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Excerpted slides from talks given by Mark Giorgini as part of Lingnan (University) College at Zhongshan University in Guangzhou, China, as part of an annual lecture series to local business leaders
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© China HR Insight Ltd 2010 All rights reserved.
The King of Masks:Human Resources in China During a Time of Change
Mark GiorginiLingnan (University ) CollegeZhongshan University
© China HR Insight Ltd 2010 All rights reserved.
Today
The labor market “big picture”• Demographics and other metrics• Mobility and Geography• The News
Three legs of the stool• Public / Stockholders / Government
•Company management•Leadership issues•Organization design
•Employees and workplace motivation
Implications and ways to prepare
© China HR Insight Ltd 2010 All rights reserved.
The BIG Picture:Demographics and other metrics
Source: UN Population Division World Population Prospects (2006)
• Fertility rates will remain consistent with developed economies
• Size of labor force will decrease over the next 40 years
© China HR Insight Ltd 2010 All rights reserved.
The BIG Picture:Demographics and other metrics
Source: National Bureau of Statistics of China (2006)
• A greater proportion of the population will receive higher education
• Continued economic growth
© China HR Insight Ltd 2010 All rights reserved.
The BIG Picture:Mobility and Geography
Graphic: China Data Center, University of Michigan
Urban migration continues from 211 million today to 350 million in 2050
Source: China Daily, June 28, 2010
© China HR Insight Ltd 2010 All rights reserved.
The BIG Picture:Mobility and Geography
• Labor shortages– In 21 major cities in 1Q 2010, job openings up 90% while
job seekers up 22%– In 100 largest cities, 5.5 million job openings and job
seekers are 5.3 million.
• Job reallocation– Workers hired last year in eastern China down 8.8 million– Workers hired last year in western China up 7.8 million– Workers hired last year in central China up 6.2 million
Source: China Labor Market Information Monitoring Center, June 2010
© China HR Insight Ltd 2010 All rights reserved.
New strike halts Toyota
production
China Daily, 6/23/2010
Labor unrest and role of
unions
China Daily, 6/18/2010
Honda bosses ask for time to resolve disputeChina Daily, 6/16/2010
Foxconn to scrap ‘factory town’ model By Robin Kwong in Taipei Published: June 8 2010Foxconn responds to suicide stigma
Shenzhen Daily, 4/12/2010
Migrant workers younger,
more vocal
Shanghai Daily, 6/16/2010
The BIG Picture:The News
Companies warned of
increasing labor costs in
ChinaPeople’s Daily, June 10, 2010
Pay hikes good for "long term“People’s Daily, June 17, 2010
Premier calls for bettertreatment of workersShenzhen Daily, June 16, 2010
© China HR Insight Ltd 2010 All rights reserved.
Three legs of the stool
© China HR Insight Ltd 2010 All rights reserved.
Three legs of the stool
Organization Development is a complex educational strategy intended to change the beliefs, attitudes, values and structure of an organization so it can better adapt to new technologies, marketing strategies, social challenges, and the dizzying rate of change itself.
Warren BennisDistinguished Professor of Business
University of Southern California
So just what is OD?
© China HR Insight Ltd 2010 All rights reserved.
Three legs of the stool
If you always doWhat you’ve always done,You’ll always getWhat you always got.
Organizations are perfectly designed to achieve the results they achieve.
© China HR Insight Ltd 2010 All rights reserved.
Implications
• Broaden understanding of Human Resources to mean the managing of any human resources.
• Greater emphasis on looking at behaviors and motivations by the most successful organizations
• Increased importance of professional management capability
• Human Resources discipline must develop more quickly, become more professional, and improve its capabilities in order to stay ‘ahead of the curve’ in assisting clients
© China HR Insight Ltd 2010 All rights reserved.