The Critical Role of HR Management Functions in the Transfer of HR Knowledge

Cindy Wang-Cowham University of Sheffield

c.wang-cowham@sheffield.ac.uk Abstract: Existing studies show that HR management functions are directly linked to, and can contribute to, the implementation of knowledge management activities including the transfer of knowledge. This paper addresses and examines the role of HR in the process of HR knowledge transfer, and suggests that the HR management functions have a critical role in achieving the transfer of knowledge. This proposition is supported by a doctoral study, based on the experience of twenty-two respondents in Chinese subsidiaries of multi-national corporations, on how Chinese human resource (HR) professionals acquire knowledge. The study firstly identified a process model of HR knowledge transfer which consists of four stages: initiation, transmission, absorption, and evaluation and review, and then investigated the participation of three involved parties: HR expatriates – knowledge carriers, Chinese HR personnel – knowledge recipients, and the subsidiary, in this transfer process. Through an analysis grounded in the experience of respondents of this study, findings show that depending on the tasks of involved parties, their input at each stage differs. To achieve the transfer of HR knowledge, it requires joint effort of all involved parties. Two main findings are 1) the provision of various learning opportunities is the key channels for Chinese respondents to acquire HR knowledge; 2) it is important that the subsidiary develop/identify appropriate transfer strategies. Based on the study findings, the paper then discusses and argues that HR management functions have a critical role to play in the transfer of HR knowledge. They can assist the subsidiary to develop strategies for knowledge transfer, identify knowledge carriers and recipients, and strategies for transferring different types of knowledge, and create/promote various learning events. These tasks are fundamental to the success of the knowledge transfer. The implication of the study in terms of understanding the role of HR management functions in the implementation of different knowledge management activities, limitations and areas for further research are discussed at the end of the paper. Key words: HR Management Functions, Knowledge Transfer, Chinese Subsidiaries Introduction There are a growing number of studies investigating the relationship between human resource (HR) management and knowledge management (Yahya and Goh, 2002; Scarborough, 2003; Iles et al., 2004; Thite, 2004; Minbaeva, 2005; Oltra, 2005; Wang-Cowham, Forthcoming). These studies have highlighted the importance of HR management in a knowledge-based

economy (Haesli and Boxall, 2005), and that HR management practices can directly contribute to the successful management of knowledge (Minbaeva et al., 2003; Minbaeva, 2005; Oltra, 2005). Some HR practices can have a positive impact on knowledge management in MNCs, for example, training, performance appraisal, promotion, remuneration and career management (Carter and Scarborough, 2001; Minbaeva et al., 2003; Scarborough, 2003). Studies have also found that refining HR systems may have a positive impact on knowledge management and transfer (Thite, 2004; Minbaeva, 2005). According to Armstrong (2000), the role of HR in knowledge management is to facilitate the diffusion of learning through workshops, projects and tasks, and to co-ordinate the preparation of organisational business strategies and plans. Therefore, one of the main challenges for HR is to develop and sustain a knowledge sharing culture (Thite, 2004). Both Currie and Kerrin (2003) and Hislop (2003) stressed that it is naive to assume that staff are naturally happy and willing to share their knowledge. HR needs to help the organisation to create a learning environment. This could mean a concentration on training and development to improve the skills of employees (Carter and Scarborough, 2001). It also needs to develop policies, that will motivate staff to gain and share knowledge (Minbaeva, 2005). Hislop proposed to develop a set of HR best practices, to facilitate knowledge sharing, so that the principles of these practices could be universally applicable to all organisations in the MNC. This increasing research interest between HR management practices and the management of knowledge implies that HR management functions could have a critical role in terms of assisting the dissemination of management knowledge. Nevertheless, our understanding of how HR management functions facilitate it is still limited. This paper attempts to address this issue by using existing data from a doctoral research project, which examines the process of transferring HR knowledge in Chinese subsidiaries of MNCs from the perspective of Chinese HR managers. The study identified three parities (Chinese HR personnel, HR expatriates and the subsidiary) involved in the transfer process of comprising four stages (initiation, transmission, absorption and evaluation and review). It then examined their involvement in this process through reviewing the learning experience of Chinese HR managers and the working experience of HR expatriate directors in Chinese subsidiaries. The findings show that depending on the given tasks, their input differs. In order to achieve the transfer of HR knowledge, it requires a joint effort of all involved parties. It has also found that the provision of various learning opportunities by the subsidiaries is the key premise for Chinese HR personnel to acquire HR knowledge. It is also found equally important that the subsidiary develop/identify appropriate strategies for knowledge transfer. Although the study was not designed specifically for this paper, data available from the study provides an opportunity to explore what and how HR management functions might assist the organisation to achieve the knowledge transfer in an organisation. The paper will concentrate on the examination of the role of three parties in the transfer process with an emphasis on the subsidiaries; it will not look into great detail about the four-stage transfer process. By doing so, it enables us to explore the subject of this paper. It will firstly provide the background and explain the conceptual framework. It will then introduce the study regarding the research design and how it was carried out, followed by data analysis, discussion and findings in relation to the subject to be addressed in the paper. Based on the exploration of existing data, an understanding on how HR management functions can facilitate the knowledge transfer is elaborated. In conclusion, areas for further research are recommended. Conceptual Framework: The Involvement of Three Parties in the Transfer Process

Before discussing the conceptual framework for this paper, it is important to understand the literature background. One issue that has been dominant in HR management practices in Chinese subsidiaries has been the shortage of qualified management talents in China (Tsang, 1994; Newell, 1999; Leung and Kwong, 2003; Lewis, 2003). This shortage was caused by the Cultural Revolution, the restriction on mobility of ‘hukou’ (citizenship), and poor English skills (Tsang, 1994; Mitsuhashi et al., 2000). Because of this shortage, MNCs have had to employ expatriates for most management positions (Ritchie et al., 2001; Dickmann and Harris, 2005). However, the situation has improved in the past ten years in that gradually a pool of potential talents has filled up with fresh graduates and experienced managers, with proficient English skills and management degrees (Sun, 2000; Andrews et al., 2003; Voelpel and Han, 2005). The shortage of management talent was also apparent in the HR profession. This shortage was caused by a lack of recognition of the concept of HR management (Child, 1994; Chen, 1995; Warner, 1995). It is evident that HR management did not become an independent teaching subject in education until the mid 1990s. By 1999, there were only thirty universities that provided undergraduate degrees on HR management (Sun, 2000). Therefore, the majority of HR practitioners had never received formal training in HR management when they started their careers. Notwithstanding this, practitioners have slowly but surely gained HR knowledge from the continuously improved learning environment both within subsidiaries and in the market (Leung et al., 2001; Wong et al., 2002). HR personnel are constantly challenged to become more proactive and forward thinking, not only in order to possess advanced HR knowledge; but also to gain practical experience to understand the strategic role of HR in the whole business operation (Cooke, 2004; Brewster and Suutari, 2005). Therefore, there is a desperate need to develop Chinese HR managers. There are many ways of developing employees. Amongst them, HR expatriates are in a perfect position to assist the subsidiaries to do so through localisation. The comprehension of how the expatriate’s position is localised also provides insights to understand how knowledge is transferred to local employees. The framework therefore draws ideas largely from expatriation and localisation (Harzing, 1999; Wong and Law, 1999; Gamble, 2000; Haesli and Boxall, 2005) and ideas from the knowledge transfer literature (Fan, 1998; Davenport and Prusak, 2000; Szulanski, 2000). Firstly, it is necessary to acknowledge the important presence of expatriates in subsidiaries of MNCs. While the main purpose of their presence is known to establish a control mechanism and coordinate business operations (Harris and Brewster, 2001; Harzing, 2001), but the notion of using expatriates as a vehicle for knowledge transfer has received more attention in recent literature (e.g., Keeley and Robb, 1999; Delios and Bjorkman, 2000; Downes et al., 2000; Bonache and Brewster, 2001; Riusala and Suutari, 2004). Expatriates are seen as a medium for both forward knowledge transfer to subsidiaries (Iles and Yolles, 2002) and reverse knowledge transfer to the parent firm (Edwards, 1998; Downes et al., 2000; Edwards and Ferner, 2004). Importantly, it has been acknowledged that expatriates not only assist in the transfer of theoretical knowledge through the introduction and dissemination of corporate policies and procedures, but also assist in the transfer of their expertise during international assignments (Gamble, 2003). A recent study of Riusala and Suutari (2004) revealed that in Finnish subsidiaries, expatriate managers were highly involved in the key knowledge transfer. Indeed, knowledge transfer was among the main concerns when the expatriate was originally selected for the assignment. However, the transfer of knowledge was found to be not very systematically managed in these subsidiaries. To have a better understanding of the subject, scholars have called for more research in this area (Bonache and Brewster, 2001; Bonache et al., 2001; Brewster and Suutari, 2005). Wong and Law (1999) developed a localisation model to illustrate this process. The process is divided into three sequential stages: planning, localising and consolidating. Wang and Law

identified three parties, i.e., expatriates, local employees and the organisation in this process, which has inspired me to identify the three parties in the transfer process as stated at the beginning. Two important issues in transferring HR knowledge through expatriates are considered to be the selection and recruitment of expatriates and their competences, and these have been discussed in the expatriation management literature. The selection and recruitment procedures for expatriates differ between individual MNCs. Among a range of recruitment strategies, e.g., recruitment agents, job advertisement, etc, it is still common that managers select expatriate candidates within the organisation (Harris and Brewster, 1999). Selection procedures are often less standardised and more informal (Bonache and Brewster, 2001; Bonache et al., 2001). Candidates usually did not undergo selection tests, such as personality tests or cultural adaptation tests. In certain cases, candidates were more or less predetermined and interviews were mainly to negotiate the particulars of the offer (Brewster, 1991). Moreover, HR departments have little input on the decision of appointing expatriates and are often informed after the decision has been made (Bonache and Brewster, 2001; Varma and Stroh, 2001). This study also drew ideas from the knowledge transfer literature, especially on the process of knowledge transfer (1998; 2000; 2000). One can understand that the process of knowledge transfer consists of transmission (sending the knowledge), absorption (learning received knowledge), and evaluation (assessing absorbed knowledge). The process also involves the identification of the knowledge being transferred, and the recipient person. All three scholars stressed that it is important to evaluate the outcome of knowledge transfer. Furthermore, Szulanski (2000) has pointed out that knowledge transfer is a gradual and cyclical process. Knowledge and experience gained in the process of knowledge transfer can encourage more transfers in the future (Kogut and Zander, 1993). The review on expatriation and localisation, and the process of knowledge transfer has provided an insight on different activities of HR expatriates and Chinese HR personnel and the subsidiaries in the process of transferring HR knowledge. Having merged the ideas from both ends, I present the following conceptual framework for this paper Role of the Subsidiaries The subsidiaries have four tasks in the transfer process. Firstly and secondly, it needs to identify appropriate strategies for the transfer, and to select both the HR expatriate and Chinese HR personnel with the requisite knowledge and skills. Selecting the HR expatriates and Chinese HR personnel is largely the task of the subsidiary and its parent firm. Most MNCs select expatriate candidates for the subsidiary within the organisation through informal approaches (Harris and Brewster, 1999). It is vital that the subsidiaries appoint HR expatriates not only with appropriate knowledge and experiences, but also with appropriate coaching skills for sharing and transferring knowledge. It is equally important that the Chinese personnel with appropriate background HR knowledge and learning skills are chosen. To ensure the quality of appointed HR expatriates and Chinese HR personnel, the subsidiary should have appropriate assessments in place. Furthermore, once the HR expatriate and the Chinese HR personnel are identified, the subsidiary will then determine the transfer strategies. Although the competences of Chinese HR personnel are not always being assessed, the subsidiary and the HR expatriate will have some idea of what areas these personnel need to improve to be able to take over the responsibilities of the expatriate. A detailed development plan will then be customised in the

areas for improvement. Depending on individual development needs, the development plan for Chinese HR personnel usually consists of training, projects, occasionally overseas exposure, and an action schedule. At this stage, they may or may not know the plan until it is being implemented. Thirdly, the subsidiaries should provide the relevant transmission channels (Gupta and Govindarajan, 1994; Gupta and Govindarajan, 2000) and learning sources, which generate a wider range of learning opportunities, so that a platform for knowledge transmission, practicing and sharing is established. It is essential that the subsidiary makes the relevant transmission channels and learning sources available to both the HR expatriate and the Chinese HR personnel so that a base for knowledge sharing and transfer is established. A knowledge-sharing environment is important to support the interaction between the Chinese HR personnel and other employees including the HR expatriate. This interaction could refine their thoughts and ideas for gaining practical experience. Fourthly, the subsidiaries should assess the knowledge and experience of the Chinese HR personnel in order to determine whether they have gained the requisite HR knowledge as planned. The results should indicate where they have improved and where they have not. The subsidiary can then use the results to decide whether these personnel are capable of taking over the responsibilities of the HR expatriates. If they are not ready, the subsidiary may decide on a follow up plan. So, at this stage, the subsidiary is the decision maker while the HR expatriate usually helps to carry out the assessment and make the decision. That a Chinese HR employee takes over the responsibilities of the HR expatriate implies that the transfer is complete; that a follow up plan is required, on the other hand, indicates that the transfer is only partially complete. Role of HR Expatriates In relation to the task 2 and 4 of the subsidiaries, the chosen HR expatriate usually assists the subsidiary to select Chinese HR candidates and also evaluate their knowledge and experience. The expatriate also shares their HR expertise and experiences with the Chinese personnel. For the expatriate, it is important that they allot time for HR knowledge sharing. However, expatriates may be too busy to find time for knowledge sharing (Leung and Kwong, 2003). HR expatriate also has a task to provide Chinese HR personnel with guidance for action. Role of Chinese HR Personnel The main task of Chinese HR personnel is to gain theoretical HR knowledge from the expatriate and from other learning sources according to the development plan, and to absorb these knowledge and experience. Chinese HR personnel are expected to be involved in a lot of learning activities including attending training courses, as well as interacting with the HR expatriate. To absorb these knowledge and experience, Chinese HR personnel need to practise what they have learned in order to gain practical experience themselves. The above discussion shows that the successful implementation of HR knowledge transfer requires the combined efforts of the expatriate, the Chinese personnel and the subsidiary. The level of effort is determined by the level of involvement required. Moreover, HR knowledge sharing continues in the subsidiary no matter whether the HR expatriate is replaced by Chinese personnel or not. The process of HR knowledge transfer can be resumed and used as a way of developing HR personnel.

The study Field research was carried out between January and April in 2004 through semi-structured interviews, and using the idea of critical incidents (Easterby-Smith et al., 2002) as a probing technique to gather detailed information. A combined sampling strategy of personal networks and snowball sampling was chosen. The length of the interviews was set at a minimum of 90 minutes, subject to the background of respondents and the flow of conversation. All interviews were recorded unless the interviewees requested otherwise. Interviews with expatriate respondents were conducted in English; interviews with Chinese respondents were conducted in both English and Chinese. All interview notes were transcribed and translated into English. Confidentiality was ensured to all respondents, and private and sensitive issues were avoided at all times. The actual length of interviews varied between 90 and 150 minutes. In total, twenty-two respondents provided data on twenty-one subsidiaries (two Chinese respondents came from the same company). While interviews concentrated on the current subsidiaries of respondents, respondents also provided information from their experience in previous companies. This generated a total of fifty-three subsidiaries. For information, a company description of fifty-three subsidiaries is provided in Appendix 1. The twenty Chinese respondents were the main source of this research; it therefore should be regarded as an investigation from a Chinese HR professionals’ perspective. The two expatriate respondents in this study had extensive HR experience in subsidiaries in China. I consider that the data provided by them is a close representation of reality in subsidiaries and an insightful view of the HR expatriate experience, because of their long experience in a number of subsidiaries in China. They are both of Chinese origin and are regarded, to a certain extent, as almost ‘native’ in spite of their expatriate employment status. Therefore, data provided by them is mingled with that provided by the Chinese respondents during the analysis. Data is analysed in a grounded theory approach because grounded analysis is recognized as the most instructive and open approach for exploring ideas and underdeveloped research subjects (Gummesson, 1991; Shipman, 1997; Easterby-Smith et al., 2002). The data analysis was carried out with the assistance of Nvivo, a qualitative research analysis software. All interview notes were transcribed in English and coded in Nvivo. To develop initial themes, the coding began with free nodes coded from a random selection of five interviews. A list of free nodes that shared common ideas was merged into a tree node. A list of tree nodes represents a list of categories and themes that emerge from the coding. In addition, all critical incidents were coded separately as case nodes and linked to related nodes. Repeating the coding procedures based on the initial themes, all coded nodes are arranged into a node tree. Nodes at the top are tree nodes, representing the emergent themes. Tree nodes have attached a list of child nodes and/or sub-tree nodes; while sub-tree nodes are attached to their own child nodes (Gibbs, 2002). Throughout the period of coding and data analysis, Nvivo was used for node searching, grouping and re-grouping; exploring correlation between nodes, developing figures; and importing figures for re-working in PowerPoint and Excel. Twenty Chinese respondents fell into four groups according to their position and HR responsibilities. Five had taken the highest HR positions in their subsidiaries. They are coded as Hybrid Director (HD) because they possess both local and advanced Western HR knowledge. Ten were HR Managers having full responsibilities, and three were HR Managers having partial responsibilities. They are coded as Full HR Manager (FM) and Part HR Manager (PM) respectively. The remaining two respondents had responsibility for a single HR activity. They are coded as HR Supervisors (HS). To maintain consistent referencing and

analysis, and in consideration of the confidentiality and anonymity promised to the respondents, all were given a pseudonym along with a short career summary; subsidiaries were shown by number, along with a vague description, such as European or American. Codes of respondents are in Appendix 2. Concerning the length of the paper, direct quotation is avoided. The paper will use a number of figures to illustrate the findings. Data Analysis The analysis of the involvement of the subsidiaries, HR expatriate and Chinese HR personnel in the process of transferring HR knowledge is discussed in three fold. Figure 1 shows the emerged themes from the analysis. Firstly, regarding the role of the subsidiary, the analysis focuses on the provision of transmission channels and learning sources. Secondly, as for the role of HR expatriate, it examines how they facilitate the sharing and the transfer of HR knowledge. Thirdly, to explore the role of Chinese HR personnel, it concentrates on revealing the key aspects, which could affect the acquisition of HR knowledge by examining the learning experience of Chinese respondents.

Figure 1: A List of Emerged Themes from the Coding

Role of the Subsidiaries Subsidiaries are dynamic learning environments and it was there that the respondents received most of their HR knowledge. By their own account, their subsidiaries provided a range of learning opportunities, consistent with strategies for staff development. These learning opportunities fall into two categories, transmission channels and learning sources. They are interrelated and overlapped, and this will be discussed in detail. A range of transmission channels provided by the subsidiary are illustrated in Figure 2. Each of these is further divided into three sub-categories, i.e., social activities, management activities, and staff development strategies, in an order of relevance to the learning of HR knowledge. Of all transmission channels, staff development strategies are the most relevant to the learning of HR knowledge.

It could be argued that social activities provided fewer relevant learning opportunities for respondents. However, they had helped them to improve working relationships and to exchange and share information and experience generally. Social activities include annual dinners, outings and Christmas parties, and other events such as football clubs. Out of twenty-one current subsidiaries, twelve had organised these types of informal social events. Management activities, on the other hand, provided learning opportunities for experiments, sharing knowledge and sharing experience within and across departments. Management activities include business and management meetings, management and HR forums, and cross-functional projects. Staff development strategies are plans designed for individual or a number of selected employees, therefore, they are most relevant to the learning of HR knowledge. Staff development strategies contain succession planning/localisation, and coaching practice. Amongst twenty current subsidiaries provided information on succession planning/localisation, fifteen of them have this practice. Social activities are informal events. Although they provide venues for knowledge sharing, they have no clear objective of learning, and so any learning outcome is accidental. Conversely, management activities are organised events with definite learning objectives. Both social and management activities enable the sharing of knowledge and experience in a specific area, and are forums for gaining new knowledge and new experience. Moreover, staff development strategies take this further by addressing the individual’s learning needs and organising learning around them, making a positive learning outcome more likely. Of the twenty-one current subsidiaries, fifteen subsidiaries in this study used the practices of succession planning/localisation; and three subsidiaries used coaching practices. The fact that few subsidiaries used coaching practice may be because coaching in developing staff and transferring HR knowledge is a rather new idea.

Social Act ivit ies

Management Activities

Staff Development St rategiesAnnua l Dinners

Christmas Parties

Others

HR Forums

Cross-Functional Projects

Management Forums

Succ ession Planning & Loca lisa tion

Coach ing Practice

Figure 2: A Range of Transmission Channels Related to the Acquisition of HR knowledge

Less Relevant Most Relevant

External Transmission Channels (e.g., HR Clubs and Learning Networks)

Internal Transmission Channels

In addition to the transmission channels illustrated so far, there are a number of external transmission channels available to respondents such as HR clubs. Twelve respondents had joined various HR clubs, for example, a chemical club, a pharmaceutical club, and an organisation development club. Ten respondents had frequently participated in activities organised by these HR clubs. Although most subsidiaries in the study had provided various

transmission channels for staff to gain HR knowledge, there were still some, such as European Company 47, which only had a few transmission channels available. Clare from European Company 47 stated that the HR club was one of her main transmission channels, as well as a learning source for HR knowledge. Furthermore, in certain circumstances, the HR club can be an ideal place for learning specific knowledge, which is not available in the subsidiary. For example, Steve from American Company 22 acquired knowledge and experience on competency model in Organisation Development Club. A range of learning sources provided by the subsidiaries are illustrated in Figure 3. According to six Chinese respondents, who began their HR career over ten years ago, sources for gaining HR knowledge within and outside subsidiaries have significantly improved during this period. They recalled that there were few management courses available either within the subsidiaries or in the market. Half of them were assigned to their posts without any HR knowledge. Today, not only subsidiaries provide a variety of sources for acquiring HR knowledge, but there are also various learning sources available in the market. Figure 3 shows a list of learning sources available within the subsidiaries and in the market.

Figure 3: A Range of Learning Sources Related to the Acquisition of HR Knowledge

Internal Sources External Sources

Parent Companies

Expatriates

Chinese HR Mgr

Non HR Colleagues

Secondary Sources

Changing Companies

Short CoursesManagement Institute

In-house TrainingDegree Courses

Overseas Training and Exposure

On-line Courses

Internal Training Sources

External Training Courses

HR Clubs

Colleagues and Mentors

One of the main learning sources is the subsidiary’s parent company. The remaining learning sources are categorised into internal and external sources. HR clubs, introduced as external transmission channels, can also be considered as external learning sources. The number of sources of HR knowledge in the parent firms varies in the studied subsidiaries. Each subsidiary has its unique HR system and structure to accord with its business operations. Some subsidiaries preferred to import corporate HR policies and practices, while others chose to modify these or develop HR policies and practices locally. For example, European Company 38 was particularly in favour of working with Chinese counterparts in compliance with the corporate policy of ‘multi-local multinational’; while American Company 11 strongly emphasised the ‘One Principle Corporate Policy’. Internal training sources provided by subsidiaries included in-house training, overseas training and exposure, on-line courses, and courses delivered by their own management institutes. External learning sources have also been greatly improved in recent years. In addition to HR clubs, there are other external sources such as degree courses and short training courses. A large number of universities,

institutes and consulting firms offer courses for studying a degree or a professional qualification. Furthermore, the study found that respondents were prepared to change job, particularly to subsidiaries of large MNCs, in order to gain HR knowledge. This may be because large MNCs are perceived to embrace advanced HR knowledge. Changing companies had also resulted in career advancement. In addition, with the continuously growing usage of the internet in China, respondents could access various sources of HR knowledge on line, either from work or from home. The number of HR websites in Chinese, to name a few popular ones, www.sintere.com.cn, www.hr.com.cn, www.chinahrd.net, and www.sinohrm.com/shequ, is increasing significantly. These provide information on government policies, HR activities, implementation issues and case studies. Respondents found them very informative and good for keeping up to date with the latest issues and techniques of HR management practices. Role of HR Expatriates The involvement of the HR expatriate is explored in relation to how they transfer and share HR knowledge. The transfer of HR knowledge is largely a matter of sharing it. Two important inputs of the HR expatriate are cultivating a knowledge-sharing environment, and sharing knowledge with the HR team. Given that five Hybrid Directors had taken over the positions of their HR expatriates, information from both them and two expatriate directors is used in the following analysis.

The central issue in transferring HR knowledge for respondent directors comprising five Hybrid Directors and two expatriate directors was to create a learning environment in which knowledge is shared. Respondent directors did not just focus on sharing knowledge between themselves and the individual HR subordinate, but also emphasised the creation of a knowledge-sharing environment among the HR teams. HR workshops and forums, and cross-functional projects are examples of nurturing such an environment. Seven respondent directors stressed that regular HR activities could create a learning spirit and encourage colleagues to share experiences and best practices. Furthermore, as with the increasing external learning sources, seven respondent directors encouraged their HR colleagues to attend conferences and seminars, read articles on HR etc., and share these with the rest of the HR team. Nevertheless, expatriate Director, Charlie, pointed out that HR expatriates were too busy to actively transfer knowledge. Instead of having regular coaching sessions and other transfer activities, they achieved it through discussions and the sharing of experience. The approach that respondent directors adopted to share HR knowledge was subject to the selected transmission channels/learning sources. Certain transmission channels/learning sources that the subsidiaries provided such as training courses and cross-functional projects required little input from the respondent directors; while other transmission channels/learning sources might require a lot of their directors’ input. For those transmission channels/learning sources that required less input, respondent directors acted as a solution and advice centre. When HR colleagues had problems and issues that were difficult to resolve, they could discuss them with the respondent directors. Both expatriate directors considered this an effective way of sharing HR knowledge, particularly when they had a busy schedule. Respondent directors helped their HR colleagues to think and find solutions. By reflecting on their own experiences, they realised the advantages of a solution and advice centre.

For those transmission channels and learning sources that required lots of input, respondent directors spent more time on discussions and coaching sessions. However, they felt it was difficult to find time to have an individual coaching section despite accepting that they should give more time for meeting their staff. Of seven respondent directors, only two, Daniel and Alby, had regular coaching meetings with their HR subordinates. Furthermore, three respondent directors stressed that it is vital to be a role model. Because of different cultural backgrounds, people have different ideas of how things should be done. Therefore, the directors needed to show their HR colleagues the correct and effective ways of doing things. Role of Chinese HR Personnel To understand the role of Chinese HR personnel in the transfer process, the paper examined the learning experience of Chinese respondents in relation to the key aspects that could affect Chinese HR personnel to acquire knowledge. All Chinese respondents were asked to describe their journeys of acquiring HR knowledge. Concentrating on the fifteen with at least five years HR experience, this section reviews the key aspects, in which they gained HR knowledge. According to their positions, these fifteen are divided into two groups of five Hybrid Directors and ten HR Managers. Of the latter, seven had full HR responsibilities and three had part HR responsibilities. Five aspects emerged while examining key factors in the learning experience of these fifteen Chinese respondents. They are: 1) Doing the Job; 2) Learning Desire; 3) Influence of Mentors/Expatriates; 4) External Degree Studies; and 5) Overseas Training and Exposure. All Hybrid Directors and HR Managers emphasised that most of their HR knowledge was learned through doing the job, gaining experiences from projects, and learning from mistakes. To illustrate the effect of these elements, two aspects, i.e., the provision of learning opportunities and the influence of HR and non-HR expatriates will be discussed in the following. Respondents have their unique learning journeys. Their learning journeys were filled with various learning opportunities. These learning opportunities are derived from both transmission channels and learning sources provided by subsidiaries. Subject to the provided learning sources and transmission channels, respondents’ career progression and achievements were found to differ. Take Steve and Clare for example, both HR Managers with full responsibilities, they started their HR careers in 1998. Their distinguishing learning experiences show that the provision of learning sources and transmission channels is crucial, and is an important premise for gaining HR knowledge. All but one of the twenty Chinese respondents had worked with expatriates: ten had worked with expatriate HR directors. All nineteen provided information on their experiences with expatriates. On average, ten had worked with non-HR expatriates for ten years, and with expatriate HR directors for six years; nine respondents had only worked with non-HR expatriates for eight years on average. As is evident in Sally, Judy and Daniel’s distinctive experiences of working with expatriates, expatriates with different backgrounds and styles have given respondents different knowledge. The learning experiences of Sally and Daniel with non-HR expatriates illustrated that being HR directors, they needed to possess not only professional HR knowledge and experience, but also the ability to manage and lead the HR team. Often this management and leadership experience comes from non-HR expatriates. Regular communication with non-HR expatriates can also strengthen understanding of overall

management concepts, and create opportunities for sharing insights, and developing diversified perspectives. Ten respondents stressed that there was an immediate gain of HR knowledge when they worked closely with HR expatriates. However, they noted that the influence from the expatriates is a gradual process, and it takes time. Moreover, both expatriate and Chinese respondents acknowledged that Chinese HR personnel not only learn from expatriates but also from their colleagues. Four respondents (Brenda, Lynn, Aden and Rose) provided four live examples, describing how they had learned from their Chinese colleagues: one Assistant General Manager with HR background (Brenda), two General Managers (Lynn and Rose) and one HR Director (Aden). Findings From these discussions, the study has showed that the provision of transmission channels and learning sources is a critical premise for the transfer of HR knowledge, and can have immediate effect on the process of transferring HR knowledge. Chinese HR personnel learned more HR knowledge and gained more practical experience when their learning was assisted by a variety of transmission channels and learning sources. Figures 2 and 3 have illustrated a wide range of transmission channels and learning sources provided by the subsidiaries. Nonetheless, understandably, the extent of this provision varied according to the circumstances of the subsidiary. The subsidiaries of large MNCs would be likely to offer more than the others. Nevertheless, while a majority of respondents were satisfied that there were plenty of learning opportunities within the subsidiaries, others still said that they (such as Clare) had to search for these outside. Therefore, when the subsidiary provides only limited learning opportunities, external transmission channels and learning sources become an important alternative means of acquiring HR knowledge. Considering succession planning/localisation as a strategy for knowledge transfer, a large proportion of current subsidiaries with fifteen out of twenty have this shows that the subsidiaries have already had some strategies in place to transfer knowledge. However, although the idea of HR knowledge transfer was understood by all respondents, I have not yet observed any hard evidence that the subsidiaries in this study were directly addressing it in the titles of their policies and strategies. Perhaps this is because HR knowledge transfer is a more familiar concept among academics than practitioners. In practice, subsidiaries will favour a practical name such as localisation which directly addresses the immediate outcome. Existing studies have suggested that HR expatriates are at the centre of HR knowledge transfer (Delios and Bjorkman, 2000; Bonache and Brewster, 2001; Riusala and Suutari, 2004). They have considered HR expatriates as the main source of HR knowledge and also the media for its transfer. Therefore, the impact of HR expatriates on Chinese HR personnel acquiring HR knowledge should be greater. This study finds this to be so, in that the influence of expatriates was imperative in the acquisition of HR knowledge. However, this effect was dependent on interaction between the respondent and the expatriate, and also on the background of knowledge and experience of that expatriate. The study has also found that HR expatriates achieve this transfer mostly through discussion, experience sharing, being role models, and facilitating a knowledge-sharing environment among their HR teams, rather than taking part in actual transfer activities such as coaching sessions and one to one demonstrations. Moreover, non-HR expatriates have a role to play too, despite the fact that there is less direct acquisition of HR knowledge. The influence of non-HR expatriates is considered as pivotal as the influence of HR expatriates for Chinese HR professionals.

Chinese respondents in this study clearly showed that they had gained a large amount of HR knowledge and experience in recent years. One example is that the five Hybrid Directors had not only taken over the responsibilities of HR expatriates, but also had the capability of transferring HR knowledge to Chinese HR personnel themselves. These Hybrid Directors and a number of HR managers considered themselves as knowledge carriers and had already initiated the transfer in their teams. Therefore, it could be concluded that this transfer process will in future be more likely to be performed by Chinese knowledge carriers, than by HR expatriates. In light of the decreasing number of HR expatriates in China, the possibility of working with them becomes even scarcer. However, the increasing number of Chinese Hybrid Directors has offered alternative opportunities for experienced Chinese HR professionals to share their HR knowledge and experience with their compatriot. In other words, the roles of HR expatriates and Chinese HR personnel could change. Thus, it is important to underline this changing role of HR expatriates and Chinese HR personnel as knowledge carriers and recipients in the process. Previous studies suggested that the HR expatriate and the Chinese HR personnel were two key players in the process of HR knowledge transfer (e.g., Bonache and Brewster, 2001; Riusala and Suutari, 2004; Brewster and Suutari, 2005). These studies foresaw that HR expatriates would have major input during the transfer. However, this study has found that the involvement of HR expatriates is less than what was expected. Instead, the involvement of new knowledge carriers, Chinese Hybrid Directors, is on the rise. Moreover, these knowledge recipients could also become knowledge carriers once they had gained substantial HR knowledge and experience. The Five Hybrid Directors in this study that had become knowledge carriers themselves are firm evidence of this. Therefore, the roles of HR expatriates and Chinese HR personnel as the knowledge carrier and the knowledge recipient can change. The study has revealed that the three parties have different roles to play in the process of transferring HR knowledge. Depending on the task that the parties are involved in, their roles may vary and be interchangeable. These findings have implications to understand how HR management functions could facilitate the knowledge transfer. Discussions: HR Management Functions in Knowledge Transfer Existing studies show that HR management functions can have an important role to assist the organisation to achieve the knowledge transfer (e.g., Armstrong, 2000; Hislop, 2003; Minbaeva, 2005). The study used in this paper has found that for an organisation to achieve knowledge transfer, it has at least two tasks: 1) the provision of learning opportunities for employees derived from a wider range of transmission channels and learning sources; 2) clear knowledge transfer strategies and make it aware/understood by the participants, such as HR expatriates and Chinese HR personnel in the study. Although the study chose to examine the transfer of HR knowledge, it could equally extend our understanding on the transfer of knowledge in general. In the study, both participants (HR expatriates and Chinese HR personnel) have directly involved in the transfer process. When transferring knowledge, HR management functions including both participants can assist the organisation to design various learning opportunities that employees will require it. They can also assist the organisation to develop knowledge transfer strategies, which best suit the organisation. They can help the organisation to make it explicit and clear to all participants. In this way, all involved parties fully understand the aim and purpose of the process; and are therefore driven

by the same goal. Being employees themselves, it gives them an advantage of drawing experiences from their own. They also have an advantage of knowing to what extend the organisation is capable of supporting. HR management functions can also market the strategies for the organisation and increase the awareness amongst the employees in terms of the importance of knowledge transfer for the organisation as well as for the employees. Therefore, HR management functions can be seen as the backbone of the organisation in terms of supporting the knowledge transfer from within. Additionally, one issue raised in the study is that knowledge carriers (HR expatriates in the study) had little time for direct transfer activities. HR management functions can help the organisation to encourage/motivate them to dedicate time for it. This could be done through, for an example, rewarding those who spend time on direct transfer activities. Although this paper did not include the characteristics of the knowledge to be transferred into the discussion, it should be noted that it is important that all involved parties understand the characteristics of that knowledge. Moreover, different characteristics require different transfer strategies and means. Therefore, it is essential that the organisation identifies and applies appropriate strategies for that specific knowledge; and that all parties understand them. Knowledge is an important asset of an organisation. The fast track to success lies in finding ways of managing and utilising the knowledge that organisations have in-house. The successful experiences in knowledge sharing have been acknowledged in recent studies (Voelpel et al., 2005; Voelpel and Han, 2005). Another notion raised in the study is that seven respondent directors concentrated on cultivating a knowledge-sharing environment for their HR teams. The benefit of this knowledge-sharing culture within the team is apparent while examining the learning experience of Chinese respondents. Therefore, HR management functions can extend it to an organisation-wide knowledge-sharing culture, so that more employees can be benefit from it. Furthermore, such a knowledge-sharing environment is an indispensable foundation for nurturing a learning culture in an organisation. It breaks down the traditional hierarchical structure, which hampers communication between departments. It motivates staff to communicate freely, to cooperate with each other, and to be creative without regard for the boundaries of positions, departments and countries. Given the exploratory nature of this paper, it should be acknowledged that there are more areas what HR management functions can assist the organisation to achieve the knowledge transfer/knowledge management. This discussion and exploration is not exhaustive and more research is needed to extend and strengthen our understanding on the subject. Conclusion This paper has addressed the issues concerning the role of HR management functions in knowledge transfer. By using the data from an existing study, it enables an exploratory examination on the topic with an emphasis on what and how HR management functions can assist the organisation to achieve the knowledge transfer in an organisation. The study has found that in order to achieve the transfer, it requires joint effort of all involved parties. It has revealed two key findings: 1) the provision of various learning opportunities is an essential groundwork for employees to acquire new knowledge and gain practical experience on that knowledge; and 2) it is important that the organisation has appropriate and clear strategies for transferring knowledge. Moreover, cultivating a knowledge-sharing environment can encourage employees to learn so as to achieve the knowledge transfer.

These findings have implications for understanding the role of HR management functions in knowledge transfer. As it is shown in the above discussion, they can assist the organisation 1) to develop appropriate transfer strategies; 2) to design various learning opportunities; 3) to identify involved parties; 4) to nurture a knowledge-sharing environment, and so forth. Furthermore, they can improve the communication between the organisation and the employees to ensure that employees including those involve in the knowledge transfer understand the transfer strategies and process clearly so all participants are working towards the same objectives. Limitations and Further Research Unavoidably, this research has its limitations. The main limitation is the fact that the study adopted was not originally designed for this paper. The study was conducted at an individual level, not organisation studies. Data gathered from the respondents on the subsidiaries that they had worked for appears to be general and non-specific. As a result, certain aspects were not explored. For example, the paper did not discuss how the subsidiaries develop the strategies for knowledge transfer. It also did not discuss how the subsidiaries select HR expatriates and their successors. Therefore to have a complete understanding of this subject, more empirical data is required. Furthermore, the use of Nvivo may lead the researcher to be over-dependent on the support of computer software during the data analysis. However, this has been reduced through other conventional means of mind-mapping and brainstorming exercises. The paper has raised an issue, and to a certain extent, it has also provided an understanding on the subject. More research is certainly needed to sustain/extend our understanding. For example, future research could look into: 1) how the transfer strategies are developed; 2) how a knowledge-sharing environment is nurtured; and 3) what selection criteria are used when identifying participants in subsidiaries/any organisations.

Appendix 1: Company Description of Fifty Three Subsidiaries

No. Country Company Description Source 1 American IT Company Adam 2 American Paper Manufacturing Company Adam 3 American Automobile Company Adam 4 American Power and Engineering Company Adam 5 American IT & Computer Company Daniel 6 Danish Trading Company Daniel 7 American Control Systems Company Daniel 8 British Pharmaceutical Company Daniel 9 American Bank Sally

10 Swiss Trading Company Sally 11 American Pharmaceutical Company Sally 12 American Soft Drinks Company Brenda 13 American Soft Drinks Company Brenda 14 British Cleaning Products Company Brenda 15 Danish Brewery Company Brenda

16 American Consumer Goods Company Lynn, Charlie, Debbie, Winona

17 American Cosmetic Manufacturing Company Lynn 18 American Beverage Company Lynn, Charlie 19 French Luxury Goods Company Lynn, Winona 20 American Construction Company Amanda 21 American Kitchen & Bathroom Company Steve 22 American Silicon Technology Company Steve 23 Hong Kong International Hotel Chain Judy 24 American Supermarket Chain Judy 25 American Oil Company Charlie 26 American Computer Company Charlie 27 American Computer Hardware Company Alby 28 American Communication Company Alby 29 American Photographic Company Alby 30 American Pharmaceutical Company Alby, Kristy 31 Hong Kong International Holdings Alby 32 Taiwan International Trading Company Aden 33 Swiss Pharmaceutical & Healthcare Company Aden, Emma 34 German Technological Systems Company Aden 35 American Electronics Company Amanda 36 French Food Company Amanda 37 South Korean Electronics Company Arthur 38 British Consumer Goods Company Arthur, Stephen 39 Dutch Electronics Company Arthur, Winona 40 Japanese International Training Company Eddie 41 American Marketing Research Company Eddie 42 American Consumer Goods Company Eddie, Tony 43 American Agricultural Goods Company Kristy 44 Swiss International Biotechnology Company Kristy No. Country Company Description Source 45 American Oil Product Company Kristy 46 American Food Company Clare 47 Europe Risk Investment Company Clare 48 Swiss & German Electronics Systems Company Ally

49 Taiwan Central Air-Condition Manufacturer Rose 50 Swiss Elevator Manufacturer Stephen 51 French Building Materials Company Emma 52 American Technological Systems Company Tony 53 American Food Company Winona

Note: * 24 highlighted companies were/are on the list of 500 fortune companies in the world. * Company 19 is in the transition period of restructuring.

* Company 7 has been acquired in 2004. * Part of Company 43 was merged with Company 30 in 2000. * Company 33 was sold in 2002.

Appendix 2: Code of Respondents Code

A Brief Description

Arthur-M-FM-AS&EU-EU39 Arthur, male, HR Manager with full HR responsibility, worked for Asian and European subsidiaries, and currently working for European Company 39.

Alby-M-ED-AS&US-AS31 Alby, male, HR Expatriate Director, worked for Asian and European Companies, and currently working for Asian Company 31.

Adam-M-HRD-US-US4 Adam, male, HR Director, worked for American subsidiaries, and currently working for American Company 4.

Aden-M-FM-AS&EU-EU34 Aden, male, HR Manager with full HR responsibility, worked for Asian and European subsidiaries, and currently working for European Company 34.

Ally-F-FM-EU-EU48 Ally, female, HR Manager with full HR responsibility, worked for European subsidiaries, and currently working for European Company 48.

Amanda-F-FM-US&EU-EU36 Amanda, female, HR Manager with full HR responsibility, worked for American and European subsidiaries, and currently working for European Company 39.

Brenda-F-HRD-US&EU-EU15 Brenda, female, HR Director, worked for American and European subsidiaries, and currently working for European Company 15.

Charlie-M-ED-US-US18 Charlie, male, HR Expatriate Director, worked for American companies, and currently working for American Company 18.

Clare-F-FM-US&EU-EU47 Clare, female, HR Manager with full HR responsibility, worked for American and European subsidiaries, and currently working for European Company 47.

Daniel-M-HRD-US&EU-EU8 Daniel, male, HR Director, worked for American and European subsidiaries, and currently working for European Company 8.

Debbie-F-PM-US-US16 Debbie, female, HR Manager with part HR responsibility, worked for American subsidiaries, and currently working for American Company 16.

Emma-F-HRS-EU-EU51 Emma, female, HR Supervisor, worked for European subsidiaries, and currently working for European Company 51.

Eddie-M-FM-AS&US-US42 Eddie, male, HR Manager with full HR responsibility, worked for Asian and American subsidiaries, and currently working for American Company 42.

Judy-F-PM-AS&US-US24 Judy, female, HR Manager with part HR responsibility, worked for Asian and American subsidiaries, and currently working for American Company 24.

Kristy-F-FM-US-US45 Kristy, female, HR Manager with full HR responsibility, worked for American subsidiaries, and currently working for American Company 45.

Lynn-F-HRD-US&EU-EU19 Lynn, female, HR Director, worked for American and European subsidiaries, and currently working for European Company 19.

Rose-F-FM-AS- AS49 Rose, female, HR Manager with full HR responsibility, worked for Asian subsidiaries, and currently working for Asian Company 49.

Sally-F-HRD-US&EU-US11 Sally, female, HR Director, worked for American and European subsidiaries, and currently working for American Company 11.

Code

A Brief Description

Steve-M-FM-US-US22 Steve, male, HR Manager with full HR responsibility, worked for American subsidiaries, and currently working for American

Company 22. Stephen-M-FM-US&EU-EU50 Stephen, male, HR Manager with full HR responsibility, worked

for European and American subsidiaries, and currently working for European Company 50.

Tony-M-HRS-EU&US-EU38 Tony, male, HR Supervisor, worked for European and American subsidiaries, and currently working for European Company 38.

Winona-F-PM-US&EU-EU19 Winona, female, HR Manager with part HR responsibility, worked for American and European subsidiaries, and currently working for European Company 19.

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