Proposed Research Topic: The influence of collectivist culture on the high turnover rates in Chinese Multinational Corporations
Problem Identified: Chinese workplace emphasizes on collectivist culture. The overall benefit to the company is given more significance over the short term or longer term benefits to an individual. Only when there is some amount of ‘individualistic’ planning for human resources, will employees be motivated to stay with the company
Significance of Problem: Hofstede dimensions of ‘individualism versus collectivism’ as applied in the Chinese workplace indicate that China has a score of 20, this makes it more collectivistic. When this collectivistic notion is applied to the Human resources departments of MNC’s, then the employees are not motivated individually. This might make them walk out of the company. This increases employee turnover and hence is a problem for HR.
Research Question: What are the ways that collectivist culture is contributing to high turnover rates in Chinese MNC’s?
The collectivist culture in Chinese MNC’s leads to employee retention plans, successions plans and training that is more focused on organizational growth and not on the individual growth. MNC’s must figure out a way to include the voice of their employees. “This means that companies in China must make real efforts to foster employee loyalty, feelings of belonging, and commitment to the company. In fact, even though spending time and money on such “touchy-feely” issues may seem expensive and “a waste of time and money” in the short term, paying attention to employee morale is quite beneficial and profitable in the long run” (Fan, 2006, p.10).
Dependent Variables/ Independent Variables: The DV is low turnover rate, the independent variable is collectivist culture
Research Questions: 1) How far does Chinese MNC’s foster individualism? 2) Do Chinese MNC’s have other cultural issues that influence turnover rates?
Concerns/Questions: How can independent variables of collectivist culture be presented as a measurable element?