Human Resource Management and Enterprise Performance in Small and Medium Enterprises in China.doc

Human Resource Management and Enterprise Performance in Small and Medium Enterprises in China
HUMAN RESOURCE MANAGEMENT AND ENTERPRISE PERFORMANCE IN SMALL AND MEDIUM ENTERPRISE IN CHINA
Connie S M ZHENG
The China Center for Economic Research
Peking University
No3>. E1999002…… 8 January 1999
ABSTRACT
Human resource management (HRM) is a new area for Chinese enterprises, there are a variety of studies parison of Chinese personnel management system with western human resource management practice but few on HRM practice and its impact on enterprise performance in Chinese small and medium sized enterprises (SMEs). This paper attempts to provide a pilot study of examining the status quo of HRM practice in Chinese small and medium enterprises, and searching for possible correlation between HRM and enterprise performance. The result of the study is based on analysis of intensive interviews with 74 SMEs in various cities in China. The paper concludes with 4 hybrids of feasible interrelationships between HRM practice and enterprise performance within Chinese enterprises, as a result of distorted indicators in such a transition economy as the one in China.
Human Resource Management and Enterprise Performance in Small and Medium Enterprises in China
Connie S M ZHENG
INTRODUCTION
Human resource management (HRM) is a new area for Chinese enterprises, especially those owned by the state. A variety of studies have discussed differences between Chinese personnel management system with western human resource management practice (. Child, 1994; Ding et al 1997; Goodall & Warner 1997; Lam 1993; Lu and Bjorkman 1997; Luo, 1991; Tsang 1994; Wang 1988; Warner 1993, 1995, 1996b, 1996, 1997a, 1997b; Zhao 1996; Zhu 1997; etc). Their main focus has been on large and medium sized enterprises in particular of joint ventures. There are few studies, except Ding (1988) which have provided a general introduction of enterprise management in small and medium sized firms (SMEs) in