Evolution of organizational governance and human resource management in China's township and village enterprises

Abstract

This study reviews the evolution of organizational governance and human resource management practices in China's non-state sector, with a focus on China's township and village enterprises (TVEs). The empirical investigation on twenty TVEs located in Southern China provided the evidence that, as enterprises move towards a more formal corporate governance structure with clearer property rights relations, their human resource management practices tend to become more marketized, in order to meet the challenge of increased competition in the highly dynamic, transitional Chinese economy.