Establishment & Study On Strategic Human Resource Management System Of Yuntianhua Co., Ltd.

Since 1990s, national personnel system has been reformed. The reform is represented by flexible employment mechanism, mechanism of using talented personnel and 3P (Position, Performance and Power) based distribution mechanism, which raises challenges on the conventional personnel management mode of state-owned companies. The personnel system reform was started from industries with higher marketization degree, and covers the large scale state-owned companies after being practiced for some years. Now it becomes the reform focus of large scale state-owned companies. HR reform of state-owned companies is initiated by national personnel system reform and catalyzed by marketing process. After some significant events, such as China's participation in WTO and Western Development Program etc., the large scale companies obtain development opportunities and are also faced with more market competitions. The conventional human resource management is characteristic of static "file management". However, being faced with the changing market economy, the human resource management must be well planning and innovative so as to meet requirements of rapid development of the companies.Both national personnel system reform and rapid marketing process require reforming the human resource management of state-owned companies. The human resource system of large scale companies has been reformed, i.e. previous personnel department has been changed into human resource department; modern human resource management concepts, system, solutions and methods are incorporated. The establishment of human resource system which is suitable for stated-owned companies and market competition will facilitate the company to obtain competition advantage from strategy point of view; however, it's also a significant issue to be solved.By taking Yuntianhua as an example, the paper studies the establishment of strategic human resource management system, and aims to summarize suitable ideas and solutions for reforming and upgrading human resource management of state-owned companies. The paper consists of the following five chapters. Chapter 1-Introduction -- mainly presents the basis of topic selection, the aim and significance of the study, the ideas and main contents. Chapter 2-Comprehensive Descriptions of Study about Strategic Human Resource Management-as theoretic basis of the whole paper. The development history of human resource management, the background of booming of strategic human resource management, the connotation and feature as well as theoretic model are mainly studied in this chapter. Chapter 3-Analysis of Yuntianhua's Human Resource Management System-the shortage of conventional human resource management system of Yuntianhua, the new situation and requirements for human resource management are analyzed. Chapter 4-Establishment of Strategic Human Resource Management of Yuntianhua-the basis, main contents of strategic human resource management of Yuntianhua as well as dynamic match and adjustment process as per company's strategy are expatiated and analyzed, then the execution strategy, achievements and further improvements are summarized and analyzed. Chapter 5-Conclusions. By analyzing and studying the strategic human resource management system of Yuntianhua, the conclusion is reached that the strategy, culture and environment are three essential considerations. Based on the actual situation of the companies, taking multi-step and multi-level execution strategies is effective way for the companies to change conventional personnel management into modern human resource management.