Human resource challenges
Human resource management (HRM) has become one of the most popular issues in international management and business practice recently. As the increasingly important of qualified staff in multinational companies, the international human resource management models had been developed (Chen and Wilson 2003). In the beginning, multinational companies adopt standardization of human resource management, which believed coherence strategy and coordinate practice can lead to operational effectiveness and efficiency. However, they met difficulties after the international dimension becoming more and more popular as a result of changes in operating environment and structures (McGraw and Harley 2003). Different people in different countries have different culture and conception on organization behavior. The diversity and complexity of cross-nation and cross-culture may result in strategy conflicts for multinational companies when they implemented international standardized human resource management (Daft, 2007). In order to Vol. 3, No. 12 International Journal of Business and Management 170
overcome these difficulties and reduce cost, more multinational companies began to localize employment in host countries. Localization of Human Resource Management has hence emerged as the times require. According to Noe et. al (2006, p. 5), Human Resource Management is a branch of an organization which recruits and develops personnel to promote the organization’s objectives. It involves interviewing applicants, training staff, and employee retention. Compensation, benefits, employee relations, health, safety, and security issues are a few of the aspects of the Human Resource Management division. Human resource is a crucial factor which could be a competitive advantage for company’s long term development and reputation (Decenzo & Robbins 1999). While China, with over 3/4 of world population and millions of university graduates each year had been considered as a huge labour market for multinational companies. After its entry of WTO, many foreign companies entered in Chinese market and are planning their localized staff strategy in China. However, the progress of human resource management system has not corresponded with the rapid growth of economic development in China, many of foreign companies discovered that recruiting and retaining qualified managerial staff is different and difficult in Chinese market (Zhu and Dowhng, Summer 2000 & Dessler 2006). It is gradually found that hire the qualified managerial staff is a big challenge for multinational companies when operating the Chinese market due to many reasons. 2.1 Short of talent
There are four main problems foreign multinational companies faced when they attracting and retaining qualified managerial staff in China. One is the shortage of talent. The talent in this can be defined as the young people who are upward, progressing, professional and efficient. Over the past years, China has witnessed millions of university graduates each year after the universal access plan was proposed by the Chairman of Jiang Zheming (Higher Education 2004). Unfortunately, the huge market did not return more talent to the country. The Chinese Ministry of Education claimed that the ratio of science graduates and arts graduates is unbalanced in the past five years. More and more young people major in arts rather than science with certain reasons (Ministry of Education PRC, 2006). In China, the major of arts such as management, marketing and language is vacuous and atechnic, which emphasize on theory and perception; differ from science, it has no opportunity to take practice and exercise. On the other hand, the major of arts in Chinese universities is a single subject, not related with other basic necessary knowledge such as finance, mathematics or information technology, students can pass the exam easier and finished school successfully with no...
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