As for localization and authors research, handling human resources in china involves two key concepts can be studied in depth. The two key concepts are the guanxi oriented HRM model as a solution to some of the negative implications and other is an essential to understand some of the key dimensions of a national culture differences. These reasons were explained by the Hofstede model of cross cultural implications. According to Hofstede there are five cultural dimensions which he has studied on and each country is rated based on the five cultural dimensions.
Therefore any MNC that is getting involved in a multinational business in any country can get an idea by referring to the Hofstede analysis without a background study. For example China statistics are shown below. The most important, significant and relevant bars shown above are LTO which are the long term orientation and the Individualism which is represent by IDV. These both are very important because LTO shows that the Chinese culture is a very long term oriented society and people value actions and attitudes that affect the future.
Therefore in a HR perspective this kind of orientation is perfect in a scenario where proper training and development is done and at the same time where best practise is being carried out. Next important factor is the low level of individualism. This shows that they work better as a group therefore as a HRM practise in recruitment and selection MNC’s have to emphasize more on people who have team-related skills than individual competencies.
As a conclusion we could say that there is a possibility of failure when offshoring is done and this could eventually lead to problems in HRM, rapid turnovers and language problems. Yet the discussion carried by the author shows that there are HRM points where the strengthening of local HRM could be carried out. Since the HRM implications could be identified and dealt with it comes down to areas such as cost and talent management to see whether it is a feasible solution for western companies for setting up in Asia.
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