HRM & the External Environment

Essay by changqingwUniversity, Master's October 2008

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Executive SummaryIncreased global competition coupled with enhanced customer expectations means that the growth or even survival of a firm is difficult. Organizations need to respond to a rapidly changing global environment, and to any company continued success is dependent on attracting and retaining high-quality individuals who can respond effectively to this changing environment.

In light of Wal-Mart's intention to extend its business operation into Mainland China, the HR division has been assigned the task to assess the impact of external environment on the HR practice of Staff Acquiring. After investigation four major factors have been identified as they are believed to have the potential of causing substantial effect recruitment.

1. Social implication2. Legal condition3. Cultural factors4. Demographic MakeupThe impact of social implication on HR practices needs to trace back a few decades ago, when China was experiencing rigid Communist ruling. During that era China basically adopted a seclusion policy, and was cut off from knowledge of modern and advanced Western style of HRM.

Although today's situation in China has improved to a great extent, but the traces left behind by the old days still cast shadow over the HR practices at present time. The influence of legal condition can also be understood in the context of China's social evolution. As much as the social dimension, legal issues have had fundamental changes over years, however, the unique characteristics of China's development has made legal condition a must consider factor for any MNC who is willing to have a threshold in the country's booming market.

Regarding cultural factors, China has its distinctive culture phenomenon, which is in starling contrast with Western culture. Therefore, to implant a HR practice that works smartly in Western countries can not be guaranteed successful introduction into China. Furthermore, China's demographic makeup indicates an urgent call for...