A study of human resource management in a joint venture organisation compared to a locally owned organisation in China

Abstract

The thesis examined the study of human resource management (HRM) in a joint venture organisation compared to a locally owned organisation in China. With the increase in foreign investment in China, more Western invested organisations of various kinds are being established in the Chinese business environment. HRM as a Western concept, has an effective influence in the transition from personnel management to HRM in China. The literature review in the research was focused on some aspects of HRM concepts, which are human resource (HR) functions, Western and Chinese HRM models, the HRM process and international human resource management (IHRM).

The research methods were decided using both a qualitative and quantitative approach. Two interviews were conducted with the HR managers from the selected joint venture and locally owned organisation, and questionnaires were completed by 50 employees from each of the selected organisations. All responses were received, and the rate of useable response is 38%.

After analysing the findings, the researcher concluded that the development of HRM practices in the joint venture focuses on HR integration in order to build the organisation’s competitive advantage. The development of HRM practices in the locally owned organisation aims at some improvement in HR functions and the innovation of ‘technological HRM’. Finally, it was recommended to both types of organisations to review their HRM system regularly and be more aware of the link between their HRM system and the business’s developing direction.

More research is needed concerning HR integration with business development and HRM information management. These aspects are all important to investigate the success of HRM.