Managing human resources in SMEs in a transition economy: evidence from China

Abstract

The objective of this study is to explore the changing nature of people management on the under-researched area of small and medium-sized enterprises (SMEs) in China. A mix of research methods, which combined a survey approach with in-depth, semi-structured interviews, was adopted. The major characteristics of people management in China's SMEs were then identified. Problems and difficulties that may occur during HRM take-up were illustrated. Key factors influencing the nature of people management in China's SMEs were highlighted. People management in SMEs in China was compared and contrasted with Western HRM models. The findings indicate that a relative convergence with Western HRM practice, although one that is strongly influenced by unique ‘Chinese characteristics’, will be the trend of development of people management in China's SMEs. The study leads to a better understanding of SMEs in China and helps fill some of the gaps in the analysis of management in China. Since, in the presence of cultural disparities, organizational practices and their effectiveness may differ from those in the West, the findings of the study contribute not only to the development of SMEs, but also to the debates of possible convergence or continuation of differences in management practice worldwide.