The Influential Factors, Key Current Issues and Future Directions for Essay

The Influential Factors, Key Current Issues and Future Directions for International HRM in China - Essay ExampleThe move from traditional closed doorway economy to open door economy, has attracted foreign direct investments or FDI which have given considerable boost to its image as nation that is ready to plow sassy culture of cooperation. The facilitating employment policies, labour law, joining world trade unions and forging alliances with worldwide business community have been few of the major elements of its liberalization. The organizations recognition of the importance of human resources has been critical to the expanding business opportunities for both within and outside the country. The new labour policies and laws that incorporate the international parameters and conform to the wider international regulations have proved the efficacy of international HRM that Chinese companies and corporate bodies are increasingly adopting within their core business strategies. Scholars assert that new IHRM practices have introduced new formats which are ground on investment and stake owner equity (Bell, Khor and Kochhar, 1993). These are important issues as they cater to the wider welfare of the workforce. But according to churl (1994), there is still strong influence of sociologist ideology of the government towards work, performance and rewards in local junction ventures partner in business alliance of MNE in Chinese SOE. The contributory factor could be strong political regulations that favour local people. In the contemporary environment of competitive business, business practices of the domestic market are inadequate in the global market. Expanding business must take cognizance of the changed equation of business practice with reference to the changing socio cultural emphasise of the country, where one needs to establish the business interests. National cultures are critical elements that determine the negotiators assumptions and help to form business s trategy based on behavioral pattern (Cohen, 2004 Rubin & Sander, 1991). Hofstede, (1984) has also emphasized the importance of culture in business paradigms. China being culturally distinct economy, must be understood for making successful foray into business partnership and alliances. The increasing trend in IHRM to understand cross cultural mensurates therefore pay back vital part of business in China within and across the business entities that are looking for exploiting business opportunities there. 2. Key current issues in IHRM Dowling et al. (1999) says that complexities of Chinese socio-political and cultural environment have posed serious challenges to the businesses, especially their IHRM practices. The cross cultural understanding and the wide diversity of national cultures and most importantly the tightfitting control of government over international business are issues that need careful considerations. Poole (1999) believes that use of local talent and resources are i mportant part of joint ventures that promote local economy. The socio-cultural value systems are vastly different and business practices are very sensitive to behavioural pattern and intrinsically linked to their socio-cultural value system. Schuler (2001) says that there is strong bond of national culture that prefers to deal with local people rather than expatriate managers. This is important issue with the MNCs as they often father huge cost on training