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China - Hrm Issues

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China - Hrm Issues
Issues affecting International
Human Resource Management in China

The significance of culture in international HRM
Managing Diversity
Organisational structures in the context of globalisation

HR 364 Management of international Human Resources
2004/05

Florian Kress
Registration no: 04914686 Table of contents
Introduction 2
The significance of culture in international Human Resource Management 2
Hofstede 's five Dimensions 3
Power Distance Index (PDI) 3
Individualism (IDV) 3
Masculinity (MAS) 3
Uncertainty Avoidance Index (UAI) 4
Long-Term Orientation (LTO) 4
Important Terms 4
Gunaxi 4
Lien and Mianzi 5
Guo qing 5
Influences on HRM processes 5
Managing Diversity 6
Negotiating 7
Organisational structures in the context of globalisation 8
Political factors 10
Economic factors 10
Conclusion 12
References: 13

"Napoleon called China a sleeping dragon and said there would be woe to the world when the dragon awakes.
As the world knows, the dragon is more than stirring." Introduction

The Chinese believe that the Great Dragon ruled the Middle Kingdom of the world for nearly four thousand years. For most of this period China was a great trading nation. Then the dragon fell asleep for two centuries, while China collapsed under the effects of colonialism, until in 1978 Deng Xiao Ping woke the dragon up. And now the Chinese dragon is back, hungry to take its place as the economic and cultural superpower of the 21st century.

Nowadays China is often called the world 's largest market. Many people might think that it is very easy to start business in China and that success is guaranteed because of the huge potential of the market. But that isn 't true. Making successful business in China is not that easy as it might seem. There are many potential problems which can arise.
For instance the Chinese civilisation is five thousand years old and because of that the Chinese culture, tradition and value system have a



References: Ahlstrom, David / Bruton, Garry / Chan, Eunice S.: HRM of foreign firms in China: The Challenge of Managing Host Country Personnel, Business Horizons 44(3), 2001, p, 59 - 68. Blake, John / Amat Salas, Oriol / Wraith, Philip: Joint ventures in China - a Spanish case, European Business Review 97(4), 1997, p Foster, Dean: The Global Etiquette Guide: China, http://workabroad.monster.com/articles/chinaetiquitte/, 2001. Hofstede, Geert: The cultural relativity of organisational practices and theories ' ', Readings in International Enterprise, 1995, p Huo, Paul / von Glinow, Mary Ann: On transplanting human resource practices to China: A culture-driven approach, International Journal of Manpower 16(9), 1995, p Huczynski, Andrzej / Buchanan, David: Organizational Behaviour – An Introductory Text, 4th edition, London: Prentice Hall, 2001. McClenahen, John S.: China 's Cultural Challenge, Industry Week 253(4), 2004, p Meier, Johannes /Perez, Javier /McKinsey: Solving the puzzle: MNCs in China, Business Source Premier Database, 1995. ', Business Horizons 41(6), 1998, p. 43 - 50. Wang, Yuan / Zhang, Xin Sheng / Goodfellow, Rob: Business Culture in China, 1st edition, Singapore: Butterworth-Heinemann, 1998. Wilson, Jonathan / Brennan, Ross: Market entry methods for western firms in China, Asia Pacific Journal of Marketing and Logistics 15(4), 2003, p Yang, Jiaqin / Lee, Huei: Identifying key factors for successful joint venture in China, Industrial Management & Data Systems 102(2), 2002, p

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