NRI Papers
No.86 February 1, 2005
  Japanese Companies' HRM Strategies in China  
      As China transforms itself into a giant market, human resource management (HRM) strategies to secure excellent personnel with high-level capabilities and motivation and achieve significant results are growing more important for Japanese companies aspiring to develop deep-rooted business operations in China.
      Chinese workers prefer to be evaluated in accordance with their performance. They complain that Japanese companies fail to sufficiently and promptly reflect employees' efforts and achievements in their wage hikes and promotions. HRM must be designed and implemented to boost the motivation and morale of Chinese employees.
      In order to localize management in China, Japanese companies should systematically develop Chinese candidates for managers from an early stage. They should make plans to develop and appoint Chinese employees to specific managerial posts and should require incumbent Japanese managers to train their Chinese successors. For Japanese companies to build mutual confidence with Chinese employees and gain maximum benefit from their capabilities and motivation, the firms must appoint excellent people who can actually lead Chinese operations.
I Japanese Companies' HRM Problems in China
  1 From Labor Control to HRM Strategies
  2 Japanese Companies Faced with Numerous Problems
II Strategies to Maximize the Vitality of Chinese Employees
  1 Wage System Should Favor Achievement-Making Employees
  2 Promotion System Should Encourage Career Development
  3 Evaluation System Should Satisfy Employees and Provide Growth Targets
  4 Emphasize Abundance of Growth Opportunities
  5 Recognition System That Faithfully Praises Employees
  6 Various Measures to Retain Excellent Personnel
III Develop Core Personnel to Manage Chinese Operations
  1 Make Plans to Develop Successors for Localization
  2 Fine-Tuned Support for Successors
  3 Appoint Reliable Chinese Employees and Confidently Transfer Authority
  4 Recruit People Well Expected to Become Core Personnel
  5 Develop Personnel with Leadership
IV Thinking and Actions Required for Japanese Representatives
  1 Heads of Chinese Operations Demonstrating Leadership as Executive Officers
  2 Developing Confidential Relationships with Chinese Employees
V Strategic HRM Issues for Japanese Companies


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