Human Resource Strategy and Employee Integration. Our firm has set out to Internationalist its operations by opening to different facilities One in China Assembling and Maintaining Aircraft Engines and the other in Europe fabricating turbine blades for Aircraft engines. We have shown In the case of China the key strategies required for Organizational success and we have identified that success in China is assured if the Firm can get its strategy of Recruitment and Retention right.
We have also identified that expatriate managers which are core to the operations of the facility must have a fit with the Chinese environment and as Internationally mobile employees must have an indents understanding of the cultural and societal norms of the Chinese people thus be enabled to manage employees to achieve success. In locating our facility in China, we chose to locate it the Shanghai area as this area is key to the aviation industry of China and has an abundance of Key Skilled and Competent people even though these people are in short supply.
We have articulated a strategy for ensuring commitment and loyalty from our staff. Our Europe Tacitly Is located In ten ASK. We nave Intentional ten UK as a sultan location because of the abundance of the required technical skills as well as the flexible and business friendly labor laws.
Even though the cost of labor is higher than some Eastern European countries, we believe that this is overshadowed by the quality of the work we would get, access to the global markets as well as the stability of the I-J which is essential to the aircraft industry as delays on orders leads to very losses for all concerned in the Industry.
The Auk’s tax structure for business is also less stringent than comparable European economies and Airbus Industries with its main factories in France is much closer to the UK than most Eastern European countries. The issues we identified with Human Resounding in the UK is mostly in the area of insuring Equal Opportunities and Union/Labor Relations. The I-J has very strong Unions and the laws allow the formation of Unions for willing employees thus managing this strong Unions will be one key task for HER Managers in the UK facility.
This liberalizing of certain sectors has led to substantial growth in the Chinese economy with average “Real GAP growth rates of 10% between 2001 and 2006” (Source: Global Insight, 2007).
The “Open Door Policy” adopted by China in 1979 has brought about enormous growth in the industrial output as well as the economy as a whole. As the country moved away from its “iron rice bowl” system consisting of state-owned enterprises ND “lifetime” workers, various types of employment contractual agreements have begun.
The past two decades have witnessed the rapid growth of Chinese and foreign owned multinational enterprises which are set to play an increasingly important role in the future of the global economy. The opening up of the vast market has created many opportunities and, at the same time, many problems to foreign enterprises. Because of the unique political, economic and cultural environment in China, it is difficult for foreign Joint ventures Ana wantonly owned Torrent astrolabes to Introduce tenet parterre approach In nagging the employees and the organization in China.
This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HER) strategy to be deployed. China graduates about 1. 5 million students from institutions of higher learning each year.
This large pool of graduates are of varying quality and those with scientific and chemical degrees are very much in demand thus there is a shortage of Skilled and graduate engineers in the Chinese market. This has led to intense competition amongst firms trying to secure these persons employment loyalties.
Potential employees, having more choice in the labor markets need to be assured of the value of working for the various firms and thus Compensation and Benefit models need to be well structured.
As a Wholly Owned Foreign subsidiary in the Chinese market Our Rare Engine Assembly and Maintenance firm will encounter significant challenges as a Greenfield tart up within the Chinese markets and our Human Resource Strategy will be key to competitive advantage. To achieve this objective of basing our Competitive advantage on our Human Resources, there is a need for us to answer the following questions: What are the key employment issues likely to be encountered in the Chinese market? Based on the identified employment issues, what key principles of HER strategy would we suggest?
What strategy are we going to deploy to manage our key skills within the firm? What other HER related issues should be considered within the Chinese market? The principle statute that governs employment and labor issues in China is the 1994 Labor Law. The Ministry of Labor and Social Security occasionally promulgates rules and regulations that supplement the law. Apart from National legislation, foreign enterprises in China are subject to Labor regulations of the area in which they operate.