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Asia and China HR Practices and the Impact of Intercultural Factors

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Chinese and Asian HR practices: The Impact of Intercultural Factors on High-Performance Teams & Employee Engagement

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Asia and China HR Practices and the Impact of Intercultural Factors

  1. 1. Chinese and Asian HR practices: The Impact of Intercultural Factors on High-Performance Teams & Employee Engagement  February 21, 2012
  2. 2. Agenda <ul><li>Asia & China </li></ul><ul><li>HR: US  Asia </li></ul><ul><li>Intercultural Factors </li></ul><ul><li>High Performing Teams </li></ul><ul><li>Employee Engagement </li></ul>
  3. 3. <ul><li>8 years in Asia: China, India, Indonesia, Japan, and the Philippines </li></ul><ul><li>Global professional services organizations </li></ul><ul><ul><li>Marsh Inc. [Risk and Insurance Services] 25,000 employees </li></ul></ul><ul><ul><li>ReSource Pro [Business Process Outsourcing] 1,000 employees, doubled in size over the past two years </li></ul></ul><ul><ul><li>Accenture [Consulting, Technology, and Outsourcing] 175,000 employees </li></ul></ul><ul><ul><li>Toppan Moore Systems [Software Development/Implementation] 350 employees </li></ul></ul><ul><li>&quot;100 Best HR Management Companies in China&quot; by 51job.com for 2009, 2010, and 2011 </li></ul><ul><li>“ Best Training Program in China” by 51job.com for 2010 </li></ul>Brief Background
  4. 4. Asian Economies and Populations <ul><li>China (#2; 1.3 b*) </li></ul><ul><li>India (#3;1.2 b) </li></ul><ul><li>Indonesia (#15; 248 m) </li></ul><ul><li>Japan (#4; 127 m) </li></ul><ul><li>Philippines (#32; 103 m) </li></ul><ul><li>Singapore (#39; 5 m) </li></ul><ul><li>South Korea (#12; 49 m) </li></ul><ul><li>Taiwan (#19; 23 m) </li></ul><ul><li>Thailand (#24; 67 m) </li></ul><ul><li>Vietnam (#42; 92 m) </li></ul>Source: The World Factbook, Central Intelligence Agency
  5. 5. <ul><li>15 cities in East Asia will join the Top 50 GDP Cities by 2025. </li></ul>Top 50 Cities by GDP in 2025 Source: McKinsey Global Institute Dropout – included in 2007, but not in 2025 Top 50 city in both 2007 and 2025 Newcomer – absent in 2007 but included in 2025
  6. 6. GDP Growth Rates (2007 – 2012) Sources: www.TradingEconomics.com & The World Bank Group 10 8 2 0 6 - 4 - 2 - 6 4 14 12
  7. 7. Difficulty Filling Jobs in Asia In contrast to the job market trends in the US and the Global Average, difficulties in filling positions in Asia has increased significantly. Source: Manpower Talent Shortage Survey, 2010 14% 31% 41% Note – Asia average includes: Australia, China, Hong Kong, India, Japan, New Zealand, Singapore, Taiwan US Global Average Asia
  8. 8. Expectations - Length of Employment Sources: SHRM, Corporate Executive Board Latin America Europe US/Canada China
  9. 9. HR Team Attributes <ul><li>Small Teams </li></ul><ul><li>Transactional </li></ul><ul><li>Limited technology </li></ul><ul><li>Core tasks & compliance </li></ul><ul><li>Paper-based requirements </li></ul><ul><li>Outsourced activities </li></ul>Diagram: Accenture HR Services
  10. 10. High Performing Team? Employee Engagement? Company Logo The management team needed to select the gift for one of the traditional Chinese holidays….. Moon Cakes Coffee/Tea Cup
  11. 11. Cultural Dimension Models 5 Dimensions (Hofstede) LMR (Lewis) 7 Dimensions (Trompenaar)
  12. 12. Key Cultural Dimensions <ul><li>Authority - T he way in which people view authority varies across cultures </li></ul><ul><ul><li>Autocracy - Respect for those in a higher position and obey authority </li></ul></ul><ul><ul><li>Meritocracy - Respect for individuality; can challenge those in a higher position </li></ul></ul><ul><li>Collectivity - The role of the individual versus the group </li></ul><ul><ul><li>Collectivist - Teaming is valued over individual contribution </li></ul></ul><ul><ul><li>Individualist - Your interests typically prevail over those of the group </li></ul></ul><ul><li>Communication – How and the way specific information is conveyed </li></ul><ul><ul><li>Direct - Require the facts only </li></ul></ul><ul><ul><li>Indirect - Value being polite through quick passive words and tones </li></ul></ul><ul><li>Time – How initiatives/projects are scheduled, organized and planned </li></ul><ul><ul><li>Circular – People and completion of transactions are more important </li></ul></ul><ul><ul><li>Linear - Events are limited, scheduled sequentially, and prioritized </li></ul></ul><ul><li>Uncertainty – Comfort with the unknown or undefined </li></ul><ul><ul><li>Defined - Strict structure, predictability, and clarity; risk is avoided </li></ul></ul><ul><ul><li>Flexible - Enjoy modifiable structure, uncertainty and risk </li></ul></ul>
  13. 13. Employee Engagement <ul><li>Career opportunities </li></ul><ul><li>Promotion </li></ul><ul><li>Salary increases </li></ul><ul><li>Titles </li></ul><ul><li>Training </li></ul><ul><li>Personal Life </li></ul><ul><li>Connection / Integration between personal and professional opportunity </li></ul><ul><li>Value of holidays, tradition, and routine </li></ul><ul><li>Greater connectivity – virtual, in person, cross office, between levels </li></ul>
  14. 14. High Performing Teams <ul><li>Standard team activities </li></ul><ul><ul><li>Meetings </li></ul></ul><ul><ul><li>Punctuality and deadlines </li></ul></ul><ul><ul><li>Project management </li></ul></ul><ul><ul><li>Feedback </li></ul></ul><ul><ul><li>Brainstorming </li></ul></ul><ul><ul><li>“ Urgent” </li></ul></ul><ul><li>Achieving the team’s potential </li></ul><ul><ul><li>Communication </li></ul></ul><ul><ul><li>Facilitation </li></ul></ul><ul><ul><li>Role clarity and expectations </li></ul></ul><ul><ul><li>Team activities and interaction </li></ul></ul>
  15. 15. Chinese and Asian HR practices: The Impact of Intercultural Factors on High-Performance Teams & Employee Engagement  February 21, 2012

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