PRESENTATION

Presented to: Miss Umm-e-Farwa

Presented by:

Ghadeer Ali 68
Faisal Bhatti 79
M Talha 99
Arshian Akhtar 101
STRATEGIC HUMAN RESOURCE
MANAGEMENT IN CHINA
BY XIAOYA LIANG, JANET H. MARLER AND ZHIYU CUI
 OUTLINES
i. Abstract / overview
ii. The Chinese context:
i. Social changes
ii. Political and legislation
iii. Business ownership
iii. Evidence Strategic HRM practices
iv. High performance work system in china (HPWS)
i. Employment security
ii. Employees participation
iii. Selective Hiring
iv. Extensive training
v. Internal mobility
vi. Performance appraisal
vii. High pay contingent on firm performance

v. Strategic HRM and Chinese Firm Performance

vi. Contingent strategic HRM in china
i. Business strategy
ii. Owner ship

vii. Discussion
viii. Future research
ix. Conclusion
ABSTRACT/OVERVIEW
The Outlines are important ideological, institutional, and cultural contexts that
shape what strategic human resource management practices are possible in
China. A detailed review of the main components of the high-performance
work systems model suggests that when they are introduced into the Chinese
socioeconomic and political context, the cost-benefit calculus for high-
performance work system human resource management practices is different
from that is the U.S content.
THE CHINESE CONTEXT

 Social Changes
Individuals in China have come to associate their status and sense of self-worth with their role and standing in
the government bureaucratic system. Current Chinese economic reforms have also played a crucial role in
shaping the social values held by managers and employees.

 Politics and Legislation

 Business Ownership
EVIDENCE STRATEGIC HRM PRACTICES

 We found no China-based SHRM articles before

2002
 Database search revealed only 19 empirical
studies on China-based SHRM
 Of the 19 studies, seven appear to examine
strategic HRM based on a contingency
perspective. The remaining 12 studies focused
on examining the extent to which the practice of
HRM in Chinese companies’ mirrors universal
best-practice HRM practices—the HPWS model.
 HIGH PERFORMANCE WORK SYSTEM
IN CHINA (HPWS)
 In a literature review, Delery and Doty (1996) identified seven SHRM
practices
comprising an HRM configuration associated with a universal HRM strategy
 Practice comparison on HRM configuration associate with the universal
strategy

 The list contain :

i. Employment security
ii. Employees participation
iii. Selective Hiring
iv. Extensive training
v. Internal mobility
vi. Performance appraisal
vii. High pay contingent on firm performance
 STRATEGIC HRM AND CHINESE FIRM
PERFORMANCE
 As with the Western literature, there is evidence in
Chinese firms of a positive relationship between universal
best SHRM practices and firm performance although with
lots of variance in measurement of both the dependent
and independent .
 The result showing a positive relationship between firm
performance and strategic HRM have several limitations.
 The lack of evidence for the benefits of employment
security may be because the strong economy and demand
for employees provides limited marginal benefit to offering
employment security, and work design is not consistent
with Chinese cultural norms.
CONTINGENT STRATEGIC HRM IN CHINA

 There are important contingencies that moderate the relationship between

firm performance and strategic HRM in China
 According to the contingency perspective of SHRM, good HRM practices
depend on external and internal firm contingencies, such as fit with firm
strategy, structure, and culture. The few studies adopting this strategic HRM
theoretical perspective have focused primarily on business strategy and
ownership.

1. Business Strategy
2. Ownership
 DISCUSSION
 China rapidly changing economic
and political context provide a
unique opportunity to examine
the theoretical and empirical
foundations of SHRM knowledge.
 A detailed review of the main components
of the HPWS model indicates that when
they are introduced into the Chinese
socioeconomic and political context
the cost-benefit calculus for each of
these practices appears different from
in the U.S. context.
 FUTURE RESERACH
 Our review of strategic HRM in China
suggests that there is enormous potential
for future research.
 There is clearly a need to continue
to gather and analyze data on diffusion
of HPWS like HRM practices into Chinese
firms and to better understand which HRM
practices are being adopted by which types
of firms.
 Our review suggests that U.S.-based HPWS
may not translate well in the Chinese context.
For example, it would be interesting to compare
taking a relational approach to HRM practices
in China—in the same vein as Haidilao—with a
U.S.-based measure of HPWS,
 CONCLUSION

 Strategic human resource management is an emerging field of

study in the transitional economy of China . The most important
topic of SHRM: the relations between HRM and firm
performance. This qualitative review suggests that China-based
SHRM studies have actively participated in major theoretical
debates in SHRM literature. China-based SHRM studies
demonstrated that major findings of US-based SHRM models can
be extended to China, despite the different institutional and
cultural environments. It is suggested that future work in this line
of study needs to employ a more exploratory research strategy, and
to address China-specific HR issues that may have significant
organizational consequences.