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HR is undergoing a substantial change in China As in most regions of the world, few organizations have transformed their HR function, but most are either engaged in the transformation process or planning to transform. Only the US, as a region, has a significantly higher number of transformed organizations (where 26% reported that they have completed their transformation). The similar situation with the whole Asia. It seems HR is undergoing a significant changing Drivers for changes are indicated to be highly correlated with the measures used, higher than in other countries DRIVERS This is a very significant chart. Clearly the organizations want to become more business-oriented and strategic. It then becomes important to see if the current skills, and planned activities support these objectives. Notably, cost is not a leading driver. Clearly, HR is expected to become much more critical to the success of the business organization as a whole MEASURES Three of the four major measures being used are either employee or customer focused. However, the emphasis is on a subjective “satisfaction” measure rather than an objective bottom line measure. This is understandable because of the challenges associated with measuring a causal relationship between HR actions and business outcomes. Many of these challenges relate to consistency and completeness of data and systems. Unfortunately, traditional HR measures fail to provide a demonstrable link between HR policies, practices, and business outcomes. As usual, the highest ranking opportunities are also the highest ranking barriers As in other regions of the world, the greatest focus among organizations is improving leadership and talent. Productivity and measurement are also critical challenges, as is succession planning. HR services in China are more centralized than other countries in Asia; they appear to be more administration oriented HR staff tend to be very strong in traditional HR skills but weak in business skill
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