Analysis on the characteristics of human resource management in China agricultural sector—case studies
on state-owned farms in Heilongjiang province*

Niigata University, Wenlu Cao
Niigata University, Lily Kiminami
1. Introduction
From the perspective of an organization, human resource management (HRM) plays a strategic role inachieving organizational goals. Usually, it includes HRM policies and practices such as recruiting, selecting,training, rewarding, retaining and firing of employees and it also relates to the whole corporate culture andemployment relationship.
In China, under the background of privatization of state-owned enterprises (SOEs), HRM andemployment relations are facing profound changes. The state-owned farms have also witnessed the sameproblems of informalizing employment and regular management. Although the number of agricultural
reclamation (8,040) accounts for about 7.2% of major agricultural corporations (not including
non-registering units), the number of employees occupies about 36.3% of entire employees (the Second
National Agricultural Census in China, 2008). On the other hand, among all the agricultural reclamation
systems, agricultural reclamation with typical state-owned farms in Heilongjiang, known as the “the Great
Northern Wilderness”, is the important production base of commercial grain in China. However, thedeficiency of HRM in reclamation area has been pointed out by existing researches as follows: First, they
didn’t pay much attention on HRM, and there are no sufficient human resources, especially high-level
human resources. Second, they lack of plan and there is serious flow out of human resources. Third, theyneglected the promotion of human resources and the transfer system of human resources is not complete.
Forth, professional technicians of farming, forestry and animal husbandry industry are few, and theoverstock and insufficiency of human resources exist simultaneously (Song, Yan, 2011; Lu, 2011; Yu,
2011).
However, there is little empirical research on the actual situation of HRM in reclamation area especiallyon the state-owned farms in China. This study chose state-owned farms in Heilongjiang province assubjects to explore the characteristics of HRM and factors affecting the attraction and cultivation ofagricultural human resources in the area.
2. Survey of existing studies and research framework
2.1 Studies of HRM
Paauwe (2009) considers HRM as an evolving field of academic inquiry focusing on the study of theemployment relationship and of the way in which people are managed at work. Many researches have been
focused on the relationship of HRM and business performance and their causal order with quantitative
multilevel methods (Arthur, 1994; Huselid, 1995).
In China, some findings indicate that HRM practices affect financial performance, but the levels ofadoption of HRM practices were lower in state-owned enterprises (SOEs) than in foreign-invested
enterprises (FIEs) and privately owned enterprises (POEs) (Ngo et al., 2008; Akhtar et al., 2008).
2.2 HRM in agriculture
Howard and McEwan (1989) presented a framework of HRM and reviewed studies on the problem oflabor in agriculture. From the perspective of resource-based theory, Amin (2004) conducted a case study onsix dairy farm enterprises and concluded that dairy farms have the potential of achieving competitive
advantage through the HRM function. In Japanese agricultural corporations, studies have been conductedon the employment consciousness and job-leaving of employed farmers under the framework of HRM(Kiminami et al., 2010; Kiminami and Kiminami, 2011).
However, few studies focus on the relationship of HRM and business performance in Chinese agricultural
corporations. Therefore, this study intends to explore the characteristics of HRM on state-owned farms in
China. Based on the existing studies, the research assumption is shown in Figure 1: an organization shouldhave its own aim and plan, which is called organization strategy; HRM strategy is made according toorganization strategy; HRM policies and practices are the implement of strategy, which will affect HRM
performance; HRM performance will give influence on HRM strategy even on organization strategy.

Organization

HRM

HRM policies

HRM

strategy

strategy

and practices

performance

Figure 1 Research framework
3. Analytical method and results
This study uses the method of person to person and telephone interview (undertaken from June to August,2012) targeting managers from Human Resource Departments of Youyi (represented by Y) farm which
belongs to Hongxinglong administration as well as Baoquanling (represented by B) and Xinhua(represented by X) farms which belongs to Baoquanling administration.
3.1 Human resource management in state-owned farms
State-owned farm is a state-owned agricultural corporation, which also has governmental functions.
Households of farm employees can keep some surplus besides meeting production quotas by making
contract on agricultural land with farms. Farm provides technical and infrastructure services for households.
However, households no longer receive wages from farm.
Human resource departments in farms take charge of directors of operating areas, agricultural technicians,
operators and accountants, which we mainly took (not including households) as agricultural humanresources in this study. Therefore, this study interviewed managers of human resource departments in farms
for exploring the characteristics of HRM in agriculture.
3.2 Case studies and results
Table 1Basic information about targeted farms
Farm

Populati

Total

on

land

Domestic product(10Social-economic

Farm

Domestic product per

area (hectare)thousand yuan)

composite index

type

capita(10 thousand yuan)

Average

13334

47783

53538

B farm

27023

67100

105749182.96I

3.9

X farm

23027

55873

70650

147.82I

3.1

Y farm101723188812217062581.07I

2.1

Calculation method: (1) composite index =（population on farm/average population*50）+（total land area/average land *30）+（domestic product /average domestic product*20）(2) The composite index of farm type I is more than 130, type II is
between 50 and 130, and type III is less than 50. Source: Compile of employment policy, 2011

According to table 1, the farms we chose all belong to type I. Amongst, Youyi farm is the biggest in China.
Although composite index of Youyi is highest, Baoquanling has higher domestic production per capita. It
shows that the effect of scale is not obvious in the case.
(1) HRM strategy and “Baiqianwan Talents Project” (BTP)“BTP” means to introduce one hundred graduate students to farms, one thousand of college students toadministration area, and ten thousands of students graduated from junior college or technical secondary
schools to the reclamation area. However, according to interview, the duration of this project is not clear.
Moreover, this strategy is mainly conveyed to employees by documents and meetings. Managers of HR
department mainly take the HRM strategy as the organizational strategy. “BTP” helps to change thestructure of agricultural human resources and improve the ability of college students (Table 2).
Table 2 HRM strategy and “BTP”
B farm

X farm

Y farmHRM“Support farmers, beautify city,

Achieve the increase ofTo

strategyenrichcereals per capital income.

agriculture.

citizens

andstrengthen

achievemodernandbigindustry”
Content of

To build the practical base forWithinwe

Stock human resources for the aim of“BTP”

agricultural

introduced about 60 people.

providing 43 billion jin cereals, andtechnicians

in

two

years,

reclamation area.

for the development of technology.

Implement

Train college students in operating

There are 44 agricultural

Provide college students housing

ation

areas, strengthen their contacts withhuman resources working inallowance and treatment of vicemethodbasic staff and cultivate everyone.

operating areas.

section (fukeji).

Effects andTheir practical ability is relativelyTheevaluation

poor. They can’t endure hardship.

resources is improving. The

practice and work on the producing

Thereaverageisshortage

of

human

quality

of

of

44

human

Technicians

shouldhave

morecollegeline. We need human resources ofresources majored in agricultural

students is 26 years. They

agricultural machinery. They shouldmachinery. They should have more

make up for the deficiency

increase experience, knowledge, as

training in schools, and cultivateof human resources. But

well as social knowledge, such as

willpower and practical ability.

their practical ability shouldinterpersonal relationship knowledge.

be improved.
Source: Author’s interview(2) Recruitment methods
The administration of bureau organizes farms to participate recruitment fairs. They arrange fairs inagricultural universities, advertise job opening on internet and provincial human resource center. However,
the recruitment was limited in agricultural universities, and there was no widely and deeply understanding
about reclamation area of students, especially the students from south areas. Furthermore, some students
who majored in agriculture are not willing to do agricultural work.
(3) Training and development
Table 3 shows that all the three farms emphasize on training of human resources not only on professional

skills but also on comprehensive quality. They also have some practice such as “one old helps one new”.
However, because of large land, Youyi farm has a bigger development space than others.
Table 3 investigation results- training and development
Training projects

Effects and evaluation

B

Every year we have training on professional skills and comprehensive

After working for a while, they

farm

quality of agricultural, accounting, agricultural machinery, husbandry, andknow what they need to learn. After

water conservancy human resources.

training

they

improved

theirprofessional skills.
X

We have training on general introduction of the farm, agricultural technique,

After training they improved theirfarmfinancing, animal husbandry and comprehensive knowledge. We support

professional skills.

college students to get agricultural or accounting undergraduate degree.
Y

We have training on management and agroeconomic management toAfter training we have reserve

farm

cultivate young cadres. Provide college students general introduction of thecadres.

farm, knowledge of agriculture, forest, and agriculture machinery. Provide
opportunity to get agricultural extension master degree.
Source: Author’s interview(4) Salary and job-leaving
Table 4 Job-leaving and corporate culture
B farm

X farm

Y farmJob-leaving

We don’t fire employees.

People left before, but now a lot of

We don’t fire employees. Someand reasonsSome people left because ofpeople want to go back because ofpeople left because their couples

treatment.

good treatment and development.

had better choices.

Corporate

The spirit of Baoquanling,

We have good culture, and emphasize

The culture of Beidahuang: good

cultureandon relationship. We have the culture

faith, pragmatic, innovative, andof army, sent-down youths, and youth

excellent. We also have thewho support to build frontier regions.

culture of Youyi.

thespiritofBeidahuang.

The method

Be influenced by what one

By meetings, sending pamphlets, andThroughof conveying

hears or sees. Old ones takeorganizing

educations,culturecare of new ones.

corporate culture.

travels.

Atmosphere

Pretty good. They are plain

Great. We are harmonious and haveGreat. Harmonious. They areof working?

and kindness.

no questions on communication.

active.

Advantage ofWe have policy support.

The advantage can only be seen byWith big land and centralized

outsiders.

management, it’s convenient toSOEs

employees

to

study

reports,

meetings,

sightseeing

and

implement policies.
Disadvantag

Competitiveness is weaker

The disadvantage can only be seen by

The power is too centralized. We

e of SOEs

than private corporations.

outsiders.

need strengthen management andinnovation.

Source: Author’s interview

All the three farms provide five insurances (include pensions, healthcare, unemployment, work injury, andmaternity insurance), housing fund, food subsidy and legal holidays, which are almost the same withstate-owned enterprises. This system provides insurance for their engaging in agriculture. B farm provides
apartments while X and Y farms provide commuting subsidy. Furthermore, they all have professional
promotion.
Table 4 shows current years have seen few people left jobs and these state-owned farms take Beidahuang
spirit as their corporate culture and they have their local connotation. Besides, B farm emphasizes theintangible influence; X farm conveys culture mainly through written materials; Y farm attaches importanceon the tangible education, such as the exhibition of agricultural machines.
The most impressive characteristic of state-owned farms is the corporate culture which is called“Beidahuang spirit”. It has its unique local history and is difficult to be imitated. State-owned farms used torecruit native students for low leaving rate. Because native students have been more influenced by theculture and they have strong motivation to make commitment to the construction of hometown.
(5) Evaluation on human resource department
Table 5 shows that each farm has its key points of HRM policy and typical type. They gave a highevaluation on their work and pointed out their weakness as well.
Table 5 Evaluation on human resource department and key points of HRM policy
Evaluation

B farm

X farm

Y farmHow

We provide information forGreat. Our department has been elected

We perform our duties. We attach

evaluateleaders. We are very young.

as the advanced section every year. We

importance to human resources,

the work of

We provide energy andprovide support to human resources andand give platform for college

yourvitality by putting young

security for achieving aims. We are fair,students.

apartment

people in every department.

decent and treat human resources fairly.

Weakness

We don’t have too much

The professional skills of employees

We need to attract more people

andexperience.

need further improvement by various

withkinds of trainings.

management, economy, tradingtoimprovemeinAbility, practice andProfessional skill of human resources

Experience,

training,

house

professional skill ofand the good atmosphere of corporate

allowance,

cultivating

reserve

agricultural humanculture.

cadres, cultivating managers andresources.
Farm Typeskillsand other specific aspects.

nt method
Key points

professional

Learn by doing typepromotion space.
Working culture type

Development type

Source: Author’s interview

4. Conclusions
In state-owned corporations, HRM problem exists because operators are not interrelated with corporate
interest, and operators lack the interest incentives to maximize benefit; they lack HRM system to suit withorganization strategy (Li, Yu, 2011; Shi, 2006). In this study, investigated farms also have similar problems,
but they attach importance on agricultural human resources. It is concluded as follows:First, providing good treatment attracts agricultural human resources. Farms provide household allowanceeven titles to attract human resources, especially when investigated farms are in frontier regions.
Second, providing professional training and cultivation on practical ability helps the development ofagricultural human resources. Investigated farms provide practice and experience opportunity for college

students, and create a good environment for the agricultural human resources.
Third, local features and corporate culture have effect on retaining agricultural human resources. Local
people of farms tend not to leave their job, but a closed system will lack creativity and competiveness.
Therefore, it is necessary to develop corporate culture to attract and retain human resources not only inside
but also outside.
Forth, state-owned farms have the advantage of policy support and centralized management to facilitate
the implement of projects. But they also have the disadvantages of too centralized power. Therefore,
attention should be paid on these characters in the process of HRM to improve the management
performance. At the same time, every farm should have their own scientific management method based on
the practice of management and the advantage of state-owned farms.
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