This paper presents the results of a study on the human resource function in
Chinese operations of large multinational companies. Surveys of both line and
HR executives in these firms were conducted. Results reveal that line executives
are quite sensitive to the critical nature of people management issues as busi
ness issues, and that they see HR's strategic orientation as the most significant
area for improvement. Both line and HR executives note the importance of
acquiring, developing, and retaining human capital in order to successfully
compete in China. The challenges and opportunities implied by these results
are discussed.
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