An empirical study of human resource management policies and practices in foreign-invested enterprises in China: the case of Shenzen Special Economic Zone

Abstract

Information about human resource management (HRM) practices in foreign-invested enterprises (FIEs) in China has been limited to studies involving a small number of cases. This study provides an empirical assessment of HRM practices used in 158 FIEs operating in Shenzen Special Economic Zone (SEZ) of the Guangdong Province in southern China. Results suggest that FIEs have moved away from centrally planned job allocation, life-time employment and egalitarian pay towards open job markets at management and non-management levels, contractual employment where pay and longevity are based on individual worker and company performance and compensation plans that recognize differences in skills, training and job demands. These practices seem to reflect the influence of the economic reform in China. Other aspects of HRM practices used by FIEs, such as approximate equality of pay for men and women, limited differences between management and non-management salaries and widespread provision of housing and other benefits for employees, seem to reflect the influence of the Chinese socialist ideology.

Keywords:

• Human Resource Management
• Foreign-invested Enterprises In China
• Economic Reform
• Joint Ventures
• State-owned Enterprises