As Chinese enterprises expand their presence in global markets, establishing a human resources system adapted to local environments becomes crucial—akin to equipping an ocean-going vessel with a precise navigation system. TCL, a pioneer in China's corporate globalization, has developed a unique and practical human resources management methodology through its 26-year international journey.
The Evolution of TCL's Globalization Strategy and HR System
TCL's path to globalization was not instantaneous, and its HR system transitioned from rough management to refined operations. This evolution closely followed the company's global strategy and can be divided into distinct phases:
Initial Overseas Trade (ODM/OEM Phase): Centralized Control With Compliance Focus
During this stage, TCL primarily engaged in ODM/OEM business, relying on headquarters-dispatched personnel for market development. The HR management system was not yet formalized, focusing mainly on compliance through trial-and-error approaches.
- Highly centralized: Headquarters maintained absolute control over overseas operations.
- Compliance priority: Ensuring adherence to local laws and regulations was paramount.
- Rapid iteration: The company accumulated experience through practical exploration.
Breakthrough in European and American Markets: Reflection and Talent Development Begins
Challenges in Western markets prompted TCL to reconsider international rules and cultural differences. The company began recruiting and training global talent, though cross-cultural integration proved difficult due to insufficient understanding of local corporate cultures and labor union mechanisms.
International Expansion Phase: Systematic Team Building
In North America and Europe, TCL established structured teams and initiated cross-cultural integration. HR management became more standardized, with comprehensive training for expatriate personnel across product categories.
Global Operations Phase: Worldwide Integration and Coordination
TCL developed a mature global management system where local and expatriate managers blended seamlessly. A new generation of internationally-minded young executives emerged, enabling efficient worldwide collaboration.
Core Practices of TCL's Overseas HR System
Through years of global operations, TCL has developed effective international HR management methods across seven key areas:
1. Target Country HR Due Diligence
Learning from early M&A mistakes, TCL now conducts thorough investigations of local labor markets and regulations, creating customized compensation packages. For example, the company adjusts incentive structures in countries where fixed salaries dominate and tailors expatriate policies to avoid cultural conflicts.
2. Dynamic Organizational Control Models
TCL adapts its management approach based on business development phases:
- Initial expansion: Grants frontline teams high autonomy for rapid local response
- Business maturation: Strengthens regional oversight while preserving local decision-making
- Multinational phase: Implements front/middle/back-office separation with centralized back-office control
- Globalization: Establishes three-tier "global-regional-national" management with clear authorization standards
3. International Talent Development and Deployment
TCL forecasts talent needs 3-5 years in advance, employing a mixed model of expatriation, localization, and global mobility:
- Encourages young employees to work abroad through cross-regional rotations
- Leverages AI and digital tools for remote collaboration
- Focuses on local campus recruitment in emerging markets
- Implements "domestic training + overseas practice" programs like India's "Eaglet Plan"
- Maintains flexible cross-border staffing solutions for visa contingencies
4. Localized and Differentiated Compensation
TCL designs competitive packages considering local economic conditions, living costs, tax policies, and cultural norms—offering robust benefits in developed nations and performance incentives in developing markets.
5. Globally Consistent Yet Locally Adapted Performance Management
The company maintains uniform global performance standards while adjusting evaluation methods to align with regional cultural expectations.
6. Employee Relations and Cross-Cultural Communication
Regular team-building activities and cultural training help foster harmonious international workplaces.
7. Comprehensive Compliance Framework
TCL treats compliance as its "lifeline," implementing rigorous risk assessment systems with red/yellow/green warning indicators. Strict data privacy protocols govern international information sharing to prevent regulatory penalties and reputational damage.
Future Challenges and Development Directions
TCL continues to face challenges in:
- Balancing organizational design across diverse business types
- Coordinating development of local and expatriate talent
- Deepening cross-cultural integration
- Standardizing global compensation while maintaining local relevance
- Dynamic compliance risk management
The company remains committed to optimizing its global HR system, focusing on organizational efficiency, talent pipeline development, and cultural integration to support its worldwide strategy.