Confucian HRM: Application and paradoxes in China

Abstract

With the rapid economic development China has experienced, many are the foreign companies attracted by the Chinese market. At the same time, however, HR shortage still represents a difficult challenge for these firms. The Confucian HRM model, a synthesis of Confucian values and modern HRM practices, despite providing at first the tools necessary for the solution of these problems, recently has created a few contradictions and paradoxes with its original goals. In particular, the seven paradigms identified in Redding’s Summary and cited by professor Malcolm Warner-Harmony at Work, Control, Hierarchy, Group, Work-ethic, Training and Guanxi-could solve these problems or worsen them depending on their application. The thesis body is divided in three main sections. In the first one, the Chinese historical background will be analyzed in order to contextualize the development of a HRM system with Chinese characteristics. The second part of the thesis focuses on the theoretical assumptions behind the concept of CHRM, with particular emphasis on the seven CHRM paradigms. Firstly, Hofstede’s research on cultural dimensions will be explained to identify the similarities and differences of the Chinese culture with “Western” countries in order to understand the cultural context of the Middle Kingdom. Secondly, the seven CHRM paradigms will be introduced and their possible theoretical results will be explained. The third part will focus on the analysis of the practical implementation of these paradigms, through the help of ten case studies of companies operating in the Chinese territory. The objective of this thesis is to demonstrate the danger these aspects represent if not properly handled, while at the same time solve the problems related to the infinitely vague “HRM with Chinese characteristics” through the identification of a successful HR system applicable to the Chinese environment.