International HR Issues

Running Head: INTERNATIONAL HR PRINCIPLES 1
INTERNATIONAL HR PRINCIPLES 1

International Human Resource Management describes the process of employing, training, developing, and compensating workers working in both international and global organizations. In this case, international human resource involves related issues and problems that arise from internationalization of business, including strategies, policies, and practices which organizations pursue in response to the internationalization of business. Based on this assignment, my team is tasked with looking into whether or not a southwestern organization can expand in China. To understand this, we have to look into the human resource practices or laws ass they are applicable in China. The latter will be executed by researching the human resource principles pertaining to the HR laws and practices in China.

Recruitment Practices

According to the PRC law, every single expatriate working or operating a private organization in China must be in possession of both a work permit and a residence permit. Failure to be in possession of these documents is considered illegal as long as the organization enters China’s market. moreover, the organization stands a chance to be penalized if they lack these documents. These permits can be obtained by applying to the Chinese government for the notification of these permits. Noteworthy, the PRC labor laws are not applicable to the employment relationships which are established between the foreign organization and their employees (Davis, 2017). To avoid the risk of permanent establishment, the southwest organization in question is will be required to incorporate a subsidiary company or representative office in China. If this happens, the subsidiary organization in China will be tasked with hiring employees. Also, they can be responsible for the retention of employees seconded from foreign parent company located in southwest.

Payment Systems

In comparison to a few decades ago, China and other countries have adopted several computerized payment systems. In fact, China has overtaken most countries when it comes to consumer deals with exchanging money for products or services. Any organization that operates in China must adopt an online or mobile-based third-party payment system. Some of the most popular payment systems used in China include Apple Pay, Alipay, WeChat, and several others. On average, at least 90 million people across the globe use these payment systems (Guerci, 2019). Despite the nature of the business, the adoption of electronic payment system is the best way to sell products and services to the people of China. This was not the case a few decades ago because Chinese customers did not have access to smartphones and there was no demand for credit cards. Owing to this, the southwestern organization in question must adopt the mentioned payment systems if they are to become successful in Chinese market.

Labor Relations

Needless to say, China has a comprehensive legal framework which provides employees with a wide range of entitlements besides protecting the workers from exploitation. In China, employees have the right to be compensated in full, work for a maximum of hours per week, employees have the right to be compensated in full, work for a maximum of hours per week, have health insurance cover, and be compensated for workplace related injuries. Moreover, workers in China have the right to either join or form a trade union. In China, the local governments are responsible for enforcing these labor laws besides ensuring that the rights of the workers are protected. Prior to the year 1982, Chinese workers were not allowed to strike, until after the labor laws were reformed (Davis, 2017). Currently, workers in China have the right to go on a strike in the event that they are not satisfied with their employers.

Training and Support

Companies located in China have adopted a technique where they train their employees in the bid to cut-off low cost and labor-intensive productions and adopt the modern manufacturing and production practices. Most organizations have been able to pull this move by hiring highly-skilled workers. Organizations in China have project support where employees learn skills and techniques that will improve production and reduce cost. Moreover, organizations in China have part-time programs with a range of short-term training courses meant to improve employee’s skills. Besides, some organizations offer full-time training programs such as on-the-job training for newly employed workers, retraining for already employed workers, and skills enhancement programs.

References
Davis, P. J. (2017). How HR can create competitive advantage for the firm: Applying the principles of resource-based theory. Human Resource Management International Digest.
Guerci, M., Decramer, A., Van Waeyenberg, T., & Aust, I. (2019). Moving beyond the link between HRM and economic performance: A study on the individual reactions of HR managers and professionals to sustainable HRM. Journal of Business Ethics, 160(3), 783-800.