ABSTRACT
In spite of the fact that this book covers HRM in different countries with diverse economic and political systems, there appear to be more similarities than differences in the HRM issues discussed. Arguably, there is some degree of commonality in the impact of economic globalization and international competitiveness on HRM in the Asia-Pacific region. The evidence so far indicates that globalization and international competitiveness are driving major changes in HRM in the Asia-Pacific region. This supports Frenkel and Peetz’s (1998) assertion that globalization is changing previously stable workplace systems in the region. This is evident in all the countries covered. Thus, the effects of these changes pose major challenges for HRM in the Asia-Pacific region. For instance, in China and India there is some evidence that economic liberalization arising from globalization and competitive pressures is changing the pattern of HRM, employee relations and industrial relations and labor legislation. Some of these changes are occurring both in the private and public sectors in both countries. In China, it is argued that the emergence of a market economy is undermining the “nanny employer” image of organizations, as there is a concerted effort to shift the huge welfare burden from employers to individuals. In line with this approach, then, the downsizing of organizations and changing recruitment and retention practices have resulted in insecurity for workers in China. It is expected that a similar pattern will emerge in countries like India where many of the state-owned firms have surplus labor. However, unlike China, downsizing in India will be strongly resisted both by trade unions and opposition political parties. This has been clearly evident in some of the recent cases (for details, see Budhwar, 2003). Such dynamics again highlight the context-specific nature of HRM.
