Introduction
The amount and importance of international companies are growing due to the increasing Chinese economic potential. Nevertheless, many factors contribute to the international companies experiencing high employee turnover (Warner 2013). The purpose of this research paper is to investigate and evaluate the aspects that influence the turnover rate in Shanghai and to propose strategies for the retention of the workforce. It is hypothesized that companies should pay special attention to the reasons for quitting the job that are under their control because some of the reasons are linked to the employee’s personal objectives solely and cannot be managed.
Critique
Summary
The authors wanted to emphasize that the management of China’s enterprises is peculiar due to the fact that this country has its own deep-rooted traditions and characteristics. It differs from the generally accepted world practices as the government of the country has been able to implant a special system of managerial and economic factors considering the needs and features of country’s residents (Li et al. 2012). However, due to the fact that during the last decades, the country and the business industry have undergone significant changes related to phenomena such as globalization, the internationalization of the national business, and convergence of economic systems, it became increasingly important to evaluate the significance of indigenous research in order to understand what kind of development path would be the most suitable and effective for the Chinese management – the western-oriented or the one that reflects the Chinese identity.
Moreover, the authors stressed out that China is a country that entered the global capital market rapidly; the activities of international companies are critical in this process, which requires a higher quality and more complex levels of management. Due to the fact that companies are becoming highly internationalized, changing the shape and nature of the cooperation within the company is essential, moreover, it emphasizes the need to improve the efficiency of performance of the international employees, which, in its turn, implies the particular knowledge of the specifics of foreign employees, and vice versa – their awareness of Chinese practices. The article dwells upon the idea that there is a need to study the basics of composition management. In addition, the indigenous research will help to develop a strategy for organizational structure and personnel policies of the company (Li et al. 2012).
In terms of the research question, the authors of the study strived for finding an answer to the queries how the indigenous research should be carried out so as to facilitate the management practices in international companies in China that would be more comprehensive and what is the general importance of this kind of research. Importantly, the researchers tried to rely on sources of indigenous constructs and domains and to come up with the suggestions concerning the relevant practices that would address both the modernity and the settled guidelines (Li et al. 2012).
The theoretical basis of this study consists of the scientific publications of both Chinese and foreign authors on the issue of consolidation of efforts of global management practices in China. In particular, monographs, periodicals, and scientific materials on the subject of the research were used for the study. Notably, the theoretical framework included the materials on Chinese psychology (Li et al. 2012). The authors justified the application of these works by the necessity to investigate indigenous as well as cross-cultural perspectives on the issue. Nevertheless, all of the sources covered the essential topic of organizational behavior, which was the main area of study. Apart from that, it is necessary to mention that the theoretical construct of the study reviewed the important issue of paternalistic leadership and its inevitable application in the international companies (Li et al. 2012). According to the authors, despite the character of company’s operation and its employees, the enterprises operating in China would implement such practices and techniques that are integral to this type of management. Importantly, the authors raised a crucial question when selecting the theoretical framework, which is an argument whether indigenous research should include and adapt Western theories and concepts or not.
The main conclusions drawn by the authors are that the national characteristics should be taken into account implicitly in traditional Chinese companies as well as in international enterprises. The accumulated historical experience of China should be compiled efficiently with the new conditions of social and economic transformation taking place in the majority of international firms. In addition, the authors pointed out that from the perspective of an indigenous research, it is possible to apply both the design and findings of Western researchers and indigenous works, too (Li et al. 2012).
Nevertheless, in spite of the competitive economic system of the globe, companies operating in China should conduct a deep understanding of the organizational and management experience of the Chinese practices. Thus, China’s modern management has significant features and national cultural specifics that affect the workforce turnover directly. Consequently, in order for companies to secure their labor force, it is necessary to apply the practices put forward by the indigenous research.
Main Critique
Regarding the necessity of this study, it may be noted that many scholars in the field of management deny the existence of Chinese, American, European or other kinds of management. In this area, there are common management or strategic tools, methods, marketing practices and so on (Fyock et al. 2013). However, the concept of management directly intersects with such categories as cultural features and differences. Respectively, it can be argued that the management philosophy will vary for different countries. Thus, it is not appropriate to deny the existence of such a domain as Chinese type of management culture (Warner 2013). Based on the discussed above, it can be concluded that the study conducted by the authors is indeed important, necessary, and urgent.
Globalization and internationalization of production become more ambitious and have great significance in the issues of optimization of the administrative sphere (Fyock et al. 2013). As stated by many researchers, employee turnover in China is critical for the country, the industry, and businesses in general. In this regard, an indigenous research can significantly improve the competitiveness of enterprises and enhance the quality of work with the staff. Moreover, it can help improve organizational culture in companies where the majority of workers has diverse backgrounds, but the company itself is based on Chinese domains and practices. Hence, the importance of an indigenous research facilitates the emergence of the best management strategies as they will intersect with cultural traditions and peculiarities of national development of the country due to the fact that the philosophy of management is inseparable from them (Li et al. 2012).
It should be noted that the study carried out by this group of researchers has a qualitative theory-building nature (Li et al. 2012). Therefore, the authors conducted an extensive study of theories and concepts related to the issue under study. They have reviewed, assessed and evaluated the domains and developments of both Chinese and foreign scholars and compared their findings to provide answers to the proposed research questions. Almost all of the evaluated materials were taken from peer-reviewed scholarly journals, academic publications, and scientific works; therefore, the reliability of the obtained information and the conclusions drawn should not be subjected to distrust.
Nevertheless, many of the resources are 10 or more years old, and they do not reflect the current setting and requirements. Thus, they cannot be considered valid enough since they do not reflect the actual situation. At this point, it should be highlighted that the concepts and approaches put forward by the theoretical framework can be considered valid, but the assumptions of the contemporaneity are not relevant due to the rapidly changing business environment in China (Warner 2013). Moreover, the qualitative nature of the research does not allow a statistic analysis of the situation, which is why it could be advisable to support the theoretical findings with the practical data to either prove or restate the assumptions proposed by the researchers.
Conclusion
The review and critique of the article led to an understanding that management depends not only on a particular company but also on the practices specific to each country (Li et al. 2012). China is a state with particular customs and disregarding them in spite of the internationalization of firms is impossible. Comparing the experience of Western countries with the Chinese one, it can be concluded that the staff of Western companies often changes jobs while Chinese management is based on human capital. The article emphasizes that the international character of companies operating in China leads to the fact that staff turnover is increasing, although it can occur for various reasons.
Thus, this research allowed looking at the problem of high staff turnover in a new way, which was not originally raised by the current research objectives. As the authors of the article mentioned, management emerges from culture, society, values, traditions, customs, religion, government, and the regime. It is not easy for international companies to take into account the peculiarities of the work organization for the employees who have disparate ideas, views, and aspirations. Thus, the analysis and solutions to high staff turnover issue should be carried out taking into account the experience of the indigenous research. The focus on the past experience and traditions should be compiled with the aspiration to rationalism, the development of creativity, and a reasonable assumption of risk.
Research Strategy
It should be noted that in the arsenal of researchers, there is a large number of methods with the help of which they can reach the purposes of the study. For instance, action research is a strategy with the help of which a person can not only get the theoretical knowledge about the problem, but also try to resolve it through direct intervention (Punch 2013). An important feature of this strategy is that it aims to explore the problem situation as a system and to cooperate simultaneously with the participants to change the situation in a mutually desirable direction. Achieving this goal requires the active cooperation of researchers and the researched group, and, therefore, it stresses out the importance of co-education as a fundamental aspect of the research process. The strength of this approach lies in the fact that the emphasis is placed on the research practice. However, the biggest drawback is that the researcher is forced to spend a lot of time improving the methodological tools and analyzing the current data.
Case study is a strategy designed to improve skills and gain experience in areas such as the identification, selection, and problem-solving; work with information; analysis and synthesis of data and arguments; work with the assumptions and conclusions; evaluation of alternatives; and decision-making. Case study is used to analyze specific situations that could facilitate further managerial decisions. This strategy is used in situations where the truth or evidence can be pluralistic (Punch 2013). This approach includes the steps of research process and analytical procedures. However, the major disadvantage and difficulty of it is the need for effective theoretical basis of the study.
Ethnographic research is different from other strategies since it is the closest one to the everyday occurrences and it reflects the core of events. The features of this strategy are non-formalized approach to the collection and analysis of observations and the absence of stringent standards of research activity. In this approach, the researcher can freely switch from one method to another depending on the need to clarify the hypothesis. Minuteness, narrative nature, and contextuality are characteristic of ethnographic narrative (Punch 2013). However, it is assumed that if the context was not detected, the incorrect interpretation of events and actions is highly possible.
The aim of grounded theory is to construct a domain by rooting it in the data. It is the opposite of a formal, abstract theory developed with the help of logical-deductive methods. Thus, grounded theory is based on data obtained in the course of the research. Mostly, it is aimed at testing the theoretical concepts and content analysis. In this approach, the researcher broadens the context of scientific theories and makes them visible to the external parties (Punch 2013). Grounded theory defines the procedures for approval of researcher’s representations (theories, misconceptions) with the empirical data. One of the biggest challenges of this strategy is that it requires the formation of heterogeneous data analysis techniques (recorded and produced during contact with the reality under study).
Experimentation investigates the phenomena of reality in specific, reproducible conditions by their controlled change. Importantly, the experiment is carried out on the basis of theory. It determines the objectives of the study and analysis of the results. In the experiment, the researcher actively intervenes in the course of the process under study in order to gain knowledge about it. It is necessary to create and control the conditions specifically to be able to influence them by regrouping elements or their elimination and replacement. This approach allows observing the causal relationship between the elements and identifying new properties and regularities of the phenomena under study (Punch 2013).
Survey is another strategy. It is one of the most functional and crucial areas of measurement in this type of study. The strategy implies any type of measurement. That is to say that the respondents will be required to answer varied questions within the ethical limits (Punch 2013). It can have a form of questionnaire or intensive interview. It can have varying regimen, which is the main advantage of this strategy. The survey research allows obtaining in-depth information; thus, ensuring a detailed analysis. The two basic types of this research strategy are questionnaire and interview.
At this point, it is necessary to mention that survey research strategy has been chosen for this study. Therefore, two types (questionnaire and survey) were utilized. Importantly, this strategy requires a considerate approach to questions, the structure, and ethical issues. This type of research strategy was selected due to the scale of the study, which is a small-scale pilot research. The methods described previously require an extensive amount of time, resources, and participants. In particular, the timeframe for this research was limited as well as resource allocation. Therefore, survey was the most suitable and feasible strategy to carry out the study.
Research Methods
Qualitative methods provide an opportunity to analyze the essence of the phenomenon or problem, while the quantitative ones help identify the scale of the phenomenon. Survey, content analysis of documents, interview, observation, and experiment are categorized as quantitative research methods (Creswell 2014). Focus group, case study, ethnographic research, unstructured interview are types of qualitative research.
It should be noted that quantitative research is descriptive. Its task is the standardization and formalization of information that will later be expressed in absolute or relative terms. This method includes mass surveys, observation, experimentation, testing, and so on (Creswell 2014). The main advantage of it is the possibility of mapping the data through the application of a formalized toolkit using statistical analysis. As per the results, the various parameters and elements can be compared with each other and appropriate management decisions can be made.
Qualitative research is a non-formalized data collection with the use of field methods and non-standard form of analysis, which allows obtaining detailed information about respondents and reasons for their particular behavior. Qualitative research can be both direct and indirect. This research category ensures in-depth results that will provide insights into the core of the phenomenon as well as a deeper comprehension of the area under study.
Researches of mixed type are adjacent categories of both quantitative and qualitative paradigms in the framework of empirical research strategies. The combination of two types of studies allows the implementation of comprehensive and statistic points of view, several different data acquisition techniques, different methods of analysis that are applied for the purposes of expanding the research (Creswell 2014). In its turn, the mixed research method enables enhancing the depth of understanding of the problem under study and improving the evidence base of the findings.
The methodological perspective of mixed approach is based on the idea that a particular study does not allow separating the methods from the wider research process. Thus, research requires the focus on a rigid research process ranging from the philosophical assumptions to the interpretation of the results. It is expected that researchers resorting to mixed techniques use both qualitative and quantitative approaches in the framework of their usual study designs (notwithstanding the type – study narrative, experimental, meta-analytical, ethnographic and so on) when there is the need and the possibility of their integration into the research project (Creswell 2014).
In terms of the current report, the quantitative research method was used to carry out the study. It enabled gathering the numeric information and determining the causal associations (Creswell 2014). Notably, this type of method provided an opportunity to evaluate several variables both from the point of view of the employers and the employees working in international company in Shanghai. More importantly, the application of the quantitative method was applied as a statistical tool to evidence the solidity and importance of the variables as well as their interactions (Punch 2013). Despite the fact that the scale of the conducted research was not large, it was essential to collect the statistical data to be able to evaluate the statistics with the theoretical frameworks and concepts brought to the forefront by the contemporary researchers. It should be noted that if the research requires being extended, the application of mixed research methods would be advisable rather than quantitative method solely. It can be justified by the reason that the area under study is not that researched from the proposed point of view. Therefore, it would be possible to make a greater contribution from the academic perspective, if the study is enriched by the qualitative research as well.
It is necessary to mention that the research method implied limitations to be considered. To be more precise, in order to avoid any conflict of interest and ensure the security of the participants, the collected data were presented in the statistical format without mentioning any names or personal information that might have a negative impact on the participants in the future.
Data Collection
The study participants were given the questionnaire for the quantitative survey, which was of an anonymous character. This was done for two reasons. First, the anonymity of the results guaranteed the safety of participants. Second, it guaranteed the accuracy of the data. The targeted sampling was carried out (Punch 2013). The respondents belonged to two different groups: the first group was the employees of the company, the second group – the employers (management level). All the respondents have been working in the international company in Shanghai. Their work experience was not less than one year. The initial number of respondents from the group of employees was 50 people; the number of employers was 20. The questionnaire for the employees included mainly closed questions (requiring a choice of answer from the options or ranking) while the employers’ survey consisted of open-end questions mostly (engaging the respondents in the detailed discussion).
The survey and questionnaire were sent through e-mail by prior arrangement with the company. The advantages of such methods of data collection are low cost and ease of organization of the survey (there was no need to prepare the interviewers, a simplified control scheme was applied, each person could fill in a questionnaire or the survey when it was convenient for him or her). Moreover, the e-mail survey allowed interviewing a large number of people without telephone and personal interviews.
However, in the course of the survey, some drawbacks have been identified. For instance, the return rate of questionnaires was 76% in employees sample and 95% in the case of employers (the corresponding calculations are reflected in the Excel file). In order to ensure the return rate of questionnaires, it was decided to inform the employees 3 days prior to the quantitative research. In addition, the participants were informed about the guarantee of anonymity of the survey results. However, the survey results revealed that the answers to open-end questions were insufficiently detailed. Moreover, it was impossible to ask the respondents any clarifying questions.
The questionnaire aimed at employees addressed the current levels of job satisfaction, commitment to work, their moods and experiences and other questions regarding the possible resignation. The employer survey concentrated on the practices and strategies the management applies to lower the employee turnover in their company. The letter explaining the purpose of the survey and the questionnaire and guaranteeing the anonymity of the results was enclosed to the emails. Also, the participants were informed in advance that they were not obliged to fill in any information that they considered inappropriate and might not answer those questions that they were reluctant to give the answer to. This information was be placed in the survey document prior to the survey questions part.
Analysis, Results, and Conclusions
To evaluate the results of the research, the answers of both employees and managers were compiled and turned into percentage to provide the statistical association. MS Excel was used to calculate the main aspects of employee engagement and managerial effectiveness, which are integral aspects of organizational behavior. The questions included in the survey and questionnaire can be viewed in Appendix section.
According to the questionnaire results, job satisfaction is one of the most crucial factors in the turnover issue. In addition, the majority of respondents indicated that cash-related items were the types of compensation that were desired the most. In the majority of cases (97%), the employees would quit their job if they were offered better compensation in another company. In addition, 89% replied that more promising career perspectives and benefits would encourage them to leave the current job. Further, opportunities for personal development were crucial for 57% of the respondents. However, only 42% of the sample group replied that the possibility to apply their knowledge and skills in their work were important for them. It can be concluded that for the majority of people working for the company under study, financial aspects, as well as career prospects, were dominant.
In addition, the research provided valuable insights in turnover intentions among the employees. That is to say that the workers would consider quitting if they were not motivated enough to perform their current duties (85%). Importantly, for 74% of the employees corporate culture was indeed important, and if it was not up to the mark, they would have to leave. Interestingly enough, the working environment was among the factors that were crucial the least. In particular, 47% of the respondents replied that if the setting did not meet their requirements or expectations, they would quit their position. However, it is necessary to emphasize that these results evidence the levels of job satisfaction, and they are linked indirectly to the causes of employee turnover. To be more precise, the reasons described above do not necessarily cause voluntary turnover.
Regarding the overall impression of employee engagement expressed in Picture 1, it should be noted that almost 76% of the researched employees are content with their current position and the company they work for. That is to say, 29 workers out of 38 respondents expressed their satisfaction with the duties they perform and 63% of these people do not have plans in the nearest future to change their work. Moreover, 20 respondents replied that they are proud to be working in the company of such kind.
In terms of managerial effectiveness expressed in the same picture, 29 employees believe that their supervisor is effective and provides decent support throughout the working day. Apart from that, the same quantity of people views their company positively, which is evidenced by the fact that 76% of respondents consider that the enterprise they work for is dedicated to keeping its commitments. In general, the statistics reflected the generally stable situation in the company under analysis. Despite the fact that the indicators could be improved, the company applies effective practices for retaining its staff compared to the overall statistics of Shanghai.
It should be noted that the survey conducted among managers of the company revealed a common pattern in the reasons for the staff turnover. For instance, as per the results, the most common causes of turnover are the disruptive occurrences at work. Most often, workers either do not fit in the constant employee groups or have misunderstanding with the leadership. In addition, one of the reasons is the emotional distress of the staff member connected to the work overload or inconsistency with the job requirements. According to the survey, this is the case in 75% of all situations.
One of the important aspects proposed by the survey was retaining practices of the company. According to the results, such basic measures as financial stimulation (salary and varied benefits) are taken in the company. Also, it tries to facilitate such working environment that would promote healthy competitiveness among the employees but would be supportive and stimulating at the same time. The firm ensures safety and health care benefits so that its employees do not have to worry about these important factors.
Despite the economic downturn in the country and Shanghai, in particular, the enterprise furnishes salary increases. The international character of the staff drives company’s leadership to appreciate diversity and maintain such organizational culture that is respectful, tolerant, and considers the peculiarities of the employees. Sixteen of the surveyed managers mentioned that often employees strive for continuous education and are interested in working abroad. Therefore, they try to retain their employees through competitive salaries, spiritual and emotional incentives, and opportunities for education to enhance their skills and expertise. Bearing in mind the overall positive statistics of the company, it can be concluded that their approach is indeed efficient, feasible, and appropriate. Therefore, their experience can be applied to those international companies trying to retain their workforce.
In conclusion, the study revealed that it is important for international employees that their employer is consistent with common social values, has corporate commitment and responsibility to the employees and society (Warner 2013). Furthermore, most of the staff would not seek to change employers if there is an opportunity for growth and development within the firm. According to the research, the workers are willing to remain committed to a single employer if they have the opportunity to test their skills and knowledge in various areas. The most motivating and retaining factor is the possibility of learning and development along with financial bonuses. Thus, in order to keep employees, international companies in Shanghai need to combine both financial incentives with emotional motivators (Vance & Paik 2014). Finally, compiling the research and the article critique, it can be concluded that it is essential to consider indigenous research when addressing the efficiency of organizational behavior.
Reflexivity
Conducting the current research was the culmination of the academic experience gained throughout the semester. It enabled summing up the theoretical comprehension obtained during the lectures, seminars, workshops, and other educational activities and converting it into the practical skills and expertise. Importantly, as a student studying for a degree in management, I had sufficient knowledge of the practices of conducting research in this field. Moreover, lab sessions, the topics raised, and discussions in class enabled drawing the research theme that was of high importance in the current setting in the country and of personal interest to me in particular. Therefore, as a business student researcher, I was able to draw a conclusion that my educational background and profile allow me to carry out a study that would address the needs of the society and contribute to its harmonious development.
Nevertheless, despite the rich knowledge I already have, I cannot state that my practical skills are enough to conduct a large-scale study since it requires practice that is more compound and comprehensive. For instance, I need to test some of the quantitative methods of research and the approaches to statistical evaluation. In terms of the conducted study, the scale was moderate though not sufficient enough to provide the results and proposals relevant for the whole country. Consequently, I need to investigate the effective methods of quantitative research and to test the statistical measurements and analysis deliberately. To extend the strengths further, it will be helpful to continue the educational activities and to dwell upon the advanced management topics. In addition, it will be helpful to analyze the work experience I already have and to implement the approaches I have learned during the academics and the insights gained after carrying out the research.
Importantly, reflecting on the way of learning was essential. It allowed realizing and evaluating the educational path I took. To assess the learning, I tried to compare whether I was able to meet the study aims and purposes and to compare the results or conclusions with the initial objectives. If the objectives have not been met, it evidenced that the efforts put or the methods applied were not sufficient or required revision. The rationale behind the learning experience was to gain an understanding of how the selected activities would contribute to my future perspectives as a business researcher and whether they respond to the actual needs and conditions. It is crucial to be up-to-date and to be able to propose such ideas that are of high significance. When conducting the current research, an important issue was to consult the respective persons in terms of the study to be able to understand whether this type of investigation was needed and if it could bring a new perspective and solutions to the problem. In addition, it was crucial that the outcomes of the study would reveal such tendencies that would characterize the current setting and provide management with new insights to improve the company performance regarding the topic of organizational behavior.
This module enabled me to expand and deepen the knowledge on the essential topics of management such as organizational behavior, leadership, and management. Apart from that, I had a possibility to test the concepts brought in the lectures and discussions and to try the ideas I was able to raise and propose myself. Moreover, it was helpful to test the theoretical knowledge in a real-life occurrence since the theory is not that important if it cannot be applied to practice. Overall, if I could do things differently, I would try a quantitative research as well since it would be an experience that is much different from what has been carried out in terms of this study. Nonetheless, the current research was indeed insightful.
Reference List
Creswell, J 2014, Research design: qualitative, quantitative, and mixed methods approaches. SAGE, Thousand Oaks.
Fyock, C, Finney, M, Robbins, S & Thompson, L 2013, The truth about managing effectively, FT Press, Upper Saddle River.
Li, P, Leung, K, Chen, C & Luo, J 2012, ‘Indigenous research on Chinese management: what and how’, Management and Organization Review, vol. 8, no. 1, pp. 7-24.
Punch, K 2013, Introduction to social research, SAGE, Thousand Oaks.
Vance, C & Paik, Y 2014, Managing a global workforce, Routledge, New York.
Warner, M 2013, ‘Making sense’ of human resource management in China, Routledge, New York.
Appendix
Questionnaire for the employees
- Please, state the number of years that you have been working in this company.
- Please, mark the criteria that are the most important for you in your career, ranging from the most crucial one to the least (6 – 1):
- compensation package
- sufficient benefits
- career opportunities
- continuous training
- personal development possibilities
- opportunity to utilize the skills that you have in your job.
- Please mark from 7 to 1 (in descending scale) the personal factors of your current work that you consider the most important:
- motivation to work
- sense of achievement
- financial motivator
- corporate culture
- prospects
- intrapersonal relationships
- working conditions and environment.
Please underline yes or no:
- I am satisfied with my job. Yes – No
- I do not consider changing the company in the nearest future. Yes – No
- I am proud of my position in the company. Yes – No
- My manager is effective and respectful. Yes – No
- I have trust in my supervisor. Yes – No
- I feel that the company I work for cares about my wellbeing. Yes – No
- The company keeps its commitments. Yes – No
- Please, describe the possible reason that could cause you to quit your current job.
Survey questions for the managers
- What is your role in the enterprise?
- How long have been the manager in this company?
- Does your company experience a high (or moderate) employee turnover? Yes – No
- What are the retention practices promoted by your company?
- How do you perceive the involuntary turnover in the company?
- Are there any common patterns in the turnover? (For instance, the workers who quitted had lower qualification or the reverse.)
- What are the most common reason for the employees to quit?
- Are there any legislation practices in terms of employee turnover that your company tries to utilize?
- Does the company use preventive or responsive measures to lessen the turnover?
- What is your personal opinion of the practices the company could apply to improve the situation in your company?
- Please rank the reasons for employee turnover from 1 (the lowest score) to 5 (the highest/best score):
- workers do not fit in the working group
- workers have an argument with leadership
- workers have emotional distress connected to their duties
- workers have a lot of complaints about their duties/supervisor/working team
- workers cannot cope with the workload.