ABSTRACT
In this research study, we investigate how human resource management (HRM) function and practices have evolved in firms in China. This evolution has been triggered by the challenge of an increasingly competitive environment brought about by economic reforms, and a series of subsequent reforms in corporate governance and ownership structures, especially after China's accession to the World Trade Organization (WTO) in 2001 (Warner 2004; Warner and Zhu 2004). The present study examines the extent to which devolvement, as part of strategic HRM, is practised in firms operating in China, and the consequent effect on firm performance. First, we review the strategic HRM literature, particularly the literature with a focus on the devolvement of HR practices, in the context of changes in the Chinese business environment, and with reference to prior research on strategic HRM research in China. Second, we present the results of our survey conducted in China. Finally, we consider the implications of the research findings for HRM scholars and practitioners. This research has important implications for HRM practitioners, especially those in the increasing number of foreign firms operating or planning to operate in China.
