Human resource management in China and India

The first decade of the twenty-first century has witnessed further growth in emerging markets, which is significantly influencing the global economic landscape. For the first time in almost two hundred years, it is in this decade that the emerging economies have caught up with, and raced ahead of, the developed ones in terms of gross domestic product. This is a trend that is likely to continue for some time as many of the developed economies struggle to recover from the global financial crisis. In particular, China and India as two fast growing economies are significantly contributing to the world economic growth and are the flag bearers of this transformation. Acknowledged as favourite destinations for global manufacturing (China) and services (India) related outsourcing, both nations offer huge growth opportunities in most products and services. However, in order to sustain their phenomenal economic growth of the past decades, both countries are facing a number of challenges to their human resource management (HRM). From a macro perspective, these issues tend to appear similar (e.g., attraction and retention of talent), but given the significant sociocultural, institutional, political, legal and other differences between the two nations, the logics underpinning the approaches to managing human resources issues appear somewhat different. This chapter therefore aims to highlight the key forces determining the nature of HRM in China and India. The chapter consists of three main sections, in addition to the Introduction and Conclusions.

Human resource management in foreign-owned subsidiaries:China versus India

This study examines the HRM practices and the role played by the HR department in foreign-owned units located in China and India. The study of 170 Western-owned subsidiaries analyses the extent to which the HRM practices associated with the local professionals and managerial-level employees resemble those of local firms versus those of the (main) Western parent organization, and investigates the degree to which the unit's HR department was perceived to play a strategic role. The results indicate clear differences between HRM characteristics in Western-owned units in China and India, and suggest that the use of expatriates and the background of the HR managers are important determinants of subsidiary HRM.

Expatriate-local interactions:an investigation in China

Purpose: This study aims to build on recent research, by investigating and examining how likely it is that Chinese locals (i.e. host country nationals (HCNs)) would offer support to expatriates from India and the USA. Design/methodology/approach: Data were gathered from 222 participants in Chinese organizations, asking them to respond to questions about their willingness to offer support to expatriates. Findings: As predicted, perceived values similarity was significantly related to higher dogmatism, which had a significant positive relationship with ethnocentrism. Further, ethnocentrism had a significant negative relationship with willingness to offer support. Research limitations/implications: All data were collected from the participants at one point in time, so the study's results are subject to common method bias. Also, it only included India and the USA, as the two countries of origin of the expatriates. Practical implications: Given HCNs do not automatically offer support to all expatriates, organizations might consider sending expatriates who are culturally similar to HCNs, as they are more likely to receive support, which will help their adjustment and thus organizational effectiveness. Originality/value: This study adds to the small, but growing, number of empirical investigations of HCN willingness to support expatriates. © Emerald Group Publishing Limited.