HRM in Multinationals' Operations in China: Building Human Capital and Organizational Capability

Abstract

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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