A View From China

Eight months ago Linda Watson of Just Workforce had never heard of Zhengzhou, couldn’t understand a word of Mandarin,

or comprehend the enormity of China’s role in shaping New Zealand’s economy. She did, however, understand that China is soon to be the largest global economy, is New Zealand’s second largest trading partner and partners with New Zealand in developing the Asia Pacific. She also knew that Human Resource Management was already playing a significant role in New Zealand companies based in China. So when Linda was invited to apply for a contract position at Henan University of Technology lecturing in Human Resource

Management she embraced the challenge with gusto.

With a past history of lecturing, as well as an HR background spread across the breath of human resources, and currently running her own consulting practice, Linda seemed like the perfect candidate for the role.

“I went to China to teach Chinese students about HR management, Training and Development and Organisational Behaviour. The investment in time that I give to the students has been returned to me 100 fold, I have learnt so much more than I imagined I would,” says Linda.

Linda had never been to China. She had dreamed about walking The Great Wall of

China, and reflects, “In hindsight, I would have learnt nothing about China in taking such a trip.

“China is in complete contrast to New Zealand. We are a small landmass with approximately 4.5 million people and roughly 700 years of history from the landing of the first Polynesians. China has an estimated population of 1.357 billion equivalent to 19.24 percent of the total world population and is one of the world’s oldest civilisations”.

The province of Zhengzhou where Linda works has a population of 100 million, and is currently moving one million people from the countryside into the city every year.

AUGUST / SEPTEMBER 201524 HUMAN RESOURCES

GLOBAL HR

“Can you imagine a population growth of one million year on year?”

According to Linda, the city looks like a war zone. Huge high-rise housing is being built at a rapid pace. “My colleagues and I muse when vacuous horizons fill up over night. It’s almost a surreal experience when you look around and see modernity, then you are cast back when a three-wheeled vehicle drives by stacked high with willow. It’s a world where old intercepts new. You can’t change a population this big over night! It’s going to take some time”.

From her studies Linda understood communism as a theory or system of social organisation and ownership ascribed to the community or to the state. She reflects on her shock at the expansive wealth. China boasts 24 percent of the world’s private wealth and has more millionaires than any other country, and

an unknown number of billionaires. This rapid escalation in wealth has predictively increased social problems i.e. drink and drug problems, class inequality, and escalating corruption.

“My life working at the University is simple. I am aware that whilst my apartment boasts a frustratingly slow Internet connection, a large percentage of China is technologically advanced beyond what you can imagine. The exponential growth of ‘Big Bang Disruptive Technologies’ is unbelievable. Year on year they are disrupting with the likes of 3-D, robotics, and of course online shopping; changing the face of work in a way that we have never seen. Companies such as Huawei, Alibaba, and Xiaomi Corp are literally taking the world by storm. I am fortunate that my students study many of these organisations, so I am left with a wealth of knowledge on organisational structure, leadership, culture, gender, unionism, health and safety and differences in business practices between the west and east.”

In Linda’s view, to work effectively in China you need to appreciate that the Chinese are a proud and strong unified culture where history, ideology and politics influences decision-making.

Understanding historical concepts such as ‘guanxi’ or relationships is imperative. The Chinese want to learn from western practices then lead independent of western encumbrance. Paternalistic approaches are ill advised.

Linda outlines some areas for Human Resource professionals to understand.

Work practicesChina has one of the highest unemployment rates in the world. They have a vastly competitive IT labour market and a rapidly growing Gen Y population. Unlike other generations, Gen Y is adept at challenging the status quo. The expectation of working in the family business is fast dissipating for this generation. They are instead, choosing to study and work abroad adding to the internal talent and skills deficit.

The concept of ‘saving face’ is pervasive in Chinese culture. This concept can be solidified in their preference for working in groups, and impacts the measurement of employee contribution and performance. This removes the risk of ‘standing out’ and of the manager appearing to know less. Unfortunately, such behaviour can depreciate an individual’s performance and stifle

The concept of ‘saving face’ is pervasive in Chinese culture.

GOLD SPONSORNZ HR Conference 2015

Visit us at our stand

The HR Market PlaceA one stop shop for HR products and services

in New Zealand

VISIT THE ONLINE DIRECTORY AT:

www.HRmarketplace.hrinz.org.nz

AUGUST / SEPTEMBER 2015 25HUMAN RESOURCES

companies to convert their workforces to full unionisation and collective contracts. While doing so at a national level, to complicate matters, many provinces and major cities have their own employment contract regulations. Since 1993 employment disputes for both state-owned enterprises and private organisations have been heard through a three-tier system involving (1) mediation (2) local level arbitration (3) final resolution by court trial. Unfortunately the filing of dispute is so high that the system can’t keep up.

Organisational StructureOrganisational structures in Chinese organisations are typically bureaucratic in nature. This poses problems for the fast growing Gen Ys who are frustrated with such historical embedded mechanistic structures and bureaucratic restrictions. Very few companies are organistic in nature. However, Alibaba and Huawei buck the trend. Huawei, in particular, has gone as far as giving employees shares in the company so that they share the responsibilities and share the benefits.

LeadershipLeaders in many Chinese organisations are ‘command and control’ orientated. They are to be respected and not challenged. Workers pledge allegiance to the leader and not the company. This poses particular problems if the leader leaves the organisation. Mass resignations can occur at this time. This is, however, a trend that is rapidly changing.

Health and SafetyHealth and Safety risk and breaches are high in China. Fuelled by employer negligence and poor worker education, this is particularly so in the coal mining and construction industry.

“We have seen time again in China that

It is imperative that HR grows an understanding of Chinese culture, workplace practices and nuisances.

innovations. While groups may appear that they are functioning democratically, they tend to appoint a leader who makes the group’s decisions. The appointment of the leader is based on status, gender and age. It is expected that if a male is present, all females will take a passive role and be directed by the male. Such behaviour also impacts data gathered from surveys.

“In New Zealand I use surveys to understand climate and culture and the impact on safety behaviour. Due to ‘group think’ in my experience surveys have less currency and relevance in China.”

Many Chinese organisations work five days a week between the hours of 8.30 a.m.- 6.00 p.m. with a one to two hour siesta in the middle of the day. Mothers are expected to collect their children, cook a meal and have a nap. However, as the Chinese westernise, and work for western organisations, they can’t attend to these traditional activities. According to the Chinese Sleep Research Society, as practices change, Chinese workers are becoming sleep deprived with a rising concern for depression.

The Labour Market“China’s labour market is evolving at speed yet due to poor policing and low employee education, is creating a wake of objectionable problems,” says Linda. Problems include violations of employee rights, delays in paying wages, unsafe working conditions, as well as bulk company lay-offs.

Employment ContractsThe Employment Contract Law came into effect in China in 2008. Despite this, many Chinese companies fail to sign employment contracts. The All-China Federation of Trade Unions focuses on persuading foreign

accidents occur most in coal mines that recklessly expand production or blatantly flout safety regulations in a bid to make a quick buck,” reports the China Labour Bulletin (3 April, 2014).

The Chinese Government has issued a pledge to decrease such incidents and as a result have increased inspection of workplaces. Such an approach has seen organisations react with reluctance to report incidents, as they fear closure. Thus, increasing the possibility of unsafe practices ‘going to ground’ and stymying any potential developments in a ‘just culture’. Furthermore, once an injury occurs, the ‘hoops’ those workers have to go through to prove their case for compensation further impacts reporting. This can result in some unscrupulous behaviour towards the injured person to prevent them taking a compensation case. Procedures for settling work-related injury and illness for compensation are protracted and complicated and can last a decade or more.

“I think that it would be accurate to say that employee safety and worker rights are not considered paramount by many organisations in China. This is attitudinal and embedded in the thinking of management. The stats could be changed if workplace cultures were developed to value the worker,” says Linda.

Training and DevelopmentTraining and Development is not a priority in Chinese organisations. However, wages are on the increase, and the emerging generations are becoming aware of western work practices.

“I imagine that training and development will eventually become a trade off to wage inflation and a strategy to retain talent.”

Linda reflects, “China is a leader in shaping our economy and impacting our labour markets. HR plays a key role in this transition to partnering with Chinese companies. It is imperative that HR grows an understanding of Chinese culture, workplace practices and nuisances. We must proactively adapt our tools to accommodate the cultural differences. We cannot expect Chinese advisors alone to do this as they too grapple with the transition.” HR

Procedures for settling work-related injury and illness for compensation are protracted and complicated and can last a decade or more.

AUGUST / SEPTEMBER 201526 HUMAN RESOURCES

To advertise in the HumanResources magazine email advertising@hrinz.org.nz for advertising rates and deadlines.

HUMANRESOURCES