The 'Myth' of human resource management in Chinese enterprises

This study examines changing labour-management practices in China's state-owned enterprises (SOEs) in comparison with those in joint ventures (JVs). Based on a sample of 62 firms in seven Chinese major cities, it explores the degree to which HRM practices are a 'myth'. The researchers carried out semi-structured interviews with managers and other employees at all levels. The role of trade unions and workers' congresses are also examined. The results show that the ownership type, size of the firm, and its location are important factors affecting the extent to which these enterprises have adapted to market-oriented HRM practices. The study concludes that most firms have not fully made this adaptation, and that even where it has been taken up, it has in many cases only been done so partially due to organizational inertia, amongst other factors.