Abstract
This research paper provides a HR crisis management reference for Chinese organisations. The aims of this paper are to discover and describe HR crises and management situations in Chinese organisations. The research questions are as follows: 1) – How did the crisis happen? 2) – How did the company handle the crisis? 3) – What result came from the crisis? In this paper, exploratory and descriptive approaches were used to complete the survey. The qualitative method (interview) was used in this study since it enables one to gain a deeper knowledge and understanding of the detailed information. The interviews included both open and closed-ended questions. The method used to analyse the primary data was ordinal. The results indicate that HR crises are caused by various factors – both internal and external. The internal reasons are enterprise’s managerial systems change, employees’ dissatisfaction, managerial inappropriateness, and enterprise development. The external reasons are inner-industry HR competition, local government policy change, and accident. Due to the limited number of samples, it is necessary to expand the study and conduct more empirical research so as to draw more comprehensive conclusions. The conclusions and implications should be considered by managers in Chinese enterprises, especially HR managers and crisis managers, when detecting, distinguishing and determining a crisis.
Highlights
As a result of the reforms in the Chinese economic system, the Chinese economy has changed from a formerly centrally controlled, highly planned system to an open, market driven system
Organisational crises are a pervasive threat to organisational performance and sustainability (Hutchins and Wang 2008)
The primary results of the analysis indicated that human resource crises are the third most common crises among Chinese organisations, which follow economic and reputational crises
Summary
As a result of the reforms in the Chinese economic system, the Chinese economy has changed from a formerly centrally controlled, highly planned system to an open, market driven system. China’s “open policy”, introduced in the early 1980s, has been pushing Chinese companies into global competition. Since China’s entry into the WTO in 2001, Chinese companies have been facing increasingly fierce competition in all fields. A market with huge potential and challenges, offers every company equal opportunities, as well as equal risks. An organisational crisis is one such risk that every enterprise in China has to deal with. Organisational crises are a pervasive threat to organisational performance and sustainability (Hutchins and Wang 2008). The impact of organisational crises on the individual and organisational performance is being increasingly recognised (Wang et al 2009). Chinese companies provide good samples for studying crisis management at the organisational level
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