ABSTRACT
This chapter addresses the research question on ‘how has strategic human resource management (HRM) impact on individual creativity and innovation at the firm level in the context of China?’ It discusses the link of strategic HRM (SHRM) to individual creativity, organizational innovation and national competitiveness. In the domain of SHRM literature, it is clear that there exists a link between HRM practices and organizational performance that significantly contributes to sustained competitive advantage. HRM is fundamentally the management of work and people towards achieving desired ends of any organization in which human beings are employed, and arguably to be the predictor of innovation on one hand. SHRM on the other hand is all about management decisions and activities that affect the nature of the relationship between the organization and its employees. Control-oriented HRM is built to address priorities emphasized in environments where institutional pressures are strong, highly relevant to the China’s context.
