1.1 Background Information
Upon the background of economic globalization, the enterprises have to operate in an increasingly complex environment and have to face more intense competition that is not only the domestic market but also from the global market. In the past, the competition between enterprises is mainly focused on the traditional 4Ps such as product, price, promotion and place. But with rapid development and the intense competition in the market, these aspects have become gradually similar to the enterprises in the same industries. So the emphasis of the competition between enterprises has changed from the traditional 4Ps to other key aspects of the enterprise such as internal management .
Internal management has been an important issue to the development of the enterprise and it has been one of the key factors to influence the success of the enterprise in the market, because it is very important to improve the efficiency of the enterprise through effectively managing various kinds of resources of the enterprise (Mathis and Jackson, 2006). Generally an enterprise has many different resources such as raw materials, technologies, brand, channels and human resource and so on, and these resources have the important effect on the operation and performance of the enterprise.
According to Storey (2007), humans are an organization’s greatest assets, and everyday business functions of an enterprise such as managing cash flow, making business transactions, communicating through all forms of media and dealing with customers could not be completed without humans. So the management of human resources plays an increasingly important role in the enterprises. Human resource management (HRM) is responsible for how people are treated in the organization, and it is not only responsible for bringing people into the organization but also responsible for helping them perform their work, compensating them for their labors and solve problems for them (Storey, 2007). Generally HRM includes five main functions of recruitment and selection, training and development, motivation and performance appraisals, compensation and benefits, and employee and labor relations (Mathis and Jackson, 2006).
The development of HRM practices in China is behind the development of them in the western developed countries, and most of Chinese enterprises haven’t paid enough attention to the issue of human resource management (Pieper, 2000). But with more and more Chinese enterprises joining into the competition of the global market, they begin to realize the importance of human resource management. Many Chinese enterprises learn from international literature of HRM and try to apply international HRM theories and models in their operation and management in China. But this many face many problems because of the different environments and cultures in China so that it is important to find out the suitable HRM models and strategies to the development of Chinese enterprises (Pieper, 2000).
In the past, people generally pay attention to the operation or performance of large enterprises such as multinationals especially under the background of economic globalization. But in recent years, the development of small and medium-sized enterprises (SMEs) has attracted more attention from the society and much research has been done to investigate the aspects relating to the development or performance of SMEs because of the increasingly important role of s
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