China Employment System Reform and Faultlines, an Empiricial Testing in China
CHINA EMPLOYMENT SYSTEM REFORM AND FAULTLINES, AN EMPIRICIAL TESTING IN CHINA
April 2006
Table of content
Acknowledgement
Abstract
1.Introduction……………………………………………………………………… 01
2. Literature Review………………………………………………………….......... 02 2.1 Research on organizational faultline and performance 2.11 Definition of faultline……………………………………………………… 02 2.12 Tenure diversity…………………………………………………………… 02 2.13 Positive effect on diversity……………………………………….. ……….. 03 2.14 Negative effect on diversity………………………………………………… 03 2.2 China’s reform of employment system……………………………………….. 06
3. Research Methodologies………………………………………………………… 15 3.1 Sources of Data……………………………………………………………… 15 3.2 Measures……………………………………………………………………… 16
4. Result…………………………………………………………………………….. 18 4.1 Descriptive Statistics……………………………………………………........... 18 4.2 Cox Regression…………………………………………………………………19 4.21 Relationship between faultline and organization productivity……………… 20 4.22 Relationship between faultline and employee turnover…………………….. 21 4.23 Relationship between faultline and organization creativity………………….21
5. Dicussion and Implication…………………………………………………………23 5.1Effect of faultline on organization productivity…………………………………23 5.2 Effect of faultline on employee turnover………………………………………..25 5.3 Effect of faultline on organization creativity……………………………………25
6. Conclusion……………………………………………………………………… 27
7. Limitation and Future Research ……………………………………………….. 28
References………………………………………………………………………… 30
Appendices………………………………………………………………………… 35
Appendix I:List of Tables
Table 1: Descriptive statistics of the data…………………………………………… 36
Table 2: Cox regression on the effect of faultline on productivity in 1991-2004……37
Table 3: Cox regression on the effect of faultline on turnover in 1991-2004………..39
Table 4: Cox regression on the effect of faultline on creativity in 1991-2004……….41
Appendix II:List of Figures
Data of the Sampling
April 2006
Table of content
Acknowledgement
Abstract
1.Introduction……………………………………………………………………… 01
2. Literature Review………………………………………………………….......... 02 2.1 Research on organizational faultline and performance 2.11 Definition of faultline……………………………………………………… 02 2.12 Tenure diversity…………………………………………………………… 02 2.13 Positive effect on diversity……………………………………….. ……….. 03 2.14 Negative effect on diversity………………………………………………… 03 2.2 China’s reform of employment system……………………………………….. 06
3. Research Methodologies………………………………………………………… 15 3.1 Sources of Data……………………………………………………………… 15 3.2 Measures……………………………………………………………………… 16
4. Result…………………………………………………………………………….. 18 4.1 Descriptive Statistics……………………………………………………........... 18 4.2 Cox Regression…………………………………………………………………19 4.21 Relationship between faultline and organization productivity……………… 20 4.22 Relationship between faultline and employee turnover…………………….. 21 4.23 Relationship between faultline and organization creativity………………….21
5. Dicussion and Implication…………………………………………………………23 5.1Effect of faultline on organization productivity…………………………………23 5.2 Effect of faultline on employee turnover………………………………………..25 5.3 Effect of faultline on organization creativity……………………………………25
6. Conclusion……………………………………………………………………… 27
7. Limitation and Future Research ……………………………………………….. 28
References………………………………………………………………………… 30
Appendices………………………………………………………………………… 35
Appendix I:List of Tables
Table 1: Descriptive statistics of the data…………………………………………… 36
Table 2: Cox regression on the effect of faultline on productivity in 1991-2004……37
Table 3: Cox regression on the effect of faultline on turnover in 1991-2004………..39
Table 4: Cox regression on the effect of faultline on creativity in 1991-2004……….41
Appendix II:List of Figures
Data of the Sampling
References: 2.13 Positive effect on diversity On the positive side, diversity brings more perspectives and ideas to groups and is a source of innovation and creativity (Watson et al, 1993: Wiersema &Bantel, 1992) 284-85). As a result, the reform of employment system was slow-downed in 1990-1991.((Li, Jane Moy, Ben LY Sun, 2004). After 1992, as the political environment became stable, the reform of the employment system was speeded up again. As Rawski (1995) observed, in 1991, nobody knew what to do about redundant workers in state factories. In 1997, about 12 million urban workers in state firms, amounting to about 10 percent of state employees and 7 percent of China’s urban employment (Meng, 1999).