MANAGEMENT PRESENTATION

Topic: Staffing Presented to: Prof. Muhammad Ramzan Presented by: Hassan Khalid Roll No.#: MC 10 - 292 Hailey College of Commerce UnIversIty of the Punjab

MANAGING HUMAN RESOURCES IN SMES IN A TRANSITION ECONOMY: EVIDENCE FROM CHINA Journal: The International Journal of Human Resource Management. Volume: 21, No. 12, October 2010. Author: Li Xue Cunningham.

CONTENTS
Definition Abstract Key Terms Introduction Problem Statement Hypotheses Literature Review Methodology Results Implications Conclusion

DEFINITION OF STAFFING
STAFF MANAGEMENT is the function of managing all employees in the organization, including the development of staff skills through training and other forms of staff development as well as the identification, development and implementation of training needs and programs available for staff. Employees include permanent, temporary, and part-time employees, partpeople working under scholarships, traineeships, apprenticeships and similar relationships.
Source: www.ventureline.com/accounting-glossary/S/staff-management-definition www.ventureline.com/accounting-glossary/S/staff-management-

ABSTRACT
The objective of this study is to explore the changing nature of people management on the under-researched area of small and medium-sized enterprises (SMEs) in China. The major characteristics of people management in Chinas SMEs were then identified. People management in SMEs in China was compared and contrasted with Western HRM models. The study leads to a better understanding of SMEs in China and helps fill some of the gaps in the analysis of management in China. The findings of the study contribute not only to the development of SMEs, but also to the debates of possible convergence or continuation of differences in management practice worldwide.

KEY TERMS
Best practices; China; Culture; Human resource management; Small and Medium-sized enterprises; and Transferability.

INTRODUCTION
Role of SMEs in Chinas Economy: Economy:
99.6% of countrys total enterprises. 99. enterprises. 60% contribution to GDP. 60% GDP. 75% of urban jobs. 75% jobs.

Challenges faced by SMEs: SMEs:

67000 SMEs with 5 million sales collapsed laying of 20 million employees. employees.

Reasons for Difficulties: Difficulties:

Higher cost of production and low demand of overseas market. market.

Managing for Workforce Diversity: Diversity:

Institutions own traditions and culture. culture. Adopt high-performance HRM. highHRM.

PROBLEM STATEMENT
Is there a relative convergence with Western HRM practice of peoples management in SMEs in China although one that is strongly influenced by unique Chinese characteristics.

HYPOTHESES
Hypothesis 1: People management in Chinas SMEs will be different from those practices defined in Western HRM models. Hypothesis 2: Cultural and institutional factors will have strong impact on HRM takeup in Chinas SMEs.

LITERATURE REVIEW
Different opinions of HRM in SMEs:
Harmonious ___ because SMEs have flexible environment. Contradictory ___ because SMEs management may be complex. Size and structure of an SME determine the nature of HRM to be adopted. Other factors also impact adoption of HRM High Performance Work System (HPWS) and HRM has an affect organizational outcome. Ownership is one of the key variables in an organizations choice of HR practices in China. Cultural and institutional influences also affect HR practices in SMEs.

METHODOLOGY
Surveys comprising semi-structured, one-one, face-face semionefaceinterviews. SMEs with 500 employees. SubSub-division of SMEs on basis of ownership and business nature, e.g., State Owned Enterprises (SOEs), Joint Venture Enterprises (JVEs). Questionnaires: Close-ended and open-ended Closeopenquestions. NonNon-probability sampling methods: convenience and snowball. FollowFollow-up calls and reminders.

RESULTS
Sample of 114 companies researched was further divided into five sub-groups according t employment size. subsize. Hypothesis 1 supported by results that role of HR in SMEs is different from Western HRM concept, though some changes have been adopted with slow progress and effect on business performance is low. low. Noticeable difference from traditional Personal Administration (PA) system. system. Companies have made an effort to improve training. training. Group performance has become major focus in pay and reward schemes. schemes. Cultural factors still play an important role in todays market in China. China. Development of all companies greatly influence by economic reforms. reforms. Positive effect of Chinese cultural values and national institutions on HRM in SMEs. SMEs.

RESULTS (cont)

IMPLICATIONS
More systematic approach to selection in employee resourcing practices should be encouraged so as to reduce bias and errors . The aims of selection for SMEs managers and HR practitioners are not only to find the right person to fit a specific job, but also to help build a long-term longcommitment to the organization by allowing new employees to gain a realistic understanding of the job and organizational culture. Practical implications for foreign companies in doing business in China are also abundant. Finding a way to develop and use guanxi rather than diminish it may provide better opportunities for foreign companies when dealing with Chinese partners or doing business in the Chinese market.

CONCLUSION
Overall, HRM in SMEs in China is still at its initial stage, although HRM is playing an important role in helping SMEs to become more efficient. In the end, best HRM practices ought to be the ones best adapted to cultural and national differences, and each firms specific feature.