Changhong Group Research, Human Resources Management Based On Cultural Differences

As economic globalization process is enjoying a big acceleration in recent years, our market competition also becomes increasingly fierce with each passing day. In 2004, China's household electrical appliance enterprises, after undergoing last year's killing-like competition, witnessed another unforgettable heart-breaking season, which brought them with lower profit margins and makes the'household appliances enterprises are suffering losses'an indisputable fact. Once known as "TV King", the old brand Sichuan Changhong, being no exception, is also facing unprecedented challenges: lack of product reputation, shrinkage in market, decline of profit margins, brain drain, big pressure facing independent R & D, etc. Facing such a situation, enterprises should strengthen their construction of core competitiveness, especially construction of excellent human resources, if they want to survive and take hold in the market.As the only dynamic and living resource, human resources play an important role in our socio-economic development. The competition in the 21st century is fundamentally the talent competition. Optimizing human resources and enhancing efficiency of human resources management (HRM) is becoming an urgent top priority for Changhong Group. How to realize a wonderful HRM in such an enterprise as Changhong, which features cultural diversity and high degree of heterogeneity of staff with different cultural backgrounds, however, is definitely a big unavoidable challenge for us.After referring to numerous studies on cross-cultural management and international business management both home and abroad, I put forward, combining my personal understandings of HRM, three levels of cultural differences and their respective impact on HRM, and gives personal views towards how to carry out cultural differences management in the various modules of HRM.This article features the following innovations: Firstly, presenting a comprehensive diagnosis of the current situation of and the root reasons behind cultural differences facing Changhong Group respectively from the macro level (differences between Bashu culture and coastal culture), meso level (differences in organizational structure) and micro-level (individual differences); Secondly, providing an analysis of the challenge facing HRM due to cultural differences from the following three perspectives: applicability of the Group's system, effectiveness of incentives, HRM in mergers and acquisitions; Thirdly, putting forward a hierarchical HRM scheme drawing on my personal work experience, and finally bringing, based upon such a scheme, an integrated incentive model featuring cultural differences, while integrating hierarchical incentives with personalized incentives, and discussing the human resources integration and territorial pay system under mergers and acquisitions.