ABSTRACT
HRM in China is as new as its market economy, with its traditional personnel administrative system undergoing a period of profound change. This chapter first outlines the historical development in personnel management and the role of trade unions and the Workers’ Congress in China. It then analyzes the legislative, social, cultural and business factors that shape the HRM practices in terms of recruitment, training, working-time arrangements and pay. This is followed by a discussion of the major changes in recent years in the HR functions such as recruitment and performance appraisal. The chapter then contemplates key challenges facing HRM in China, notably the thorny issue of motivation-performance-reward, skill shortage and its associated problems of recruitment, retention and training, and the absence of strategic HRM. The chapter finally explores the implications of all these for HRM functions in the near future.
