Foreign companies and Chinese workers: employee motivation in the People’s Republic of China

Abstract

With an increasing number of foreign enterprises operating in China, there is a need to focus on the motivation of Chinese workers in such enterprises, and the way that human resource management practices address Chinese work values and motivational factors. Problems of productivity and retention of employees have been reported which reflect on the ways foreign companies attempt to motivate Chinese employees, often relying on practices drawn from concepts which work in the West. This article first looks at such Western practices, explaining why they might not work in a Chinese context. Chinese work values and motivation are compared with these approaches and propositions advanced to indicate how Chinese employees may be motivated. These are then compared with current practices and attitudes within foreign firms and joint ventures in China. For the latter a study of 13 companies in Beijing is reported, and the efficacy of policies and practices is questioned. Recommendations include the need for organisations to affect structural and policy changes in the areas of rules and procedures, reward systems, corporate identity and career planning. The provision of appropriate expatriate manager training is also suggested.