China’s Management Practices: An Analysis of HRM and GSCM Practices

Abstract

China has flourished as a collectivistic society since ancient times and hence has adopted various management practices as a routine of life. Having suffered from centuries of anarchy in political, economic and military spheres, which culminated into occupation by foreign forces and transformation of a prosperous economy into a semi colonial and semi feudal society (ban zhimindi ban fengjian shehui), China chose to establish a command economy and a culture of ‘iron rice bowls’ (tie fan wan). However with the reforms, the concept of management underwent a radical change as the culture of ‘iron rice bowls’ (tie fan wan) gave way to ‘golden rice bowls’ (jin fan wan). The metaphorical rice was now not an imperative, but a choice, if one was ready for the rapid market and ‘reform and opening up’ (gaige kaifang). The next phase of transition in China’s management practices came with the phenomenal rise of China’s economy, its increasing integration with the globalized world and its arrival on the international scenario as an ‘inside player’ rather than an ‘outside observer’. On the flip side, this also meant that the ‘outside world’ could now have an insight into what China did within its territorial boundaries and many fingers were raised on China’s various management practices especially related to labour and environment issues. Hence, this article focuses on management practices related to these two issues only. This hypothesis of this article is that the concept of management, though western, is not a foreign idea for China. It tries to draw a general framework of the various HRM (human resources management) and GSCM (green supply chain management) practices. The article attempts to draw synchronization between China’s past and the present for its future. Likewise, an analysis shall be made by comparing the difference between state-owned enterprises which are the remnants of a socialistic system infused with ‘Chinese characteristics’ and joint ventures when one of the parties is from a foreign nation to China.