“…In this more competitive and dynamic environment, the HR function will be crucial for creating flexible and adaptable organizations and managing the stillproblematic legal environment. Building an HRM system and developing employees in China is complicated by the fact that an increasing portion of the labor force available for foreign firms has little experience working in a competitive market environment Whiteley, Cheung, & Zhang, 2000). Thus, standard "Western" models of HRM may have to be adapted to China's culture and changing environment Bjorkman & Lu, 1999;Warner et al, 1999;Lewis, 2003) while capturing several effective local practices (Schlevogt, 2001a;Whiteley et al, 2000;Wong & Law, 1999).…”