At Lafarge, the recruitment of peasants who owned the land on which the factory was constructed and to greater extend influenced by nepotism and discrimination between the locals and the Beijing employees. Training was a big challenge too, since there was no training conducted from 1987 to 1993. The work system had many loop holes in the sense that there was more than one person in a position leading to conflict of interest. Bonuses were given according to the importance of a position and government stipulation.
While the All China Federal of Trade Union (ACFTU) played a traditional role of helping management and could not stimulate HR management change. Additionally, health and workers condition turned the workplace unpleasant, unsatisfactory and less motivating (Hallowel, l 996). These are some of the issues that surrounded Lafarge and change was necessary to put human resource function at the center of firm’s success strategy.
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