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Comparison of HR practices and employment relations philosophies in China and Taiwan

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Introduction

HRM in the Asia Pacific (HRMT 20006) Assignment 1 Comparison of HR practices and employment relations philosophies in China and Taiwan Name: Chulliparambil Kumar Student Number: s0054795 Introduction In the face of ever-increasing globalization, both China and Taiwan have now joined the World Trade Organisation (WTO); a more open market economy and closer integration with the global economic order appears to be inevitable for both countries (Magarinos et al. 2002). Human Resource Management (HRM) is one of the critical tools for improving productivity and competitiveness at the grass-roots level (Poole 1997). This Essays aims to identify and compare the current HRM systems and practices at different types of enterprises in both China and Taiwan respectively (Zhu and Warner 2000), to evaluate their performance in this domain, as well as to illustrate the implications of the inter-relationship between social norms/ environment and the transformation of HRM in both economies. The outcome of this comparison may be meaningful in terms of understanding the theoretical arguments about the trend of HRM development towards a 'convergent' or 'divergent' model within the global production and economic systems of our time (Warner 2002) or possibly a hybrid 'cross-vergent' phenomenon where national cultural systems are blended with broader economic ideologies . HR practices and employment relations philosophies of China HRM is a term used to describe a wide range of activities involved in attracting, developing, motivating, and retaining the best and most capable people to perform within an organization. ...read more.

Middle

Generally speaking, the characteristics of the Taiwanese management system can be summarized as follows: hierarchy, paternalism, strong personal loyalty and commitment, and the importance of personal loyalty and commitment, and the importance of personal connections (guanxi) in business and individual lives (Chen, 1995). These characteristics are rooted in Confucianism, a belief system that values harmony, and the tendency to see individuals in a family and socially dependent context. Different stages of economic development were accompanied by differing management patterns. In Taiwan, for instance, its economic development since the 1960's can be divided into two stages: the export expansion period between 1961 and 1980 and the technology - intensive industries expansion period from 1981 to recent years (Lee, 1995; Zhu et al. 2000). HRM in Taiwan also changed over the two periods. The main characteristics of HRM during the export expansion period can be identified as follows: Recruitment Recruiting blue-collar workers relied heavily on informal channels, such as employee referral and company network. For the recruitment of white - collar workers, formal channels were preferred (Lee 1995). Since most middle and high- ranking management positions were filled either by the owners' family members or by internal promotions, little outside recruiting activity took place (Lee 1995). Training Company - sponsored training was not popular during this period. Apprenticeships were also not common in Taiwan. ...read more.

Conclusion

and the changing political and economic environments (Zhu et al. 2000). Key characteristics such as collectivism, hierarchy, harmony, loyalty and strategic thinking can for instance, be found in both management systems. these characteristics are reflected in HRM, for example, in group-oriented production activities (teamwork), group-based performance evaluation and incentives, relatively narrow gaps in salaries between management and employees, co-operative and harmonised labour management relations and seniority-based wage systems (in particular during the pre-reform systems). In addition, strategic thinking and management have had to deal with such changes, in particular during the period of economic transition. In recent years, both increasing global competition and the Asian financial crisis have forced enterprises to adopt more flexible policies and management systems. New political environments, reformed legal frameworks and economic pressures have also have also added new dimensions of HRM. Conclusion Although traditional culture continues to influence HRM, such as group-oriented production activities, group-based performance evaluation and incentive, relatively small differences in salary between management and employees, co-operative and harmonious labour management relations, and so on, other differences remain vis-�-vis the stage of economic development and technology, market environment. In conclusion, it can be argued that that there will at least be a degree of 'relative convergence' (Chan 1995) given the evidence presented here. The trends towards globalisation may in many significant respects only strengthen tendencies towards greater similarities in HRM policies and practices over the coming decades, although both societies can be expected to retain their distinct identities. ...read more.

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