International HR Issues
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WEEK3InternationalHRPrinciples.pptxINTERNATIONAL HR PRINCIPLES IN CHINA
STUDENT’S NAME
INSTITUTIONAL AFFILIATIONS
INTRODUCTION
This presentation provides information on China international human resource principles.
This is to understand whether or not China is favorable for the expansion of a Southwest organization.
The information provided will conclude whether China is favorable for expansion.
HR principles to be presented include the following;
Recruitment practices
Payment systems
Labor relations
Training and support
International Human Resource Management describes the process of employing, training, developing, and compensating workers working in both international and global organizations. In this case, international human resource involves related issues and problems that arise from internationalization of business, including strategies, policies, and practices which organizations pursue in response to the internationalization of business.
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RECRUITMENT PRACTICES
People are recruited only if they have work and residence permit
Work permits are viable between one and five years.
Labor laws do not apply between foreign employer and employees.
Employers must perform background check before hiring.
According to the PRC law, every single expatriate working or operating a private organization in China must be in possession of both a work permit and a residence permit. Failure to be in possession of these documents is considered illegal as long as the organization enters China’s market. moreover, the organization stands a chance to be penalized if they lack these documents. These permits can be obtained by applying to the Chinese government for the notification of these permits
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PAYMENT SYSTEMS
There are different payment systems used in China.
This is especially because majority of Chinese people have access to digital technology.
People in China pay for goods and services by using digital wallets
Very few people use cash to pay for services and goods.
In comparison to a few decades ago, China and other countries have adopted several computerized payment systems. In fact, China has overtaken most countries when it comes to consumer deals with exchanging money for products or services.
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PAYMENT SYSTEMS (Cont.)
Some of the most popular payment systems used in China include Apple Pay, Alipay, WeChat, and several others. On average, at least 90 million people across the globe use these payment systems (Guerci, 2019).
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LABOR RELATIONS
China has labor laws that protect workers from exploitation.
According to China labor relations;
Employees must be paid in full and on time
Workers should cover a maximum of 40 hours per week
Should have access to healthcare
Should not experience workplace discrimination
Should be compensated for workplace related injuries.
China has a comprehensive legal framework which provides employees with a wide range of entitlements besides protecting the workers from exploitation. In China, employees have the right to be compensated in full, work for a maximum of hours per week, employees have the right to be compensated in full, work for a maximum of hours per week, have health insurance cover, and be compensated for workplace related injuries.
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LABOR RELATIONS (Cont.)
Labor laws are enforced by the government of China.
However, it is upon the workers to ensure that they practice their rights as stated in the labor laws.
Workers in China have the right to strike or go slow.
Every worker in China is in a trade union, the ACFTU.
In China, the local governments are responsible for enforcing these labor laws besides ensuring that the rights of the workers are protected. Prior to the year 1982, Chinese workers were not allowed to strike, until after the labor laws were reformed (Davis, 2017). Currently, workers in China have the right to go on a strike in the event that they are not satisfied with their employers.
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TRAINING AND SUPPORT
Before working or expanding a company in China, a person must have the relevant certificates.
They have a professional skills training system in place.
This system helps to promote entrepreneurship and employment.
This system instills craftsmanship quality awareness among workers.
Companies located in China have adopted a technique where they train their employees in the bid to cut-off low cost and labor-intensive productions and adopt the modern manufacturing and production practices. Most organizations have been able to pull this move by hiring highly-skilled workers. Organizations in China have project support where employees learn skills and techniques that will improve production and reduce cost.
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RECOMMENDATION
Having looked at the international HR principles in China, it is fair to say that, China is a favorable country for Southwestern organization to expand there.
There labor relation laws are favorable both the the employer and potential employees.
The labor relation laws in China are almost similar to those of Southwestern countries.
REFERENCES
Davis, P. J. (2017). How HR can create competitive advantage for the firm: Applying the principles of resource-based theory. Human Resource Management International Digest.
Guerci, M., Decramer, A., Van Waeyenberg, T., & Aust, I. (2019). Moving beyond the link between HRM and economic performance: A study on the individual reactions of HR managers and professionals to sustainable HRM. Journal of Business Ethics, 160(3), 783-800.
