The content and effectiveness of a human resource management system needs to be understood in a certain management context. However, research on strategic human resource management in China has largely ignored the local realities. In response, we develop and test a model of China based effective HRM system rooted in the local management context. Results show that the China based effective HRM system is a ‘hybrid system’ consisting of both commitment and control HR practices, and has much more significant positive effects on firm performance compared with American-style high-commitment and high-involvement work practices.
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