The Development of Human Resource Management in China

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HRM is short for Human Resource Management and identified as a new managerial science. HRM is originally invented by western academicians. Its history is not long and it has become more and more popular in the recent years. In Australia, HRM is replacing the old IR system as positive managerial action replaces “ground rules”. (Alexander, Lewer & Gahan, 2008) In China, the business society has been significantly affected by “guanxi”. A mount of “ground rules” were created gradually in China’s business society. It means that after China’s reform and open policy had operated for 30 years, China still has not seriously developed a scientific managerial method for human resource. Thanks to the more and more frequently communication between east and west. There have been many interaction and communication in JV, employees in MNC and business conference between corporations from two different countries. As a result, HRM has been introduced in China. With more and more people choose to work in JV or foreign company, HRM is playing a more and more important role in China’s business philosophy. HR practice had a highly significant impact on China’s business managerial operation. (Irene Hau-Siu Chow,) Line managers have job responsibilities related to human resource. Furthermore, one company need more HR practice in order to make its performance good. More and more HR manager emerging in China is a positive sign for China’s whole managerial science development. Q1 Outline and discuss the changes the HR function has undergone over the last decade. Talking about the changes of the HR function over the last decade, it is necessary to refer to the state of HR about ten years ago. In 1990s, HR management was not hot as it is today. However, as a part of management science, there would always be one department about HRM, it might have different names such as personnel department or human capital department. During that period, as a non-sophisticated department, HRM only had parts of its whole function. Furthermore, even those parts might not have a right operation to contribute to the value of HRM in corporations’ whole managerial operation. In 1990s, corporations have HR departments because owners knew importance of HR management. However, operators of business did not know why it is important, let alone how to manage it in a right way. First, function of HR department and HRM are different. HRM includes all HR parts of general management. It is inevitable for a line manager to use HRM to appraise one worker’s job. While for HR departments, what they do would be more specific. As an independent department, it will establish its own rules of practice as well as assessing tool. Based on these tools and practice, HRM would be more effective and impact on business results clearly. In the old times, people usually get confused with the purpose and results of HRM. Second, HRM was considered as a non-professional job. One of my classmates told me that he wants to work in a HR department after graduated because of he prefers to do job relevant with more communication. It is a common wrong understanding of HRM. As what is mentioned above, HRM is a science of management. Therefore, it has its own theory and practice. What a HR professional should do is not only to master the theory suitable for the company but also to master the practice. (Ulrich,1997) Obviously, ten years ago, people did not pay enough attention to how the HRM would bring benefit to the company. They considered HRM was just a non-professional job whoever could do it well. Fortunately, the situation has changed today. Third, once HRM is right operated, it would bring benefit to company financially. The main purpose for one company is to earn more money or gain benefit. Therefore, the main purpose of HRM is also to gain benefit through human resource management practice. In the old times, HR operations are mostly about auditing and valuation. Thus, the main...
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