By Kevin Ibeh, Sheena Davies
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Additional resources for Contemporary Challenges to International Business (Academy of International Business)
Some researchers use cultural proximity explicitly to explain the degree of HRM effectiveness in China. For example, Jackson and Bak (1998) argue that Western reward systems do not sufficiently take into account Chinese collectivist attitudes, and certain incentives, such as housing benefits, should be used to promote loyalty and belonging. On a personal level, cultural proximity may motivate Chinese employees to build stronger guanxi with Asian than with Western colleagues and superiors, which may then be an incentive to stay with the firm (Chen and Francesco, 2003).
This issue is worth investigating in future research. International managers should understand how their cultural distance to their employees may affect employee tenure. A number of unexpected results of this study must also be discussed. For example, we found that the percentage of expatriates and of local managers in a firm did not affect employee tenure. This is surprising, given the emphasis 28 Contemporary Challenges to International Business in previous research on the barriers to the advancement of Chinese employees.
Upward mobility has to be ensured for talented PRC (People’s Republic of China) The Challenge of Managing Employee Tenure 17 nationals. Melvin (2001) draws on a Korn Ferry survey in 2001 and stresses that career development plans are key retention tools. The Korn Ferry research also identified relationships with one’s boss as a crucial motivating factor, second behind career development and even before salary. Many recommendations have been given regarding the other main retention tool, financial incentives.
Contemporary Challenges to International Business (Academy of International Business) by Kevin Ibeh, Sheena Davies