The research is about analysing the extent of HR function being strategic at Huawei. This research aims to analyse how HRM practices results in commitment and engagement of employees in a Chinese MNC. Firstly, it is investigated how HR strategy in Huawei is contributing in the success of the company. Secondly, it is analysed how role of strategic alignment of HR strategy with corporate strategy and success of the company. Thirdly, it recommends how strategic HRM should be practiced in Huawei. This research sheds light on those HR policies and strategies which are resulting in employee commitment and employee engagement. It uses qualitative methods where interviews with the HR and line managers are conducted. The sample of 10 HR and line managers from Huawei is selected. Findings of the research show that HR function is strategic but still there exist room for becoming fully strategic. Future research directions are provided.

1.Introduction

1.1.Background

HRM (HRM) is one of the most important functions in organizations. It is human resource which allows firms to gain and sustain competitive advantage because this is resource which can never be replicated (Campbell, Coff, & Kryscynski, 2012). Human resource of organization is valuable, inimitable, non-substitutable asset of every organizations. HRM involves searching for employees, selecting them through appropriate means, providing them training and development opportunities and give equitable compensation to employees (Boxall, Purcell, and Wright, 2008). Nowadays, role of strategic HRM is crucial. In knowledge economy, there is a need of such skills and talent that are suitable with current competitive environment (Alcázar, Fernández and Gardey, 2005). Talent and skills are critical for success of organizations because these become foundation of all organizational functions, hence, these allow to perform all functions in an effective manner. Only those organizations become successful which ensure strategic alignment of HRM practices with its business strategies because unless and until HRM practices are not aligned with strategy, HRM does not enforce strategy which can have disastrous impacts. This research is specifically about HRM of Huawei which is a Chinese organization. China is a developing country and it has attracted a large amount of FDI since 1978. Even before financial crisis, there was FDI of US$283 billion in China. This investment growth slowed down during Asian financial crisis in 1997. However, when Asian economy recovered, growth of FDI increased again with a significant speed (State Statistical Bureau, 1998). With this increasing growth of FDI in China, there are many multinational companies (Li et al., 2000) which are striving for HRM as Chinese context is different, so is culture and other factors, therefore, effective practices and policies are different for China ( Luo and Park, 2001). There are many aspects like ‘guanxi’ [i.e. social networks and influential relationships in business dealings] which makes organizational practices of this country different from other countries’ practices (Buller and McEvoy, 2012). Therefore, a Chinese organization is selected to investigate this issue in a greater detail. HRM practices are developed in a different manner in all countries. According to Cooke (2004), strategic aspect is often found missing in development of HRM practice. HRM strategy development is one of core functions which must be critically executed by organizations. However, many organizations remain unable to focus on strategic aspect of HRM. Therefore, it is worthwhile to analyse how Strategic human resource management (SHRM)  is done in context of China.

One of the important aim of HRM and its strategy is to keep employees motivated. There are numerous functions of HRM that are directly or indirectly targeting employee engagement (Zalcman, 2014). Employee engagement is an important issue for organizations. According to Menguc et al., (2015), this term employee engagement refers to association that exists among employees and organization. An employee who is engaged is fully absorbed at the work. Employees of Huawei are engaged at the same time and these employees are ready to take an extra mile for the success of organization (Huawei Investment & Holding Co., Ltd. 2012). Moreover, it is also being reported that they have high level of commitment (Cremer and Tao, 2015). Therefore, this research explores that how HRM practices of Huawei are leading towards commitment and engagement of employees.

1.2.Research Aim

From above section, it has become clear that strategic aspect of HRM is important for organizations, however, it is not practiced and implemented effectively in organizations. There are various concerns about usefulness of SHRM. It is imperative to explore usefulness of this c