to employees at a price that is below the market price, and discounted cafeteria meals were offered.Further discussion of the SOE’s HRM reform:Many personnel directors and executives have their jobs because of Party connections rather than technical expertise. Creativity and original thinking were neither encouraged nor reinforced under the centralized government control. Top-down communication was the norm. Common U.S. practices such as MBO, 360-degree feedback, employee involvement programs, and self-managed work teams will not easily transfer to the Chinese work environment. Business practices stemming from political corruption or organized crime activities are still realities, though they may violate U.S. laws and ethical norms. Despite the colossal changes that have occurred in China, Western managers must accept these cultural differences and patiently strive to form successful business relationships.Most current Personnel management in China’s SOE’s is still derived from the old era. In the past, China issued five-year plans, and companies were required to meet a specified output. Provinces followed these plans because of their dependence on the whole country. The government allocated all required resources, such as raw materials, equipment, and staff, and ensured full employment. Wages were determined centrally by government decree, and wage differences were based on a set of norms that most U.S. managers would describe as inequitable. It was common practice for Communist Party officials to intervene in a firm's operation and order the promotion of loyal party members, the termination of contracts, and increased salaries for friends. Nepotism was a legitimate employment device in many firms. Methods of job evaluation were unknown; quality, cost, and timeliness were not important business considerations.So changes in Personnel management are evolving slowly in China. Nevertheless, the region offers many opportun...
