INRODUCTION

The People's Republic of China (PRC) is the world's second largest

economy by nominal GDP and by purchasing power parity after the United States. It is the world's fastest-growing major economy, with growth rates averaging 10% over the past 30 years. China is also the largest exporter and second largest importer of goods in the world. As of 2012 large state-owned enterprises (SOEs) are the backbone of China's economy producing over 50% of its goods and services and employing over half of the workers in China, 35% of business activity and 43% of profits in the People's Republic of China resulted from companies in which the state owned a majority interest. There are more than 30,000 state owned enterprises in china as of 2011. One of the hallmarks of China's socialist economy was its promise of employment to all able and willing to work and job-security with virtually lifelong tenure. The government virtually decides what companies have to do especially when it comes to state-owned-enterprises as a result there is little scope for people development, but from the year 2006 the policy of the government is changing and state-owned-companies are given more flexibility to decide on matters which affect them.

RECRUITMENT AND SELECTION

It is mainly based on skills, employment history, total work experience, language abilities and career goals. Recruitment techniques Advertisements- Job ads are not permitted in the news media without approval from the local labour and social security department. Job fairs Campus placements Job centers Employment agencies State owned companies go for internal recruitment. Politics play an important role in recruitment and selection. Those loyal to party are given promotions easily. Foreign companies recruitment from employment agencies and universities.

SELECTION PROCESS
References Unstructured interviews Work sample tests Written honesty test Investigation using 3rd party Punctuality is very important in Chinese companies. Respect to the top management is demanded. Relationship with top management will help you get higher positions in the company.

WORK CULTURE
1. Confucian value Harmony Obedience or subordination Circular thinking- what goes around comes around 2. Indirect Communication 3. Management-The art of war is a great military treatise written by a Chinese general of the 6th century BC. The amazing thing about this book is that if you replace War with Business, Army with Enterprise, General with Businessman, you get the oldest Business strategy book of the world. In this book, there is a sentence that says The general should be calm, reserved, methodical and fair Calm Discretion or confidentiality Method Fairness 4. Consensus 5. Caution 6. Ambition 7. Respect for age & hierarchy 8. Personal relationship or Guianxi

COMPENSATION AND REMUNERATION

Executive compensation Basic annual remuneration- Depends on assets of the company, profit, tax paid, sales, foreign exchange earned by the company. Performance annual remuneration- 40% of the performance annual
remuneration is based on the growth rate of the net asset and the other 60% is based on the growth rate of the realized profit.

Annual bonus remuneration- Based on the growth of the company above industry average.

Minimum Wage- Depends on locality, average minimum wage is RMB. 3000/ month ($550) Insurance is compulsory for all level of employees. Minimum of 90 days of maternity leave. Holiday and annual leave- based on experience
Employees with between one and ten years of work experience are to receive a minimum of five days annual leave per year. Employees with between ten and twenty years of work experience receive a minimum of ten days per year. For more than twenty years of work experience, the employee receives a minimum of fifteen days per year. These laws apply to all employees, including managers. Women receive extra half day compensation.

UNIONS
To establish a union, 25 workers simply join the union, and the employer will usually be required to accept the request. However, unions in China differ greatly from their counterparts in many other countries. First, the primary function of unions is to avoid labor unrest, not to advocate for the interests of workers. Second, while many unions exist in China, all unions must maintain an affiliation with the All-China Federation of Trade Unions (ACFTU). Average working hours 10 hours/day 6 days/week

Power distance- very high Performance appraisal

Performance appraisals favor workers that are loyal to the family. Performance reviews are done infrequently in China (usually once a year)

Expats in china
593,832 expats working and living in china [2011 estimates]. Culture Shock- No matter how long you live, how fluently you speak Chinese you will always be an outsider or a Laowai. Language- Sensitive to English but people appreciates if you try to speak mandari. Staff Turnover- very less Team- does not exist between expats and locals.