Change and development in pluralistic settings: an exploration of HR practices in Chinese township and village enterprises

Very few systematic studies have been conducted on the managerial practices of Chinese Township and Village Enterprises (TVEs) despite their increasing contributions to China's economic development. Focusing on the HRM practices in ten different TVE organizations in a new city in Southeastern China, this study aims at filling a gap in the literature by exploring the general HRM practices in those organizations. Results show that HRM practices in TVEs, although still relatively primitive compared to those in state-owned enterprises (SOEs), have been much more formalized recently. Employees are now mostly selected rather than referred by existing employees or ' guanxi ' as they were previously. New employees in many large TVEs are now trained through formal procedures rather than through apprenticeships, and pay is tightly linked to performance and skill levels. However, in smaller TVEs, HR practices are less formalized. The study points out that the firm size may be an institutional factor affecting the implementation of formal HRM practices. Yet, regardless of the form of personnel management, HRM practices are shown to be a very important factor in the economic success of TVE firms. Further studies are necessary to understand HRM and other managerial practices in TVEs and to test the relationships between HRM practices and firm performance among the TVEs.     

Human Resources Management Practices in China

Abstract

Based on a survey of 308 firms in China, this paper compares the human resource management practices of Township and Village Enterprises (TVEs) with the Sino-foreign joint ventures (SFJVs) formed between TVEs and foreign firms. Systematic differences in employment practices are found in recruiting, educational qualifications of top management, training, benefits, and the role of unions in enterprise management. These differences are consistent with the predictions of institutional theory. Results are discussed in terms of implications for future research and management of enterprises in China.     

Strategic human resource management and MNEs' performance in China

This study tested a perspective of strategic human resource management (SHRM) and compared human resource practices among multinational enterprises (MNEs) in two industries in China. Specifically, empirical data from firms in China's soft-drinks and electronics industries were analysed. The results supported a number of basic assumptions of the SHRM model, such as those regarding the relationship among firm environments, firm strategy, firm human resource practices and firm performance.     

Organizational differences in managerial compensation and benefits in Chinese firms

More than two decades of economic reforms have brought profound changes in human resource management practices in both the state and non-state sectors in China. This study focuses on the impact of organizational factors on compensation and benefits for Chinese managers in state-owned enterprises (SOEs), publicly listed firms (PLFs), and foreign-invested enterprises (FIEs). The empirical investigation of 465 firms located in three major Chinese cities, Shanghai, Nanjing and Guangzhou, provides evidence that organizational factors, such as ownership, firm size, firm age, location and industrial sector, have significant impacts on the variances in Chinese managers' compensation levels, compensation structures and benefits. The trends in the development of compensation and benefits for Chinese managers are also discussed as the Chinese economy moves closer to a more globalized, highly dynamic economy after China's accession to the World Trade Organization in 2001.     

Thirty-two years of development of human resource management in China: Review and prospects

Focusing on the theoretical developments and practical applications of human resource management, this paper reviews the transition of human resource management in China from planned labor and personnel management to modern human resource management in three distinct time periods since China's reform and opening-up. Next the paper discusses the challenges of human resource management research and its practices from the perspectives of internationalization, corporate culture, and organizational innovation during China's economic transition. Finally, it presents the prospects and trends in the future development of human resource management in China.     

Customers cocreating value with the firm: implications for IHRM

The purpose of this article is to develop a theoretical framework for governing an organization's relationships with customers engaged as contributors to the organization's business processes (i.e. customers as quasi-employees). Based on our suggested framework, we explain how appropriate customer-centric HRM practices can support more cost-effective and accommodating adaptations in the organization's governance of its relationships with customers. We complement these propositions with practical examples illustrating how customers who take different cooperative roles will increasingly become valuable organizational assets. The collaborating customers not only provide the information necessary for the successful performance of the service exchange, but also contribute human and social capital in performing tasks that are a complement to or a substitute for employee tasks. In conclusion, we outline implications for international human resource management (IHRM), as well as future research directions for examining the relationships among customer governance, role configurations, and IHRM practices.     

Psychological ownership and organizational optimism amid China's corporate transformation: effects of an employee ownership scheme and a management-dominated board

Ownership reform was introduced to Chinese state-owned enterprises in the early 1990s, to allow employees to own a share of their enterprises and to bring changes to the underlying structure of governance. However, effectiveness of this reform has yet to be ascertained. This study examines the effects of the new employee stock ownership scheme and board compositions on the attitudes employees hold towards their jobs and organizations, as well as their perceptions of ownership. We developed a theoretical model on how participation in a stock ownership scheme (an employee's characteristic) and the composition of the board of governance (a firm characteristic) may be linked to job satisfaction and, in turn, to outcome variables such as psychological ownership and organizational optimism. This model was tested on 510 employees randomly sampled from ten stock-holding enterprises in urban Shanghai. Results indicate that participation in a stock ownership scheme has a positive effect on attitudes towards ownership, but that a board dominated by senior managers leads to gloomy perception of a firm's future. These effects were partially mediated by the satisfaction that employees felt in their jobs. The implications of these findings for management practices in China are discussed.     

混合所有制改革是否有助于缓解人力资本配置扭曲

将人力资本在所有制企业间的配置扭曲（错配）理解为技术配置扭曲和规模配置扭曲两个方面,基于1998—2013年中国工业企业数据库的相关数据,探讨国有企业混合所有制改革影响人力资本配置扭曲的内生机理,结果表明：混合所有制改革鼓励非国有资本通过参股、控股和并购等方式参与到国有企业的生产决策中,这有助于完善国有企业的公司治理结构和利润分配机制,进一步缓解人力资本的技术配置扭曲和规模配置扭曲程度;相对于非行政垄断行业,行政垄断行业中国有企业混合所有制改革对于人力资本配置扭曲的缓解作用较小。     

Human resource management and industrial relations in Italy

Evolution of industrial relations and human resource management in Italy in the last decade is analysed through qualitative case studies, quantitative surveys and a combination of qualitative/quantitative data originating from network researches.

In the 1980s, complementary industrial relations/human resource management in Italy were based on the trade-off between employment security, work flexibility and industrial adjustment. In the 1990s this complementarity is under pressure from a second restructuring process (and privatization) of Italian enterprises.

The last surveys underline that the basic features of industrial relations were not altered, but the data confirm the critical importance of the relationship between industrial relations and human resource management and also the fragility of this balance.     

Strategic human resource management,firm performance,and employee relations climate in China

We examined strategic human resource management (SHRM) and human resource practices in the People's Republic of China to assess the impact of these practices on firm performance and the employee relations climate. We also tested whether firm ownership moderates the above relationships. Empirical results from a sample of Chinese firms from various industries and regions showed that the levels of adoption of SHRM and HR practices were lower in state‐owned enterprises (SOEs) than in foreign‐invested enterprises (FIEs) and privately owned enterprises (POEs). Both SHRM and HR practices were found to have direct and positive effects on financial performance, operational performance, and the employee relations climate. However, the moderating effect of ownership type was significant for financial performance only. © 2008 Wiley Periodicals, Inc.     

Perspectives on line managers in human resource management: Hilton International's UK hotels

Although contextual factors act to encourage the devolvement of human resource management to line managers, recent research indicates that there is substantial potential for human resource specialists and line managers to share more effectively responsibility for their organization's human resource activities in business partnerships. The foundation for this is arguably commonality in opinions on the principles and practices of human resource activities. However, line managers and human resource specialists often have dissonant opinions on human resource management.

This paper explores line manager and human resource specialists' perspectives on line manager involvement in human resource management, theoretically and empirically. The primary work comprises a survey of the views of line managers and human resource specialists on devolving a range of human resource activities to line managers in a case organization, Hilton International's UK hotels. Differences between line managers' and human resource specialists' perspectives are found in five aspects: understanding and ownership of the company's service and HR strategy; line manager involvement in and rankings of HR activities; HR specialists' support of line managers; barriers to line managers' involvement in HR activities; and the competence of line managers in HR activities. Importantly, it is found that where there are divergent views across line managers and their HR specialist in their hotel there is poor hotel business performance and, conversely, convergent views are evident in the effectively performing hotels. These findings may have resonance for other organizations in devolving human resource management to the line and developing human resource business partnerships for business performance. It is proposed that three types of line manager buy-in are central to their active involvement in HR, namely: conceptual understanding of the rationale for their involvement; implementation effectiveness through HR role clarity and capability; and affective commitment in believing in the value of their involvement in HR.     

Changing patterns of human resource management in contemporary China: WTO accession and enterprise responses

This study examines the increasingly complex challenges facing human resource management (HRM) in China following the country's accession to the WTO and, consequently, the implications for further reform of government policy and enterprise‐level HRM practices. The article concludes that current HR practices among enterprises vary depending on ownership, industrial sector, location and history. The direction of future changes may depend on the level of involvement from external forces as well as internal strategies adopted by Chinese enterprises to survive.     

The labour relations heritage and lean manufacturing at Fiat

The objective of the paper is interpreting, from an evolutionary perspective, recent developments of work organization and human resource management policies at Fiat Auto, one of the world's largest automobile manufacturers, which achieved a successful restructuring in the early 1990s. Building on a heritage of adversarial labour relations and ‘mass production’ organizational principles, Fiat developed an original and to some extent hybrid version of ‘lean’ human resource management practices (teamwork, flexible compensation, multi-skilling, etc.).

The paper analyses this process of organizational change from an evolutionary perspective based on the concept of dynamic capabilities. From this standpoint, IR. HRM and work organization practices are the result of a learning process, based on original development, imitation, analogical replication, combination and selection of organizational capabilities; organizational capabilities have a cumulative and path-dependent nature; workplace innovations are also rooted in organizational absorptive capacities, that is, the ability of firms to exploit new (and often extramural) organizational and HRM developments; the existence of complementarities among organizational competencies, assets and choices in term of HRM are likely to push toward the adoption of a set or system of (rather than single and insulated) innovations in work organization, HRM practices and industrial relations policies.

The data provided in the paper show that the process of innovation of workplace practices at Fiat Auto (summarized by the concept of the Fabbrica Integrata) is curiously non-linear. The newly designed HRM policies have, on the one hand, been resisted by the unions (who have not been involved in the design process) and by segments of the work-force; on the other hand, they have been hindered by existing organizational features and personnel practices which, in turn, were key success factors during the 1980s. This inertia is significantly lower at the new greenfield plant of Melfi. On the whole, the restructuring process was successful from the competitive and financial standpoint, and represents the basis on which management and the unions can develop a new co-operative model of industrial relations.     

The organizational choice of human resource management practices: a study of Chinese enterprises in three cities in the PRC

This study examined the effects of an organization's contextual variables on the choice of human resource management (HRM) practices to secure, nurture, reward and retain managerial employees. The contextual variables included organizational characteristics (ownership, age and size), on the one hand, and its competitive strategies (innovation, quality and cost) and the strategic role of the human resource function, on the other. Data were collected through a questionnaire survey of general managers and human resource directors from 326 joint ventures and state-owned enterprises located in Shanghai, Nanjing and Guangzhou, three major cities in China. Using structural equation analysis, we examined both the direct and indirect effects of the contextual variables on HRM practices. The indirect effects were measured through the strategic role of the human resource function. Results indicated that ownership and the strategic role of the human resource function were key variables in explaining an organization's choice of HRM practices. Age and size of the organization had limited effects. Compared with cost and quality strategies, the innovation strategy affected HRM practices, both directly and indirectly, indicating the increasing dynamism of the Chinese economy in its move towards a market orientation.     

中国石油企业战略人力资源管理探究

中国石油企业加强战略人力资源管理对企业持续有效发展起着至关重要的作用。从战略人力资源管理的含义入手,结合石油企业当前人力资源管理现状,分析中国石油企业战略人力资源管理存在的问题,提出当前中国石油企业战略人力资源管理对策。     

How effective human resource management promotes corporate entrepreneurship: evidence from China

Strategic human resource management (SHRM) represents a set of HRM practices that are aligned with firm strategies. The relationship between SHRM and organizational performance has been extensively examined; however, whether and how SHRM influences corporate entrepreneurship remains unknown. Based on the resource-based perspective, this study examined a model linking SHRM with corporate entrepreneurship. The importance of HRM people's political skill for a firm's development of devolved management through SHRM implementation was also examined. Data from a survey of 201 Chinese manufacturing firms confirm a significant relationship between SHRM and corporate entrepreneurship and that the relationship is partially mediated by a devolved management style. The relationship between SHRM and devolved management was shown to be stronger for firms with more politically skillful HRM people.     

Local complexities and global uncertainties: a study of foreign ownership and human resource management in China

Drawing on qualitative data, this paper examines developments in human resource and employment policies and practices among a sample of joint venture and wholly owned foreign enterprises operating in China. The research reveals that the effects of parent company nationality and ownership form were most visible in the areas of remuneration, worker representation and aspects of employee selection. There was, however, little overt involvement of multinational parent companies in the management of human resources of their Chinese operations. The trend was towards indirect reporting relationships with regional sub-units of multinational companies rather than direct links with the parent headquarters. Overall, these intermediate sub-units were playing an important role in the integration of Chinese business units in the global management systems of multinational companies.     

Hiring for Networks: Social Capital and Staffing Practices in Transitional China

This article investigates how firms’ use of social capital criteria in staffing practices has been affected by China's transitional institutional environment and explores the impacts of person‐job fit in the social capital dimension on employees’ performance. Empirical results show that non‐state‐owned enterprises set a higher social capital standard in the hiring process than state‐owned enterprises. Foreign‐invested enterprises outperform other firms in promoting a better match between individuals rich in social capital and the positions that need such resources. In places with intensive market competition, foreign and private enterprises pay even more attention to employees’ social capital when making HR decisions. Moreover, a better match between people and positions from a social capital aspect has a positive impact on employees’ performance. Theoretical and managerial implications are discussed. © 2015 Wiley Periodicals, Inc.     

中国工业全要素生产率与结构演变：1990~2013年

本文测算了1989~2013年工业分行业的增加值、劳动投入、资本存量,利用随机前沿分析（SFA）计算1990~2013年分行业的全要素生产率（TFP）,进而估计工业所有制结构变化对工业TFP增长的效应。本文发现,在考察期内,只有技术进步基本保持了持续增长,配置效率改善在2000年以后明显放缓;工业所有制结构变化显著提高了工业TFP增长率,但对技术进步的作用不显著;将考察期划分为两个阶段后发现,后一阶段所有制结构变化对TFP的促进作用明显小于前一阶段。工业改革的重点在于促使资源合理、自由流动,创造公平的市场环境,为工业TFP增长释放更大的空间。     

New forms of ownership and human resource practices in Vietnam

In 1986, the government of Vietnam commenced the move from a centrally planned system to a market‐oriented economy with a multisectoral economic structure and a multiownership system.This process, known as Doi Moi, has had a major effect on the economic and social fabric of Vietnam. Although the body of research on this topic has grown, few studies have explored the effect of these economic changes on the internal operations of enterprises. In particular, little is known about the relationship between these new forms of ownership and how enterprises structure their human resource management. This article seeks to explore this relationship through detailed case studies of 32 enterprises covering the range of ownership types.The findings reveal a diversity of human resource management practices, but certain practices are now more prevalent in particular types of enterprises; human resource management remains the overall exception. The article concludes by considering the theoretical and practical implications of these results for economies undergoing transition. © 2008 Wiley Periodicals, Inc.