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Communication Style in China:

An effective communication system plays a significant role in management decision making

especially in joint ventures or multinational enterprises. With the help of open line
communication managers can work on decreasing the labor turnover rate, this system
requires cultural awareness, kanguage abilities and deep understanding of the work values
and employee.
The Chinese business system is normally identified as having a high power
distance it means there is a strong hierarchical structure.employees wait for the top-down
information from their supervisors and end up in irritation and confused when there is
shortage of it.
The concept of 'saving face' plays a vital role when it comes to communication as it
is a double-edged sword. Chinese workers always try to save their own faces and also saves
others from losing a face.Therfore, criticism must be given in methods it gives benefit to
culture and local work values.
Managerial Style in China
With the increase of foreign direct investment into the china so the mangers
who are foreigners has also tremendous growth, this means new managerial styles have sprung
up, some may be not in line with the local traditions and work systems.
Management practices of the Chinese people focuses on the control and
conformity but is supplemented by an ideological appeal to the virtues of work (Child,
1994). This clearly shows that managers are likely to interact with barriers and conflicts with
the certain types of behavior; it includes creating relationships for exchanging informal favors
and maintains peace. Chinese managers use to spend more time getting in contact with their
sub-ordinates and superiors, prefer informal methods of informal communication, but they
heavily rely on the building personal relationships.
therefore, utilizing Western retention strategies in the traditional Chinese work culture
is not as straightforward as thought so there are concerns for career aspirations and equal
treatment are not only the elements in a system that requires huge personal commitment
between superiors and sub-ordinates to ensure loyalty
Retaining Valuable Talent
Number of strategies are used by the organizations purpose is to promote retention in
china, as employee turnover is becoming an very important issue to handle. So the most
used retuion methods includes having a succession management program and it offers traing
and development opportunities. Employees are leaving organization just because of this
important reason; lack of employee growth and development. So, the HR professional gives
high importance to relate pay to performance and improving compensation but such
financial rewards and incentives are unlikely to be successful.
Generally, dedicated retention plans are underused, wheras team-building activities
are overused. There are methods which have high value but very low usage includes career
planning services, retaining employee must be corporate objective and should arrange

specialized retention plans. There should be more attention given to the specialized services
when organizations are developing strategies for retaining talent.
In a recent time, a lot of energy has been spent into number of strategies retaining
employees, with most needs additional improvement Each and every organization should
concentrate on its unique circumstances and the nature of its employees, related to choosing
the suitable path to improve retention.. Therefore to formulate a strategy that will have the
greatest influence, organizations need to make a serious effort to evaluate why employees
leave, why they are not satisfied, and the degree to which discontent is most likely to reduce
Retention Strategies
What is the best way to retain staff is the essential question for many organizations
these days. The simple answer is a better deal should be given to employees so that they
perceive they could get by working for alternative employers.
The most efficient retention strategy for retention is raising pay levels to reduce staff
turnover rate (Torrington et. al., 2005). Employers who offer the most attractive reward
packages have lower turnover rates as compared to those who pay poorly. Moreover, many
organizations use pay rate as their important weapon in retaining staff.
Pay is not usually having an effect when other elements are forcing individual towards
quitting. Job satisfaction is relating to increasing pay levels, but it will not stop unhappy
employees from leaving. Therefore, pay is more a 'hygiene factor' than a motivator, which
means that it can be a cause of unhappiness at work, but not of positive job satisfaction.
Employees may be motivated to leave an employer who is perceived as paying badly and
poorly, but once they are satisfied with their pay additional increases have little impact.
Another important retention methods is called managing expectations (Torrington et.
al., 2005). It shows that employers benefit from ensuring that talented employees gain a
'realistic job preview' before they take up a job offer. The main objective is to make sure
that new staff enter an organization with their eyes wide open and do not find that the job
fails to meet their expectations and standards, which might be a cause of dissatisfaction, thus
high staff turnover during the early months of employment. Whereas, it is important not to
mislead and cheat candidates about the nature of the work that they will be given in a
Furthermore, the effective and timely induction process is often credited with the
reduction of turnover early in the employment relationship (Torrington et. al., 2005).
Induction has a number of different purposes, all are related with preparing new employees
to work as effectively and efficiently as possible and as soon as is possible in their new jobs.
It helps new comers to adjust emotionally to the new workplace. Also, induction provides a
platform where basic information about the organization can be transmitted.
Another constraint is with why people quit their jobs is due to 'family or personal
reasons'. From the last few years, HR practices have emphasized on offering flexi-time
systems to employees, especially pregnant women, as a useful retention tool.

Lastly, training and development is described as an interesting approach to improving

retention (Torrington et. al., 2005). There are two widely distinct things on the link between
training interventions and employee turnover. One is the argument with the help of training
opportunities commitment increases to an employer on the part of the individual employees
making them less likely to leave voluntarily than they would if no training were offered.
The possible alternative view explains that training gives more pleasure to the people so people
more likely to leave to establish careers elsewhere. The perception is put that funds spent on
training is money wasted because it ultimately benefits other employers (Torrington et.
al., 2005). The most expensive types of training intervention involve long-term courses of
study such as an MBA, CIPD or accountancy qualification. In financing such courses,
employers are showing a clear intent that their employee's contribution is very important and
that they can look forward to substantial career advancement if they opt to stay. The thing
is quitting job will also mean an end to the funding for the course provides a more direct
incentive to remain with the sponsoring employer (Torrington et. al., 2005).
So, specific programmes which enhance retentions include flexible rewards, better induction,
and the effective management of expectations, training opportunities and family-friendly
4: Conclusions and Recommendations
The increased level of change and competition level in the world currently has
emphasized organizations to evaluate the importance that people hold within the overall
context of the institution, related especially with technologies, processes and products
becoming easy to replicate. Innovations and relationships hold the key to making an
organization that can respond and adapt to the changing nature of the market; this has
ended up carving away the traditional sense of loyalty once evidenced and shown
throughout the workplace.
Labor turnover rates are high across the developed West and emerging nation of China.
The costs of such turnover are not only related with the recruitment process that must be
completed, but also with the less customer satisfaction, lower productivity, and the loss of
an organization's knowledge and intellectual capital. Therefore, employee retention is a
problem has an huge impact beyond the limits of management and supervisors. it affects the
performance of the entire organization - this is ever more reason for the establishment to
keep good employees as they form a crucial competitive weapon.
Voluntary leaning jobs by employees come from a wide variety of reasons, it requires a
company's retention plan rely on the analysis of these matters. The utilization of exit
interviews and attitude surveys provide helpful tools in determining the factors behind
labor turnover in an organization.Therfore, an effective approach for retaining staff is
required by the HR professionals, it is the duty of HR professionals to find out the reasons of
turnover from each of the management areas.
An open culture within the organization promotes trust and encourages learning among the
workers with little bit of fun needed to keep the mindset relaxed. The value that

management of an organization can give to its employees will create a stronger level of
respect for the activities and vision maintained by the establishment.
It is essential for the company to ensure that open lines of communication are established
with the objective of listening to employees and removing their concerns - whether it is
concerned to work or of a more personal nature. The more management includes employees
in the decision-making process, especially those having a talent, the more the chances of
satisfaction and participation being reached within the workforce due to the allowing them
participating in organization.
Managers should understand the needs, wants and objectives of their subordinates
and then make the impactful motivational strategies which can be used to ensure that a fit is
reached between their needs and the organization's requirements. Giving applause on
accomplishments and other activities gives motivation to staff will help in creating a friendly
and peaceful environment that will give the worker more reason to feel as a member of a
large team, rather than simply a wage earner.
An employee's perspective at an organization is shaped by the present leadership; if
inadequate, then it may cause increase in the labor turnover rates. Therefore, more attention
needs to be given in terms of selection and training of the line managers as they represent
the top level management in front of the workers.
Retaining top employees starts from the initial recruitment and selection process. It has
great importance on the procedures being created to match an individual's capacities and
abilities to the requirement of work that they are required to perform.
Rewards and fringe benfits are considered as one of the most powerful tools in encouraging
people to stay. This includes fair compensation and significant recognition for excellent
The assessment of China presents a serious human resources challenge, especially for the
foreign corporations wanting to enter the local market, managers needs to address problems,
retention plans needs to be established that impacts each of the management areas like
culture, motivation, communication, managerial style and key HR practice areas:
recruitment and selection, reward and performance appraisal, training and development.
In reference to the question under discussion in this paper, the following are
recommendations to cope with the problem of labor retention:
Selection of People
Candidates should fit the job, the organization, and the leader. It can reduce the probability
of employee unhappiness after being hired. Moreover, it is essential to analyze a candidate's
skill level, as well as the expectations that expect from the organization and their
responsibilities in it.

Improvement of Leadership Skills:

Workers relate much better with management that is effective and efficient, prior to the
understanding them and having the skills to progress. It is important that differences and
issues should be handled in a professional manner rather than becoming issues of a personal
Examination of Retention:
Using a third-party for exit interviews an organization can reduce employee dissatisfaction
that is not in personnel records or apparent to observers. Management should institute
processes that allow for consistent follow-ups with current employees, using number of
methods that will help in understanding how the workforce is interacting with the prevalent
Underestimating Employees:
Among employee turnover, that of key managers is considered among an organization's
most expensive and chaos situations. It is common for higher level managers and outstanding
performance of individuals to be watched by other organizations. It brings special focus for
the organizations to make sure that they always retain such staff, keeping in mind the market
trends and demands.

Using Effective Methods:

So a huge range of retention methods are available, using frequency does not always shows
true value. Having more special retention objectives and programs, including career
planning services, allows for a flexible approach to this issue. Organizations must take steps
at this stage to re-evaluate and analyze their investments by understanding steps that are

Organizations focus mostly on retention of employees by using its resources, including
opportunities for development and advancement. Compensation is not the only important
thing to satisfy employees. Therefore, establishments should understand the significance of
maintaining speed with market caps, but also focus on the other valuable and fringe benefits
that can have an effect on the satisfaction of an employee with their organization.

Focusing Retention Strategies

Organizations need to understand employees' expectations and issues. The right retention
strategy is the one that best fits each organization's circumstances and the nature of its
employees. Any imbalance between the demand for modern workers in China and the
available supply has created unprecedented pressure to find and keep employees.
Organizations should undertake strategies that are in line with the situation they are
facing, instead of adopting a generic approach to each matter.
Foreign managers required to establish cross-cultural awareness, especially as the Chinese
business system depicts alot of the traditional things in its working activities. Managers

should be positive with their motivational communication, and use performance appraisals
as a form of outcome in the positive perceptive. The criticism should be avoided to improve
instead motivate them and use inspirational speeches.
Respect should be given to the Chinese method of communication and networking as
interpersonal relations play a pivotal role not only the Chinese working culture, but also the
general daily life. To make sure that appropriate training and career opportunities must be
given because it will provide individuals to feel as an important part of the organization, and
treat the organization as family. This provision of long-term stability is the key fact that
Chinese workers emphasize make them as part of their tradition and culture.
Whereas the new generation becomes involved in the workplace they want more modern
values, it is still difficult for organization to create a culture and maintain professionalism that is
an core concept of the more accepted standards within the society and working system.