Human Resource Management At China And Japan - 1289 Words

â€Å"Fifth wheel employees are those who are a result of the mistake made by the human resources wing, i.e. by recruiting wrong person to the wrong job just to fill in the vacancy and then expect better performance. Further such an employee is unable to put in his best and is just an additional mass available within the organization.† ― Henrietta Newton Martin. Human Resource Management is the function within an organization that focuses on recruitment, management and providing direction to people working in the organization. HRM has become a core and an integral part of any organization and is vital to success. In this paper we will be looking at practices in China and Japan and comparing their different approaches to Human Resource†¦show more content†¦Due to this ‘iron rice bowl’ philosophy there is enormous social pressure on State Owned Enterprises to keep surplus workers, or to reject new qualified employees in order to keep their existing e mployees. Since, the entrance of foreign enterprises in China, SOE employees are attracted to foreign firms because of personal development through training as well as better pay packages and working environment. Foreign enterprises in China face challenges such as high training and development cost of employees and adhering to the labour laws of China. The employee turnover rate in China was 18.5% in 2010 for privately owned companies. Few of the reasons cited by employees for jumping ship are: Better compensation package, better career opportunity, better training and development, better benefits and company has better chance of success (EUSME, 2015). The Chinese system can still be classified as bureaucratic and rigid. In order for employees to join foreign companies their personal files need to be released by their current work units or employers, which causes hindrance and leads to wastage of time and resources. Joint ventures between foreign enterprises and SOE’s are overstaffed and leads to opportunity cost of having better and more skilled employees. Foreign organizations usually overspend on their HR and training budget because training and development is a powerful motivator for employees in China. Using connections or networks in order to land a job for