Family Firms And HRM

This thesis explores how Chinese culture and family control shape human resource management (HRM) in Chinese family firms. It argues that HR decisions are often influenced by relationships, trust, and family priorities, not only by formal rules. Based on a literature review, the thesis summarizes three common HRM patterns: relational HRM (flexible, relationship-based decisions), formal HRM (standardized rules and procedures), and hybrid HRM (a mix of both). The study links these patterns to key theories such as socioemotional wealth (SEW) and stewardship vs. agency perspectives, and explains why many firms do not fully “professionalize” but instead keep a stable hybrid model. The thesis proposes an integrative framework showing how culture and governance influence HRM choices and how these choices affect fairness, employee commitment, voice/silence, turnover, and sustainable HRM/ESG practices.