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Introduction

With the opening and incentive policies, developing economic globalization and international trade liberalize wield a significant influence in the development of Human Resource Management. Nowadays increasing numbers of companies consider that managing people within the organization is the important factors of companies to survive. It has become a common notion that an organization's greatest assets are its people. Human Resource Management, which concerns the management of personnel, is more often recognized as a fundamental element in any organization. Consequently, adopting the effective use of human resources, this could bring about many benefits to the organizations eventually making more profits. The aims of this paper are to give a brief view of the importance of the human resource management and explore how an organizationÐ'ÐŽÐ'Їs success is closely related to HRM and identify the factors wield a significant influence on HRM in China.

Definition of HRM

Human Resource Management (HRM) is that Ð'ÐŽÐ'opart of management that deals with people working in an organizationÐ'ÐŽÐ'± (Tan and Torrington 2004, p.2). It assists an organization satisfy their employeesÐ'ÐŽÐ'Ї needs from their work and gain competitive advantage by using its people effectively to meet clearly defined objectives. The aim of HRM is to maximize the productivity of a company by optimizing the effectiveness of its people to lead to organizational success (Lingham 2007)

Significance of HRM

The Human Resource department in today's businesses and organization is playing a more and more major and significant role in staffing, training, planning, and managing people in order for the business organization to perform up to its peak capability in a fulfilling manner (Lingham 2007)

First of all, the Human Resources Management function provides other managers with professional knowledge including important support, service and advice to help them to work effectively and achieve organization's business plan and its objectives. Secondly, good utilization of work force is assisted by Human Resource Management. HR department can gather large numbers of talented people and put them to the best use, making right people do right job, which would increase productivity, sequentially forming the competitive advantage for the companyÐ'ÐŽÐ'Їs business. In addition, it is entitled to utilize information. HR just like builds a two-way communication bridge contacting with subordinates and managers, and to perform a function of managing and conveying information (Tan and Torrington 2004) Beside to, according to Lingham (2007), when HRM in implementing programs that enhance communication and cooperation between individual workers in different department with the purpose of nurturing organizational development. Furthermore, the most important role of HRM is that it can have a great influence upon an organizationÐ'ÐŽÐ'Їs success. The HR professional, is needed by the line managers, to guarantee the ability to contribute and the viability of an organization, an HR manager for change must think of himself as a strategic partner. Due to the fact that other managers tend to follow the directions formulated by Human Resource department with their own ability to accomplish the firmÐ'ÐŽÐ'Їs goals (Tan and Torrington 2004)

In short, Human resource management is one of the key aspects of running an organization, and effective management of human resources is essential to success.

The Factors impact HRM

CompanyÐ'ÐŽÐ'Їs administrators but as well as the development of human resources management practice are affected by many situational factors classifying internal and external factors. The factors like workforce characteristic, business strategy and condition, management philosophy and task technology are belongs to the internal ones. To a certain extent, workforce characteristics present an organizationÐ'ÐŽÐ'Їs characteristics, which apparently influence on human resource management (Yuan, 2005) it includes personality, education qualification, and interpersonal relationship. If an organization are full of advanced academic degrees and skilled worker, combining with Hi-tech equipment, that can reduce the costs and enhance the productivity.

Wu, Graham and Zhang (2006) stated that interpersonal relationship (guanxi) is very significant to Chinese employees. Ð'ÐŽÐ'oChinese are very conscious of guanxi in constructing relationships, intensifying interpersonal bonds and building personal dependence. People try to work hard to maintain and extend these networks of contacts and personal relationships for whom they do favors and from whom they ask favors in returnÐ'ÐŽÐ'± (Wu, et al, 2006, pp.3) Without guanxi it is difficult to accomplish much, with it you can open doors and achieve a surprising number of things. Furthermore, every organization needs a clear and effective strategy to succeed and the manager is responsible for determining and implementing that strategy. CompanyÐ'ÐŽÐ'Їs development plan and procedures have an important effect on HRM practice, because it has the relation with planning, sourcing, training and all developing factors in this firm. Besides these, conditions of employment are considered other intrinsic factors. With the development of economy, peopleÐ'ÐŽÐ'Їs living standard increased a lot, and working conditions have already become an essential requirement for white-collar who seeking a job in China. In fact, nice working environment can bring worker good mood and stimulate them to perform better (Wu et al. 2006) Moreover, ChinaÐ'ÐŽÐ'Їs management philosophy has been great affected by Laozi, especially Ð'ÐŽÐ'otaking people as the basic factorÐ'ÐŽÐ'± management concept. That is commonly used in todayÐ'ÐŽÐ'Їs society (Zhang, 2005)

However, labour market, unions and laws and societal values are regarded as external context. According to Tan and Torrington (2004), labour market means the demand and supply of labour in some region. If tighter labour appears in some area, the local company must take measures; for example, attract people by high salary or change companyÐ'ÐŽÐ'Їs HRM policy, to meet with the situation. Furthermore, government policies wield significant influences in firmÐ'ÐŽÐ'Їs HRM. Taking Ð'ÐŽÐ'oThe Open Door PolicyÐ'ÐŽÐ'± in China as an example, it resulted in many great