Skip to main content
Log in

China's Labour-Management System Reforms: Breaking the ‘Three Old Irons’ (1978–1999)

  • Published:
Asia Pacific Journal of Management Aims and scope Submit manuscript

Abstract

This article systematically examines the fundamental changes that have taken place in China's labour-management system since China embarked on its economic reforms in 1978. The system was, from the 1950s onwards, characterized by what were called the ‘three old irons’, i.e. life-time employment (the ‘iron rice bowl’), centrally administered wages (the ‘iron wage’), and state-controlled appointment and promotion of managerial staff (the ‘iron chair’). This study reviews the degree to which the reform process is breaking these ‘three old irons’ and is arguably replacing them with a ‘hybrid’ human resource management model, albeit with ‘Chinese characteristics’, that reflects the influence of foreign multinational corporations (MNCs) that have invested in China.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Bian, Y.J. (1994). “Guanxi and the Allocation of Urban Jobs in China.” The China Quarterly 140, 971-999.

    Google Scholar 

  • Brown, D.H. and M. Branine (1996). “Adaptive Personnel Management.” In D.H. Brown and R. Porter (eds.), Management Issues in China: Domestic Enterprises. London: Routledge.

    Google Scholar 

  • Byrd, W.A. (ed.). (1992). Chinese Industrial Firms under Reform. Oxford: Oxford University Press.

    Google Scholar 

  • Cheng, L.C. (1992). Actively and Stably Promote the Reform of Three Systems in Enterprises, Collection of Experience: The Reform of Labour/Personnel, Wage Distribution, and Social Insurance Systems in 100 State Enterprises, Beijing: China Labour Press, pp. 23-30.

    Google Scholar 

  • Ding, D.Z., K. Goodall, and M. Warner (2000). “The End of the 'Iron Rice Bowl'? Whither Chinese Human Resource Management.” International Journal of Human Resource Management 11, 217-236.

    Google Scholar 

  • Dong, W.L. (1995). “Setting up the Managerial Labour Market.” China's Human Resource Development (Zhongguo Renli Ziyuan Kaifa) 3, 11-13.

    Google Scholar 

  • Gan, D.A. and L. Lu (1997). “The Growth of Entrepreneurs under the Modern Enterprise System.” Academic Journal of Graduate School, Chinese Academy of Social Sciences 5, 25-31.

    Google Scholar 

  • Han, J.W. and M. Morishima (1992). “Labour System Reform in China and its Unexpected Consequences.” Economic and Industrial Democracy 13, 233-261.

    Google Scholar 

  • Henley, J.S. and M. Nyaw (1987). “The Development of Work Incentives in Chinese Industrial Enterprises-Material versus Non-material Incentives.” In M. Warner (ed.), Management Reforms in China. London: Frances Pinter and New York: St. Martin's Press.

    Google Scholar 

  • Holton, R.H. (1990). “Human Resource Management in the People's Republic of China.” Management International Review (special issue) 30, 121-136.

    Google Scholar 

  • Howe, C. (1973). Wage Patterns and Wage Policy in Modern China 1919-1972. Cambridge: Cambridge University Press.

    Google Scholar 

  • Kaple, D.A. (1994). Dream of a Red Factory: The Legacy of High Stalinism in China. Oxford: Oxford University Press.

    Google Scholar 

  • Korzec, M. (1992). Labour and the Failure of Reform in China. London: Macmillan and New York: St. Martin's Press.

    Google Scholar 

  • Lin, J.Y., F. Cai, and Z. Li (1996). “The Lessons of China's Transition to a Market Economy.” Cato Journal 16, 201-231.

    Google Scholar 

  • Luo, Y., M. Tan, and O. Shenkar (1998). “Strategic Responses to Competitive Pressure: The Case of Township and Village Enterprises in China.” Asia Pacific Journal of Management 15, 33-50.

    Google Scholar 

  • Luo,Y., M. Tan, and O. Shenkar (1999). “Township and Village Enterprises in China-Strategy and Environment.” In L. Kelley and Y. Luo (eds.), China 2000, Emerging Business Issues. Thousand Oaks, CA: Sage Publications, Inc.

    Google Scholar 

  • Manion, M. (1985). “The Cadre Management System, Post-Mao: The Appointment, Promotion, Transfer and Removal of Party and State Leaders.” The China Quarterly 102, 203-233.

    Google Scholar 

  • Naughton, B. (1995). Growing out of the Plan: Chinese Economic Reform 1978-93. Cambridge: Cambridge University Press.

    Google Scholar 

  • Ng, S.H. and M. Warner (1998). China's Trade Unions and Management. London: Macmillan and New York: St Martins Press.

    Google Scholar 

  • Perotti, E.C., L. Sun, and L. Zou (1999). “State-Owned Versus Township and Village Enterprises in China.” Comparative Economic Studies 41, 151-179.

    Google Scholar 

  • Qian, S.M. (1997). “The Process and Periods of the Wage System Transition in the State-Owned Enterprises.” The Economists (Jingji Xuejia), in Chinese, 2, 32-37.

    Google Scholar 

  • Rui, G.Z. (ed.). (1988). Chinese Labour Policies and System (Zhongguo de Laodong Zhengce he Zhidu). Beijing: Economic Management Press.

    Google Scholar 

  • State Statistical Bureau (1985). Statistical Yearbook of China (Zhongguo tongji nianjian). Beijing: China Statistical Information & Consultancy Service Centre.

    Google Scholar 

  • State Statistical Bureau (1995). Zhongguo Tongji Zaiyao 1995 (A Statistical Survey of China 1995).

  • SICE (1995). “Investigation and Analysis of Behavioural Characteristics of Current Stage of Entrepreneurs.” Management World (Guanli Shijie) 3, 153-163.

    Google Scholar 

  • Tung, R.L. (1982). Chinese Industrial Society after Mao. Lexington, Massachusetts: Lexington Books.

    Google Scholar 

  • Von Glinow, M.A. and M.B. Teagarden (1988). “The Transfer of Human Resource Management Technology in Sino-U.S. Cooperative Ventures: Problems and Solutions.” Human Resource Management 27, 201-229.

    Google Scholar 

  • Wang, X. (1997). “Wage Guideline-Practices and Problems.” China Labour Daily (Zhongguo Laodong Bao) Feb. 4, p. 1.

  • Wang, Q., C.H. Guo, and Z.L. Ma (1995). “The Preliminary Exploration of how to Establish a Modern Enterprise Personnel System.” China's Personnel (Zhongguo Renshi) 6, 28-29.

    Google Scholar 

  • Warner, M. (1995). The Management of Human Resources in Chinese Industry. London: Macmillan and New York: St Martins Press.

    Google Scholar 

  • Warner, M. (1996). “Economic Reforms, Industrial Relations and Human Resources in the People's Republic of China: An overview.” Industrial Relations Journal 27, 195-210.

    Google Scholar 

  • Warner, M. and S.H. Ng (1999). “Collective Contracts in Chinese Enterprises: A New Brand of Collective Bargaining under 'Market Socialism'.” British Journal of Industrial Relations 37, 295-314.

    Google Scholar 

  • Warner, M., K. Goodall, and D. Ding (1999). “The Myth of Human Resource Management in Chinese Enterprises.” Asia Pacific Business Review 5, 223-237.

    Google Scholar 

  • Weitzman, M. and C. Xu (1994). “Chinese Township-Village Enterprises as Vaguely Defined Cooperatives.” Journal of Comparative Economics 18, 121-145.

    Google Scholar 

  • Xu, J.W. (1982). On 'to Each According to His Work'(Lun Anlao Fenpei). Beijing: China Social Science Press.

    Google Scholar 

  • Yan, H. (1995). “Organizational Hierarchy and the Cadre Management System.” In C. Lee and S. Zhao (ed.), Decision-Making in Deng's China-Perspectives from Insiders. New York: M.E. Sharpe Inc.

    Google Scholar 

  • Yang, D. (1990). “Patterns of China's Regional Development Strategy.” The China Quarterly 122, 230-257.

    Google Scholar 

  • Yip, G.K.B. (1996). “Labour-Management in Domestic and Foreign Investment Enterprises.” In J. Smith and M. McFadden (ed.), Employment in China. Hong Kong: THC Press Limited.

    Google Scholar 

  • Yuan, L.Q. (ed.). (1990). History of China's Labour Economy (Zhongguo Laodong Jingjishi). Beijing: Beijing Institute of Economics Press.

    Google Scholar 

  • Zhu, J.Z. (1992). Jiwang Kailai, Shenhua Gaige', Speech to the Association of Chinese Labour on Jan.16, 1992, in Comprehensive Handbook of Chinese Reform (Zhongguo Gaige Quanshu)-Volume on Labour and Wage System Reforms, vol. 6. Dalian: Dalian Publishing House.

    Google Scholar 

  • Zhu, Q.F. (1993). “Probing the Tendency of China's Personnel System Reform in the 1990's.” Labour Economy and Personnel Management (Laodong Jingji yu Renshi Guanli), 11, 58-62.

    Google Scholar 

  • Zhu, L.X. (1997). “The Emergence and Development of China's Labour Market in 1996.” Reference Materials for Economic Practitioners (Jingji Gongzuozhe Cankao Xuexi Ziliao) 46, 3-13.

    Google Scholar 

  • Zhu, C.J. and P.J. Dowling (1994). “The Impact of the Economic System upon Human Resource Management Practices in China.” Human Resource Planning 17, 1-21.

    Google Scholar 

  • Zhuang, Q.D. (1994). “Employment, Wage Distribution and Social Insurance.” In G.M. Luo (ed.), Ten Research Projects: Speeding up Reforms and Promoting Socialist Economic Construction in China (Shige Zhuanti Diaocha Yanjiu), Dalian: Northeast University of Finance and Economics Press.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Ding, D.Z., Warner, M. China's Labour-Management System Reforms: Breaking the ‘Three Old Irons’ (1978–1999). Asia Pacific Journal of Management 18, 315–334 (2001). https://doi.org/10.1023/A:1010697711514

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1010697711514

Keywords

Navigation