Abstract
In the system of market economy, human resource management in family firms is facing with a series of problems such as high employee turnover rate and so on. The reasons leadiing to those problems are unplanned recruitment, lack of training and career planning, defective incentive mechanism, contradiction between family members and nonfamily members. Employee psychological contract is dicided into transaction dimension, relation dimension and development dimension. Transaction dimension includes competitive salary, performance payment, long-term incentive, etc. Relation dimension includes job autonomy, good work direction, harmonious work atmosphere, etc. Development dimension includes relevant professional training, internal promotion, encourage innovation, etc. Aimed for those problems, this paper analyses the situation and puts forward constructive suggestions combining with the psychological contract theory.
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