New China – old ways?

Abstract

This paper attempts to evaluate the extent to which the introduction of human resource management (HRM) practices in Chinese state‐owned enterprises (SOEs) is likely to boost the organisations’ performance in the way in which the advocates of HRM bundles claim. It has examined the organisational context of one SOE in particular and analysed the literature on people management in Chinese organisations in general. The HRM practices covered are: recruitment, selection and staffing; compensation and benefits; employee training and development; and employee relations. The paper examines the problems raised in the literature and evaluates the extent to which these seem apparent in the organisation. The study concludes that considerable caution must be exercised in assuming that the introduction of coherent bundles of HRM practices would boost organisation performance. However, the picture that emerges is not wholly depressing for the Chinese economy. A high degree of interest in management education and remarkable industry and enthusiasm among young workers provided grounds for optimism.

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