HR Professional - August/September 2008 - (Page 26)

COVER STORY lack of technical excellence,” says Lothringer. By way of example, Lothringer points to Chinese automakers exporting vehicles that are below western safety standards. “Obviously foreigners working in such a company may find themselves conflicted, knowing the dangers these cars present. There are no easy answers here,” he says. HUMAN RIGHTS vs. HUMAN RESOURCES Human resources faces unique challenges in China. Sweatshops, child labour, lax or non-existent health and safety protocols—even reports of forced labour—all represent HR dilemmas not encountered in the West. And China, despite projections to the contrary, is not a bottomless source of cheap labour. According to the New York Times, labour shortages became apparent in 2003 in southeastern China and are now endemic in factories all along the coast. Wages that once hovered around $100 per month have doubled as young workers reject jobs that pay only $1 an hour. Dysfunctional hiring, compensation and training practices are hurting multinational corporations in China, says Irv Beiman, PhD, chairman of eGate Consulting Shanghai Ltd. “If there is an English language requirement, as is often the case, this severely restricts the talent pool available, in contrast with Chinese companies who have no such requirement.” In Beiman’s view, multinational companies face enormous challenges in retention, promoting teamwork and developing functional capability. This is partly because of high turnover and the fact that compensation incentives are based on functional job performance rather than strategic performance measured against an employee’s key performance objectives. “Hiring should be for fit, skill and functional experience, but it isn’t, partly because of a restricted talent pool, and partly because of [Chinese] HR’s inadequate understanding of what’s really needed for success in a given job at a given point in time,” says Beiman. Human resources professionals in China are handicapped by inadequate, hastily composed manpower requests written by multinational executives, says Beiman, who has lived and worked there since 1993. Training tends to focus on teamwork and leadership, two competencies that are better shaped by work experience and compensation incentives, in combination with coaching and mentoring. But here’s the rub: coaching and mentoring are also inadequately developed because Chinese companies are so focused on short-term results. Frank Feather points to the many distinctions that exist between HR management practice in North America and China. Dubbing China a “fast learner,” he describes its HR models as increasingly similar to its western counterparts but acknowledges there are still huge divides—largely due to culture. CONFUCIAN CAPITALISM “The major cultural [HR] difference between East and West is rooted in Confucian ethics and respect for elders,” says Feather. “In China, the boss is truly the boss, and no employee can afford to run afoul of superiors. Another major difference is frequent job hopping in China, because the demand for white-collar workers outstrips supply. Plus, many savvy Chinese yuppies want to work for foreign companies, and so there is much jostling for position. Recruiting also tends to be done at huge job fairs, where thousands of people show up with resumés.” In general, HR systems in Chinese companies are not as well developed as in North America, concedes Bemmels. Pensions and benefits and health and safety are particularly problematic; however, Chinese HR practices are changing rapidly in response to fast-paced economic growth and competition. “ C u r r e n t l y, China faces m a ny o f t h e same HR problems as Canada, such as shortages of skilled labour. While there’s lots of unskilled labour due to HR P R OF E S S I ON A L 26 A u g u s t / S e p t e m b e r 2 0 0 8

Table of Contents Feed for the Digital Edition of HR Professional - August/September 2008

HR Professional - August/September 2008 Contents Editor's Letter Contributors Leadership Matters Upfront Legal Compensation Human Capital The New Frontier On Message Strategy HR 101 Interview with Annette Veschuren Talent Management Training Work/Life Balance Off the Shelf The Last Word

HR Professional - August/September 2008

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