QUESTION 1:

Answer: Habib Bank Limited and United

Bank Limited are definitely one of the
premierbanks of Pakistan. They share a
huge network data base and a bunk of
customers in all over Pakistan. Multiples of
services are provided by these banks in
order to facilitate their customers.
According to the sources, it is identified that
both the giants of the market have been
given an opportunity to setup their
branches in the cities of China due to
support and empower CPEC. It will
encourage both the countries to exchange
their businesses and resources in order to
get healthy benefits each side.
ELEMENTS:
 LANGUAGUE:
The common language in China is Mandarin, often known as the ‘Han language’ which is
spoken in the People’s Republic of China and Taiwan. It is the language favoured by the
government, education and media.

Religion & Beliefs:

 The major religion in China is Taoism (or Daoism as it is also commonly known). Those
who do not follow Taoism primarily subscribe to Buddhism, followed by Christianity and
Islam.
 Taoism is an ancient religious framework which focuses on the need to live in harmony
with the Tao which is, put simply, the source of all existence. Unlike Confucianism, it
does not focus on social order or ritualistic behaviours.
 Buddhism was brought to China by monks from India almost 2,000 years ago and has
co-existed with Taoism ever since.
 Although not strictly a religion, Confucianism is widely followed in China. It is more a
philosophy which sets examples of ethical values and beliefs taken from the teachings
of Confucius who died in 479 BCE. Confucianism essentially incorporates ethical socio-
political teachings and features a number of ritualistic practices which Confucius
considered important to human bonding

Food:
 The Chinese are famed for their eclectic mix of flavours, spices, colour and taste. Their
staple foods are rice, tofu and noodles which form a basis to the wide variety of
complimentary ingredients such as: Bamboo shoots, string beans, water chestnuts,
Chinese mushrooms, ginger root, garlic, chillies and coriander.
 Individuals typically eat a wide range of meats, the most popular of which are pork and
duck. Fish and shell fish are also a popular source of food. Dinner is the most important
meal of the day and will typically include a variety of dishes which may start with soup.
 Most popular dishes in China include: Spring Rolls, Peking Duck - thin strips of crispy,
roasted duck served with shredded cabbage and a sweet sauce, Bang Bang chicken or
duck, so called because the meat is tenderised by hitting it with a hammer, Chow Mein
which incorporates stir fried noodles with either meat, fish or vegetables

Arts, Humanities & Popular Culture:

 China has a rich heritage of culture, art and literature dating back to the earliest
civilisations. Traditional beliefs influenced by changing imperial rulers, philosophies and
Confucianism have been carried through time and are reflected in the arts.
 China is known for its pottery - particularly the blue and white willow pattern which
depict pastoral, rustic scenes of everyday life in China’s past. China was the first to
 discover porcelain which was perfected in the 1500s during the Ming dynasty – hence
the famed and valuable Ming vase.
 Poetry and literature has played a role in traditional culture including ‘The Book of
Songs’ dating back to 600 BC written by Qu Yuan which, even today, has some
influence. The Red
 Chamber was a literary piece considered one of China’s great classics written by Cao
Xueqin in the 18th Century.
 In the 19th Century western influence began to creep in and gave way to a new genre
of writing. The Rickshaw Boy is a 20th Century classic fiction written by Lao She which
features the story of a Rickshaw bearer in Beijing. Language and sentiments within the
book aligned with some of the concerns held by those with communist leanings

Communication style:
 Chinese non-verbal communication speaks volumes.
 Since the Chinese strive for harmony and are group dependent, they rely on facial
expression, tone of voice and posture to convey meaning or intention.
 Frowning while someone is speaking is interpreted as a sign of disagreement.
Therefore, most Chinese maintain an impassive expression when speaking.
 It is considered disrespectful to stare into another person's eyes. In crowded situations,
the Chinese avoid eye contact to give themselves privacy

ELEMENTS OF PERSONNEL WORKING IN

CHINA:
Working Hours

China’s Labor Law sets basic requirements for working conditions. These include an eight
hour work day, with an average working week no more than 44 hours long. The Law
requires at least one day off per week, but has been updated by Regulations on Employees’
Work Time to two days off per week. China has been more Western on its weekend
schedule than several other Asian nations for several years. If an enterprise needs a
different schedule, it may apply for special permission.

The Law states that overtime work may be required of employees after consultation with the
trade union and laborers, unless emergency repairs are needed due to natural disaster or a
threat to public interest. After consultation, overtime work is limited to one hour per day, or
three hours per week. The maximum per month is no more than 36 hours. Overtime pay is
set at 150% of normal wages. Overtime work performed on rest days (weekends) must be
paid at 200% of normal wages, and extra work performed on holidays must be paid at 300%
of normal wages

Holidays, Leave and Vacations

In general, Chinese workers receive about 10 paid holidays per year, comparable with other
Asian nations. The holidays include the first three days of the traditional Chinese lunar
calendar, known as “Spring Festival” or Chinese New Year, varying on the solar calendar
from late January to late February. They also receive a paid holiday for January First on the
Western calendar, three days for International Labor Day on May 1-3, and three days for
National Day from October 1 �??3.

In addition, China’s government occasionally establishes special holidays on short notice,

such as the ten days off granted nationally for the fiftieth anniversary of the PRC
government. The exact length of the holiday was uncertain until one week before the
holiday. Thus employees in China received about 21 days of holidays in 1999.

Maternity Leave is granted for 90 days starting from the date of birth of the child. The
employer must ensure that the mother’s job is held open for her return. Leave is paid by the
employer, and the employer is reimbursed from monies collected monthly for the maternity
leave fund. Paternity Leave is granted for three days. Since families are only allowed to
have one child, maternity leave is granted only once in a worker’s lifetime. Funeral leave is
granted for one to three days, depending on the closeness of the family relations between
decedent and employee.

The Law establishes that laborers are entitled to paid vacations. Generally, a worker with
one year’s seniority, is entitled to a week or more of consecutive days of vacation.
Generally one day is added for each year of employment. Sick leave is required to be paid
for all employees. Sick leave is paid at 60-100% of daily wages, depending on the seniority
of the employee. The Rules on Labor Insurance and local regulations must be consulted to
determine the length of sick leave, but by American standards, the length of paid sick leave
is extremely long. The minimum sick leave is three months long, for employees with less
than a 10 year cumulative work history, and less than five year’s seniority with their current
employer. The maximum sick leave, for workers with 20 years of work history and 15 years
with their current employer, is an unlimited paid leave. Employees are paid salary at a
reduced rate during sick leave. The reduced rate begins at 60% of salary, and increases
gradually up to 100% for employees with seniority of 8 or more years of service to the
current employer.

Termination

Each employee must be documented with a written employment contract, which will be
examined by the local labor authorities within 30 days of its execution. Employment can be
terminated for cause by either party, or upon agreement of both parties. However, workers
who have received an occupational injury and can no longer work, or a female employee on
maternity leave, cannot be fired. If such a worker chooses to leave the employer, the
employer must pay a disability and resettlement fee to the government social security
agency.

In the event of any termination, except where the employee was fired for cause, such as
when an employee leaves either upon mutual agreement, because of abuse by the
employer, or from a work related injury, the employer must pay a subsistence or medical
settlement to the employee based on the years of service of the employee. In general, one
month’s pay for every year of service is due upon termination, unless the employee was
fired for cause. In the event of a medical condition preventing employment, six month’s pay
for every year of service is due for employees with five or more years of service. In both
cases, one month’s pay is based on the average monthly wage of the six months prior to
termination.

Employers must pay workers in cash for all wages earned, less withheld income tax, at lest
monthly, if not more frequently. The official employer, usually the labor service agency,
must submit statistics on wages and employees to the local labor administration, and must
participate in various social insurance programs. Payments for social welfare funds must
be listed separately on the employer’s accounting records.

The regulations governing foreign employers provide that either employee or employer may
demand compensation for damages for violation of a labor contract. The Ministry of Labor
retains the authority to interpret the regulations. The regulations also set penalties on the
employer for failing to pay the prevailing minimum wage, failing to implement social
insurance procedures, or recruiting workers in violation of regulations. There are only
monetary penalties to be paid to the employees or the government agency, even in the
event of safety or hygiene violations. Clearly, the regulations are not attempting to shut
down any business, even abusive employers

EMPLOYEES MOTIVATION IN CHINA:

1. Provide context. Young, passionate people are focused on making their mark on
the world. Even simple tasks have an effect on the health of a start-up. Express
how each task impacts the team, product, clients and planet.
2. Check for understanding. Language misunderstandings are frustrating for
everyone involved. Your Chinese teammates will become demotivated after doing
an hour of work incorrectly, because of a simple language misunderstanding.
3. Provide positive feedback in context. Positive feedback is rarely doled out in
Chinese companies. Providing context for positive feedback reinforces the context
you offered in the task assignment phase. Express, “You did a wonderful job on X,
it really allowed me to do Y more easily. The client told me they appreciated the
effort you put into that task.”
4. Provide opportunities for growth. The hierarchy in most Chinese companies
is strict, and relationships are often managed from the highest levels on down.
Involve your Chinese employees in different aspects of your company. Allow them
to try new things. These are unique opportunities not available at other
companies, and will engender team loyalty

COMPENSATIONS TO EMPOYEES:
Total compensation package and bonus offers
The executive compensation package of a new employee in an organization greatly depends on
numerous factors, including the industry, the salary amount that the new hire was drawing in his/her
previous organization, working experience, the offered position and market analysis. The
compensation package in China also varies a great deal if the new hire is a foreigner or a Chinese
national, and the location where the job is offered. As a rule of thumb, the gross salary must be
specified on the new hire’s contract and should be carefully discussed during the negotiation process.

If the new hire is a Chinese local candidate, it is generally advisable to offer a compensation package
with a base salary a little higher than the market’s average rate for maximum employee retention.
While for offering expat package in China, it is advised to offer pay that is high enough to provide
them with a suitable standard of living in China, that is at least similar to what they are leaving
behind in their home country.

Employers have the authority to appreciate their team’s hard work by granting bonuses at a fixed
interval, which can be distributed monthly, quarterly and annually, and hence their expected
frequency should be stated in the employee’s contract. The criteria for giving the bonuses usually
included the evaluation of an employee’s work performance, dedication, and attitude. Some
employers in China also promote the idea of giving away a 13th-month salary to their team members
around the Chinese new year, which is sometimes even coupled with the gift cards or pocket money.

It is to be kept in mind that the structure of compensation package in China varies for different roles
and employees within the same organization. Some employees are on the fixed salary payroll while
others should be partially remunerated as per their work performance. Additionally, the role of the
China’s income tax rate in the final take-home salary should also be considered while deciding on the
gross pay. The bonus structure also impacts taxes on both the employer’s and employee’s part and
hence should be a consideration factor while structuring a compensation package

Role of allowances and benefits on

compensation packages in China
Allowances are regarded as one of the most effective methods that makes the executive
compensation packages lucrative for the new employees. The employment contract needs to list an
exhaustive breakdown of the allowances offered to an employee which may include housing charges,
relocation costs, daily meals, annual round-trip fares and tuition fees. Employees are bound to prove
the appropriate usage of these allowances for their specific purposes through an official
governmental invoicing certificate, commonly known as ‘fapiaos’.

As per China’s labor laws, the allowance breakup should be a reasonable proportion of the gross
salary, and hence no definite amount is defined for allowances. From hit and trial, many companies
have come up with an allowance formula where allowance accounts up to 30 percent of the
employee’s gross salary. There is a risk of China’s income tax rate rules violations if this percentage
is increased and hence must be avoided.
Chinese workforce is also eligible for Social security, while the foreign workers may choose to enroll
themselves in private insurance for an extra cover. Chinese nationals can also request an additional
coverage on medical expenses. In both these cases, the employing organization is expected to cover
these costs

Additional medical coverage for Chinese

nationals
Below is the summary of differences between PICC commercial insurance and Social security, to
understand the benefits that adds up in the compensation package of the China’s local workforce.

1- There are 5 categories of insurances that are covered by Chinese social security:

 Unemployment insurance
 Basic Medical insurance
 Maternity insurance
 Basic old-age insurance
 Work injury insurance

2- With respect to the medical insurance, the family members do not get coverage as per the social
security laws. The sick employee, however, is entitled to go to any hospital from the approved list of
hospitals to get treatment after showing the social security card. The savings from previous security
payments (under medical category) will be used for deductions. In case of insufficient balance in the
social security card, you’ll be first obliged to pay the bill and then apply for reimbursements.

3- In case of commercial insurance, the reimbursement of up to 90 percent of clinical payments is

possible (up to a daily amount of 550 RMB), whichever is higher, than the majority of the conditions
imposed by the social security policy, which normally renders reimbursement between 65 to 90
percent. This rate is subject to employee’s age and work stats at the organization