| In view of the phenomenon that talent drain in state-ownedenterprises has led to the decline in their core competitiveness, this thesisconducts an in-depth analysis into the current situation of human resourcesmanagement (HRM) in China, taking into consideration the factors of internaland external environment, the emergence and development of HRM.Meanwhile the author elaborates on the major reasons for talent drain instate-owned enterprises and the impact on both the enterprises and theiremployees. Taking China POTEVIO as an example, this thesis highlights theimportance of establishing a strategic HRM system in order to retain the keytalents. The establishment of a strategic HRM System is conductive forenterprises to conduct better HRM planning from a strategic perspective, toensure the alignment between HR strategy and organizational strategy. In thisway, HR department will function more specifically with a clear direction inrecruitment, training, encouragement through salary and bonus, performanceappraisal and career development for the employees, and thereby retainingkey talents to realize the strategic goal of the enterprise.This thesis also reviews misconceptions with regard to humanresource management, arguing that enterprises should develop a holisticunderstanding of HRM concept and adopt appropriate attitudes towards issueslike employee turnover. In the efforts to keep their key talents, enterprisesshould also learn from those who quit for future improvement. |