CHINA
STAFFING, TRAINING,
EXPATRIATION & LABOR RELATIONS
 
 
 
 
 

COMPANY-EMPLOYEE RELATIONSHIP

DIRECTION & DEVELOPMENT Chinese are very obedient and follow directions to the letter.  Saving face is vital to their existence.  Because most businesses in China are family owned, there is a sense of paternalism, mutual obligation, and familialism.  The Chinese will do anything not to lose face within the family.
FOREIGN INVESTMENT CLIMATE
China has the second highest level of foreign investment in the world, second only to the United States.  The lure of the most populous country in the world, coupled with GDP growth rates makes China a haven for many multinational corporations.  However, the road to foreign investment in China is still slow, bureaucratic, and sometimes puzzling.  The Chinese emphasize joint ventures as the preferred method of transacting business.  3M has gone against the grain and decided on a wholly owned subsidiary, which is heavily taxed and regulated.  However, 3M felt that this was the only way for the company to have sustainability.
ROLE OF WOMEN
 As in other cultures, women are primarily viewed in the traditional domestic role.  Although 20 percent of managers and administrators are women, husbands and society expect that the womanís primary commitment and responsibility is to her home and family.  Compounding the problem is that there are no laws on gender discrimination, which is deterring women from wanting to pursue a career.  A womanís work role is viewed as an extension to her family role.
STAFFING
Nepotism is widely accepted.  Promotions based on loyalty.  Many small businesses, most of which are family or extended family businesses, become part of the value chain of suppliers, buyers, and retailers.  Because of the pervasive networking referred to as guanxi, most employees are referred to the positions.  The boss makes all of the decisions with minimal input from subordinates
TRAINING & DEVELOPMENT
Expatriates in China are primarily having difficulty in adjusting to the country.  Most multinationals are requiring cross-cultural training of their expatriates before sending them to China.  Proctor and Gamble sends both the employee and the spouse to Beijing for two months of language training and cultural familiarization.
UNION SUMMARY
In China the government ordered all 47,000 foreign firms there to be unionized by the mid 90ís and new foreign firms to establish unions in their first year of operation.  This was instituted because of the complaints about poor working conditions and other labor tensions.  All Chinese labor unions are government controlled.

 

Sources:  Deresky, Helen, International Management (Prentice Hall 2000) p355,391-394.
China Business Desk: Investments, Representative Offices, www.chinabusinessdesk.com/pages/Investment/structures.html
China Executive Planet, www.executiveplanet.com
China in Brief, www.chinaguide.org/e-china/politicalsystem/politicalOrgnization.htm