Contents

• Introduction 2
• Chinese Retail Market 2
• Challenges to Chinese retail market 4
• Chinese Culture 4
• Main human resource management challenges 5
• HRM Ecosystem 5
• Organization Culture - East Vs West 5
• Organization Structure 6
• Designing HRM for Aussie Best 6
• Matching Aussie Best HRM to strategic organizational conditions 7
• Standardization VS Localization 7
• Partnership Approach 8
• Aussie Best Retail– HRM Policies 8
• Recruitment and Selection 8
• Training and Development 8
• Performance Appraisal 8
• Remuneration and Career planning 9
• Conclusion 9
• References 9

Description

Tian (1996) mentions that since 1978, China has embarked on an “Open Door” trade policy with the outside world. This has resulted in china becoming a crucial business partner for Australia with increasing bilateral trade. Kirk (2004) mentions that high Chinese economic growth has fueled the need for minerals and hence it has become one of Australia`s major minerals buyer. Australian companies have realized the huge untapped potential in the Chinese market and have started operations there. The opportunity however, doesn’t come without the challenges, largely related to human resource management.
Management of human resources is a multidimensional process with multiple effects. Treven and Mulej (2005) have mentioned that companies will face global competitive challenges regarding quality, society, technology and structure which will increase the importance of HRM. The choice of HR policies requires a study of various aspects keeping in mind the underlying objectives and the cost aspects. Any complexity which is introduced can cause information overload and may divert the focus of the organization which is incompatible with the company goals.
To open retail operations of Aussie Best, we will evaluate the Chinese retail industry to understand it better.