A broad analysis of the predicaments that the private enterprises find themselves in, with respect to their human resource management, has been provided in the paper. It has been found that once the management deficiencies of the private enterprises get exposed, they cannot help in running the business efficiently. Several aspects reflect such deficiencies. Sometimes an enterprise expands rapidly and disproportionately to the management officials’ capacity. In such cases or due to various other reasons, the proper cohesion within the staffs decline. The contradiction arises between the short-term goal meeting policies and the necessity to make rational choices for the long-term benefit of the enterprise.
All these facts bring into the limelight the question of management of human resources within an enterprise. In the private enterprises of China, the understanding of the management of human resources remains restricted to the level of managing the general affairs in the company. The officials lack a deep understanding of human resources management and normally perform their duties by organizing and coordinating the affairs of the organization. They generally take things as the central object of importance and expect people to adapt to them.
The personnel is not given proper training and emphasis is put on the utilization of the person rather than on proper training. Besides, the supply of human resources has not grown at the same pace as the rapid development of private enterprise in recent years. The insufficiency of senior personnel in the managerial positions fails to impart the vigor and stamina to these small or medium-sized enterprises. In many cases, the enterprises are initially started by the combined efforts of the entrepreneurs’ families and friends.
When they develop over a period of time, they still remain a “ domestic workshop” (Zhao, Yuan & Guo, 2011, p. 233) in areas of policy-making. According to a survey, about 90% of the financial management of these enterprises is controlled by family members. 40% of the senior managers come from the family members or their friends (Zhao, Yuan & Guo, 2011, p. 233).
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