Title: Working for laowai: Chinese shopfloor workers perceptions of employment in a Western multinational
1Working for laowaiChinese shopfloor workers
perceptions of employment in a Western
multinational
- Research Seminar 26 November 2003 at Royal
Holloway - Dr Jos Gamble
- School of Management
- Royal Holloway
- University of London
2Abstract
- There is a growing body of research on human
resource management practices in China.
Overwhelmingly, these studies are based upon
surveys or interviews with managers and
professionals. Although recent studies portray
Chinas labour-management system as being in a
state of transition, relatively little attention
has been paid to the perceptions and experiences
of shopfloor employees. This neglect ignores the
extent to which HRM practices transferred from
Western countries, for instance, are refracted
through host-country cultural and institutional
lenses. We cannot read off from the UK context
how Chinese employees might respond to any
particular practice. The ethnographically
inspired case study approach employed in this
paper enabled the author to elicit employees
reports of their own experiences of differing
employment regimes in actual workplaces and to
explore the ways in which practices on the
shopfloor are interpreted and negotiated by
actors. This paper explores a range of
questions What motivates Chinese people to work
in a foreign firm? What expectations do they have
of such firms? How does their experience of
employment in these firms compare with that in
previous firms, especially state-owned
enterprises? How do Chinese employees respond to
these differences? The data for this paper are
derived from research carried out in 1999, 2000,
2002 and 2003 at stores owned by a British
multinational retailer during which over 120
semi-structured interviews were conducted with a
cross-section of employees.
3Introduction
- The spirit of unity here is very good, its like
one big family, its very stable. Even though
its a foreign company they respect us and listen
to our opinions. We get the feeling that this
company is our family and we all want it to do
well. First names of expatriate managers
cannot speak Chinese, but theyre very polite.
Our foreigners (laowai) are very good, they
respect us. Service desk supervisor
4Introduction (2)
- HRM generally derives data from surveys (e.g.
Rosenzweig and Nohria 1994) or interviews with
managers (Monks 1996). - Clark et al remark, it is important to focus on
individuals as consumers of change (1998 7). - Organisations suffused with competing interests
(e.g. Turnbull and Wass 1998). - Little phenomenological research in China.
5Is China still a transitional economy?
- Ongoing structural changes in economy and nature
of employees relationship to the workplace. - Composition of economy changing significantly
- - 1980-2000, China utilised 336 bn in FDI.
- - 1978-2002 approved 427,720 FDI projects.
- - Foreign invested enterprises contribution to
the - economy, 1 of exports in 1985, 52 in 2002.
- Private sector - late 1970s under 1 of the
economy. By early 2000, approximately 38 of
services output.
6Chinas transitional economy
- Shanghai, number of private companies rose from
under 2,400 in 1991 to 109,974 by 2000. - State-owned enterprises (SOE) role contracted -
1980, 76 industrial output, 25.5 in 1997 (Smyth
2000). - SOEs face intensified competition from domestic
and multinational firms (Nolan and Wang 1998). - Number of SOEs in China fell from 102,300 in 1989
to 42,900 by mid-2002.
7The state SOEs are in
- Since mid-1980s, nature of enterprises roles in
workers lives has changed considerably. - In larger SOEs from mid-1950s-to mid-80s
centrally planned job allocation, lifetime
employment, egalitarian reward systems,
cradle-to-grave welfare benefits (Shenkar 1996
Lü and Perry 1997). - SOEs workers tied into a system of organized
dependency (Walder 1986). - This model steadily eroded (Goodall and Warner
1997 Benson and Zhu 1999 Warner 1999 Ding et
al 2000).
8Cracking rice-bowls
- - Reward systems being reformed.
- - Contributory medical schemes, schooling costs
have risen substantially. - - Since 1998, rapid commercialisation of property
market, e.g. by 2000 over 400,000 Shanghai
residents had used housing loans to buy their own
homes (Shanghai Star 2000a). - Minimal job mobility (Davis 1990) replaced by
choice. - Morris et al the results of the reforms to
date are still very far from representing the
emergence of a real labour market in China
(2001 701).
9Choice and insecurity
- Iron rice bowls replaced by threat of
unemployment and income insecurity (Cook and
Maurer-Fazio 1999 Gu 1999 Morris et al 2001). - It is reported that 30 million SOE employees were
laid off between 1998 and 2002. - State planners intention is that FDI will bring
updated products, equipment and technology,
advanced management expertise and HRM systems
(Pearson 1991 Child 1994 Hayter and Han 1998).
10Transfer of HR practices
- Researchers observe limits to introduction of new
HRM systems, for example - Warner (1999) organizational inertia
constrains foreign investors from implanting new
human resource management systems and practices. - Ding et al The degree to which foreign
investment may implant new human resource
management systems and techniques is constrained
by the Chinese context, particularly the cultural
and institutional heritage of the SOE (2000
219).
11Getting connected in China
- Guanxi, connections, extensively explored in
sociological and business literature (Yang 1994
Tsang 1998 Gold et al 2002). - Guanxi dyadic, personal relations between
people who can make demands on each other. The
stronger the guanxi, the more demands can be
imposed (Tung and Worm 2001 521).
12Guanxi - making the wrong connection?
- Tung and Worm conclude guanxi is an integral
component of doing business in China and guanxi
is required at all stages in the companys
operations in China (ibid 525). - My findings contradict this assertion, and
especially with regard to the recruitment and
management of human resources in China. - Firms that too readily adopt the Chinese way of
doing things, may squander valuable resources
that differentiate them as employers.
13Methodology
- The journey as an analogy for research.
- HRM literatures focus largely on management.
- Anthropological accounts focus on workers in
export-processing factories in S. China (e.g. Lee
1998). - Business and organizational studies that claim to
focus on labour lack voices of local employees
(e.g. Benson and Zhu 1999 Morris et al 2001).
14Anthropology and HRM
- Anthropology has much to offer studies in HRM,
but few organisational ethnographies (Rosen 1991
Bate 1997 Linstead 1997). - Factors behind this absence
- - Time-consuming and difficult nature of
participant observation - - Form of ethnographic writing
- - Language acquisition
- - Access dependent upon management cooperation
(Clark et al 1998 6).
15The texture of anthropological research (Bate
1997)
- Historical - interest in living history
- Contextual, individuals located in temporal,
physical, and institutional contexts - Process orientated
- Actor-centred a commitment to learning
something about their world and what they make of
it (ibid 1160). - Inductive and grounded in the everyday reality
of the people it studies (Linstead 1997 95).
16Ethnographic research
- Problematic aspects of ethnographic research
- - The problem with reality
- - Insufficient data
- This paper informed by ethnographic methodology
- - Use of target language
- - Relatively long time frame
- - Inductive approach
- Research adopted what Marcus (1995) terms a
multi-sited approach of mobile ethnography
17Real types and ideal types
- Typically, analysts compare adoption of Western
practices against ideal type model of SOE
practices. - FDI provides a means of comparison for those
workers who can see both foreign and indigenous
managers in their everyday work lives (Nicols et
al 2002 740). - DStore particularly suitable to comparisons
since - - Strategy to replicate parent country practices
- - Greenfield sites with no established
workforce - - UK side has full operational control
- - Preference to recruit those with work
experience
18Self criticism
- Reflexivity merely a rhetorical device?
- Seeking further interpretations from the
audience. - Conditions under which the knowledge contained
within this paper was constructed - Bias toward better-run firms.
- Human factors disinclination to take on board
negative disconfirmatory evidence (cf. Popper).
19The meaning of is
- Might informants gloss over negative features?
- Ethnographer and political struggles in
workplaces. - Retrospective accounts a re-membering of
history (Hobsbawm and Ranger 1983 Zonabend
1984). - How do we know what people really mean?
- ?? culture?
- no one is quite sure what culture is (Geertz
2000). - Steeling at Sainsburys?
20Introduction to DStore
- June 1999, StoreCo opened Dstore in Shanghai.
- Second store, also in Shanghai, opened May 2000.
- 11 new stores up to September 2003.
- Intention to open 60 stores by end of 2007.
- Employees c. 2/3 male, 1/3 female, aged c. 27-28.
- Since 2000, day-to-day store management
transferred to local managers. - Research undertaken in 1999, 2000, 2002, 2003.
- Over 120 semi-structured interviews with
cross-section of employees in Shanghai and Suzhou.
21Table 1 Grading structure in DStore
- Grade 2 Customer assistants, receiving desk
staff, warehouse staff, clerical workers - Grade 3 Customer advisors, deputy supervisors
- Grade 4 Supervisors
- Grade 5 Assistant store managers (ASM)
- Grade 6 Store managers (SM)
22The view from the shopfloor employees
experiences of employment in a MNE
- Motives to join
- Ritzer (1993) sees a proliferation of de-skilled
McJobs in service work. - I applied here because I saw that it was an
Anglo-Chinese joint venture with a management
that was blazing new trails (chuanzxin de), so I
came here to learn/study (xuexi). Showroom
deputy supervisor
23Work pace
- You have to walk a bit faster here. Deputy
supervisor from local hardware store - Here work time is work time, in my previous job
we only worked 2-3 hours per day. Supervisor in
paint and decoration, formerly in SOE store - Communist Party management is comparatively
relaxed. Customer assistant
24Company rules and procedures
- Rules and procedures in SOEs relatively
uncodified, discipline dependent on
particularistic relationships. - Extensive (jiquan) regularised procedures at
DStore. - Local employees sought more rigorous system of
discipline than that introduced by British
managers.
25Discipline and punish
- The regulations here are very lax, foreign
companies take more time to discipline people,
its a bit too slow. Warehouse employee - Management is not strict enough, if an employee
drops something and breaks it they should be
fined. Supervisor loss prevention - Under pressure from local managers, expatriate
managers discussed whether to introduce fines for
breakages.
26Relationships with co-workers
- Relations with co-workers generally good in SOEs
and FIEs, but rivalries and disputes in some
SOEs. - The spirit of unity emanates from the top levels
down and spreads outwards (huxiang chuanran),
people help each other. Supervisor - There is a spirit of unity with work colleagues
for example, we go out for meals, and link up
(goutong). At my last job each person looked out
for themselves (ge ren guan ge ren), we just
worked together and then each to her own. Deputy
supervisor
27Relationships with superiors
- In my previous job it was, "Im a leader, youre
a worker - it was a very clear divide.
Gardening customer assistant - In SOEs the levels in the hierarchy are more
clearly demarcated. Here people are more equal,
everybody works together to help each person
develop their potential. Here leaders help out,
in a SOE they wouldnt do this. Employees can
make recommendations via a suggestion box or tell
first names of SM and ASM. Each level of the
leadership is quite open. Clerk
28Relationships with superiors (2)
- The strongest impression when I came here was
that the differences between the high levels and
the lower levels are not clearly demarcated, its
easy to be close, its people-centred (yi ren wei
ben). Everyone uses first names, we feel that
were all in the same company, were all
co-workers, we all have the same objective. Here
the management dont issue orders, its very
harmonious. Its like a large extended family.
This is due to DStores culture it has entered
the employees (yi ren lai chufa). Trade desk
deputy supervisor
29Relationships with superiors (3)
- Relations between upper and lower levels are
very warm and polite. In the SOE, management
didnt interact (da jiaohu) with the rest of the
staff. Showroom customer assistant - Theres an obvious difference to my former
retail SOE. There the leaders ordered you to
work in a department, here you can ask the
supervisor if you want to move departments.
Checkout deputy supervisor - There is not a feeling of distance between
workers and leaders, we feel close. Leaders have
a feeling for us, this encourages workers, it
makes people willing to work hard. Showroom
customer advisor
30Relationships with superiors (4)
- A warehouse worker described DStores management
style Very tolerant and warm-hearted, the
managers show concern for you. In the SOE store,
even though I was there for one year, the
managers didnt even know my name, here were
very familiar with first names of expatriate
managers. Here workers have a spirit of unity,
at the old company it always felt that workers
were workers and managers were managers, but
here we feel that workers and managers are
together, its harmonious.
31Back to the 1950s?
- Shopfloor staff described workplace relations as
- - fraternal (xiongdi guanxi) - - the firm had a spirit of unity (tuanjie
jingshen) - - extended-family atmosphere (da jiating
fengwei) - - a family-like feel (qinqi ganjue).
- A supervisor with 30 years work experience,
commented, Chinese leaders just issue orders,
here relations between people are equal. I joke
that DStores way of having no distance between
people is like China in the 1950s. Then
everybody tightened their belts and worked
together.
32Expatriates self-presentation
- Local employees impressed by example and
self-presentation of the expatriate managers. - Expatriate manager found that compared to the UK
everyone here is very conscious of their level,
they do not question those above them. - The UK managers are very polite, we like working
with them, theyre easy going and treat us as
equals (pingyi jinren). Chinese managers in
other companies are separated from the masses
(tuoli qunzhong), and not willing to interact
with workers. Deputy supervisor decorative
materials section
33Visible symbols of company culture
- DStores use of a common uniform a reversion to
practice common during the Maoist era. - Chinese companies use formal address - a
military style approach. - In this cultural and institutional context,
introduction of first-name terms constituted a
radical innovation. - The absence of managerial signifiers extended to
managers office space.
34Managerial discontent
- An ASM expressed some discontent over absence of
managerial perks - Everybody here has the same uniform. In local
firms managers wear a tie to make a difference.
Here its confusing for local customers. If a
customer looks for a manager and they see me
dressed like this, they wont believe Im a
manager and theyll think, youre lying, you
dont look like a manager. Management would
prefer to wear a more formal tie and suit, like
they do at Carrefour. But its a company rule.
I know the companys purpose is to show that
everyone is equal and that we are all down to
earth, but people have never had this experience.
The image is not right, managers should be more
formal for the customers, its more business
like. Working with the employees on the
shopfloor its okay.
35Relationships with superiors (9)
- Morning briefings, company magazine and in-house
consultation system Grass Roots. - Grass Roots gives us a feeling of being on an
equal level (tongdeng), the company wants to know
what employees think. Trade desk customer
assistant - SOEs have tended to be secretive (Child and
Markoczy 1993 613-4). - An ASM agreed that the company culture is very
open, but concerned that it can take a longer
time to reach a decision.
36Relationships with superiors (10)
- Experiences of other FIEs firms of different
national origin placed in a hierarchy of
desirability. - Customer assistant recalled at his previous firm,
a HK-owned store, there was a feeling, Im the
one in charge (dangguan de), Im the boss (tou),
youre the common people (laobaixing) so I look
down on you. - Timber supervisor recalled his former Japanese
store had been ordering-style (mingling shi). - Achieving Maos revolutionary goal in a
capitalist firm?
37Favouritism/particularistic ties
- The work environment here is relaxed
relationships are just work-based. In SOEs there
are lots of complicated guanxi here its all for
work and the customer. Perhaps the reason for
this is due to training. I followed the example
of the supervisor. Hardware deputy supervisor - At DStore, there are not the Chinese things of a
guanxi net. With a guanxi net people try to
bring in friends and relatives. DStore is new,
people are sent to the jobs theyre good at.
Loss prevention supervisor
38Favouritism/particularistic ties (2)
- The management approach is completely different
to my last work unit. There everything depended
on guanxi and human feelings (renqing). Here it
depends on your brain (kao naozi) and your own
efforts. Showroom customer advisor - Its a different approach here social
connections (shehui guanxi) are most important in
a SOE, here its what is inside one (neixin).
Assistant store manager
39Favouritism/particularistic ties (3)
- A new recruit to the checkout, direct from
school, attracted to the firm since, I didnt
want to rely upon guanxi and currying favour (pai
mapi) British management is via competition and
not guanxi. - An ASM who had worked for a SOE department store
In SOEs relationships are more complicated, but
here the employees all come from different places
so there are no conflicts like there are in SOEs.
In FIEs guanxi is much less relevant, instead
there is good management its a real nuisance to
be concerned with who is whos cousin and so on.
40Favouritism/particularistic ties (4)
- Employment relations homologous with relationship
between customer assistants and customers. - Tung and Worm (2001) stress need for FIEs to
adapt to an environment where guanxi is all
important. - But comments from employees show a positive
endorsement of bureaucratic and market based
employment relations. - Findings concur with Guthries (1999) assertion
that foreign firms are fostering emergence of
formal rational structures and systems in China.
41Walking to market
- Comments reminiscent of Fei Xiaotongs
observation that Chinese villagers would walk
miles to a market where they could exchange goods
and act without human feelings (1992 126-7). - Chinese employees who move to a foreign firm
place a metaphorical distance between themselves
and wider Chinese society.
42Opportunities for promotion and individual
development
- In a SOE it doesnt matter if you do more or
less, here it makes a difference if you do well
or badly. Administration supervisor - The most important lesson that the employees
should take away from the induction training is
that DStore is performance orientated. You can
develop (fahui) your ability and should not just
wait for orders. Training manager
43Opportunities (2)
- At this company you can develop your individual
speciality (fahui geren techan). My former SOE
was more inflexible they didnt want you to
think too much. Assistant store manager - DStore has a comparatively large space for
individual development. At the SOE you would
never feel, I havent finished my work yet, I
should stay and get it finished. Here there is
a higher demand on oneself. There were no
expectations of you at the SOE. Here, when you
expend more, you get something back. Decorative
materials deputy supervisor
44Opportunities (3)
- An ASM recruited from a rival state store
described DStore as a study/learning enterprise
(xuexi qiye), and his former workplace as an
existence enterprise (shengcun qiye). - A customer assistant, a former state restaurant
kitchen worker In a SOE the master (lao shifu)
is always the master. In a joint venture good
people get promotion.
45Opportunities (4)
- Aspects of corporate culture interfaced with a
rising tide of individualism in Chinese society. - Employees remarked that
- - There is a greater expectation of oneself
(dui ziji - yaoqiu yange yi dian)
- - There is space to develop oneself (ziji
fahui de - yudi)
- - Each person can develop their own use (fahui
- mei ge ren de zuoyong).
46Security of employment
- The most common questions asked by new recruits
are Will the welfare benefits improve?, Will
DStore develop quickly?, and How long can I
stay in DStore?. Training manager - I applied to DStore because I knew it was a
large international UK company and compared to
other companies its strong (shili xionghou) and
stable. Now, as many companies are going
bankrupt and the employees are laid-off, older
employees especially want stability. Decorative
materials customer assistant with 15 years
experience in a bicycle factory
47Security of employment (2)
- Workers feel that if you dont make a big
mistake you can stay for 3, 5, 8 years... But in
some companies they throw you out with little
notice, then workers lack a sense of security
(anquan gan). People feel that if you have a
one-year contract here, you can easily renew it.
Also DStore employees can easily get jobs
elsewhere as competition between supermarkets
includes competition for staff. Assistant Store
Manager
48Security of employment (3)
- Factors workers consider when they decide whether
to work for DStore tended to differ according to
their age (gender being far less apparent). - Younger employees attracted by training and rapid
promotion opportunities. - Older employees desire for stability and
security extended to concern with improved
welfare benefits.
49Security of employment (4)
- Isomorphic pressures to recreate the relaxed,
leisurely environment of SOEs with their
attendant social welfare benefits (cf. Francis
1996). - Employees' benchmarked levels of their salary,
bonuses and welfare benefits against their former
workplaces. - Employees comparisons had a persuasive force
that could not easily be ignored (cf. Korczynski
2002).
50Conclusions
- Dangers in reading too much from micro-contexts
- Are findings dependent upon short time frame,
specific culture and practices of this company,
and particular expatriates involved? - Rosenzweig and Nohria (1994) suggest when firms
become more embedded in the local environment
they increasingly take on practices that prevail
locally.
51Power distance revisited
- Divergence supports notion of substantial
cultural distance between UK and China (Lockett
1988 Easterby-Smith et al 1995). - Employees representations of SOEs as suffused by
entrenched hierarchies uphold perspective of high
power-distance relationship (Hofstede 1984). - But cultural distance not an insurmountable
barrier to transfer of HRM practices from the UK.
- Firm transferred a management approach apparently
antithetical to local practices and norms.
52Cultural dimensions revisited
- Findings alert us to the processual nature of
culture. - From dialectic of global firms/local labour a
synthesis emerges. - An expatriate manager reflected on managers
recruited from SOEs Even though people like
xxx have not been out of China, they have
adapted very well, they are closer to us in terms
of how they run things. - Stretching the organisation into a new shape.
53Isomorphing and transforming
- Isomorphic pressures to recreate environment of
SOEs most likely to come from older employees. - Management practices developed in one cultural
and institutional environment (Whitley 1992)
transferred to alien environments do not enter a
void. - Process of consumption inherently dialectical
transferred practices may both mean and become
something rather different in a novel context.
54Power-distance? - No thank you
- The ordinary and mundane became extraordinary and
innovative. - Hierarchy and Asian values - cultural
dimensions are not indelible. - Persistence of organisational and political
structures that underpin and maintain high P-D
relationships does not equate to a positive
endorsement of such arrangements by those at the
receiving end.
55Bridging distances
- Expatriates with appropriate technical and
personal skills can reduce the friction of
cultural distance. - Preparation for expatriate posting just get in
and stop whinging. - Scything through the mystique and mythology
surrounding the complexity of dealing with human
resources in China. - Rather than struggle to develop complex
adaptations to the Chinese environment, firms
would be better advised to hone and refine their
technical expertise.
56Market-based employment relations how far have
they come in China?
- Tremendous flux with main props of organisational
dependency jettisoned or eroded in SOEs. - In this region at least, Morris et al.s (2001
701) conclusion that China lacks a real labour
market is already outdated. - China growing closer to the US model than
Japanese model of capitalism.
57An inductive leap (Christmas time for turkeys?)
- As Guthrie (1999) comments, the diminishing role
of connections in the labour market process might
have wider consequences for Chinese society. - Changes to workplace-based relationships might
have mimetic reverberations for social relations
generally. - Ordering of foreign firms into a moral hierarchy
- suggestive of political preferences? - When does transition end and how will we
recognise this time?
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