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Recruiting and managing managers in China : supply and demand case studies

Although having a good human resource strategy is essential to any business anywhere, a good HR strategy is particularly critical for business endeavors in China. Studies for this thesis focus on how foreign companies in China deal with HR issues at the managerial level. Through interviews and case studies, I compare and contrast specific HR strategies adopted by a set of different foreign investors in China. By examining the successful and less successful aspects of these strategies, I hope to enhance the understanding of managerial HR issues in China, thereby contributing to the overall understanding of business management in China. This thesis consists of four chapters. In Chapter One, I discuss how China's economic and social legacies from the command era have created a unique business environment that poses great challenges to the management of managerial HR. Relevant social and cultural barriers are examined to identify their roles in these challenges. I also discuss the options a firm has in recruiting managers in China, and present a background report on management education in China. Chapter Two takes a closer look at the managerial HR market from the demand side. It studies three different managerial HR management models based on three very different strategies. A set of case reports based on company research and interviews are presented to provide detailed account of the HR strategies adopted by these firms in different industries. Companies studied in these cases include those from the United States, Japan, Taiwan and South East Asia. Chapter Three examines the supply side of the managerial job market in China by studying an international MBA program initiated by the MIT Sloan School of Management. I compare the teaching, curricula and administration of the program with those of its American counterparts. I also describe the challenges and career prospect faced by the Chinese students in the program. In Chapter Four, I summarize the lessons learned from the cases studied, and make some general and specific recommendations based on some good practices I have observed. Lastly, I suggest some shortterm and the long-term outlooks for managerial HR in China to conclude this thesis. Thesis Supervisor: Edward S. Steinfeld Title: Mitsubishi Career Development Assistant Professor of Management