HRM practices in foreign MNCs operating in China.

This study focuses on the impact of the specific culture related variables on HRM policies adoption by multinational companies during their implantation in China. Precisely, we will analyze the influence of the cultural factors on local management and workforce, and the adaptation of expatriation facing the new standards. This paper will review several studies dealing with people management and expatriation in China and emphasizes on the lack of research pertaining to the establishment of an adequately qualified and talented management for the implanted operations. Many writers have studied the adaptation of local management skills to human resource management (HRM) practices adopted by foreign subsidiaries and MNCs in China. In fact, the specifications of the PRC (People's Republic of China) regarding the workforce market presents several key challenges for the successful running of MNC operations in China. Faced with an inadequate educational system that churns out very few skilled managers, the rising number of MNCs in China, the lack of top Chinese management due to international expatriation, the labor limitations for hiring and retention policy completion, foreign companies are faced with veritable challenges to magnetize, hire, form and empower the local workforce. In fact, they have to create a well-balanced relationship between local workforce management and expatriation from other countries to promote a credible long-term relationship. Through theoretical articles, references and in-depth case studies concerning the success of the German company METRO Cash & Carry and the failure of the French company DANONE in China, this paper explores how Human Resources Management can implement the right mix to facilitate a successful penetration of Western companies in China regarding employee adaptation.