Foreign firms in China: Facing human resources challenges in a transitional economy

Private firms in China still face a number of problems in the conduct of day-to-day operations. This can be particularly acute for foreign private firms, including both joint ventures and wholly owned firms that are still acclimating to the local commercial and institutional environment. One area in which foreign ventures face a number of challenges is human resource (HR) management. A number of HR management problems related to China's market transition and ways in which private firms have been meeting these challenges are examined. Top managers, consultants, and venture capitalists in 10 private firms with significant operations in China were interviewed. Approaches are offered which may be valuable to foreign firms who are meeting some of the same challenges in a number of transitional economies.