HR Implications of Conducting Business in China - Essay Example

Leadership Introduction China is one of the famous developing countries of the world. This countryis developing at a very faster rate. The government of China is encouraging many foreign countries for establishing their businesses in China. Therefore expanding business in China will be profitable for a company. This country has huge number of population which will facilitate the growth and development of any company. This essay will highlight the market entry strategy of a company for expanding the business in China. Market entrance strategy HR implications of conducting business in China Human resource is one of the most important resources of the company. An organization needs to develop its policies and plans in such a way which will encourage its employees in increasing the productivity of the company. The HR professional of the company have to understand the type of human resources available in China. Based on that, the HR professionals should design the organizational rules and policies. Culture of people plays a vital role in developing business process of the company in China. The HR professionals should understand the issues which motivate the Chinese people for working in a foreign company. In China, people tend to work together (Price, 2011). Collectivism is high among the people. For this reason HR should make the rules which are equal for all. This will motivate Chinese people in delivering effective work. The recruitment of Chinese people will be based on merit. Effective training will be provided to them for understanding the business process of the company. Major HR issues that will be critical for success The major issues of the HR professionals in China will be building relationship with Chinese people. Chinese people follow their culture very strongly. Being a foreign company the HR professionals have to deal with the Chinese employees in an efficient way so that their cultural values and thoughts do not get hampered. Understanding the mind set of Chinese employees will also be a tough challenge for the company. The mind set and believes of Chinese people is very much different from American people. For this reason the Chinese people might not feel comfortable in working in a foreign company. Communicating with the Chinese employee will be a difficult task for the organization (Price, 2011). The HR professionals need to know Chinese language for communicating with Chinese people. Moreover the communication styles of this people are very much different from the people of other cultures which the HR persons of the company have to understand. Recommendations Sending expats to China versus hiring local talent The firm has to do many things for expanding its business in China. For making the business process more effective the organization can send experts to China for training the Chinese employees in understanding the business process effectively. The company needs to hire many employees in China. It will be a cost effective measure for the firm. Hiring local people will also be beneficial for the business in creating its position in the market. With the help of local employees the organization will be able to gather maximum number of customers. But the expert employees of the company can enhance the skills and abilities of the local Chinese employees as per the requirement of the firm (Price, 2011). The organization can send some experts to China and should hire maximum number of local employees for utilizing the cheap labor force of the country. Attracting and developing both experts and local talent The company should recruit some expert people who will know the culture and different other things of Chinese people. These experts will help the company in managing the Chinese employees in an efficient way. With their knowledge and capabilities the experts will facilitate the employees in understanding the business process. For developing the local employees the company should provide good training to them. In the training programs the experts and different other important persons of the company will communicate directly with the employees and will help them to work properly in the organization. The company should attract the local talents by providing them many benefits and good salary. The organization must establish good working environment which will help the company in attracting and retaining employees. Cross-cultural issues that might emerge Being a foreign company, the organization will face many cross cultural issues which can create problems in establishing the business operations in China. The people of China believe in working together. The idea of collectivism is strongly present among them. But the culture of U.S people supports individualism. They tend to perform any work individually. For establishing business in China the company needs to develop team work among for the employees. The Chinese people want to avoid risk but the people of U.S undertake high risks for performing their jobs. Being a foreign company, it should provide guidance to the local employees for motivating them to take risk in performing their duties. The people of China want to work for fulfilling the long term goals of the organization. For this reason the firm has to develop various long term goals for motivating the Chinese employees. Preparing such cross-cultural issues The company has to deal with cross cultural issues in an effective way for running the business properly in China. The culture of employees influences the productivity of the company. For this reason the organization needs to sort out the cross cultural issues for developing a good workforce. By providing proper training to the employees the organization can help them in knowing and following the rules and regulations of the company. Conflict can take place among the people of different cultures. For this reason the firm needs to develop its rules and regulations in such a way which will help in creating strong bonds with Chinese employees and other employees which belong from other cultures. Conclusion This essay has mentioned various things which are necessary for the organization to consider for expanding its business in China. Different HR implications were focused in this essay which will facilitate the firm in entering in Chinese market. Some recommendations were provided to the company for managing the local employees in China. Reference Price, A. (2011). Human resource management. London: Cengage Learning. Read More