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A new form of Chinese human resource management? Personnel and labor-management relations
In Chinese township and village enterprises: a case study approach

Background
The success of economic reform in China has generated sustained rapid economic growth in the Chinese economy; the average GDP growth-rate in the last 20 years reached 10 per cent per annum (Clarke and Du, 1998), making China the fastest growing economy in the world. Although the output of state-owned enterprises (SOEs) increased significantly during this period, it was the explosive growth in industrial output of the collectively-owned enterprises (COEs), private enterprises (PEs) and others that significantly made the difference. COEs include urban and rural collective enterprises, and the latter are named as township and village enterprises, hereafter to be referred to as TVEs (Parotid et al., 1999). In this article, our theoretical point of departure is that such firms have greatly diversified their organizational structures and human resource management practices because of the property-rights and ownership reforms of the last two decades in particular, as well as the role played by the increasinglymarketised economy, more generally.

The nature of the TVE and the forms of organizational governance in TVEs has been the subject of debate (Byrd and Lin, 1990; Korana, 1992; Chang and Wang, 1994; Naughton, 1994; Singh et al., 1995; Raw ski, 1995; Bowles and Dong, 1999). As early as 1992, Korana argued that ‘the majority of rural collectively enterprises (TVEs) arête facto privately owned enterprises’. Wong (1996) and Pang and Heath (1996) also note that ‘private enterprises in China are often registered as collectively-owned firms’ in order to avoid the discrimination against private enterprises (PEs) in the early reform years or to take advantage of special tax-allowances, even after private enterprises were formally approved after 1984. However, not all the researchers accept this point of view. Weitzman and CSU (1994) describe TVEs as ‘vaguely defined cooperatives’, which are far from having a well-defined ownership structure. Different from the above opinions, Naught on (1994) and Raw ski (1995) argue that TVEs’property rights, even if ill-defined, are in practice clearly exercised by TVGs. Ho(1994) even suggests that ‘during 1980s, the relationship between TVGs and TVEswas similar to that between the state and SOEs in pre-reform periods’.

References
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