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Interaction between strategic alliances SAs and human resource management HRM: case studies of four

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... strategic alliances (SAs) and human resource management (HRM): case studies of ... Personnel Management (PM): traditional people management/iron rice bowl ... – PowerPoint PPT presentation

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Title: Interaction between strategic alliances SAs and human resource management HRM: case studies of four


1
Interaction between strategic alliances (SAs) and
human resource management (HRM) case studies of
four companies in China with SAs with Western
partners
  • presented by
  • Jiafei Jin

2
Plan of Presentation
  • Views of HRM in China
  • Research gap and research questions
  • Research design
  • Findings and explanatory model
  • Contribution to theory
  • Further research

3
Use of terms
  • Personnel Management (PM) traditional people
    management/iron rice bowl
  • HRM developed USA 1960s 1970s, arrived China
    mid-1980s
  • SHRM where HR integral to business plan
  • Three types of SA
  • 1 Equity joint ventures (EJV)
  • 2 Contractual joint ventures (CJV)
  • 3 Wholly foreign-owned enterprises (WFOEs)

4
Four views of PM/HRM in China1 Chinese PM
Dominant (Child, 1994)
  • Focus on reform of labour contract system 1994
    Chinese Labour Law
  • Chinese PM retitled HRM but traditional practices
    dominant

Chinese PM
Western HRM
5
2 Hybrid HRM (Warner, 1995, Zhu, 1999, Bjorkman
and Lu, 1999)
  • Influence from 1997 Asian financial crisis
  • Further State-led economic reforms
  • Combination PM HRM

Chinese PM
Western HRM
6
3 Western HRM dominance (Bjorkman and Lu 2001)
  • Impact of Joining WTO pressure to meet
    international standards
  • Strong demand for HRM from Chinese companies
  • Chinese characteristics and culture become less
    important
  • Replacement of hybrid with Western HRM

Chinese PM
Western HRM
7
4 Overlapping types (Warner, 2009)
  • China is a complex and huge country with its own
    framework
  • Many different types of PM/HRM co-exist and
    overlap

Chinese PM
Hybrid
Western HRM
8
Research Gap
  • Little research on the changes in HRM
    accompanying SAs with Western partners and the
    reverse affect of changed HRM on the SAs
  • Little research comparing changes in HRM in EJVs
    and CJVs
  • Little research on changes in the influence of
    guanxi on HRM in companies with SAs
  • Little focus on changes in employees feelings
    with SAs and reverse flow of these to the SAs
  • No research on effect on HRM of a SAs failure

9
Research Questions
  • How do HRM practices change when companies have
    SAs with Western partners and what is the
    flow-back of company HRM on such SAs?
  • What are the differences in HRM changes between
    ECV and CJV companies?
  • To what extent does guanxi continue to influence
    HRM in companies with SAs with Western partners?

10
Research Questions - continued
  • What are the effects of Chinese culture and
    institutions on the interactions between SAs and
    HRM?
  • How do employees feelings and intentions change
    when companies have SAs with Western partners and
    what is the flow back (Legge 1995)?
  • What happens to a company's HRM when it
    relinquishes its SA with a foreign partner?

11
Research Design and Instruments
  • Multiple case studies 2 EJVs, 1 successful CJV
    1failed CJV
  • Combination of qualitative and quantitative
    methods questionnaire survey (428), interviews
    (18), focus groups (16), observation
  • Investigation of both managers employees
    opinions
  • Triangulation of data
  • Statistics ANOVA, MANOVA, PCA, multiple
    regression

12
HRM measures
  • Centrality
  • Formality
  • Fairness
  • Influence of guanxi

13
HRM practices
  • Recruitment
  • Training
  • Promotion
  • Performance appraisal
  • Pay
  • Redundancy

14
Employees feelings
  • Intention to stay
  • Pride in company
  • Effort put into work
  • Participation in company decision-making
  • Accept responsibility for own work
  • Feel job is secure

15
Findings and Explanatory Model
  • HRM in case studies became more central, more
    formal and more fair but influence of guanxi did
    not decrease, stayed the same, thus HRM became
    Western only to some extent
  • HRM in CJV became more Western than in EJVs
  • Case studies HRM strengthened companies SAs
    with foreign partners

16
Findings and Explanatory Model Continued
  • SAs and HRM formed a virtuous circle
  • Employees feelings interacted with SAs and HRM
    forming two further virtuous circles
  • After relinquishing a SA, a company retained
    Western HRM features adopted when had SA (i.e.
    not vicious circle)

17
Virtuous circles interaction of SAs, HRM
practice and employees feelings
18
Contribution to development of HRM theory in China
  • Some aspects of HRM are Westernised by companys
    SA with Western partner but Chinese culture and
    institutions continue to influence HRMs sphere
    Hybrid HRM is the pattern in my case studies
  • Composition of managerial values in a company
    with a SA with a western partner (ECJ? CJV?WFOE)
    affects the degree to which its HRM approaches
    Westernisation
  • The concept of virtuous (vicious) circles adds to
    our understanding of the interaction and
    re-interaction of SAs, HRM and employees feelings

19
Suggestions for further research
  • Expand research in China to include WFOES
  • Expand research to include SAs with Asian
    partners
  • Expand research to include study of European
    companies located in Europe with SAs with Chinese
    outwardly investing companies and assess validity
    of my model as an explanatory aid for SA/HRM
    interactions

20
  • Thank you!!
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