Human Resource Management
in Sino-Swiss Joint Ventures

Cross-case Analysis – Practical Recommendations for Selected Fields of Human Resource Management.

Bern, IOP-Verlag, Mai 1999, 39 Seiten

ISBN 3-906471-17-9

sFr. 20.-

Der Inhalt

China’s economic reforms have brought a tremendous change in economic structure and living standard of the Chinese people. Although some of the western economists are sceptical about the future of these reforms because of the uncertainties and major challenges the country is facing, such as the radical changes in the state-owned industry, the unbalanced economic development of coastal cities and inland provinces, the creation of a social security system and the establishment of a legal framework, there is little doubt about China’s status as an important growing economy and an interesting trade and co-operation partner.

Switzerland was among the first few countries in the West who recognised the potential of the Chinese economy at the very early stage of the reform. The Swiss enterprise Schindler started operations in 1980 by establishing the first industrial joint venture in China. In the recent years, Swiss political leaders have also recognised that China is an important business partner for the Swiss economy, since "[ ...] the grasses in most of the markets in the world are growing more sparsely than those in China [ ...] ".

On one hand, China represents an enormously promising market with its population of over 1,2 billion of people, a regular increase of the average income and a constantly growing demand of high quality products; on the other hand, the Swiss are known and welcome in China because of the good quality of their products and the reliability of their enterprises. The economic co-operation between the two countries has been developing vigorously in the last years: Swiss direct investment in China accounted for 2.0 billion US$ up until December 1997.

In a rapidly growing economy, chances are related to risks. China has not been immune from the fallout of the recent Asian financial turmoil. Although the financial infrastructure remains stable, the unprecedented scale of the regional economic uncertainty has brought about painful but inevitable economic adjustment in China after a long period of high property prices and high inflation. The decrease of the local demand and the growth of competition on the local market are important consequences of this process.

The new situation has sharpened the problems related to the difference of culture and mentality, a difficult language as well as to a different law and economy system. For the Swiss investors, these differences represent very important issues. To understand the Chinese mentality, the language as well as the legal, political and economic environment is particularly important for human resource management (HRM).

Nowadays, the investors have realised that one of the key elements of success in China is the appropriate management of human resources. Much of the success or failure, of growth or difficulties, depends on how the employees, and particularly the local staff, are hired, organised and motivated. It is strategically important to find the right answers to some basic questions: how and where to find the competent local employees, how to motivate them, how to keep the costs of human resource at a reasonable level? Further: how to plan an efficient and productive personnel organisation while promoting ideal working conditions as well as a human and motivating environment for the employees?

By analysing concrete examples, this work aims at drawing a realistic picture of the intercultural human resource management in China.

The author is of Chinese origin. She had an educational as well as a professional experience in both China and Switzerland. This background led her naturally to be interested in the co-operation activities between Swiss and Chinese companies. The author believes that her interest, coupled with the mastery of the Chinese language, the understanding of the Chinese culture as well as the knowledge of economics, business management and international law acquired at the University of Bern, can help her in developing a new, practical and original perspective of the human resource management in Sino-Swiss enterprises.

This working paper presents a cross-case analysis based on case studies of an empirical research and a series of recommendations. Consequently, both descriptive and analytical methods are implemented.

The empirical research consists of interviews with Swiss and Chinese managers working for the companies Novartis, Schindler and Ascom. Its purpose is to identify some important issues in the field of intercultural human resource management in China. The results of the empirical research will be compared with the theoretical part of this work.

These enterprises have been chosen for the case studies, because of their importance in the Chinese market. They also represent three of the most relevant Swiss industries: in technical manufacturing, the China – Schindler Elevator Co. Ltd., (Beijing Elevator Woks and Shanghai Elevator Works), Shanghai Schindler Elevator Technology Service Co. Ltd., Suzhou Esca Step. Co. Ltd. and Suzhou Schindler Elevator Co. Ltd. have been analysed; in the pharmaceuticals-and-chemicals industry, the Novartis Country Organisation China, Beijing Novartis Pharma Ltd. as well as Shanghai Novartis Animal Health Ltd. have been studied; finally, in the telecommunication industry the joint venture of Ascom in China, Guangzhou Ascom Telecom Equipment Ltd. has been examined.

The 31 interviews conducted in China and in Switzerland build the core of the field research. The following figure presents the composition of the interviewee sample.

Autorin: Yanyan Chang Delprete

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