ingency” is more applicable in the sense they emphasize more on external factors as determinants of designing HR policy and practice.In the context of Chinese enterprises, it is assumed that elements or ‘bundles’ of best (or better) practice of HRM would be those practices that concern: selection of suitable staff from market, not allocated by the state as the planned system exercised previously; provision of incentive reward systems by at least linking performance with payment, and practicing effective welfare scheme that will promote retention of best staff, instead of having standardized rigid wage system and ‘cradle to grave’ social welfare system (Goodall and Warner, 1997); training and development of competent and skilled workers on on-going basis to match job descriptions & requirements rather than zhuang ye bu dui kou - work in the area with no special skills; increasing level of transparency by exercising institutionalized performance appraisal to promote staff in stead of promotion of staff based on superiors’ personal opinions toward and relationship with subordinates as well as the length of services in firms, also by overall flow of management communication to encourage staff participation in management instead of having only Party’s authoritarian leadership over enterprise management; exercising appropriate labor union’s power to create cohesion and to truly protect staff (workers) interest and clarify labor management relationship.HRM is a strategic and systematic approach to managing people in a way that would maximize their motivation and contribution towards meeting the organization's objectives. HRM differs from the traditional personnel management in that personnel management is much narrower and more clerically oriented. To get a clear idea of what HRM is, let’s look at the following graph: III) Why HRM Reform Is Proposed? Things are different now. Great changes...
