King of Masks - HR in China During a Time of Transformation

© China HR Insight Ltd 2010 All rights reserved.

The King of Masks:Human Resources in China During a Time of Change

Mark GiorginiLingnan (University ) CollegeZhongshan University


Today

The labor market “big picture”• Demographics and other metrics• Mobility and Geography• The News

Three legs of the stool• Public / Stockholders / Government

•Company management•Leadership issues•Organization design

•Employees and workplace motivation

Implications and ways to prepare


The BIG Picture:Demographics and other metrics

Source: UN Population Division World Population Prospects (2006)

• Fertility rates will remain consistent with developed economies

• Size of labor force will decrease over the next 40 years


The BIG Picture:Demographics and other metrics

Source: National Bureau of Statistics of China (2006)

• A greater proportion of the population will receive higher education

• Continued economic growth


The BIG Picture:Mobility and Geography

Graphic: China Data Center, University of Michigan

Urban migration continues from 211 million today to 350 million in 2050

Source: China Daily, June 28, 2010


The BIG Picture:Mobility and Geography

• Labor shortages– In 21 major cities in 1Q 2010, job openings up 90% while

job seekers up 22%– In 100 largest cities, 5.5 million job openings and job

seekers are 5.3 million.

• Job reallocation– Workers hired last year in eastern China down 8.8 million– Workers hired last year in western China up 7.8 million– Workers hired last year in central China up 6.2 million

Source: China Labor Market Information Monitoring Center, June 2010


New strike halts Toyota

production

China Daily, 6/23/2010

Labor unrest and role of

unions

China Daily, 6/18/2010

Honda bosses ask for time to resolve disputeChina Daily, 6/16/2010

Foxconn to scrap ‘factory town’ model By Robin Kwong in Taipei Published: June 8 2010Foxconn responds to suicide stigma

Shenzhen Daily, 4/12/2010

Migrant workers younger,

more vocal

Shanghai Daily, 6/16/2010

The BIG Picture:The News

Companies warned of

increasing labor costs in

ChinaPeople’s Daily, June 10, 2010

Pay hikes good for "long term“People’s Daily, June 17, 2010

Premier calls for bettertreatment of workersShenzhen Daily, June 16, 2010


Three legs of the stool



Organization Development is a complex educational strategy intended to change the beliefs, attitudes, values and structure of an organization so it can better adapt to new technologies, marketing strategies, social challenges, and the dizzying rate of change itself.

Warren BennisDistinguished Professor of Business

University of Southern California

So just what is OD?



If you always doWhat you’ve always done,You’ll always getWhat you always got.

Organizations are perfectly designed to achieve the results they achieve.


Implications

• Broaden understanding of Human Resources to mean the managing of any human resources.

• Greater emphasis on looking at behaviors and motivations by the most successful organizations

• Increased importance of professional management capability

• Human Resources discipline must develop more quickly, become more professional, and improve its capabilities in order to stay ‘ahead of the curve’ in assisting clients


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King of Masks - HR in China During a Time of Transformation

Leadership & Management

Transcript of King of Masks - HR in China During a Time of Transformation