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The Development of Human Resource Management In China Introduction

With the advent of the 21st century, Human Resource Management, as a relatively new management subject, is playing a more and more important role in today’s business activities. This report mainly discusses 3 questions about today’s human resource management. The first section discusses the changing function of human resource management in terms of 3 aspects which are staff-company relations, HR model development and HR strategies. The second section describes the exploring stage of HRM in China. System building, recruitment and motivation are the three aspects to support the opinion. The third section discusses the new challenges that HR managers in China may face. In this part, challenges from the changing business age, HR managers’ abilities to deal with uncertainty and ambiguity and solitary to collective activity are discussed.

Question 1

Human resource management, as the quickly developing subject, without doubt, has changed a lot in its function in many fields. This section will mainly discuss the HRM’s change and expansion in the aspect of staff-company relations, HR model development and HR strategies as the following.

In the aspect of the staff-company relations, the changing functions will be discussed from 3 aspects which are power factors, employees and motivational method. First, in terms of the power factors, 10 years ago the relationship between employees and the company was regarded as ‘Labor and Enterprise’ while nowadays more companies show understanding and respect for the human spirit. For example, Google China places a piano in the hall of the company and even set a kitchen and the washing machine for their employees (Jim Westcott, 2005). Second, in terms of the employees, employees are considered as thinking and rational beings around 10 years ago. The reason why they chose this company was the satisfactory salary. But today, staffs are considered as fully evolved, completely satisfied, mature human beings. Third, in the motivational methods aspect, the change is really huge. A decade ago, companies often drove employees through basic needs such as a big bonus. While the

role seems to highlight people’s social and intellectual needs.

In the aspect of HR model development, some human resource management functions have expanded during the past decade. One of the new products of human resource management is the HR outsourcing which support the core HR activities and business processes associated with HR administration. Outsourcing HR functions or processes is a viable decision for businesses, particularly those whose internal HR department has reached the limit of its effectiveness; businesses that want to access new programs or services (but don't want to incur the required investment), or those that want to focus on core competencies. The advantage of HR outsourcing is obvious: Obtaining access to (internally) unavailable expertise, skills, technologies; increased flexibility; reducing costs/reduce investment. This way has achieved great success in some countries, for example, Canada. Spending on HR outsourcing in Canada, is forecast to increase by more than 13%, on average, every year between 2005 and 2009 (Jim Westcott, 2005).

The majority of HR strategies have been developed over the last decade. Twenty per cent of respondents indicate that an HR strategy has been in place at their institution for less than three years, 60% report that the HR strategy was developed in the past three to seven years and 20% indicate that the strategy is ten or more years old. These data reinforce the notion that HR management has taken on a much more strategic role within the past decade. The HR strategy in recruitment and retention can be discussed in long-term goals as well as shorter-term operational procedures. In terms of recruitment and retention some institutions are primarily concerned with short-term objectives. For example, one Canadian respondent stated that their HR strategy involves ‘an annual recruitment and retention plan that g overns academic staff hiring and retention for the following academic year’ (Ronold G Ehrenbdeg, 2005). Other responses highlight long-term objectives and broader issues relating to staff development and performance as well as policy and strategic planning for future institutional growth. For example, one Australian institution states that their HR strategy is concerned with ‘workforce planning, age profiling, attraction and retention issues, and reengineering the recruitment process’. The general focus of this strategy