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Y  Y Y 


Y  Y 
i The Chinese Communist Party Central
Committee gave economic reform top-level
priority at the end of 1978
i By 1979, foreigners were permitted to establish
equity joint ventures together with Chinese
companies, enterprise or other economic
i ailures and problems of international joint
ventures in China have been associated with
problem in the area of HRM(p.motivation &
staff retention)
i Chinese managers percieved the higher cause of
difficulties to be expatriate managers without
knowledge of the Chinese environment and
different management styles.
Employee recruitment ÑRapid wage increases, high staff
turnover and poaching of staff
common because of shortage in the
labour market for skilled manual and
blue collar workers
Reward system ÑNew labour laws permit companies to
set their own wage levels resulting in
disadvantage to Chinese organizations
ÑWage disparity
ÑDifficulty in introducing pay
differentials for workers of similar

Work performance and employee Ñàack of initiative of Chinese staff due
management to socialization
ÑTime not seen as a scare resource
Ñàittle emphasis on quality
Ñàack of work ethics
ÑManager rarely rewarded for high
ÑManagers not innovative
ÑDifficulty in dismissingnon-
Expatriate relation iProblems of preparation in Chinese
iBalancing foreign and local staff