ABSTRACT

Organizations operating in China should pay attention to the aspect of change in the design and development of appropriate human resource management (HRM) strategies to address the needs of different cohorts of employees. Recognizing the impact of contextual factors on HRM effectiveness is important for examining strategic HRM (SHRM) adoption and adaption in China. This chapter discusses the evolution and development of SHRM and its application to organizations particularly operating inside China. It outlines the China context with an analysis of its social, political, economic and legal contexts. For instance, from analyzing the dataset collecting in the 1990s, C. C. Chen and A. M. Francesco found that Chinese employees generally behaved quite differently from their western counterparts because of cultural differences. HRM challenges are imposed naturally through the change of social values and cultural norms as a result of economic development in China and the rising influence of China on the global stage.