Comparing Human Resource Management in Multinational Companies in Hong Literature review

Comparing Human Resource Management in Multinational Companies in Hong Kong, and HRM in Hong Kong Local Companies - Literature review Example Their study was carried out to cover how local managers and professionals are managed in Western companies under joint ventures with local industries. Their study was able to cover 65 Chinese-Western joint ventures and they were able to establish that various Western human resources management have been implemented in China (Bjorkman and Lu, 1999). However, these companies were not able to completely implement human resources practices from their home country to their Chinese company. In other words, the local culture seems to play a huge part in the human resource management practices in Chinese companies. Sparrow and Hiltrop (1994) discuss that for Western companies, the assessment of performance are usually based on annual interviews between the individual and his or her superior, sometimes with the HR managers taking some part in the assessment process. For Chinese companies, individual employees usually take yearly self-assessment activities with the opinions of colleagues, subo rdinates, and superiors often considered in the evaluation process. One-on-one interviews as discussed by (Easterby-Smith, et.al., 1995) are not usual practices. Easterby-Smith, et.al., (1995) also point out that an imposing and personal approach to employee evaluation is avoided as much as possible for these Chinese companies. For MNCs operating in China, their HR practices are often influenced significantly, especially in relation to their local employees. The expectation for most local employees is for the application of their local culture in HR management and for multinational corporations (MNCs) the concessions would be an easier transition for them to make (Easterby-Smith, et.al., 1995). Child (1995) also discusses the focus given to individual performance and educational attainment predicting career development for Chinese firms. Moreover, favourable personal relations and the right political attitude seem to play also a strong role in the human resources management in Hong Kong firms. Favourable personal relations are part of the cornerstone of the Chinese culture which is also part of the socialist principles of management (Child, 1995). Wages have traditionally been managed by government bodies and age was often considered one of the most crucial predictors of employees’ earnings in government enterprises. In the 1990s, age became the more important determinant for earnings. More advanced education and training was also considered an important determinant for pay levels (Child, 1995). MNCs operated under these conditions and eventually influenced the determinants of pay levels in Asian companies. However, there are still differences in the management of these elements for local companies and MNCs in China because there is still resistance to the implementation of reform in the system, especially in relation to group incentive processes (Easterby-Smith, et.al., 1995). Bjorkman and Lu (1999) also emphasize that Western and Chinese models in HRM are different in various respects. For modern Western conceptualization of HRM, they consider employees as important resources which must be effectively managed. They consider the importance of systematic recruitment as well as training and development of human resources. They also consider personal involvement and participation in organizations as important