The Reform of Employee Compensation in China’s Industrial Enterprises

Although employee compensation reform in Chinese industrial sector has been discussed in the literature, the real changes in compensation system and pay practices have received insufficient attention and warrant further examination. This paper briefly reviews the pre- and post-reform compensation system, and reports the results of a survey of pay practices in the four major types of industrial enterprises in China. The research findings indicate that the type of enterprise ownership has little influence on general compensation practices, adoption of profit-sharing plans, and subsidy and allowance packages. In general, pay is linked more to individual performance and has become an important incentive to Chinese employees. However, differences are found across the enterprise types with regard to performance-related pay. Current pay practices are positively correlated to overall effectiveness of the enterprise

The impact of language barriers on trust formation in multinational teams

This study systematically investigates how language barriers influence trust formation in multinational teams (MNTs). Based on 90 interviews with team members, team leaders, and senior managers in 15 MNTs in three German automotive corporations, we show how MNT members’ cognitive and emotional reactions to language barriers influence their perceived trustworthiness and intention to trust, which in turn affect trust formation. We contribute to diversity research by distinguishing the exclusively negative language effects from the more ambivalent effects of other diversity dimensions. Our findings also illustrate how surface-level language diversity may create perceptions of deep-level diversity. Furthermore, our study advances MNT research by revealing the specific influences of language barriers on team trust, an important mediator between team inputs and performance outcomes. It thereby encourages the examination of other team processes through a language lens. Finally, our study suggests that multilingual settings necessitate a reexamination and modification of the seminal trust theories by Mayer, Davis and Schoorman (1995) and McAllister (1995). In terms of practical implications, we outline how MNT leaders can manage their subordinates’ problematic reactions to language barriers and how MNT members can enhance their perceived trustworthiness in multilingual settings

Koalas in the Land of the Pandas: Reviewing Australian Expatriates' China Preparation

The unprecedented internationalization of organizations in the past two decades has made the need for cross-cultural awareness, appreciation and understanding in the daily operations of international businesses increasingly prevalent. In both academic circles and the popular press much has been written about the need for individuals to be cross-culturally sensitive, adaptive and responsive when managing across national borders. One of the key aspects identified in literature as contributing towards achieving cross-cultural sensitivity of expatriates is correct selection, pre-departure and post-arrival training and in situ support for the expatriate and his/her family. The research presented in this paper examines the selection, training and support of Australian expatriates in China, a nation that has loomed large in the current and future trading and expansion plans of many Australian corporations since it opened its doors to international commerce in the late 1970?s. Based on information gathered through semi-structured interviews conducted with expatriate Australians in Shanghai in 1999 and 2001, the results of this research indicate that, while organizations are recognizing the need to employ Australians who have prior China knowledge, organizational preparation remains negligible.No Full Tex

The Challenge of International Human Resource Management: Balancing the Duality of Strategy and Practice

Over the last two decades there has been an unprecedented increase in the number of organizations that have internationalized their operations. The international movement of labour that has been concomitant with such expansion of international business has meant that issues associated with the management of human resources across international borders are increasingly important to international human resource managers and academics. The research presented in this paper examines international human resource management (IHRM) pedagogy and practice in Australia. It reports IHRM academicians' and practitioners' understanding of the major issues for teaching and practice in IHRM and elucidates current developments and directions for this field.No Full Tex

The cross-cultural research imperative: the need to balance cross-national and intra-national diversity

This paper provides a brief overview of the evolution of comparative management theories/paradigms, and highlights the contribution of the ‘cross-vergence’ construct. Despite progress, most studies of work values across countries continue to suffer from two primary limitations. The first is the fallacious assumption of cultural homogeneity with nations. Given the growing diversity of the workforce within country, intra-national variations can often be as significant as cross-national differences. The second is the fallacious assumption of cultural stability over time. Since cultures evolve, albeit slowly, it is important to take these changes over time into consideration, and be aware of the paradoxes inherent within any given society. Hence the paper calls for the need to balance cross-national and intra-national diversity in order to truly understand cross-cultural phenomena, and thus further improve the quality of cross-cultural research. Journal of International Business Studies (2008) 39, 41–46. doi:10.1057/palgrave.jibs.8400331