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HR business expansion to china - Essay Example

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It is proposed that HR specialist from this company in the US be sent to China with the new company to train those local HR specialists that are hired. It is difficult to find these professionals already trained and it is difficult to retain them once they are trained so it will be important to have as little expense as possible assigned to this process…
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Download file to see previous pages The other possibility is to have them sign a contract up front but Chinese employees do not expect to spend more than two years working for any industry so it will be limited.
There are many unique considerations in the Human Resources realm when moving a business to China. Some of those can be overcome and some of them cannot. It must be remembered that the US has specific standards in how employees are treated and this remains a US company while China has one of the worst records in the world for how humans are treated. There, of course will be the usual things to consider which are many compensation, fair labor rules, diversity, work hours, training, vacation and holidays, as well as other issues.
As noted in our explanation below, there are some major issues to consider in whether or not to send Expats or hire them. If it is decided to train them, it must be remembered that some o that training will need to be in the US and that cost will run between $8 and10 thousand per trip. In China, there is not the same expected loyalty to a company because of this expense which means that the company may spend it and do the training only to have the employee be offered a better salary because they are trained and to move jobs. The suggestion here that may help get around some of this cost is to have them sign a contract up front (Wang & XU, 2005).
Attracting these people will also be somewhat difficult right now as there is plenty of competition going on. Increased numbers of holiday and improved pay rates help but there are things that Chinese professionals want that may be better consideration such as where they live. Corporate apartments set up with a little more space than they are used to might help. It is a matter of being creative to both attract these professional and to retain them (Sonnenfelf & Peiperl, 1988).
Cross Cultural Work Issues
China's labor rates are significantly different according to which region of the country is considered. The average unskilled worker will cost approximately $50 per month per person. However, in Shanghai, the same position may cost $150 per person per month. To be outside of Shanghai by even 20 miles will drop labor rates to the $50 per month cost.
The US business is used to being trained on multiple diversity issues. In China there are really no diversity issues and the HR specialists there will have difficulty in understanding, in fact may be very confused as to what this means. It is suggested that diversity training not occur in China as it will confuse the workers as well as the HR specialists. An example would be an add from a company that read "looking for women with fine motor skills for assembly job." This add confused the HR personnel. When ask why they simply said that it is a woman's job and only women will apply (Zhang, Wang, 2006). China actually is less diverse than any other area in the world. The vast majority of the population is ethnic Chinese. The laws in China, also do not protect diversity and do not view it as a concern. There is, in fact, open discrimination against women and it is part of the culture. There are some jobs that are considered male and some that are considered female. There are some issues with religion that personnel from here should keep in mind when ...Download file to see next pagesRead More
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