Employment practices in us and china
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The document summarizes and compares employment practices in the United States and China. It outlines key aspects of national culture and human resource management practices in the US such as an emphasis on performance-based rewards, anti-unionism, and participative leadership. For China, it describes major labor laws governing employment contracts, termination, and compulsory contract provisions. It also notes recent changes in 2019 to reduce social insurance burdens on Chinese employers.
Employment practices in us and china
- 1. Employment Practices in USA & China
- 2. Flow of presentation Part 1: Major American national culture Part 2: HRM and other employee related values and practices Part 3: HRM in us ( graphical comparison) Part 4: Snap short
- 3. United States of America (brief introduction) • The United States of America (USA), commonly referred to as the United States (US), America or simply the States. • The U.S. is a country of 50 states covering a vast swath of North America, with Alaska in the northwest and Hawaii extending the nation’s presence into the Pacific Ocean. Fourth largest country by area • Third largest country by population • population of 317.8 million • he economy of the United States is highly developed and mixed. It is the world's largest economy by nominal GDP and net wealth and the second- largest by purchasing power parity (PPP). It also has the world's eighth-highest per capita GDP (nominal) and the tenth-highest per capita GDP (PPP) in 2019.
- 4. National culture • The culture of the United States of America is primarily of Western origin, but is influenced by a multicultural ethos that includes African, Native American, Asian, Pacific Island, and Latin American people and their cultures. • Americans, for instance, maintain fairly direct eye contact when conversing with others. • America may be divided into 50 states, but many areas are culturally similar. In his fourth book, "American Nations: A History of the Eleven Rival Regional Cultures in North America," award-winning author Colin Woodard identifies 11 distinct cultures that have historically divided the US. • The United States of America, due to its immense size and diverse heritage, has one of the most complex cultural identities in the world. Millions of immigrants from all over the globe have journeyed to America since the Europeans discovered and colonised the land back in the 17th and 18th centuries. • Ethnocentrism and its prevalence in U.S culture Ethnocentrism is judging another culture solely by the values and standards of one's own culture.
- 5. Basic HRM practices in US • Recruitment system: neither strongly career based nor position based. Selection method and selection criteria in US is: extensive interviews. prefer experience. Training and development: given according to needs of employees and requirement of specific post. Training expenditure allocated per employee is $724. On average, employees undertake 1-3days of training per year. ASTD ASTD MOTTO: “ through exceptional learning and performance of individual and give compensation and promotion according to performance”.
- 6. Cont... • Employee relations: Anti-trade unionism Prefer HRM policies and practices.
- 7. • Compensation and promotion: Reward system is performance oriented. Status is based on how well people perform their functions Qualifications are the key determinant of promotions. No formal restrictions to promotion between hierarchal grades. Balance sheet approach (compensation practice). This approach provides incentives such as mobility premium, allowances etc. the drawback of this approach is that it is costly to initiate. Recruitment system
- 8. Other HR and employee related practices • Prefer participative leadership style. • Live more easily with uncertainty ( US score 46 on uncertainty avoidance). • Value punctuality and believe “Time is money”. • Emphasis on innovation and entrepreneurship. • Educated and well trained professionals. • “Go for it” attitude. • Dislike trade unions. • Persistence. • Result oriented.
- 9. Snap short • Reward system is performance oriented • Business culture is anti-trade union • Dislike rules and regulations • Use of MBO is common • Ethnocentric policies • Host country legal requirement implemented • Long term commitment
- 10. About China: China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.428 billion in 2017. Covering approximately 9,600,000 square kilometers, it is the world's third or fourth largest country by area. Capital: Beijing Area: 9.597 million km² Population: 139.27 crores (2018) World Bank President: Xi Jinping Gross domestic product: 13.61 lakh crores USD (2018) World Bank
- 11. China:
- 12. China Employment Laws China employment law is deemed to have the following characters, among others: a very strict termination system; the existence of local policies and rules, besides the national laws, which differ in the approach to the same issues; and, varying court and arbitral tribunal interpretations of the same legal issues. The two China employment laws that all foreign investors must consider before commencing a business in the country are as follows: 1995 Labor Law of the People’s Republic of China; and, 2008 Labor Contract Law of the People’s Republic of China.
- 13. Cont…. Employment law and supplementing policies applicable to any business in the country, including the following: Law of the People’s Republic of China on Labor Dispute Mediation and Arbitration; Employment Promotion Law of the People’s Republic of China; Labor Union Law of the People’s Republic of China; Law of the People’s Republic of China on Work Safety; Social Security Law; Opinion on Several Questions Regarding the Implementation of the Labor Law of the People’s Republic of China; and, Implementing Regulations for the Law of the People’s Republic of China on Employment Contracts.
- 14. China Laws on Employment Contract Article 12 of the 2008 China Labor Contract Law provided for three types of employment contracts, as follows: fixed-term labor contracts; open-term labor contracts; and, specific-task labor contract, which set the completion of specific tasks as the term to end the contract.
- 15. Cont…. In China, hiring full-time employees means each one must execute a written employment contract with the employer. It is a provision of the law and failure to comply comes with corresponding penalties and sanctions, including the following: fines to be imposed on companies with full-time employees having no written employment contract; an employee working for one month in a company without an employment contract will legally compel the employer to pay the concerned employee to double his monthly wage. In some cities, it is less than one month; if an employee reaches one year without an employment contract, the employer automatically enters an open-term employment with the concerned employee where the latter must be retained by the employer until the age of retirement; and, upon the employee’s completion of the probation period, termination will be difficult in the absence of a written contract term on termination. Termination is even more difficult to apply to employees who have open-contract terms.
- 16. Compulsory Provisions to be Included in Employment Contracts Based on the foundational labor laws, as well as the 2013 regulation, the following compulsory information and provisions must be included in the employment contract: Name, address, and ID number of the employee; Company’s name and address; Company’s legal representative; Compensation/remuneration; Term, time frame or probation period (whichever is applicable); Employment/job description; Employment location; Work condition, ie protection against occupation hazards and safety measures employed; Provisions on working hours, leaves and rest; Social insurance terms; and, Others that may be required by China’s dynamic labor laws.
- 17. Update: Changes in Chinese Employment Laws in 2019 In mid-2019, the Chinese government prioritized the reduction of social insurance burdens on employers. Changes in the law were made via a State Council special notice. The Ministry of Human Resources and Social Security, the State Taxation Administration, the Ministry of Finance and the National Healthcare Security Administration all backed these changes, which include: Reduction of the employer’s maximum pension contribution from 20 percent to 16 percent Continuation of temporary employer contributions to unemployment insurance and work injury insurance Reduction of future social insurance contributions through adjusting the calculation formula for an employee’s base amount, which results in lower payable contribution amounts The mandate to substantially reduce social insurance burdens on small-scale employers by not implementing large back payment orders for unpaid or underpaid social insurance contributions.