Domestic Or Foreign Firms In China Essay Example | Topics and Well Written Essays - 2500 words

Domestic Or Foreign Firms In China - Essay Example Remuneration packages and salary increases Wang, Chen, Hyde and Hsieh (2010) recruited a sample of 260 different employees working within multi-national corporations in Shanghai in the semiconductor industry to determine the potential relationship between intention to leave and pay systems at the firms. The questionnaire instruments utilised for the study provided results that pay satisfaction was the most significant method for satisfying employees and reducing turnover intentions (Wang et al. 2010). Offering wages that were higher than the competitive environment within other firms substantially increased Chinese employees’ organisational commitment. Cotton and Tuttle (1986) support these findings, indicating that HR strategies involving the development of remuneration and bonus packages greatly improved organisational commitment and, hence, reduced employee intention to leave the organisation. Even though not all companies have the financial resources available to offer hig h quality remuneration packages, there are opportunities for even smaller Chinese firms to use some sort of monetary incentives in a culture that legitimately values the importance of pay. The study conducted by Cotton and Tuttle (1986) illustrates that pay values are significantly important for Chinese staff members, a phenomenon which has endured into contemporary Chinese businesses. Another study conducted by Ming, Zivlak and Ljubicic (2011) engaged a sampling of Chinese employees in the fashion retail sector. Research findings indicated that 78 percent of respondents cited pay dissatisfaction as the primary motivator for wanting to leave the organisation. Turnover rates at the four different organisations were between 26.69 percent and 36.45 percent (Ming et al. 2011),... This paper stresses that the majority of contemporary HR strategies being utilised in Chinese firms are largely successful. Establishment of participative leadership practices gives employees a greater sense of ownership and value within the organisation, causing them to remain committed and dedicated to the organisation. Coupled with the establishment of autonomous working environments provides the same motivation and dedication which has the opportunity to reduce turnover ratios. This report makes a conclusion that the most fundamental finding of the research is the shifting dynamics of manager-employee relationships that confounds the traditional model of management in which there is ample power distance. Giving employees more communications, information and opportunities to share their opinion and innovative solutions better satisfies Chinese employees, whether a product of adopting Western models of business management or whether as a product of an evolving and liberalising culture. The engagement quality between managers and employees cannot be under-emphasised and more HR leaders should be training managers and developing communications systems that provide for a more decentralised environment. The only potential hindrance to active HR policy in China, as illustrated by the research, is the extent to which autonomous working systems have been established and implemented. Stress and anxiety as two potential outcomes of working independently of management control should be major concerns for HR managers in China attempting to reduce turnover through policies allowing for self-sufficiency and self-evaluation.