Professional Practices of Human Resource Management in Hong Kong

Professional Practices of Human Resource Management in Hong Kong: Linking HRM to Organizational Success

Anna P. Y. Tsui
K. T. Lai
Copyright Date: 2009
Pages: 368
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  • Book Info
    Professional Practices of Human Resource Management in Hong Kong
    Book Description:

    Faced with external and internal challenges such as globalization, social changes and responsiveness to customers, technological development, cost containment and structural changes, organizations now experience increasing levels of competition. Evidence has shown a positive relationship between HR practices and business performance outcomes such as increased profitability and productivity. Indeed, HRM practices influence employee skills through the acquisition and development of human capital. Also, the use of well-designed performance management systems and pay-for-performance incentives are important motivations in the workplace. Written by HR professionals, consultants, legal experts and academics with decades of professional experience, this volume covers the full spectrum of HRM practices in relation to their strategic contributions to organizations. In a hands-on and lively fashion, it provides up-to-date HRM knowledge and skills with practical guidelines. The purpose of the book is to enhance people management and gain competitive advantage in the fast-moving business environment.

    eISBN: 978-988-8052-69-1
    Subjects: Business

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-vi)
    (pp. vii-viii)
    (pp. ix-xii)
  5. Introduction
    (pp. 1-8)
    Anna P. Y. Tsui and K. T. Lai

    All organizations require human resource management (HRM): large and small, private and public, profit and non-profit making. But the concept of HRM has contested terms and definitions (Table 1).¹ Common terms used to describe the field are: human resource management, personnel management, personnel administration, administration, industrial/labour/employment/staff relations and people management.² In general, HRM relates to managing people in work organizations and involves matters relating to human resource (HR) policy and planning, recruitment and selection, training and development, performance appraisal, compensation and benefits, legal compliance, and relations with employees. Nowadays, there are also initiatives such as human resource information systems (HRIS),...

  6. Part I Concepts and Development of Human Resource Management

    • 1 The Development and Current State of HRM in Hong Kong
      (pp. 11-26)
      Anna P. Y. Tsui, K. T. Lai and Isabella H. M. Wong

      In the Introduction, numerous definitions of HRM are noted. Despite critiques of the methodologies and rhetoric of some HRM studies,¹ evidence shows that HRM contributes to the success of organizations and therefore has strategic value.² For example, staff turnover is linked to a number of issues that HRM can influence, including perceived job security, the presence of a union, the level of compensation offered, organizational culture, and demographics. Similarly, a study has concluded that an index measuring the overall quality of HR correlates to the financial measures an organization uses to gauge success.³ Thus, these demonstrate correlations between strategic HRM...

  7. Part II Acquiring Human Resource

    • 2 The Human Resource Market and Talent Management Strategies in Hong Kong
      (pp. 29-42)
      Anna P. Y. Tsui

      Modern developed economies are increasingly relying on human capital to gain their competitive advantage. In such a “knowledge economy”, it is the skills and knowledge of employees rather than just the abilities inherent in technology and machinery that are crucial. The capacity of an organization to manage its talent is what will set it apart from other competitors.¹ Similar to these economies, Hong Kong is increasingly relying on human capital to gain its competitive advantage. This shift has been spearheaded by the HKSAR government, which asserts that human resources are the key for successful economic development. Indeed, Tung Chee Hwa...

    • 3 Selecting the Right People: Using Psychometric Testing and Assessment Centres in Hong Kong
      (pp. 43-68)
      Neil Cowieson

      Hong Kong has, for many years, been a highly successful economy, driven by a strong investment culture. The value of investments in property, financial services and the stock market are well understood and serve to fuel a highly resilient commercial environment. Given Hong Kong’s status as a world-leading service economy, it is no surprise that the value of focusing on the investment which an organization makes in its human assets and on the identification, management and retention of talent is gaining increasing recognition.

      Recent articles in the Hong Kong media have highlighted a continuing trend for companies to increasingly include...

    • 4 Improving Employment Interview Practice: Competency-Based Interview in Hong Kong
      (pp. 69-84)
      Anna P. Y. Tsui

      Employment interview is an exchange of information in which the interviewer inquires into the applicant’s relevant knowledge, skills, and abilities (KSA) for the job in question, as well as his/her motivations, values and reliability, with the ultimate goal of attracting, selecting and retaining a highly competent and productive workforce.¹ It is one of the most common selection tools used by companies. In general, two theoretical perspectives relate to the employment interview.²

      However, it is not unusual to find that many interviews are idiosyncratic, and interviewers often corrupt the process. One study has concluded that hiring decisions based on unstructured interviews...

  8. Part III Motivating Human Resource

    • 5 Performance Management: Concept and Practice
      (pp. 87-98)
      Jenny S. Y. Lee

      In order to make a profit in the face of keen competition, many organizations are pursuing strategies to gain competitive advantage. In turn, employees within a company must also align their activities and performance with the organizational strategies and goals. If they are not aligned, then the likelihood of achieving the organizational goals is diminished. Nowadays, most companies have some formal or informal means of appraising their employee performance. However, managing the performance of employees is more than managing their behaviour and activities; it is the process through which managers ensure that employees’ output is congruent with the organizational goals....

    • 6 Rewards Management in Hong Kong
      (pp. 99-122)
      Michael T. Yeung and Hewitt Associates

      Traditionally, rewards are used to attract, retain and motivate employees. It is generally expected that organizations will offer a reasonable or good salary to attract people into the organization, provide benefits to retain employees, and offer bonus and incentive plans to motivate them to strive for higher levels of productivity and the achievement of the desired business goals. Rewards typically consist of three distinct parts:¹

      Compensation includes salary, commissions, and bonuses. Tools such as job evaluation processes, salary structures and incentive schemes can help to create a fair and systematic remuneration package for employees.

      Benefits such as paid leave, employee...

  9. Part IV Developing Human Resource

    • 7 Strategic Training Management in Hong Kong
      (pp. 125-150)
      Rose W. L. Wai

      The importance and value of training has long been recognized. Consider the well-known proverb, “Give a man a fish and you feed him for a day, teach a man to fish and you feed him for a life time”. This simple but profound saying is attributed to the wisdom of Confucius in the fifth century B.C. Today, increasing business competition and exponential growth in technology have created a more pronounced need for training than ever. A vast amount of literature has been published to discuss the benefits of training for organizations.¹ In essence, the benefits include improved productivity, enhanced staff...

    • 8 Knowledge Management in Hong Kong
      (pp. 151-160)
      Philip Fung

      In the last few decades, significant changes have occurred in the global economy, leading to the development of the knowledge-based economy. In this new economy, knowledge is increasingly becoming a key source of competitive advantage. One major driving force is the globalization of the world economy. As more economies open their markets, the opportunities and competitions faced by companies also increase. Companies now perform global sourcing and promote their products in the international markets. Economies have shifted from producing tangible goods to providing intangible information, knowledge and ideas. While the dominant thinking in the world today is focused on moving...

  10. PART V Managing Employee Relations

    • 9 Employment Laws in Hong Kong
      (pp. 163-182)
      Brian van Langenberg, Fiona Loughrey and Simmons & Simmons

      The evolution of Hong Kong’s employment laws reflects an intention to minimize government intervention in the private and predominantly capitalist economy. As a consequence, the legal foundation of the employment relationship is the individual employment contract between the employer and the employee, the essence of which is the promise to pay wages by the employer in exchange for the promise to work by the employee. The contract is built on the nineteenth century English assumption that the agreement is negotiated by parties of equal bargaining strength in a free market, and each party has freedom to liaise and agree on...

    • 10 Equal Opportunities Laws in Hong Kong
      (pp. 183-202)
      Alex Papadopolous

      The concept of equal opportunities in employment is based on the premise that there should be a level playing field for all persons in the workplace, regardless of their race, gender, physical and/or other characteristic or attribute. The protection against all forms of discrimination is enshrined in the Basic Law of Hong Kong and is more fully regulated by Hong Kong’s anti-discrimination legislation: the Sex Discrimination Ordinance (SDO), the Disability Discrimination Ordinance (DDO) and the Family Status Discrimination Ordinance (FSDO) and the Race Discrimination Ordinance (RDO). These ordinances cover the grounds of sex, marital status, pregnancy; disability; family status; and...

    • 11 Trade Unionism and Industrial Relations in Hong Kong
      (pp. 203-216)
      Apo Leong

      The form of trade unionism associated with trade union development in Hong Kong is often deplored as weak, fragmented, and concerned with political purpose rather than workplace conditions.¹ Hong Kong trade unions have traditionally been divided between those operating from a left-wing, socialist ideology (e.g., the Hong Kong Federation of Trade Unions, FTU) and those more right-wing in their orientation (e.g., the Hong Kong and Kowloon Trades Union Council, TUC). With a view to circumventing the early criminal activities of the triad societies in Hong Kong and the possible spread of communist ideology from mainland China into Hong Kong, the...

  11. PART VI Special Topics in Human Resource Management

    • 12 Human Resource Information Systems and E-HR Systems
      (pp. 219-248)
      Hester Yu

      Human resource management technology has become an important tool for both large and small companies in recent years. An effective human resource information system (HRIS) aims to enable a company’s top management, line managers, and HR professionals to use accurate, comprehensive, and up-to-date workforce information to make the right decisions in order to support their business and operations. This chapter is intended to serve as a source of practical guidance, with full checklists for relevant stakeholders to support the development of a suitable HRIS for their organizations. It introduces the best practices of HRIS and electronic human resource (e-HR) systems,...

    • 13 Managing Organizational Change in Hong Kong
      (pp. 249-260)
      Anna P. Y. Tsui and David Li

      Change is inevitable. Indeed, research indicates that change management is the most important problem faced by the human resource professionals.¹ Thus, one of the major challenges facing managers and HR professionals is how to help their employees through change in the constant state of flux of most working environments. However, we find that many organizational change programmes have failed to achieve the desired results. Though recognizing the importance of change to restoring competitiveness, managers can ignore the emotional responses and human dimensions of their employees when they succumb to the temptations of quick fixes and simple solutions. Change can thus...

    • 14 Human Resource Management in the Public Sector: The Hospital Authority Experience
      (pp. 261-278)
      HR Team of the Hospital Authority

      Private and public sector organizations differ in their operations with respect to their objectives and values. Owned by specific individuals, partners, or shareholders, the key objectives of private sector organizations include efficiency, profitability, profit growth, and the creation of a competitive advantage. They can focus and refocus on an old or new market and change quickly. Smart risk-taking behaviour is encouraged. Their relationships with customers are transactional, and customers can shop elsewhere if they are not pleased with the products or services they receive.

      In contrast, the main objectives of public organizations can be contradictory. Public organizations do not just...

  12. PART VII Future Trends

    • 15 Conclusion: Future Prospects for HRM in Hong Kong
      (pp. 281-292)
      Anna P. Y. Tsui and K. T. Lai

      In this concluding chapter, some future prospects for HRM in Hong Kong will be discussed. Common drivers of change, arising from globalization, competitive business pressures, new technologies, changing demographics, and employee values, are impinging on organizations all over the world. They provoke change to the business strategy, technology, organizational structure, and work processes. As a corollary, HR activities need to undergo transformations in order to support business change. New HR roles and competencies are required.¹ An overview of these new roles and competencies based on the existing literature will be discussed.

      It might be tempting to claim that HR functions...

  13. NOTES
    (pp. 293-310)
    (pp. 311-316)
  15. Appendices (Chapter 12)
    (pp. 317-348)
  16. INDEX
    (pp. 349-356)