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Management of People in China

In term of the requirement of the Chief Executive Officer of Hotpot Ltd. Mr.. Richard Wilson, we reported some researches and give some recommendations to Mr.. Richard Wilson. The purpose of study of this report were as followings: To provide necessary Information for Hotpot Ltd take over the local telecommunication company. Analysis the Chinese local situation for the Human Resource Department, help them to know the opportunities and threat in China. Recommend some suggestion for Hotpot Ltd to cope with the local situation in China, also give some recommendation for reform New Wonder’s Human Resource

System. The scope of our research Included all the east city of China; the emphasis of our research is Shanghai. During in the research we use interview, research on the ground, questionnaire, also get some professional report from the Internet. A) Economic and Technological changes China as a developing country, she changes a lot especially in economic and technological. A major economical shift is from manufacturing industry and agriculture industry to service industries and telecommunication.

China had changed planning economic into market economy, with the economic reform from later eighties. After reform the economical policy, China’s gross domestic product (GAP) growth faster than other countries. In the

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nine months to September of this year, China’s gross domestic product was 6. 72 trillion Yuan (S$l . 5 trillion), growth of 7. 6 percent on the same period in 2000. A top economical official predict: “China’s gross domestic product will maintain its 7 percent growing speed despite the global economic slowdown”.

China’s entry to the WTFO has created a favorable environment for China especially for Shanghai to expand its reform and opening-up drive, and participate in economic globalization. WTFO bring a lot of opportunities for foreign investors to enter China’s market, also it will increase international competition. China looks set to receive at least 40 billion dollars in foreign investment next year after entering the World Trade Organization according to an authoritative survey. Economic development cannot do without the espousal of technological.

Technological improvements cause the economic advance increasingly. The most important technological change is the application of the computer. A new object born in 1946 that named computer. People don’t know its usefulness at first UT the computer is really changes our life deeply nowadays. Depending on the support of computer people can use company to calculate to collect data and also to deal with the data. Computerizing improved the productivity and efficiency, saving time and money. Another typical technological change is the application of the Internet which along with the computerizing.

With the help of the Internet people can contact with the period. There are ten millions people use Internet, according to a relevant survey, Internet covered 2. 5 hundreds of countries or areas, there are 170 million users during in the world, 8. Million users in China, at the end of 1999. Along with the computerizing and usage of Internet, many company built up their own Internal Area Network and Database. Thought the extensive application of the network, many transactions performed thought the Internet. E-business has been the main transaction approach of all the company.

Implications and Recommendations China changed planning economic into marketing economy. Major changer is the shift of Jobs from manufacturing and agriculture to service industries, information technology and telecommunications. This meant that some organization has to educe the number of employees, and requires retraining. With the economic reform human resource management developed a lot. Many state – owned corporation was conscious of the importance of the human resource department for a company. They pay attention to build up human resource system.

And they try to do well at human resource plan, training, and reward, etc. China entry to the WTFO; many Chinese companies realized the strategy of human resource is also important as other operational strategy for the company to cope with the globalization competition. As a multinational corporation which engross in high – technology product, it is much ore important to De well at Human Resource Management. Therefore our recommendation is to build up an integrated Human Resource System. And build up a Human Resource information databases.

Along with the development of economic and technological it is require for the staff to be more flexible. Computerizing reduces the demand of human resources and changes the nature of work. With the development of e-business, we suggest the company should pay attention to the candidate’s IT skills in recruiting and selecting. Along with the development of the computer technology and Network technology, it is important for the Human Resource Department to pay attention to the new recruitment method. Today the main source for recruitment is Internet.

Furthermore, the explanation of opening – up policy attracted more foreign firms can to China, Human Resource Management must develop globally oriented managers; individuals who understand foreign language and cultures. Develop separate Human Resource Management plans. As foreign professional Human Resource Organization came to China, we suggest the company also can invite the professional organization to do the human resource planning, analysis human resource situation (internal or external), give some commendation of their Human Resource Management. In Shanghai a significant sticker turns up aging of population.

According to the fifth national population investigation there are 1 1. 5 percent of people 65 years and over. This amount increased by 2. 1 percent in the latest ten years. And by 2050 over 400 million people will be over that age. There are more than 15. 9 percent of people 80 years and over during in old population. The expectation of long life will brings about considerably lager population of old people. Shanghai is likely to become the oldest city in terms of its population. In the same time workforce become older by elder. Therefore the young people will become more of an economic burden.

Another typical shift is the increasing number of households that have women working outside the home. All of us know that China is a developing country. The exchange rate, every US dollar in cash is equivalent to about 8 Yuan, ARM. So in American each family only needs one person to Join work, the salary can offer the whole family daily life. But in China, we need two or more person of a family to Join work to offer the whole family consume. This is the reason why more and more women Join work in China. China is going to reform the education policy. First step is to expand adoption of the university.

With the expanding adoption of university the percentage of group enrolled in tertiary education increased by 1% percent during nearest 10 years. The power of the education will be more and more powerful before long. A professional education specialist predicted that 15% people can take university education in Shanghai soon after. After reform the economical policy. China attracted more and more foreign investors come to and settle down. An example of Shanghai, a lot of foreigners come to Shanghai to develop their business or to investment, they come from Europe, Latin

American, Africa, North American, Caribbean Island and so on. This phenomenon is because of the economic integration in Shanghai. Shagginess are migrating to obtain better living standard. Furthermore there are 53 minorities living in Shanghai. The number of minorities increases by 67. 4% during the nearest ten years. Shanghai becomes the city with diversity culture. As Shanghai becoming the oldest city during in the world. Aging of workforce will implicate the Human Resource Management. The ageing of the workforce increase in cost, as older worker expect higher levels of remuneration.

For a company, retailer’s Taft but also pay for these who had retailed many years ago. As a consultant company we suggest the organization should do well at the finance forecast of retailer’s insurance. Build up a staff insurance system. For the aging of workforce we recommend the company to meet the needs of older employee, because the older staff are generally more stable and experienced than the younger ones. For the increase of woman Joining work, we suggest the Human Resource Department should be more concerned about female staffs protection. Comply with the regular: Special Protection for Female Staff and workers.

The diversity of culture causes the increase in organizational conflict. In order to reduce the conflict in organization we suggest the company should do some culture management, as the Hotpot Ltd is a multinational corporation, and going to take over New Wonders. We suggest the Human Resource Management to analysis the culture different between UK and China. And the company can implement diversity training, and promotion procedures that ensure candidates are chosen solely on the basis of their qualifications. C) Labor Law System China as a developing country, her labor legal system is still in the process of evolving. China Labor Law) adopted at Eighth Meeting of the Standing Committee of the Eighth National Peoples Congress on July 5, 1994, and effective as of January 1, 1995. It incorporated 13 Chapters. And in order to adapt the transformation of economical developing government also established other legal regulations, like (Labor Safety Law) , (Social Insurance Law) , (Wages Law) , (Vocational Training Law) , (Labor Contracts Law) , etc. Also the government did a lot to improve the legal regulation system, China’s labor legal system is still imperfection.

Following are some disadvantages: No Particular regulation about Equal Employment Opportunity (EYE). EYE law is will established in the International Labor Organization and U. K legal system, but China has limited EYE laws. This regulation Just mentioned in the article 3, article 12, article 13 of the (China Labor Law) There are some special regulation should be mentioned. First is protection for female workers and Juvenile workers (reference to (China Labor Law) Chapter 7-?Special Protection for Female Staff and Workers and Juvenile Workers). He legal regulation and system in order to participate with international competitive. The country’s labor law system impact the whole Human Resource plan. So as a foreign company who is interested to come China to know and aware of the local labor law system is very important. China’s labor legal system unlike other country’s labor legal system, it content some special regular which only suitable for China. And as China’s labor legal system is in the process of developing, the legal system is not very consummate.

China labor law system is much more different from foreign labor law. As a multinational corporation we suggest the company should take notes of the differentiation between two countries labor law system. We suggest the company should take not of the following: 1. Labor Contract 2. Special protection for Female Staff and Juvenile workers 3. Equal Employment Opportunity Law 4. Employer’s Responsibility (More information in Appendix 1) d) China Labor Market Situation China is the most populous country in the world; this is an extremely important point that should be pay attention to.

China was an agriculture country in the mid of twenty century. After the economic reform from later eighties, industrialization has made many rural workers being unemployed. And the shift of the industry instruction (from state-owned corporation to private companies) makes many employees lose their Job, also it decrease recruitment. China has been urbanize more rapidly than had been anticipated. The urban share of the population rising by ten percentage points between 1990 and 2000. This situation land to a plant of rural workers loses their Job.

One official report refer to there are 45% rural workers among all employments of the country now, and this amount will descend by 20% between 2000 and 2020. In terms of this level, there will be more than 200 million potential residual unemployment soon after. In a word the demand of labor is less than supply of labor in China’s labor market. Another extremely important point we should pay attention is the lack of quality labor. This question mostly because the low literacy. According to a professional 1992. Illiteracy rate is higher than other countries in the world.

Imperfection labor law system caused undeveloped labor market management system in China. Lack of centralized coordination and communication and policies and a lot of policies are administrative and localized. There are plants of different legal policies among different provinces. Labor circulation and loss are two extremely problems that affecting the labor market in China. Nowadays more and more Western people move to the coastal cities in the Eastern. And lead to the increase of the unemployment in the East.

Furthermore, lots of quality labors go aboard in order to get a higher income and living environment that result in neutralized of knowledge labor. Due to globalization of economic forces, labor force market is sensitive to global economic changes. China is reforming the current labor market system; in the process of reforming many changes of labor market may happen. These changes may impact on day-to-day work of Human Resource. When the unemployed rate is low recruiting people and few people are looking for job, recruiting becomes much more challenging.

But when the unemployed rate is high, recruiting people to work is easy. China is in the status of high-unemployed rate so to recruit people is easy. It is favorable to Human Resource Management. The lack of quality labor makes recruiting become more difficult. No centralized coordination and communication lead to the popular of localized. The localized may disturb the normal management of Human Resource. For these kind of implication we recommend the company adopt following policy: 1 . Be sure that the Human Resource Department are do well in the recruitment and selection process. . Frequently training of newest technology is needed. 3. Build up good relationship with local government Also the number of Jobs requiring advanced knowledge is expected to grow at much more rapid rate. To address the skill deficiencies, Human Resource Department should make training for Jobs and skills available for employees. Become active partners with public school systems to aid in upgrading the knowledge and skills of gig school graduates. There are more than 136 million mobile phone users in China, and this number will increase by 5 million every month. Motorola (U. S.

A) and Monika (Finland) occupied more market allotments, Siemens from Germany, Ericson from Sweden, and Samsung Electronics from Korea come after. A professional president forecasted that there would be 6. 9 million mobile-phones sale during this year. For this reason if the average price is 1500 ARM per phone, the whole market value will be 12500 million U. S dollars. China entry to the WTFO has created a favorable invest opportunity for foreign mobile phone corporation. Monika and its cooperate partner invested more than ten billion U. S dollar in Beijing to building up the biggest mobile phone manufacture base in may, 2000.

Not only Monika but also other famous mobile phone corporations like Motorola, Recession they all built up their own industry bases in China. These movements indicated that China would be the most important strategic country for all the telecoms magnates. By the late sass’s, the second-generation Global System for Mobile (GSM) Communications was an extraordinary success. Now people want to find a higher- technology mobile. That will be the next generation of mobile Third- generation 36). The major distinction between 26 and 36 is the size of its victims and their urination.

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