Economic reform,ownership change and human resource management in formerly state-owned enterprises in the People's Republic of China: A case-study approach

Abstract

At the macro-level, economic reform in the PRC since 1978 has led to the implementation of a multi-ownership system. The consequent transformation of Chinese formerly state-owned enterprises (SOEs) has been a major way of improving efficiency and increasing competition. However, the restructuring process has been almost always accompanied by controversy, particularly vis a vis a balance between improving efficiency and competitiveness of businesses on the one hand, and developing harmonious labour-management relations on the other. This article exemplifies the evolution of SOEs from a human resource management (HRM) perspective by using a case-study approach with three illustrative examples of SOE transformation. Our main finding is that there was no ‘one-size-fits-all' solution to SOE reform and that there were alternative ‘strategic choices' vis a vis both ownership form, as well as HRM.