cultural training
Inform in advance about the cross-cultural Complexities likely to be faced before deciding to relocate overseas.
Conduct destination-specific briefing.
Consider basic language training.
Provide in-country support.
Feed Back & evaluation
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Ap
pro
ac h
Bas
ed
O
n
Du
rat
io n6/17/2010
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KTS-IHRM Modelfor
Cross Cultural Diversity Management
(Developed by Shilpa, Kinshoo, Teja)6/17/2010
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Self referencingPersonalityFlexibilityExposure levelsCommunication skill LanguageTraining & PerceptionsWillingness to acculturatePersonal aspects
Reasons for previous failuresEvaluate current practicesCross Cultural style differencesSoft skill requirementsCommunication skill requirementsPerception of culture distanceType of training being providedDuration of assignment
•Experimental(intercultural skill) •Cultural assimilator•Cognitive •(Cultural awareness & interpersonal Skill)•Social Skill
Situational Aspects
Managing Cross Cultural
Diversity Individual Aspects
Cross Cultural Diversity Analysis
Cross CulturalBusiness
Expectations of Host Country
Host Aspects
Acculturated Individuals
CCT program
OUTCOME
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What All CCT Shall Address
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CCT Program
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Concepts Skills KnowledgeCulture -important part of identity.
Chinese language proficiency - able to negotiate & speaking practices.
Knowledge of different cultural aspects.
Communication of cultural •Ability to communicate an understanding of culture•Respect the culture•Strengthens relationship.•Face directed Communication strategies
Knowledge of behavioral aspects of different cultures, appearance parameters, business etiquettes etc.
Cultural Values & beliefs affect understanding & acceptance.
Ability to recognize culture related business problems.
Knowledge of the effect of religion on business.
Training Program
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Concepts Skills Knowledge
Non-verbal & verbal communications
Ability to interpret employee’s verbal & non-verbal behaviors in a culturally relevant manner.
• Implicit communication• More of a listener•Focus on insiders
Knowledge of the significance of common verbal and nonverbal communications of different cultures & speaking practices.
Culture –related stress affects efficiency.
Possess the social skills & elicit the employee’s understanding of business problem.
Knowledge of symptoms of “culture shock syndrome”.
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Benefits of Cross Cultural Training US Expatriate
Ability to Communicate With Respect
To Be Non Judgmental
Reduce Self- Referencing
Tolerance For Ambiguity
Reduces Uncertainty Of Interactions
Display Cultural
Empathy Become More
Flexible
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Implications for the US Firm
1. Reduced stress & cross cultural shock
2. Build new strategic alliances.
3. Superior International Performers
4. Enhance business relationships
1. Expensive
ProsCons
5. Reduced Failures & Costs
6. Increase Employee retention.
7. Enhanced foreign negotiation
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Conclusion
Its high time for US MNC’s to provide its CCT to all its
Expatriates & not just to 32%, in order to:-
Adoption and implementation of KTS- IHRM Strategy
& Model shall help:-
• Better management of cross cultural diversity issue.• Bring down the expatriate failure’s from 40% • Obtain greater managerial effectiveness.
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Reference
• Lua, Karel(2001),Expatriatiate management :Business model for cultural diversity.
• Adler, Nancy, 1981. Re-entry: Managing cross-cultural Transitions. Group and Organization
Studies, 6, 341-356.
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THANK YOU…
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246/17/2010