Change and development in pluralistic settings: an exploration of HR practices in Chinese township and village enterprises

Very few systematic studies have been conducted on the managerial practices of Chinese Township and Village Enterprises (TVEs) despite their increasin g contributions to China's economic development. Focusing on the FIRM pract ices in ten different TVE organizations in a new city in Southeastern China , this study aims at filling a gap in the literature by exploring the gener al HRM practices in those organizations. Results show that HRM practices in TVEs, although still relatively primitive compared to those in state-owned enterprises (SOEs), have been much more formalized recently. Employees are now mostly selected rather than referred by existing employees or 'guanxi' as they were previously. New employees in many large TVEs are now trained through formal procedures rather than through apprenticeships, and pay is t ightly linked to performance and skill levels. However, in smaller TVEs, HR practices are less formalized. The study points out that the firm size may be an institutional factor affecting the implementation of formal HRM prac tices. Yet, regardless of the form of personnel management, HRM practices a re shown to be a very important factor in the economic success of TVE firms . Further studies are necessary to understand HRM and other managerial prac tices in TVEs and to test the relationships between HRM practices and firm performance among the TVEs.