In r Oduction
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Transcript of In r Oduction
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INRODUCTION
The People's Republic of China (PRC) is the world's second largest
economy by nominal GDP and by purchasing power parity after the United
States. It is the world's fastest-growing major economy, with growth rates
averaging 10% over the past 30 years. China is also the largest exporter and second
largest importer of goods in the world.
As of 2012 large state-owned enterprises (SOEs) are the backbone of China's
economy producing over 50% of its goods and services and employing over half of
the workers in China, 35% of business activity and 43% of profits in the People's
Republic of China resulted from companies in which the state owned a majority
interest. There are more than 30,000 state owned enterprises in china as of 2011.
One of the hallmarks of China's socialist economy was its promise of employment
to all able and willing to work and job-security with virtually lifelong tenure.
The government virtually decides what companies have to do especially when it
comes to state-owned-enterprises as a result there is little scope for people
development, but from the year 2006 the policy of the government is changing and
state-owned-companies are given more flexibility to decide on matters which
affect them.
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RECRUITMENT AND SELECTION
It is mainly based on skills, employment history, total work experience, language
abilities and career goals.
Recruitment techniques
Advertisements- Job ads are not permitted in the news media without
approval from the local labour and social security department.
Job fairs
Campus placements
Job centers
Employment agencies
State owned companies go for internal recruitment. Politics play an important role
in recruitment and selection. Those loyal to party are given promotions easily.
Foreign companies recruitment from employment agencies and universities.
SELECTION PROCESS
References
Unstructured interviews
Work sample tests
Written honesty test
Investigation using 3rd
party
Punctuality is very important in Chinese companies. Respect to the top
management is demanded. Relationship with top management will help you get
higher positions in the company.
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WORK CULTURE
1. Confucian value
Harmony
Obedience or subordination
Circular thinking- what goes around comes around
2. Indirect Communication
3. Management-The art of war is a great military treatise written by a Chinese
general of the 6th century BC. The amazing thing about this book is that if you
replace War with Business, Army with Enterprise, General with
Businessman, you get the oldest Business strategy book of the world. In this
book, there is a sentence that says The general should be calm, reserved,
methodical and fair
Calm
Discretion or confidentiality Method
Fairness
4. Consensus
5. Caution
6. Ambition
7. Respect for age & hierarchy
8. Personal relationship or Guianxi
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COMPENSATION AND REMUNERATION
Executive compensation
Basic annual remuneration- Depends on assets of the company, profit, taxpaid, sales, foreign exchange earned by the company.
Performance annual remuneration- 40% of the performance annual
remuneration is based on the growth rate of the net asset and the other 60% is
based on the growth rate of the realized profit.
Annual bonus remuneration- Based on the growth of the company above
industry average.
Minimum Wage- Depends on locality, average minimum wage is RMB. 3000/
month ($550)
Insurance is compulsory for all level of employees.
Minimum of 90 days of maternity leave.
Holiday and annual leave- based on experience
Employees with between one and ten years of work experience are to receive a minimum of five
days annual leave per year.
Employees with between ten and twenty years of work experience receive a minimum of ten
days per year.
For more than twenty years of work experience, the employee receives a minimum of fifteen
days per year. These laws apply to all employees, including managers.
Women receive extra half day compensation.
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UNIONS
To establish a union, 25 workers simply join the union, and the employer will
usually be required to accept the request. However, unions in China differ greatly
from their counterparts in many other countries. First, the primary function of
unions is to avoid labor unrest, not to advocate for the interests of workers. Second,
while many unions exist in China, all unions must maintain an affiliation with the
All-China Federation of Trade Unions (ACFTU).
Average working hours
10 hours/day 6 days/week
Power distance- very high
Performance appraisal
Performance appraisals favor workers that are loyal to the family. Performancereviews are done infrequently in China (usually once a year)
Expats in china
593,832 expats working and living in china [2011 estimates].
Culture Shock-No matter how long you live, how fluently you speak Chinese you
will always be an outsider or a Laowai.
Language- Sensitive to English but people appreciates if you try to speak mandari.
Staff Turnover- very less
Team- does not exist between expats and locals.