Paternalistic HRM System:Research Of Its Applicable Context And Trend Of Reform

Traditional single human resource practice has replaced by integrative human resourcebundle in many firms of different countries to use their restricted resource effectively toimprove their competition advantage to accommodate severe competition according to fastdevelopment of globalization. Human resource management (HRM) practices in giantcompanies of western and eastern countries are broadly applied to middle or small enterpriseswhich are in development phase.However, more and more scholars have found out thatthere’s no "general best practice" in HRM,we should consider the context.Korean scholar has investigated their enterprises and pointed out that "control model"should divided into two different types: cost model and paternalistic model. And there’sevidence that paternalistic model has been used in different firms of western or easterncountries. Although some eventually abandoned this model, paternalistic model still work inAsian countries which based on "Confucian" culture.This study aims to find out what kind of context fits paternalistic human resourcemanagement system and in the process of the transformation of organization reform wheredoes it go. Through scholars’ papers and their empirical research, we summarized thecharacteristics of paternalistic human resource management practices. In terms of availableresource perspective and institution perspective, we brought out three key factors to affect thechoice of HRM system: organization size, organizational life cycle and organization structure.To test the correlativity between paternalistic HRM system and context, we use samplecomposed of private enterprises and family enterprises from Yangtze River Delta and PearlRiver Delta in China.The main conclusions are:(1) compared to a large or midium-sized enterprise, a smallone will be more strongly associated with paternalistic HRM system;(2) compared to thegrowth stage, success stage, reproductive stage or degenerative stage, the beginning stage willbe more strongly associated with paternalistic HRM system;(3) compared to a low centralizedenterprise, a highly centralized one will be more strongly associated with paternalistic HRMsystem;(4) compared to a highly normalized enterprise, a low one will be more stronglyassociated with paternalistic HRM system;(5) in the process of reform paternalistic modelwill likely transform to a involvement model or investment model or involvement-controlmodel.