Lafarge is one of the biggest and global French company in field of construction material production. In 1994, they chose partner company named the Huaibei Mining Company (HMC) which is state-owned enterprise (SOE). Even though HMC had several problems such as no responsibility, no strict regulation, bad working environment and so on but it was sostrategically attractive to Lafarge so that they decided to enter China. Their advantages such as a good location, a good limestone source and nearby a good market were fitted to Lafarge’s objectives. So Lafarge made a decision to conclude with HMC as a joint venture named Chinefarge. At that time they expected enormous synergy by concluding a joint venture but they faced other problems after making ajoint venture contract. At first due to Lafarge’s cut off about 650 workers out of 1300 without appropriate reward, it made workers’ demonstration, sabotage and bad media publicity. Secondly their management team was consisted of multinational members so that brought absent of communication. And also workers had very high expectations but it wasn’t that good as they thought so they were depressed,and even more they felt they are working for others. Moreover workers accommodation environment was discriminatory.
Main reason of trouble
To figure out reason of this issue, we should know about Chinese characteristic. It might provide key solution to solve these.
• Chinese Ideology
It is based on Chinese nationalism. They had been thought they are center of the world forsince early times. A sense of superiority of them is caused by their own long history and power of culture. It is still remained today.
• Doing Slowly (漫漫地)
In general, the Chinese are never in a hurry and always compose even though they are working. It is Chinese style that is waiting in patience until it can make maximum profits.
• A Thoroughgoing IndividualismChinese tend to turn their face away if it is not their business or it is not related with their private profits.
• A Lack of Awareness for Regulations
Laws does not mean anything to Chinese people. This phenomenon is linked with their peculiar selfishness such as merchant who sells fake medicine and products.
• No tolerance admitting their own faults
To understandtoday’s China we should understand a destruction of humanism caused by ‘Chinese cultural revolution.’ They never admits their own errors even though they made those errors moreover they excuse the errors are caused by someone else. It is one of characteristics of general Chinese people. When you go to China, it is almost impossible to receive someone’s apology.
Chineselooks like bravery and broad-minded person but their mind is narrower than common expectation. If they are ignored or abused their face by someone, they would resolve to be even for sure.
• Sensitive Their Own Money
Chinese people react very sensitively about their private loss and gain of money. They change attitude easily if something is related with their money. Also they makeevery contract on a document to avoid money loss and added responsibility so that we should refer to all kind of all small things on document.
Change was being achieved mainly through implementing new HR strategies:
• Recruitment, Selection
When taking over the SOE the workforce was composed mainly of uneducated peasants with inadequate training. There was little motivation and poordiscipline and low confidence in the management. Later Chinafarge started recruiting more graduates from the city, which could be achieved by developing good relations, for example with the trade union and universities. But due to the plant location employee turnover was high, even though good wages had been paid.
• Retraining and Redeployment (task)
To increase productivity...