Human Resource Management
Human Resource Management
China’s economy has been growing rapidly over the last years with most of this growth coming from the high labor productivity. The country is becoming a key player in the international market field. China is a major importer and exporter of goods across the world. Since China is definitely a major economy, every step it takes affects the world. China’s rapid economic growth has enabled it to penetrate in international markets thus establishing business dynasties in different parts of the world. Its rapid growth has also seen the country enter international markets and establish multinational enterprises. China is however experiencing unprecedented challenges in its foreign trade. This paper will mainly focus on the external factors affecting the human resource practice of all those enterprise in their overseas operations as well as the major Human Resource factors.
The following external factors can be barriers to Human Resource practice of China’s overseas operation. First, it is clear cultural and communication barriers hold back international growth of China’s overseas companies. Today, cultural barriers continue to slow down the growth of China large and small enterprises worldwide. China’s expansion has been dragged by this challenge. There is less human resource in China to be recruited to work overseas to bridge the existing gap, which come up in doing business across the world. Communication and cultural problems are very costly as they cause financial losses.
Secondly, technological advancements also affect the human resource practice of their established enterprises in their overseas operation. With the new and improved technologies being introduced, the Human Resource management starts looking for ways to save money and downsize. For instance if China had around twenty employees overseas, they can cut down that number to five. It gets difficult to get the right personnel to work in the overseas companies, as most people are not familiar with the cultural practices of those areas. People living in the area with the Chinese enterprises may also be unfamiliar with the rapid change in technology. In other words, setting of China’s enterprises is challenging especially in countries which are less developed or which are still developing.
Thirdly, language barriers hinder human resource functions of Chinese enterprises overseas. Many Chinese people are familiar with their language rather getting to learn foreign languages. English continues to b the only business language in the world today. Many Chinese people are not proficient in English; only few of them have taken the step to learn it. With this challenge, it makes it difficult for them to communicate with other people thus making it difficult to operate overseas businesses. Fourthly, Legal and political factors act as barriers to HR practices of China’s oversea business. The nature of political systems tends to vary from country to country. Some times the legal systems in countries change thus setting new rules in business and organization structure. This affects China’s operations in other countries as they have to keep in pace with the changing legal systems. In addition, operations may be affected by political crisis, which might cause wars thus destructing all business operations. International organizations may therefore be faced with the challenge of making a strategic decision on whether to comply with the laws and regulations set by the different government. Some restrictions may force China to withdraw it operations in that particular country. Laws may address issues like sexual harassment and employment discrimination. In other countries, labor unions may implement rules, which act in favor of their countries enterprises thus ignoring overseas investors.
Economic climate can also affect China’s mission in establishing multinational enterprises. Sometimes bank rates may hike affecting these businesses. It makes it difficult for human resource to operate those enterprises. Taxes maybe e high compared to those made locally with low profits being made by those enterprise. This makes the operations very hard as they are likely to incur loses. Different countries have varying economic systems. Some operate in the version of capitalism while others operate under communism version, which has failed. For example, developing countries depend on foreign operations to secure jobs therefore; their economic experience is usually low. China HR may face challenges in operating in such environments.
One of the major Human Resource factor affecting China’s Human resource function overseas is the social factor. Social factors affect human resource planning, organizing and coordinating of business related issues. If a country has a better discrepancy, then it is a good idea to set up a Multinational enterprise in that area but is the discrepancy is unclear, and then country like China may want to test if an enterprise can work by maybe setting up a small firm. Social issue like cultural practices may also hinder human resource operations. People may be against that type of business or maybe non-consumers of a particular product thus making it difficult for some enterprises to be set up. Religion may also be a barrier. Some practices maybe considered unethical by certain religion. They may therefore act in disagreements of the set up of such institutions.
It is advisable for China to consider the barriers, which might hinder them from setting up multinational enterprises or setting up branches of those enterprises in some countries. Some measures may be advantageous while others may not. Therefore, it is good to look at both sides and carry out an evaluation of the benefits of those enterprises. In setting these enterprises, China should always look at the external barriers, which may affect those businesses. By doing so, they may get solutions to help solve those barriers. This enables them to set strategies to help them achieve their organizational goals and ensure safe human resource operations for all oversea business.