Comparative HRM: China and Australia
Over the last few decades, as a rising number of globalisation of business transactions and organisations are seeking to develop and operate in foreign markets, the need for comparative human resource management studies are increased (Brewster & Mayrhofer (eds.) 2012), there are a lot of differences in HRM in different countries and regions, such as institutional culture, organisational structures, recruitment and development and relation of employee (Crystal & Iles 2013). The comparative human resource management provides a better understanding of different national settings on the management task (Hollinshead 2010). Two countries from different institutional and legal systems which are China and Australia will be comparatively analysed in this essay. Firstly, the overview of both countries and culture dimensions will be analysed. Secondly, three HR features will be outlined respectively include culture, organisational structures, and the content of Human Resource Management. in addition, a critical evaluation will be given for how and why these features in these two countries developed in the way that they have. Moreover, a comparative analysis of how HRM has developed in each country will be given, as well as that approach to HRM. Background and Different Culture between China and Australia The study of the influences of culture is a key role in HRM (Brewster & Mayrhofer (eds.) 2012). Moreover, due to the increasing globalisation and social mobility, it is necessary to understand the cross-cultural management theories and practices and IHRM (Crystal & Iles 2013). Australia became federated in 1901 as a young nation, which is a member of the British Commonwealth with a population around twenty million people primarily located in a few major urbanised cities. Majority people in Australia speak English. Asians comprise just seven percent of its whole population (World Factbook, 2005). Thanks to its natural resources, Australia has been becoming rich, it has built in only 100 years a strong economy with a per capita GDP which equal to four West European countries. Due to its free economic market, it has a high productivity rate and low unemployment rate. In term of China, with a large population which over 1.36 billion, the majority of them are ethnic of Han Chinese, the official language of China is mandarin. Although the large country now has surpassed Japan and become the second largest economic entity, China has to import commodities and natural resources. The living standards of China have been improving and the opportunity for personal choice has expanded, however, it is still very tight for political control. The non-state organisations is gradually increasing in recent years. The GDP has been increasing rapidly since the 1980s as tge devolution of control and power. As Hofstede defined culture as crystallisation of history in the consideration, sensation, as well as practicing of the current generation (Hofstede 2001). He also take a culture as variable position, national culture is something that belongs to a nation, a functionalist and unitarist perspective. There are seven dimensions by Hofstede as following: individualism vs. collectivism, power distance, uncertainty avoidance, masculinity vs. femininity, and long-term vs. short-term orientation (see table 1). It is also suggested by Bartelett and Ghoshal (2003), the history, resourcs, and infrastructure as well as culture of a country penetrate every aspects of life in this country. Therefore, the national cuture affects the way and processes of organisational behaviour, which, in turn, influence the economic performance (Brewster & Mayrhofer (eds.) 2012).
Table 1. Hofstede’s Cultural Dimensions
source: (Xiumei & Jingying 2011)
According to Hofstede’s Cultural Dimensions (Hofstede 2004), Individualism means people preference for regarding themselves as personalities than the part of...
Please join StudyMode to read the full document