By Kevin Ibeh, Sheena Davies
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Additional resources for Contemporary Challenges to International Business (Academy of International Business)
It is shown that HRM in each of these countries converged on parts of the Western HRM model in terms of flexible sourcing, unionism and performance-based remuneration. Nevertheless, HRM in the three countries is still distinct from HRM in the West. Generally speaking, these nationalities still seem to adhere more than Western firms to traditional, long-term HR strategies in terms of secure promotion, long-term employment and predictable promotion. Zhu, Warner and Rowley (2007) investigate HRM in the same countries and, additionally, Taiwan, Malaysia, Thailand and Vietnam.
First, they may differ in their use of HR practices that help them achieve higher retention. Such HR practices are likely to be influenced by the firm’s cultural, institutional and historical background. Secondly, retention problems may depend on the firm’s language, and, thirdly, on their country’s relationship with the People’s Republic of China. , 1998; Walsh and Zhu, 2007). Moreover, in Sino-foreign JVs, the Chinese partner tends to have a significant influence on HR practices (Goodall and Warner, 1997; Walsh and Zhu, 2007).
The same conclusions are reached by Rein (2007), who interviewed senior executives in multinational corporations. Their view was that many multinationals run into the pitfall of ‘glass ceilings’ for native Chinese. The Challenge of Managing Employee Tenure 15 Senior ranks are commonly taken by Western or overseas Chinese expatriates. Two-tier pay systems often exist, with sometimes generous compensation packages for expatriates. In exit surveys, Chinese workers reported that the main reason they left was that they had no visible career path.