China's Modern Journey: Why Reforms Are Needed
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The document discusses China's need to rethink its modernization path based on three realities: low employee engagement, high employee turnover, and poor management practices in Chinese companies. It provides data showing that Chinese workers have among the lowest levels of engagement globally and high levels of disengagement. Turnover rates in China increase significantly after Chinese New Year. Studies also rate Chinese management as some of the worst compared to other countries. The document argues that Chinese companies need to adopt practices from foreign multinationals operating in China in order to improve these issues.
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China's Modern Journey: Why Reforms Are Needed
- 1. China, ReThink Why China needs to rethink its modern Journey to the West − By Morry MORGAN
- 2. Total population of China, 2005 - 2050 1600 1550 1500 1450 Population (in million) 1400 1350 1300 1250 1200 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Year High Medium Low Source: projection results
- 3. 致富光荣 “To get rich is glorious”
- 4. 21 year old
- 5. ......
- 8. “ China has the lowest engagement (17%) and highest disengagement (29%) of all regions surveyed globally ” - BlessingWhite 2010/2011 Global Employee Engagement Research Low Engagement
- 9. “ Mexico ranked highest (75.8%) and China ranked equal third last (63%) alongside the UK ” - Hay Group employee engagement index Low Engagement
- 10. Employee Engagement Has Improved in China Employee engagement among Chinese workers, aged 14 and older, who are employed by an employer 2009 2012 Changed (pct, pts.) Engaged 2% 6% +4 Not Engaged Actively Disengaged 67% 31% 6%68% 26% +1 -5 GALLUP Low Engagement
- 11. HIGH TURNOVER
- 12. High Turnover 19% 4% Source: Roland Berger
- 13. High Turnover 36% Jump after CNY Source: Zhaopin.com
- 14. POOR MANAGEMENT
- 15. Poor Management Stanford Global Manager Comparative Study, 2009 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 South Korea Germany Sweden Canada Mexico Turkey France Poland China Japan Brazil Netherlands India Italy USA UK 1=worst manager, 5=best manager *Based on 18 management questions
- 16. Poor Management Source: Great Place to Work® ‘2012 Best Companies to Work For’ Greater China
- 17. 入乡随俗 ENTER THE COUNTRYSIDE, FOLLOW THEIR CULTURE
- 18. Turnover of locals outside HQ country 42% 2009 30 28% 25 26% 2008 23% 20 2010 2011 15 16.1% 10 12.8% 11.4% 8.8% 9.1% Turnover % 7.7% 7.9% 8.1% 8.3% 5 6.8% 7.5% 5.6% Companies
- 19. “Huawei banned” “ZTE banned”
- 21. Hire Romans
- 22. Toyota Australia France India UK USA Daniele Hiroshi James Lentz Max Yasuda Jon Williams Schillaci Nakagawa
- 23. Sony Australia France India UK USA Michael Stéphane Le Kenichiro Jack Tretton Chris Bowen Ephraim Tavernier Hibi
- 24. Samsung Australia France India UK USA Seung Ro Andy Yangkyu Kim David Eberle BD Park Yoon Griffiths
- 25. Huawei Australia France India UK USA Guo Fulin Leo Sun Cai Liqun Victor Zhang Cui Jiangao
- 26. ZTE Australia France India UK USA Shi Lirong Lin Qiang Xu Dejun Hui Jing Cheng Lixin
- 27. Haier Australia France India UK USA René Keith Allen Eric Braganza Duan Wei Shariff Kan Aubertin
- 28. “Haier banned”