management. Obviously, both the 2 parts are related to the management of human resource. Since the beginning of the reform policy, the underdeveloped human resource management has negatively deteriorated the difficulty of SOE's. As we know, even now, talent drainage has often happened in SOE's, not to mention after the entry of WTO. WTO membership means a fair and open competition stage for both MNCs and SOE's. And the Chinese government can no longer protect the SOE's by special policy. Without a strengthened HRM, the SOE's will lose to the foreign companies coming to China in the hot competition of attracting elite. The success experience of some foreign companies has shown us the significance of HRM .All difficulties are to be resolved by people, esp. talented people, no matter through what way. So, to some extend, the successful reform of HRM of SOE's is the gold key to the settlement of the difficulties SOE's face. The underdevelopment of HRM of SOE's has been caused by various factors, such as China's highly centralized economic planning system and inadequate development in liberal and vocational education. In order to reverse the situation, we must have a close look at the past and current human resource practice in China's public sector. Compared with the companies in the western countries, Personnel management in SOE's is immature. The traditional personnel management in SOE's is characterized by job security, guaranteed pay, and highly structured jobs, etc. But China continues the transition to a market economy, with changes occurring in work values, employment practices and HRM. The SOE's focus more on personnel administration than the integration of Personnel management with corporate strategy. The main characteristics of the traditional personnel management are as follows:i)Important decision rights are concentrated in the executive departments of the government. For example, enterprises are lacking of the power to make the...
