On transplanting human resource practices to China

Abstract Argues that, whether referring to economic or bounded rationality, the notion of rationality is meaningful only in a specific cultural context. Proposes, by analogy, a culture‐driven approach for rationally managing the human resource function in a global environment. Shows how culture provides additional explanatory power for human resource management (HRM) practices – beyond what is a accounted for by political or economic structures – by comparing the USA with one of its major trading partners, Taiwan and with the People′s Republic of China (PRC), a country with which the USA has had a rather checkered relationship, on their commonly‐used practices of selection, reward systems, performance appraisal and participative management. Makes suggestions on how to reconcile cultural differences in transplanting HRM practices to China.