RESEARCH ON HUMAN RESOURCE MANAGEMENT OF FAMILY

BUSINESS: A CASE STUDY ON SHANDONG HAIWANG CHEMICAL CO.,

LTD.

CHEN SUYANG
6117195402

AN INDEPENDENT STUDY SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENTS FOR
THE DEGREE OF BUSINESS ADMINISTRATION
GRADUATE SCHOOL OF BUSINESS
SIAM UNIVERSITY
2020
 ACKNOWLEDGMENTS

First of all, I would like to thank my thesis instructor for giving me careful
guidance on the difficulties and doubts I encountered during the thesis writing process.
Put forward many useful suggestions for improvement, putting effort and energy.
From selecting the topic to completing the thesis, every step is completed under the
guidance of the tutor, to this end, the tutor has put a lot of effort. Here, my instructor
expresses his high respect and heartfelt thanks to the teacher for his help and care!

Secondly, I would also like to thank all the classmates, everyone in the daily
study life to help each other, learn from each other, and spent a good and
unforgettable time together.

In addition, I would also like to thank my friends and classmates for their great
support and help in the process of writing the paper, which gave me great inspiration,
and also thank the authors in the reference literature for their me Have a better
inspiration for the research subject.

Finally, thanks teachers for your hard work. I sincerely thank my family, teachers,
friends, and classmates. With their great encouragement and support, I have
successfully completed this paper. Thank you.

IV
 CONTENTS

Chapter 1 INTRODUCTION 1
1.1 Background 1
1.2 Research problems 2
1.3 Objective of the study 3
1.4 Research significance 3
1.5 Research framework 4
1.5.1 Theory 4
1.5.2 Figure: framework diagram 6
1.6 Research content 6
Chapter 2 LITERATURE REVIEW 7
2.1 Research abroad 7
2.1.1 Theoretical Research on the Definition of Family Business 7
2.1.2 Theoretical research on human resource management 8
2.1.3 Intergenerational inheritance of family businesses 9
2.2 A Summary of Domestic Research Theories: Optimization of Human Resource
Management 10
Chapter 3 RESEARCH METHODS 12
3.1 Research design 12
3.2 Research sample 14
3.3 Data collection and research tools 14
3.3.1 Current status of enterprise human resource management 14
3.3.2 Problems of enterprise human resource management 16
3.3.3 Environmental analysis 17
3.4 Statistical methods 18
Chapter 4 DATA ANALYSIS 19
4.1 External environment analysis: PEST macro environment analysis 19
4.1.1 Analysis of political environment 19
4.1.2 Economic environment analysis 20
4.1.3 Social environment analysis 21
4.1.4 Technical environment analysis 22
4.2 Internal environment analysis 23

V
 4.2.1 Proportion of human resources 23
4.2.2 Staff education structure 24
4.2.3 Number of employees 25
4.2.4 Employee seniority 25
4.2.5 Enterprise recruitment situation 27
4.2.6 Proportion of middle management 28
4.2.7 Employee salary 29
4.3 Analysis of enterprise human resource management issues 29
4.3.1 The concept of human resource management is vague 30
4.3.2 Serious family businesses 32
4.3.3 Unclear enterprise recruitment 34
4.3.4 The enterprise human resource management system is not perfect 38
4.3.5 Lack of training awareness and weak training 40
4.3.6 Analysis of the salary and performance task index 42
4.3.7 Single corporate culture 44
Chapter 5 DISCUSSION AND CONCLUSION 46
5.1 Countermeasures and suggestions 46
5.1.1 Improve the enterprise supervision system and standards 46
5.1.2 Establish and improve the human resource management department 47
5.1.3 Formulate recruitment standards and optimize the recruitment process 50
5.1.4 Improves the salary system 54
5.1.5 Strengthen enterprise human resource management training awareness 57
5.1.6 Optimize corporate culture 59
5.2 Execution guarantee 62
5.2.1 Organizational guarantee 62
5.2.2 Institutional system guarantees 62
5.2.3 Information system guarantee 63
5.2.4 Regulatory guarantee 63
5.3 Conclusion 64
REFERENCES 68

VI
 FIGURE CONTENTS

Figure 1.1 Intergenerational transfer 2

Figure 1.2 Framework diagram 6
Figure 3.1 Organization chart 15
Figure 4.1 Proportion of human resources 23
Figure 4.2 Staff education structure 24
Figure 4.3 Number of employees 25
Figure 4.4 Employee seniority 25
Figure 4.5 Enterprise recruitment situation 27
Figure 4.6 Schematic diagram of the proportion of middle managers 28
Figure 4.7 Employee salary 29

VII
 RESEARCH ON HUMAN RESOURCE MANAGEMENT OF FAMILY
BUSINESS: A CASE STUDY ON SHANDONG HAIWANG CHEMICAL CO.,
LTD.

Chapter 1 INTRODUCTION

1.1 Background
After the reform of state-owned enterprises, my country's private enterprises have
developed rapidly, mainly manifested as small and medium-sized enterprises, which
are now huge in scale. Small and medium enterprises are of considerable significance
to China. They are the main body of China's private enterprises and are an essential
part of the national economy. With the continuous development of society and the
economy, the number of small and medium-sized enterprises will only increase.
Affected by the environment, policies and traditional clan culture, most private
enterprises are small and medium enterprises, and Chinese companies have a general
tendency to family

In 2018, the Trump administration signed a trade memorandum and imposed

tariffs on Chinese products, and the trade war between the two countries began. Today,
the trade war continues, and with that comes the threat of global COVID-19. At the
end of 2019, COVID-19 began to appear gradually, and it broke out in early 2020.
From the beginning of the epidemic to May, the outbreak involved more than 4
million confirmed cases in more than 220 countries and regions, and the United States
was the hardest-hit country. According to official US statistics, the number of family
infections has exceeded 1.3 million, and the number of deaths exceeded the Vietnam
War by 80,000. As the epidemic continues to intensify, the global economy has been
hit hard. Countless companies face various problems, such as broken capital chains
and insufficient cash flow. They may be on the verge of bankruptcy and liquidation at
any time and the brink of life and death.

The harsh international environment hinders the development of enterprises. On

the issue of human resources, since the birth of the family business, there have been
inherent hidden dangers. But the organizational structure of a family-owned company
is not without its advantages. This structure can significantly protect the development
of the enterprise. Globally, family management models of enterprises are prevalent.
According to statistics, more than two-thirds of the world's enterprises are family-run
business frameworks. They have created a considerable GDP output of 70-90 %. They
not only focus on their development but also fund 85 % of emerging enterprises. They
have created tremendous employment opportunities for the country and society,

1
stabilized society's development, and occupied an essential position in the national
economy. But as far as the succession of enterprises is concerned, the possibility of
passing on from generation to generation is not very high.

Figure 1.1 Intergenerational transfer

From the figure, the probability of family businesses in the United States and
India passing on to the second generation is only 30- 40%, which means that as many
as 60- 70% of the enterprises pass to the second generation and die, and the third
generation only more than 10 %, the smaller, the further back. The development of an
enterprise is inseparable from the people. How to use people is an essential issue for
enterprises to think about. According to China's national condition, many small and
medium-sized enterprises in the country mostly adopt a family-style framework to
manage the enterprise. Their descendants have important long-term positions in the
enterprise. The internal development of an enterprise is prone to internal strife, and the
organization is prone to severe internal friction after it grows. At the same time, a lot
of resources are wasted. At the same time, they are unwilling to give up management
rights, which exposes many personnel management problems of the enterprise, and a
crisis of survival of the enterprise occurs.

1.2 Research Problems

1. Analyze the enterprise and human resource situation of Shandong Haiwang
Chemical Co., Ltd.

2. Study the reasons for the imperfect and obstructive development of human
resource management in family companies.

3. Study the countermeasures and suggestions for family companies to optimize

and improve human resource management.

4. Research and countermeasures recommended the implementation of

2
safeguards.

1.3 Objective of the study

Optimize social resource management issues in family businesses, improve
family company human resource management systems, promote the sustainable
development of family businesses, and promote family businesses' intergenerational
inheritance. Provide a framework for human resource reform in family businesses.

1.4 Research significance

Human development is the development of enterprises. The development of an
enterprise is inseparable from its application to people. Shandong Haiwang Chemical
Co., Ltd. is an excellent domestic enterprise that has achieved outstanding
achievements in the industry and has many patented technologies. As a family
business, it has a certain degree of representation. The family business is the main
body of my country's private enterprise, and the development of an enterprise is of
great significance. Many private enterprises have created countless Chinese miracles
and perfected the shortcomings and shortcomings of the country's technology. Have
not only successive breakthroughs in science and technology. At the same time, it has
made outstanding contributions to the economy and employment and stabilized the
harmony and development of the country and society. However, the enterprise
encountered many problems in the development process, and the universal problem of
short company establishment time makes companies prone to human resource
management issues. The management level is low, the management concept is
backward, the internal management is chaotic, the supervision and supervision are
invalid, and many human resources are lost. Therefore, taking Shandong Haiwang
Chemical Co., Ltd. as an example, it conducts research and proposes solutions to the
current situation of the enterprise.

First, this research can enrich the research results of human resource management
issues in family businesses. Over the years, scholars from various countries have
carried out countless studies on human resource issues, resulting in many theoretical
research results. However, most of them are large-scale enterprises or state-owned
enterprises. The analysis results and research on family enterprises in my country are
relatively small, and the degree of concern is relatively low. The development of
SMEs is rapid and large-scale, but because of rapid growth, a series of problems have
formed. Compared with state-owned enterprises and large enterprises, human
resources management is relatively lacking, and the question of staff turnover is
serious. There are frequent occurrences when employees apply for resignation within
one to two years of employment and even apply for departure before the internship

3
period expires. Therefore, it is valuable to strengthen research on the human resources
of family businesses.

Second, it provides a reference to the human resource problems of family

businesses. The current general environment is mainly the rapid deterioration of the
external environment of the market. The market competition has reached a fiercer
degree. The development of all walks in life is sluggish, but the degree of competition
is becoming more and more intense. The core competitiveness of an enterprise is the
product and technology. This mainly includes high-tech mastery and innovation, and
high-quality talents. New and old companies want to survive and develop
opportunities. Technological innovation is necessary and critical. The company's
talent demand is also key; in the final analysis, the enterprise is human development.
The core of corporate competition has expanded from technology to talent. However,
the mobility of people is far superior to the technological innovation of products. Poor
human resource management of an enterprise will cause a severe brain drain. The
employees who leave will take away the enterprise's product technology and cause
double losses for the enterprise. This paper integrates literature information, analyzes
and studies the human resource problems of family companies in small and medium-
sized enterprises, and provides references to human resource problems of family
companies.

Third, international economic development has been exhausted in recent years,

and market competition in all walks of life is exceptionally fierce. Moreover, in the
context of a global crisis such as the epidemic, countless companies have been
affected and are on the verge of life and death. Under the impact of this severe
environment, excellent human resource management methods can effectively help
companies mitigate the effects of the crisis and help enterprises to survive the period
of economic chaos during the crisis stably.

1.5 Research framework

1.5.1 Theory
(1) XYZ Theory
Douglas Murray McGregor refers to the traditional management view as Theory
X, which uses a negative concept. Suppose that people are unwilling to work and have
no motivation to work. If there is a chance, they will evade their work. The
corresponding solution is to use strict control, enforcement, and punishment.

Theory Y is an affirmative concept. People like to work; they will continue to

optimize and self-direct. They would work hard without strict supervision. They will
be enthusiastic and cherish their work and be responsible. The corresponding solution

4
is to change the manager's management functions, and the core task is to assist.

The Z theory is the Theory of Japanese scholars William Ouchi comparing

different management models between Japanese and American companies. Z theory
emphasizes the cultural elements of the management process. According to the z
theory, enterprise managers should have full trust in employees, and trusted
employees will motivate and be loyal to the enterprise.

(2) Two-factor theory

Frederick Herzberg divided the relevant factors in the enterprise into incentive
factors and health care factors. The general dissatisfaction of employees lies in the
management, system, salary, and performance of the enterprise, directly related to the
employees' interests. When employees can not directly face these problems, they are
quickly dissatisfied with the slack. Incentives can eliminate employee dissatisfaction
and ensure employee motivation.

(3) Maslow's demand level.

Abraham Harold Maslow proposed Maslow's demand rating in 1943. The most
significant function of this Theory is to point out the existence of personal needs.
Demand hierarchy theory explains the essential motivation of people's behavior while
satisfying demand is the intrinsic motivation of people's behavior.

(4) Expectation theory

The expectation theory is an incentive theory proposed by Victor H. Vroom in
1964, which mainly reflects the relationship between employee needs and goals. The
theory points out the relationship between employees and enterprises. The interests of
the employees are related to the interests of enterprises. This theory illustrates the
degree of employee desire for demand. In special circumstances, no matter how high
the expectations are, it usually does not arouse people's enthusiasm. The expectation is
affected by the environment. Generally speaking, expectation theory is a stimulus to
the individual needs. When the possibility of meeting the demand is higher, the
individual will strive to meet the demand.

(5) Fairness theory

American John Stacey Adams put forward the Theory of fairness in 1965. The
research focus of fairness theory is the impact of the rationality and truth of salary
distribution on employees' work enthusiasm. The issue of fairness is an essential
motivation for employees to stimulate their work motivation. Fairness theory explains
the equity in the compensation system and personnel management and emphasizes the
importance of fairness in the enterprise.

5
1.5.2 Figure: framework diagram

Figure 1.2 Framework diagram

1.6 Research content

Chapter 1. Introduce the research background, significance, purpose, theoretical
framework, and theoretical basis of the article.

Chapter 2. Literature review. Mainly combed the research results of the family
business and human resource management at home and abroad. Including the
theoretical research of family business, the theoretical research of human resource
management, and the research of the family business's intergenerational inheritance.

Chapter 3. This article mainly uses qualitative research methods to conduct

research and analysis. Used environmental analysis methods, the environment is
divided into macro-environment and micro-environment to study and analyze the
human resource management issues of Shandong Haiwang Chemical Co., Ltd. Mainly
use PEST analysis method and internal environment analysis.

Chapter 4. Introduces the content of the research and analysis in detail and
expounds on the environmental review of Shandong Haiwang Chemical Co., Ltd.
Analyze the external and internal environment of the enterprise. The research analyzes

6
the status quo of corporate human resource management, taking Shandong Haiwang
Chemical Co., Ltd. as an example, expounds on the common problems in family
business human resource management.

Chapter 5. Summary of this article. This chapter is the final chapter. This chapter
puts forward corresponding countermeasures and suggestions for the human resource
management problems analyzed and put forward in the previous chapter. In order to
ensure the smooth implementation of countermeasures and recommendations,
matching implementation safeguards measures are provided.

Chapter 2 LITERATURE REVIEW

With the continuous development of society and the economy, the market
competition is intensified. The growth of the family business has encountered
contradictions. However, technological innovation is still the core competitiveness of
the enterprise. Still, the human problem is also more and more on the stage; becoming
an enterprise must face essential issues. Entrepreneurs gradually value the
management of human resources. After 2008, domestic human resource management
has steadily developed. So far, many scholars have completed research results on
human resource management. Human resource management has always been a hot
issue in business management research, emphasizing the importance of people and the
critical role that people play in enterprises. Talent is the central core of enterprise
competition, and excellent human resources are the top priority. The key to the
sustainable development of an enterprise is whether the enterprise can handle human
resources.

2.1 Research abroad

2.1.1 Theoretical Research on the Definition of Family Business
Among all business forms, family businesses are up to two-thirds, which is the
most widely used among all business forms. People pay more attention to the
problems caused by family businesses. As early as the middle of the twentieth century,
international research scholars began to study the concept of family in the form of
enterprises. In the beginning, the family business definition is distinguished by
whether the family is the central controller of the company, divided into the family
business and non-family business, including business ownership, management rights,
and inheritance rights. The proportion of family shares in the industry becomes the
difficulty of this definition. After continuous research, although scholars have strictly
distinguished families from non-families, the proportion of family participation is still

7
an issue to be studied. Shanker & Astrachan (1996) pointed out that in terms of
specific management, the narrow definition of the family business is that an individual
family wholly owns the business rights and management rights of the enterprise, the
core members of the family control the central management position of the enterprise,
and the family members participate in the Nissan operation and daily management of
the enterprise. The broad definition of the family business is that the family sets the
strategic direction for the company. This view shows that the degree of family
involvement in the enterprise can be changed, and it is dynamic and uncertain. From
specific management to the company's strategic direction, the family has a high degree
of freedom. In 1988, the "Family Business Review" start publishing. This periodical
specializes in researching companies controlled by the family. It not only focuses on
the first generation of entrepreneurs but also on the second and third generations of
heirs. With the increasing research on family companies, the management of family
companies has become an important research direction for scholars worldwide.

2.1.2 Theoretical research on human resource management

In international research, in the twentieth century, Peter Drucker published the
book "Management in the Era of Great Change" in 1999. The paper analyzes the
situation and challenges faced by business managers in the 1990s during the turn of
the century. The transition from the 20th century to the 21st century is a critical
moment, social development is changing with each passing day, changing all the time,
networked, knowledge, and organize. These changes have brought opportunities and
challenges to the development of enterprises. It is proposed how the new type of
managers should train the quality to adapt to the latest indicators. The book also gives
four basic principles that family companies need to pay attention to in management,
which has guiding significance for the development of human resource management
in family companies. Jean B. McGuire (2012) mainly studied the governance structure
of the family business. The research content mainly analyzed the family business's
governance structure. The results of the study show that the family business's
organizational structure is more complicated; this has led to increased losses within
the enterprise, and unnecessary checks and balances have emerged. This means that
family businesses would face more complicated governance structure problems than
non-family companies. In this respect, the performance of non-family businesses is
better than that of family businesses, and their governance structure will be more
transparent than that of family businesses. W. Gibb Dyer (2009) showed that the
development of family businesses is bound to affect their factors, causing difficulties
and obstacles to the development of enterprises. To alleviate this situation, family
businesses need to replace fresh blood and introduce new powers. Professional
managers are an option to promote the development of enterprises. Use professional
managers to accelerate the institutional transformation of enterprises, establish

8
standardized management, alleviate internal contradictions in enterprises, and improve
enterprises' operational efficiency. Brewer, P. D., & Brewer, K. L (2010) research and
analysis, expressing the importance of knowledge management for human resource
management. Human resource management will face more challenges in the future,
and knowledge management is an important influencing factor. The latitude of
knowledge and the application of knowledge will become challenges and
opportunities for the organization, which will place higher demands on the
organization. Lin and Kuo (2007) research and analysis, human resource management
strategy are closely related to organizational strategy. Organizational learning ability
and knowledge management ability have direct and indirect effects on human resource
management. The impact is significant and obvious.

2.1.3 Intergenerational inheritance of family businesses

On the issue of the intergenerational inheritance of family businesses. Beckhard
and Dyer's (1983) research and analysis show that only about one-third of the
companies in the United States can successfully pass on to the second generation.
Most companies have only one generation of lives, and the average life cycle is only
24 years. The study pointed out that the inheritance problem has become one of the
most critical issues that the founders of family businesses face. Boisot (1987) believes
that traditional Chinese enterprises have system defects and incomplete organizational
structure. Imperfect information, low degree of standardization, system defect, and
high concentration of power. These circumstances have exacerbated the imbalance in
the enterprise's internal strength and made the data between the founders and
professional managers of the enterprise unequal, creating contradictions and
intensifying the contradictions. Redding (1993) believes that for Chinese companies, it
is easier for Chinese companies to separate the ownership and management rights of
the company; the two are usually together. Business owners often refuse to hand over
management power to professional managers and prefer to hand over core
management power to their family members. There is a crisis of trust between the two
parties, and this process has many difficulties. This is also an important reason why it
is difficult for family businesses to break away from family domination. Fukuyama
(1998) believes that the initial vigor of Chinese enterprises is very vigorous, and the
economic benefits are also considerable, but development has limitations. The biggest
reason is that family members' trust in outsiders is too low, which is the biggest
obstacle to enterprise development. Most members of an enterprise's management
refuse to introduce professional managers to the enterprise, preferring to give up some
of the benefits and prevent the entry of outsiders. Their practice makes it difficult to
institutionalize enterprises.

9
2.2 A Summary of Domestic Research Theories: Optimization of
Human Resource Management
There are few studies on family-owned companies in China, and there are not
many research results. At the end of the twentieth century, domestic scholars began to
get involved in business management. Because of my country's special national
conditions, state-owned enterprises are of great significance in my country's economic
development. The family-owned company is small in scale and weak in market
competitiveness and has not been concerned for a long time. Today, domestic scholars
have made significant achievements in enterprise management research. From the
organizational structure at the beginning of the enterprise's establishment to the later
management development, there are many different perspectives of the investigation.
It involves aspects such as corporate governance structure, system, organizational
culture, salary performance, and so on.

Yin Mei (2002) believes that the market conditions have changed many times
now that they are changing day by day. However, no matter how the external
environment changes, whether it is superior or lousy, family business is still the
preferred form of marketing for Chinese. The family will always be the main body of
Chinese companies. There are several reasons for this. First, Chinese companies are
deeply influenced by family culture, and companies have profound cultural roots.
Secondly, in terms of economic development, family companies have strong cohesion
and concentration, which can effectively improve their market competitiveness.
Finally, family businesses are highly resistant to the external environment's impact
and can make changes in line with the development of time. This form of family-
owned enterprise is conducive to organically combining the traditional 'home' culture
of the Chinese nation with modern enterprise management and systems, from a unique
Chinese-style family business with Chinese cultural characteristics. Chu Xiaoping
(2002) found that the biggest obstacle encountered in the development of family
businesses is the crisis of trust. It also pointed out that many Chinese business owners
and professional managers lack good professional ethics, and the two sides are prone
to conflicts and intensify conflicts. Therefore, in companies with a crisis of trust, most
management positions are held by family members, the talents of outsiders are
restricted, and it is challenging to create achievements and perform effectively,
limiting the development and growth of enterprises. Zhang Jianqi (2002) believes that
the biggest problem of professional managers entering the enterprise lies in the
orientation of enterprise values; the corporate culture usually determines this. The
family business's cultural subject is the concept of family, and the family business's
actual managers often occupy an essential position in the family. Corporate values
reflect the personal benefits of business owners, which directly impact professional
managers entering the company. Li Xinchun (2003) believes that the family business
itself has natural defects, and the development of the industry is greatly affected by

10
the will of the individual owner. Due to the problems of the business owner's value
orientation and the family business's flaws, business owners are strongly affected by
their subjective consciousness, and there is a sense of exclusion from outsiders.
Family companies are generally exclusive to the outside world. They tend to be more
private and conservative in their operations, which makes it difficult for companies to
introduce external professional managers. Business owners believe that the entry of
outsiders will destroy the privacy of family business and reveal the family and
business secrets. Zhang Chao (2016) believes that trust is an old and fresh topic, and it
is worth discussing at any time. Trust is a complex and essential social psychological
phenomenon that has an impact on many aspects. Trust is a crucial resource of social
nature, and its importance has been deeply rooted in the hearts of people. Studies have
shown that the impact of trust in an organization is significant and has profound
practical significance. Trust can be cultivated, and it is the soft power of an enterprise.
Zhang Xiu (2019) believes that human resources are an essential resource for
enterprises of all funds. The main reason is that human resources are strategic. Human
resources are a crucial foundational force for the development of domestic small and
medium-sized enterprises, and the dominant factor for enterprises to participate in
competition and growth. Ruan Pengyu (2016) believes that the primary source of an
enterprise's core competitiveness is human resource management's effectiveness,
which determines the enterprise's vitality and future development potential. The
reform of human resource management has an essential impact on the development of
enterprises. Effectively carrying out human resource reform can effectively improve
the market competitiveness of enterprises.

For family businesses, foreign scholars have done a lot of research from the
beginning of definition to the development and operation of enterprises, and then to
the end of inheritance. Exploratory research mainly focuses on the development of
enterprises. Explore and study the sustainable development of family businesses. The
research direction focuses on the internal management concept of the family business,
the development life cycle of the enterprise, and so on. Nowadays, family-owned
enterprises have gradually standardized and institutionalized, and most family-owned
enterprises have separated ownership and management rights. This form is
complicated for most Chinese family businesses. The family culture of most family
businesses in China is robust, emphasizing the concept of family, which is the main
body of corporate culture. Moreover, the development time of the company is
relatively short. Many family companies are still in the first or second generations.
The company's internal management personnel are mainly family members, and they
strictly control the management authority. The trust of external staff is not enough to
effectively manage the human resources of an enterprise.

In conclusion, the core of the family business is the concept of family. The

11
family concept is the central concept in the family business. Influenced by the
intergenerational inheritance, the family business founder is more willing to hand over
the company to his closest members. Family members occupy significant management
positions in an enterprise. When the heir is not competent for the role of business
manager, family companies will consider introducing professional managers and
inviting them to operate the enterprise as an agent to maintain the enterprise's survival
and development. Nepotism and distrust have become the main obstacle for
companies to hire talents.

Chapter 3 RESEARCH METHODS

3.1 Research design

This article mainly uses qualitative research methods to conduct research and
analysis. Taking the Chinese company Shandong Haiwang Chemical Co., Ltd. as an
example. Research and analyze the human resource management problems of family-
owned enterprises.

Qualitative research is one of the main research methods in scientific research

and has a very important position and significance. Qualitative research is an
important way for researchers to define and solve problems.

Human resource management research is a comprehensive issue. In the research

process, the environmental analysis method was mainly used. Divided into external
environmental analysis and internal environmental analysis. Research and analyze
enterprise human resource management issues. The article makes a macro analysis of
the external environment of the enterprise and applies the PEST macro-environment
analysis method. The internal environment analysis interprets the current situation and
problems of enterprise human resource management. In the research process of this
article, literature survey and multidisciplinary comprehensive research, survey method,
descriptive research method, combination of micro-analysis and macro-analysis, and
case analysis method are also used.

Human development is the development of enterprises. The development of an

enterprise is inseparable from its application to people. The family business is a
common form of corporate organization in our daily lives, and it occupies an
important position in all countries. In Kelin E. Gersick's (1998) research, Kelin E.
Gersick's research shows that family businesses account for a high proportion of
global corporate forms, and more than 70% of businesses have varying degrees of
Family tendency.

12
 The sheer size of family businesses makes them a group that cannot be ignored.
They are of great significance to the development of the regional economy. Family
business, an ancient form of corporate organization, has a long history. Its advantages
are obvious, but its disadvantages are also obvious. A large number of family
businesses have an average life span of 24 years, which is concentrated in the
development period of the first generation. Intergenerational inheritance has become a
major obstacle to the development of many family businesses. The main reason for
this is the defects in the human resource management of the enterprise itself.

(1) Literature survey and Comprehensive Multidisciplinary Research

The literature research method mainly obtains the information needed by
investigating the literature, and it has proved that this method is essential and useful
for many years. Through the investigation and research of various documents, we can
correctly and comprehensively understand and master the many materials of the
problems to be studied, effectively helping us to understand the whole picture of
things. It mainly collects the research results of domestic and foreign scholars on
human resource issues through library resources, network literature, completes the
comparison and sorting of documents, sorts out and selects the problems we want to
study, and forms an overall theoretical framework.

Management is a complex problem. The human resource management problem

in the family business involves a wide range, including management, economics,
psychology, and other disciplines. This is a widespread problem. Analyzing human
resource management problems in family companies more comprehensively, cross-
disciplinary integration is necessary, and the literature of different disciplines can
effectively help us understand the problem.

(2) Investigation Method

The survey method is a universal research method. The real knowledge is gained
through practice. Through investigation and research, they can help us correctly
understand and grasp the problems we need to study, and purposefully and
systematically collect various research materials for research problems. Analyze, sort,
and synthesize the research data collected by the investigation, and strengthen the
research and analysis of the problem.

(3) Descriptive Research

The Descriptive Research Method is a universal research method, a general
description of different theories, which is necessary for scientific research. The
descriptive research method can ask questions directionally, describe phenomena,
reveal defects, and introduce experience. It is conducive to the development of the
work and analyzes and explains the actual problems. Descriptive research methods are

13
helpful to research.

(4) Combination of Micro Analysis and Macro Analysis

The human resource management problem of family-owned enterprises is
affected by many factors, including the enterprise's constraints and the external
environment. The enterprise's internal elements are regarded as micro factors, and the
external environment is viewed as the macro factor. From two perspectives, internal
and external analysis and interpret enterprise human resource management issues to
keep the scientific conclusion.

(5) Case Analysis

The Case Analysis method is a widely used analysis method that can make the
research object-specific, and the researcher's point of view is readily accepted. The
case study method can effectively increase people's understanding of the research
object and have a deeper understanding of the research object.

3.2 Research sample

In this article, we mainly take the human resource management of the family
business as the main research objective, use the Literature Survey and Comprehensive
Multidisciplinary Research, Descriptive Research Method, Case Analysis Method and
other research methods to carry out research and analysis, and take Shandong
Haiwang Chemical Co., Ltd. as the main research Object, explore, research, and
analyze the optimization of human resource management of enterprises.

3.3 Data collection and research tools

Data sources mainly rely on data collection, observational research, and inductive
analysis.

3.3.1 Current status of enterprise human resource management

Shandong Haiwang Chemical Co., Ltd. was established in the early 21st century.
The main business is the manufacture of chemical raw materials and chemical
products. After more than ten years of rapid development, it has become a well-known
enterprise in Weifang City. The company has 952 employees, and the business has
expanded to the international market. Haiwang Chemical was relatively small in the
initial stage of its establishment. The managers of the company were also investors in
the initial phase of the company. The employees are usually family members. Since
the enterprise has excellent financial support, and the entrepreneurial environment is

14
relatively sound, it has not encountered much resistance in the initial development and
has developed rapidly. After years of unremitting efforts, the company's products have
always maintained good quality and provided customers with quality products and
services. The company's development momentum is perfect, excellent results have
been achieved, and its influence on the industry is also growing. The market
competitiveness has also been continuously enhanced. Today, companies have a larger
scale, have more robust resource advantages and operational advantages, and have
developed from a single manufacturing industry to a diversified industrial structure,
involving chemical, mineral, real estate, finance, logistics, and other fields.

With the continuous development of the company's business, the scale of the
enterprise is also continually growing, based on the limiting factors in the initial stage
of the establishment of the enterprise, the management of the enterprise mainly
depends on family relatives and investors, and there are no complete and specific
organizational structures. There are no corresponding management systems and
regulations. Because the enterprise's scale expands, the enterprise's development needs,
the number of external employees has also gradually increased, and the company has
begun to improve the relevant systems progressively and establish different
departments, but still encounter many problems. Haiwang Chemical is a typical family
business. Family personnel occupies most of their management positions. Nepotism is
intricate. The company is faced with contradictions, such as the loss of human
resources and conflicts of interest within the enterprise that have formed obstacles to
the enterprise's development.

Figure 3.1 Organization chart

The organizational structure of Shandong Haiwang Chemical Co., Ltd. is as

15
follows: the enterprise is mainly responsible for five major shareholders, with a board
of directors, and the chairman is the central controller and beneficiary of the enterprise.
The company has a total of eight senior managers, responsible for various affairs of
the enterprise. Offices, finance department, enterprise development department, sales
department, infrastructure department, technology center, quality inspection center,
and other departments are set up. The founders and investors of the company mainly
hold senior management positions in the enterprise. The company's organizational
structure is relatively simple and belongs to a flat linear organization. The company's
actual controller is the founder of the company, which is responsible for the
company's decision-making and development. The main responsible person of each
department is the core funder of the company, Responsible for the various affairs of
the department in the development of the enterprise, the heads of each department are
under the direct leadership of the chairman, and the organizational management model
is relatively clear.

3.3.2 Problems of enterprise human resource management

3.3.2.1 Imperfect organizational construction
In the understanding of the enterprise's development process, the independent
department established by the enterprise during the development process is incomplete,
and the human resource management of the enterprise is also lacking. Haiwang
Chemical is a chemical company. The industry's choice is destined to require a large
amount of necessary labor for the development of the enterprise. It is a labor-intensive
enterprise, and a large number of production activities require human resources to
complete it. This form determines that the management of the enterprise does not need
to have too much professionalism. China is a country with a large population,
sufficient for labor, and a wealth of energy available. Therefore, the company has not
established an independent human resource management department in the
development process, and the personnel management work is also handed over to the
office.

3.3.2.2 Unclear positioning of human resources

The owner of a family business is a leader in business development and has a
decisive discourse power. On the other hand, the will of the business owner influences
the development of the business. The development of Haiwang Chemical's human
resource management is inadequate, and there are still many areas that need to be
improved. Regarding the development status of the department, human resource
management has not become an independent department, the work content and the
personnel department are highly overlapping. The human resources and administrative
work of an enterprise cannot be effectively distinguished. The main reason for this is

16
that the enterprise's senior management does not pay enough attention to human
resources, and the importance of human resource management in the enterprise is not
reflected.

3.3.2.3 Trust crisis

The development of an enterprise needs to maintain a proper internal working
environment, which is also an essential reason for an enterprise to stabilize its
domestic situation. The family business has a large proportion of family members
within the company and has been appointed in various management positions. The
human resource management department is the department that manages the human
resources of the enterprise. Its main job is to optimize and configure the human
resources of the enterprise. It has the management authority for human resources, but
it is difficult in family businesses, especially when it is not the time for members of
this family. The talents recruited from outside the enterprise cannot be fully utilized,
and the enterprise itself restricts many tasks. This will lead to the inability to
implement the plan, and the work is passive. And because of the defects in the family
business, people who are not members of the family are vulnerable to being excluded,
not receiving the attention they deserve, and lack of access to information, and unable
to timely understand the operation status of the entire enterprise. The main reason for
these reasons is the unequal trust crisis within the enterprise, which has become the
biggest obstacle to the development of enterprise human resources.

3.3.3 Environmental analysis

3.3.3.1 Analysis of external environment
Mainly use the PEST macro environment analysis method. PEST is a commonly
used method for environmental analysis. In analyzing the research process of an
enterprise, PEST is an important research method. It is an important foundation.

(1) Political environment analysis

The analysis of the political environment mainly includes two crucial influencing
factors, namely politics and law. Politics refers to the country's policy guidelines and
systems, and law refers to laws and regulations widely used in this country. The
political environment is an essential factor that affects the development of an
enterprise.

(2) Economic environment analysis

The economic environment mainly refers to the financial problems involved in
our daily lives, such as monetary, fiscal policy, and residents' disposable income. The
critical role of the economic environment is to provide a predictive proposal for the

17
development of an enterprise. Help the development of enterprises to grasp better the
opportunities provided by the market.

(3) Market environment analysis

The most influential factors in the analysis of the market environment are mainly
human factors and cultural traditions. Different regions have different cultures and
different social compositions. People's ages, body features, income and expenditure
are different. Especially because of the influence of local culture.

(4) Technical environment analysis

Technological factors are an essential factor that affects the development of an
enterprise. It includes research and inventions that can cause technical changes in the
industry and new technologies and new products that increase productivity. In the past
century, science and technology have developed the fastest. A hundred years ago, the
communication between people was mostly in the form of letters, and the separation
of people between the two places was parting. Nowadays, the internet has become
more and more developed. Even if they are thousands of miles apart, people can use
the telephone and video to communicate. Technology is changing our life all the time.

3.3.3.2 Internal environment analysis

Internal environment analysis analyzes the domestic situation of the enterprise,
including the company's resources, capabilities, culture, and other aspects. The
internal environment is the embodiment of the operation of the enterprise's entire
system and the status quo of the enterprise's activity. The purpose of this analysis is
also to promote the sustainable development of the enterprise, quickly understand the
operation status of the enterprise, and find out the key factors to encourage the
development of the enterprise, improve the market competitiveness of the enterprise,
and improve the comprehensive strength of the enterprise.

The internal environmental analysis matches external ecological analysis. The

two of them cooperate and are inseparable. The study of the external environment is a
plan for the enterprise's future and a search for opportunities for the enterprise's
development. Internal environment analysis is to grasp the opportunity. Even if the
external environment is horrible, the superior internal environment can help the
company to stably develop and improve the company's chances of survival.

3.4 Statistical methods

All statistical analyses in this article use software such as Office Excel and Word
for data processing and statistics. The family business has a long history, but their

18
average life span is very short. There are many unstable factors in the development of
enterprises, and enterprises are vulnerable to the severe influence of the will of the
entrepreneur. These factors influence the results of the study. The research data in this
article only applies to Shandong Haiwang Chemical Co., Ltd. Categorical data are
mainly described in the form of percentiles. Study the characteristics and nature of
human resources components in enterprises, and to express, describe, and analyze. For
example, age, education and work experience and qualifications, and so on.

Chapter 4 DATA ANALYSIS

4.1 External environment analysis: PEST macro

environment analysis
4.1.1 Analysis of political environment
(1) Political elements.
The development of the enterprise has received many policy support from the
local government. According to current economic growth in China, most of the family
businesses are small and medium-sized enterprises. Shandong Haiwang Chemical Co.,
Ltd. is a typical family-owned enterprise, which belongs to the medium domestic
enterprise. The development of enterprises strongly supports the country. Since
China's reform and opening up, the development of SMEs has been rapidly improved
and has become an essential driving force for the country's national economy. For the
support and assistance of enterprise development, the national policy is highly
supported, trying to eliminate all obstacles to enterprise development, and vigorously
support enterprise development. Nowadays, each city has different enterprise support
policies, and policy formulation is also inclined to the development of enterprises,
which are incredibly beneficial to the development of enterprises.

(2) Legal elements.

The operation and development of an enterprise are carried out in the country's
global political and legal environment, and the law is also one of the main components
of the political climate. Enterprises are mainly affected by the Enterprise Law and
Labor Law，and determine its legal status， and to stipulate and standardize various
types of enterprises, and control and restrict the organizational forms and economic
relations of enterprises. The law is protective; it is not only the protection of laborers，
and also the protection of enterprises.

Law protects the legitimate rights and interests of enterprises and laborers. Under

19
the influence of the global virus epidemic crisis, the political environment has
deteriorated rapidly, and enterprises' development has been dramatically affected. The
development of enterprise has been restricted and restricted. Isolation and inspection,
community blockade, suspension of production and shutdown, closure of the airport,
setting up checkpoints, the prohibition of alcohol, and curfew. Countless companies
face severe problems such as broken capital chains and bankruptcy liquidation.

4.1.2 Economic environment analysis

My country is a socialist country with Chinese characteristics and advocates the
development of many economies. Since China's reform and opening up, the country's
economy has developed rapidly. With the continuous opening of the economy, the
state has opened its doors, domestic enterprises have gone out, and foreign enterprises
have come in. Shandong Haiwang Chemical Co., Ltd. now has a large number of
overseas businesses. In recent years, the company has continuously strengthened the
international market's development, achieved excellent results, and improved the
enterprise's market competitiveness.

China is a powerful country. After 30 years of rapid economic growth, China still
maintains momentum for growth. This is very difficult in the environment of weak
global economic growth. Since 2018, the United States' Trump administration has
suddenly signed a memorandum of trade with China, which imposed tariffs on
Chinese products and restricted Chinese companies' investment in technology. The
trade war between the two major countries has begun. The trade war has had an
impact on the global economy. The effect has spread globally, and the international
economic environment has become more and more severe. Shandong Haiwang
Chemical Co., Ltd. not only has business in the domestic market， and the company
also has business overseas. It has multiple branches and production bases overseas.

The outbreak of trade war has affected the company's business development, and
the expansion of the international market has been hindered. However, due to the
uniqueness of the leading products sold by the enterprise, production is difficult, and
the storage is difficult. They are hazardous chemicals that are toxic and corrosive. The
uniqueness of the product limits manufacturers' entry, and there are few competitors in
the industry. The products are widely used, and there are relatively large gaps in
demand around the world. These factors have led to the limited impact of the trade
war on Haiwang Chemical in the current harsh market environment. The Labor
Situation. Changes in the labor market are essential in the development of an
enterprise. This is a compelling way for enterprises to supplement human resources.
For the current ordinary labor supply, the pressure of enterprises is not enormous.
China is a country with a large population and a sufficient primary labor force, which

20
is a massive advantage for enterprises' development. According to news reports, in
2019, there are 8.34 million people who graduated from colleges and universities,
there are many high-quality talents in the market, and the specialization of the labor
market has deepened. However, there is still a shortage of high-tech talent. The main
reason is that my country's economic development time is relatively short, and there is
room for improvement in many places.

Shandong Haiwang Chemical Co., Ltd. has a good position in the industry field
and is an excellent enterprise in the industry field. After years of continuous
development, the enterprise has good resource advantages and technological
advantages. It is a target company with many highly sophisticated talents. The talent
input of the enterprise is in a good situation. The development of the enterprise is
taking a relatively good supply of expertise.

Market salary level analysis. Shandong Haiwang Chemical Co., Ltd. is a

chemical enterprise that needs to have a certain degree of essential labor employees
and a sure guarantee on labor costs. This is not a very difficult problem because of the
company's own needs. The production activities of enterprises require a large amount
of necessary labor. The salary level of these people is relatively low and will not
become a burden to enterprises' development. For high-quality mid-level management
talents, the salary level is average in the market environment. In terms of enterprise
development, enterprises continue to increase investment in technology research and
development funding. The company has now obtained many patented technologies,
which has great competitiveness in the market competition, has excellent economic
benefits.

4.1.3 Social environment analysis

The social environment is the precipitation of values and culture and has stability.
Many elements make up the social environment, such as the number of people, age
structure, income, cultural traditions, etc.

Cultural factors are an essential aspect of social environmental factors. For

companies, they are not necessarily important factors， but they have a certain degree
of influence on enterprises' development and need to be paid attention to by
enterprises. Haiwang Chemical is a family business. The central cultural core is the
family culture. However, because of its own development needs, the company needs a
lot of essential labor assistance. It does not have much impact on the company's own
culture. The salary treatment level is the main influencing factor. For the management
personnel of an enterprise, a fair corporate environment and salary level are critical
influencing factors, which require the enterprise to have specific requirements for its

21
development. The human resources management department should make a
reasonable plan for the enterprise's human resources, formulate enterprise behavior
standards and work standards, and regulate enterprise personnel's behavior. This is a
problem that requires careful consideration by business owners and needs to be valued
by the business's management.

The rapid economic development has increased the people's wage income, and
the family's financial situation has been continuously improved. Nowadays, people's
lives are becoming more fruitful and more productive, and the quality of life has
dramatically improved. People's concept of life and material needs are continually
changing. Haiwang Chemical products are widely used in the market and are essential
raw materials for many products. There are fewer suppliers of products in the market,
and the market has a unique demand for commodities.

The demand for human resources in enterprises is polarized, requiring both a

large amount of necessary labor and a large number of highly skilled professionals.
For high-end talents in the industry, the company has a professional technical team
with a certain amount of talent reserves. It can provide timely guidance and solutions
to problems encountered during product production.

4.1.4 Technical environment analysis

As far as the technical environment is concerned, Shandong Haiwang Chemical
Co., Ltd. is the first batch to enter the industry. It has continuously increased
investment in technology research and development during its operation and
development. After years of scientific and technological research and development, it
now has many critical patented technologies and has decisive technical advantages.
The existence of an enterprise is enormous pressure for other competitors. Shandong
Haiwang Chemical Co., Ltd. has substantial functional benefits in the field of
enterprise products and is one of the leading suppliers in the current product market.
Because of the particularity of the product and industry, the product's production is
severe, the sales channel is narrow, and the development of the new company has a
significant disadvantage. The company cannot develop effectively. For this reason, the
current potential competitors and substitutes on the market, there are few producers.

With the development of science and technology, and changes in the market
environment, fierce competition in the market will become more significant. For an
enterprise, the core technology is an essential guarantee for the enterprise's market
competitiveness and a primary, necessary force for the enterprise to develop and
grow.

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4.2 Internal environment analysis
4.2.1 Proportion of human resources

Figure 4.1 Proportion of human resources

Shandong Haiwang Chemical Co., Ltd. currently has a total of 952 personnel,
including 8 senior management personnel, 243 middle-level personnel, and 701 basic-
level personnel. Since the company's primary business is chemical raw materials and
chemical manufacturing, the industry is relatively unique, so most of the personnel
are male. The proportion of female staff is not large, mainly distributed in the
finance department, technical department, and office. In the human resources
allocation of the enterprise, there are 170 employees aged 20-30 years old, 490
persons aged 30-40 years old, 231 persons aged 40-50 years old, and 61 persons aged
50 years and over. The reason for this is human resource allocation. (1) Projects
operated by the enterprise are mainly in the chemical industry, and most positions do
not require too high a technical level. (2) There are many repetitive processes in the
production process of the enterprise. Employees with work experience are more in
line with the needs of enterprise development, so there are not many young employees.
Some of the young employees are reserved for the enterprise. (3) The establishment of
the enterprise is earlier. Most of the employees aged 30-50 have experienced the
enterprise's development process, have sufficient work experience, reduce the
enterprise's development cost, and save the enterprise fund. People of this age work
more seriously. Besides, the salary of the company is good. The employees are more
enthusiastic about their work. (4) Most people over the age of 50 are corporate
sponsors and middle management personnel. The work experience and social
experience of these personnel are sufficient, and they have a high working ability.
They can coordinate and solve problems encountered in the development of the

23
enterprise. They are a vital force for development.

4.2.2 Staff education structure

Figure 4.2 Staff education structure

The company has 17 masters, 260 undergraduates, 589 junior colleges, 86 people
in secondary school. The human resources allocation of the enterprise is mostly
specialized and requires a unique work experience. There are fewer people with
master's degrees, and most of them are distributed in the enterprise's technical
department and quality supervision department. The number of people with bachelor's
degrees is roughly one-third, and most of them are responsible for the production
technology and translation of foreign companies. Generally speaking, the educational
level of the employees of the enterprise is still low, because the enterprise is a
processing and manufacturing enterprise, most of the positions do not have high
academic requirements, and the amount of wages and salaries is relatively low, which
is challenging to attract bachelor degree or above. And from the perspective of the
enterprise's organizational structure, the enterprise does not have a human resource
department. However, the company has a specific understanding of human resources,
and it is not strong enough. This is also a reason for the phenomenon of low personnel
education in enterprises.

24
4.2.3 Number of employees

Figure 4.3 Number of employees

As can be seen from the above figure, in the continuous development of

enterprises, the allocation of human resources is continually being adjusted. The
personnel structure is also becoming leaner.

4.2.4 Employee seniority

Figure 4.4 Employee seniority

From the human resources composition chart, we can see that the company's staff

25
tend to be younger, and the number of new employees is relatively large. On the
whole, the aging situation of enterprise employees is still relatively obvious, lacking
new power. Although the new force is weak, it has been dramatically improved
compared to the previous year, indicating that the company has noticed this problem.
The rejuvenation of enterprises is more about training middle-level managers of
enterprises. If enterprises want sustainable development, they also need to pay
attention to this aspect of strength.

The setting of human resource management institutions. In more than ten years
of the enterprise's rapid development, the enterprise has achieved excellent economic
benefits. It has substantial resource advantages and operational advantages in the same
industry. The company once increased investment in technology and capital and
achieved excellent results in domestic and foreign markets. In the enterprise's
organizational structure, we can see that the enterprise itself does not have a separate
human resources management department, and the company's canopy management
staff performs the company's human resources-related work. According to the
information collected, there are several reasons: (1) Enterprise founders and investors
have extensive work experience and social experience before founding it. The
company's senior management personnel are shareholders and investors of the
company, the number is large, and the number of children in the family is also
relatively large. In the process of enterprise development, the cultivation of family
personnel is also paid more attention, so it has a specific talent reserve. (2) The
company has a good reputation in the industry. Due to the enormous demand for its
products at home and abroad, the company's product sales are very stable, and they
will have excellent economic benefits every year. (3) In recent years, the company has
spent a lot of money internally to build an excellent management team. The
organization personnel has rich work experience and professional skills in the industry,
which provides a guarantee for the company to grasp the industry's development trend
accurately and offers essential talent support for the company to expand its business
scale.

For these reasons, the company has not set up an independent human resources
management department. The company's recruitment work has always been the
responsibility of the company's senior management, the construction of the human
resources management department is vacant.

26
4.2.5 Enterprise recruitment situation

Figure 4.5 Enterprise recruitment situation

Enterprises have not formulated regular recruitment activities. The company has
been in a state of real-time recruitment. Most grass-roots positions are recruited
through online recruitment or the human resource market. Most of the middle-level
places are family members. Among the company's current employee system, 35 %
rely on online recruitment, 26 % recruitment in the human resources market, 22 %
recruitment within the industry, and Family members are included in 17 %. Such
recruitment methods and processes are prone to certain defects. This state of
recruitment does not necessarily reflect the true needs of the company.

27
4.2.6 Proportion of middle management

Figure 4.6 Schematic diagram of the proportion of middle managers

We can see from the schematic diagram of the recruitment source ratio, the
proportion of family members included in the company, and internal recruitment is
still relatively large, and the recruitment method is relatively simple. Most of the
middle-level management personnel are family members and family members of the
enterprise management personnel. The recruitment of staff is mainly based on the
needs of the position, and the enterprise has fewer reserve talents.

Enterprise employee training Social progress is developing too fast now, and
market competition is becoming fiercer. The development of an enterprise needs to
strengthen the control of product R & D and quality, but the internal construction of
the enterprise also needs to be continuously enhanced. Companies need to pay more
attention to employee training, in terms of recruitment, most of them have three years
or more than three years of work experience, new employees will also be trained for
about a week to understand the company's culture and work content to adapt to related
work faster. There is no individual training for one person. It lets the old employees
lead the new employees to observe and study for a week, familiarize themselves with
the working environment and process, and then arrange the specific work content.

28
4.2.7 Employee salary

Figure 4.7 Employee salary

An enterprise employee's salary is roughly composed of five parts: basic wage,

bonus, performance salary, subsidy, and welfare. The payment of a specific wage
needs to consider the particular situation of employees and enterprises, depending on
the position, the pay and performance of employees will be different. The enterprise's
year-end bonus and the welfare benefits also need to be determined according to the
enterprise's economic development that year and are not stable. In the early days of
the business establishment, the external staff has a fixed monthly salary, the founders
of enterprises and major investors mainly receive dividends based on the benefits of
the enterprise, the initial investment of the enterprise is enormous, and it is in a state
of loss for a long time. The executives of the company have not been too high-income
or non-income for quite some time. With the continuous development of enterprises
and the constant improvement of economic benefits, the company has adjusted and
improved salary situation. In addition to fixed wages, according to the different
positions, some adjustments were made to the number of salaries, the basic wage
available for each post was established, and performance evaluation and various
benefits were added. So far, the average salary of an enterprise has reached 7435 CNY
per month.

4.3 Analysis of enterprise human resource management issues

With the development in recent years, technological innovation has become an
essential driving force for the development and progress of enterprises, establish a

29
technical department, increase investment in research funds, develop and apply for
technology patents, technological innovation has become the main focus of Haiwang
Chemical and has many patented technologies. Science and technology have become a
vital and essential force in the development of production. Under the current harsh
environment, market competition has reached a depth of accuracy. Enterprises want to
survive and develop opportunities. This is a comprehensive process. Technological
innovation is significant for the development of enterprises. The innovation of the
enterprise human resource management system is also crucial. Ask questions here to
elaborate.

4.3.1 The concept of human resource management is vague

With the rapid development of social economy, the concept of human resources
has been noticed for a long time. Shandong Haiwang Chemical Co., Ltd. has
recognized this problem in the event of enterprise and hired talents in the industry.
Although the enterprise has some personnel positions, it does not have an independent
department. The enterprise has a specific understanding of the concept of human
resources, but there are still deviations. The enterprise does not make a useful
distinction between the definition and responsibilities of human resource management.
Human resources management and personnel management have the same place; their
research objects are people. But the relationships involved are different. Human
resource management includes personnel management. Personnel management is a
part of human resource management. There are subtle differences in a management
perspective, job nature, management focus, and career requirements.

(1) Management perspective. In personnel management, human resources are

usually the definition of tools and costs; everyone has a corresponding use and has
value; in human resource management, human resources are resources. The two
perspectives are different. Tools and prices mean that people are goods, cut costs, and
have no emotions. For example, some enterprises adopt extreme management methods
and only talk about performance. Do not consider other factors. From the perspective
of human resources, human resources can be developed and utilized ， and can be
reasonably managed.

(2) Nature of Work. The personnel department's work is mainly about the
management of people, and in terms of administrative affairs, its personnel is mostly
responsible for senior leaders. The human resources management department's work is
mainly based on the strategic decision of the enterprise, which is the direction and
purpose of the work of the social resource management department. The human
resources department includes the personnel department's relevant work, responsible
not only for senior management but also for the entire enterprise, the development,

30
and utilization of human resources is the focus of the social resource management
department. It can be said that the human resource management department is not only
an administrative department of personnel but also the staff of the entire enterprise,
escorting the implementation of strategic decisions of the enterprise.

(3) The focus of management. The personnel department's work emphasizes the
core of things, the deployment of whom, all management activities emphasize the
smooth progress of things. The work of the human resource management department
emphasizes people and the core. The entire human resources management department
serves people and is more inclined to the role of nannies. All the work is centered on
people.

(4) Professional requirements. The personnel department is dedicated to the

professional needs of personnel, people working in the personnel department are often
single elites and experts in personnel management. They do not know much about
other departments. The staff required by the human resources management department
are multifaceted, and it is necessary to understand the work of other departments
continually. Not only to be proficient in the work of personnel management but also to
understand the operation and management of the entire enterprise.

There are a few apparent differences between personnel management and human
resource management. The management affairs of the enterprise are complicated.
Personnel management tends to point mainly for a single individual. Human resource
management tends to be the whole, which is realizing the enterprise's overall goals
and the coordination and cooperation of the entire team of the enterprise. Personnel
management is generally traditional, attaching importance to the management of
affairs, and excellent personnel management is hugely beneficial to the enterprise's
development. After all, the enterprise is everyone's enterprise. The development of an
enterprise depends on everyone's development. However, the role of a single point-to-
point management model is relatively limited, and the value created has limitations.
Traditional personnel management is based on human management experience.
Experience is a summary of past events. Knowledge can help us work in the future,
but it does not apply to all future situations. Experience is a very invaluable treasure
and has an important meaning, but the experience can also contain errors. Human
resource management is the overall management of the enterprise. It is
standardization, institutionalized and all-around. Human resource management needs
to consider not only issues discussed in personnel management but also problems that
are not found in personnel management. Human resources management is tedious and
complicated, it not only needs to solve the issues of hiring, and retaining people in
enterprises, but also needs to address how to make these people achieve the most
considerable enthusiasm for their work, have a work enthusiasm, and how to regulate

31
their management to build an elite team reasonably.
In the process of enterprise human resources construction, many functions of
human resource management departments are not able to perform better and are
subject to many constraints. This is because the human resource management
department is a comprehensive management department. It inherits the responsibilities
of the personnel department in the past. It is also the personnel department.

Family business problems lie in the authority of enterprise management; there are
not decentralized management; most of the management authority is still in the hands
of a few people. Here, management power is relatively concentrated. This will
inevitably constrain the development of the human resources department, and the
work cannot be carried out, increasing the resistance of enterprise development. The
development of an enterprise needs to be tightly integrated with the market, and the
shortcomings of the enterprise must be treated correctly. Human resource
management is a place that enterprises must pay attention to, and cognitive changes
can change the stagnant state of the enterprise and gain new vitality.

4.3.2 Serious family businesses

In the early days of the company's establishment, the company's internal
members were mostly the founders' brothers, sisters, and relatives. This kind of
organizational structure can improve enterprises' survival rate with high probability
and filter out many management difficulties of enterprises. The transmit to those
above and those below and release speed is fast, conducive to the management of the
enterprise, and the communication of high-level commands. There are no redundant
links, and the operation efficiency of the enterprise is high. This typical family
structure runs throughout the enterprise. After continuous development, enterprises
begin to grow, expand in size, and increase in personnel. In the face of fierce market
competition, enterprises must change. Set up a technical department, increase research
investment, set up a human resource management department, and attach importance
to human resources management. However, family management's organizational
structure always affects the enterprise. From the parent company to the subsidiary
company, from top management to middle management, the family atmosphere will
be powerful. Among these managers, due to the reasons for the times, most family
members' cultural level is not high. After the company grows and develops, such a
situation resulting in a low cultural level of the entire management and poor
management quality.

The concentration of power is necessary but too concentrated, but unable to exert
the advantages of centralized power is not conducive to the development of the
organization. In family-owned companies, the proportion of professional managers is

32
very small, or none. More than 70 % of global companies are family businesses.
Family-style of the family business model has tremendous advantages, but if its de
organizations' developments no limit will magnify the enterprise's problems infinitely.
Under the influence of emotions and moods, personal factors greatly affect the
environment of the enterprise and the development of the enterprise. Enterprises are
prone to formulate unreasonable rules and regulations and are opaque and unfair in
terms of wages, bonuses, and benefits. Emotion limits the optimization and
development of human resources and hinders the sustainable development of
enterprises. Healthy enterprises value the development and utilization of human
resources. If the enterprise cannot make full use of human resources and restrict the
optimization and development of human resources, the undesirable factors generated
during the development of the enterprise will gradually undermine the order of the
enterprise and the stability of the environment, severely impact the work enthusiasm
of employees, and even cause brain drain.

Technology is a primary productive force. Many companies have hierarchical

severance of high and new technology, and their development strategies are also
shifting to high and new technologies. However, the problem of enterprise
development is still that the traditional labor-intensive structure restricts the enterprise.
A large amount of essential work requires human resources to be completed. Although
many companies have their scientific research results and have obtained many
research patents, this is only at the scientific and technological research and
development level, and production still requires a lot of work to complete. Without
people, companies cannot carry out production activities. The problem of the human
resource component of the enterprise is still a single structure, and there is a large
number of personnel with low educational background. This is an essential issue for
the company to build human resource management. Shandong Haiwang Chemical Co.,
Ltd. is a high-tech enterprise but also a chemical enterprise. High and new technology
only exists in the research and development of science and technology. However, a lot
of mechanized equipment was used in the production process. The demand for
necessary labor for enterprises is still great, and many production links require human
resources to complete. In general, many private enterprises do not need personnel with
a high educational level and education level because a lot of work is repetitive.
Unnecessary recruitment, even top education personnel enter and do the same
repetitive work. There is no difference between the two. Higher education also needs
to pay higher wages, and companies are also reluctant to pay higher fees, increasing
the capital expenditures of enterprises. Therefore, high-quality and highly educated
personnel are unwilling to come, and companies are also reluctant to recruit. The
development of enterprises in human resource management is minimal.

Most private enterprises in China have common family problems. An institution

33
in the United States has researched the issue of family-owned enterprises and found
that the problem exists in two-thirds of global enterprises. The family structure of an
enterprise does have an advantage in the development of the enterprise. But this
structure is natural to ignore the problems that arise in the development of the
enterprise, even deliberately ignoring and not paying attention. In some essential large
and state-owned enterprises, the structure of employees is perfect and precise, with
clear standards and norms, from the senior general management to the head of the
department at the next level, to the middle management in each department. To the
essential employees of each department, there is an evident and apparent structure
system. Most of the companies with dangerous families do not have this kind of
architecture. There is no clear division of labor between departments, no clear
responsibilities, and the centralization of management power is dangerous. Or many
people have chaotic rights, there is no clear hierarchy between the management
personnel, and everyone is a relative, for example, the uncle is the chairman of the
enterprise, and the employees are all sisters, uncles, and aunts. In personnel
management, enterprises will inevitably have a variety of problems, even the question
of internal power struggle. These problems will also lead to the phenomenon of a
single employee structure and a low personnel education level. Without fresh blood
injection, the question of the corporate brain drain would be more serious. This kind
of problem is tedious and complicated. China is a society of human relations. If it is
solved well or not, it will cause trauma to the enterprise. How to solve it is an
important issue that needs to be considered by family-owned enterprises.

4.3.3 Unclear enterprise recruitment

Businesses have general problems with family-owned companies in recruitment.
The management's family members are concentrated, and the company's average
cultural level is low. The personal cultural level is not equal to personal workability;
the enterprise's development is more dependent on the display of personal ability level.
Lenovo, a well-known company, does not set educational thresholds for staff
recruitment. Whether it is a Ph.D. or a master, full-time, or self-study, all are selected
according to workability. Although education is not a standard for employees'
workability, improvements in school can help employees improve their workability.
The higher the educational level, the higher the horizon, the higher the experience, the
new ideas, the higher the new understanding. Nowadays, the market competition
environment is intensifying, and an enterprise can't have insufficient high-quality
talents, if an enterprise wants to develop, it must make effective supplements in
staffing.

Recruitment is an essential way for companies to obtain fresh blood. If there is a

problem with personnel recruitment, the company will have serious health problems.

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Enterprise recruitment is an essential part of enterprise development, and experts need
to have higher professionalism and cultural literacy. High-quality talents can
guarantee the quality of enterprise recruitment to a certain extent. The enterprise is a
whole, and the development of the enterprise is a whole. The enterprise has the
following problems in personnel recruitment:

(1) Recruitment attitude

The recruitment attitude of an enterprise determines the quality and level of the
recruited people. Recruitment is not a one-way process; recruitment is a two-way
process. In this process, enterprise recruitment is mutual, which is also something that
companies tend to overlook. This is not only an application from an employee but also
an application from a company. Rejections are emotion and attitude that needs to be
expressed in time. Lack of communication will cause losses to both parties. Some
employees have resigned within a month. This phenomenon is sufficient to explain
some of the problems. Integrity is an important image of a company. In the
recruitment process, many unethical companies use fraud and false propaganda to
achieve recruitment purposes. This way of doing or making a thing is wrong. After
talking about the various conditions in the interview process, bad companies began to
make multiple promises to job seekers, such as career prospects, salary conditions,
and benefits. However, when candidates enter the job position, they encounter many
restrictions and obstacles, and the conflict between the company and the employees
intensifies, causing the employees to leave the company within a short time after
entering the job. The company wasted resources and destroyed the external image.

(2) Highly family extent

Family-oriented companies are more inclined to family members in terms of
personnel acceptance, thinking that they are more loyal in doing things. Even if there
are problems, they are understandable and tolerant. Family-owned companies are
members of the same family when they are appointed to the top of the company.
There is a lot of nepotism in the organizational structure of the entire company. There
is no need to go through the detailed selection process for personnel recruitment and
report directly to the personnel department. The enterprise's family is not wrong, but
too many companies only value the benefits of family and ignore the risk. Such people
who enter the enterprise through the process are generally not active in their work or
business. Moreover, it is easy to arise and suppress the phenomenon of the same level
manager or higher manager, and nepotism is easy to cause employees to reverse the
situation in management.

Family-oriented companies are more inclined to family members in terms of

personnel acceptance, thinking that they are more loyal in doing things. Even if there
are problems, they are understandable and tolerant. Family-owned companies are

35
members of the same family when they are appointed to the top of the company.
There is a lot of nepotism in the organizational structure of the entire company. There
is no need to go through the detailed selection process for personnel recruitment and
report directly to the personnel department. The enterprise's family is not wrong, but
too many companies only value the benefits of family and ignore the risk. Such people
who enter the enterprise through the process are generally not active in their work or
business. Moreover, it is easy to arise and suppress the phenomenon of the same level
manager or higher manager, and nepotism is easy to cause employees to reverse the
situation in management.

(3) Recruitment efficiency is low and non-formal

The rapid development of the enterprise will cause a gap in the company's human
resources so that it has a higher demand for necessary personnel and middle managers.
The talent pool within Haiwang Chemical is scarce, lacks a perfect talent pool, and
often needs to recruit people from outside. The company exists a human resource
shortage phenomenon, and there is a shortage of alternates.

An enterprise's recruitment work is generally handed over to the personnel

department or human resource management department. The enterprise has not
established a separate human resource management department, and the recruitment
work is often handed over to the personnel commissioner. To obtain personnel more
quickly, companies have long been in recruitment status, waste of time, and effort, the
quality of hiring is difficult to guarantee. In the recruitment process, recruiters are
usually more subjective, often the interviewer recruits different people, and the
recruiter has the absolute right to choose a candidate. The person in charge of
recruitment also often lacks communication with the specific employing department.
There is no standard and planning for the recruitment process, but the entire
recruitment process is completed mechanically. March, April, July, and August are the
peak season for recruitment, March and April are the years, and July and August are
the graduation season. A large number of companies would choose to recruit
personnel in this matter. Because this is the peak recruitment period, there are a large
number of applicants. Although companies hire at this time, the corresponding
personnel is not sufficient. In the face of a large number of resumes, they cannot be
rationally and carefully screened. With the advancement of technology, many
companies choose the network in the delivery method, the applicant sends the resume
to the corresponding mailbox, and the computer completes the screening work. The
resume after the initial selection is screened by the recruiter and notified of the
interview, which reduces the recruiter's workload. Computer screening is very
efficient, which significantly reduces the recruitment process's workload, but it is not
without problems, such as the situation of not filling and fraudulent filling. Many
companies like to recruit on campuses. They think that students are more unaffected,

36
have a shallow social experience, have higher work enthusiasm, and are easy to
manage. Graduates are approaching graduation, and there is a strong demand for work.
Still, excellent students are a small number after all, and excellent results do not mean
that their social experience is shallow, and poor stability is the main feature.
Enterprises need to pay for leaving such personnel. The cost is also very high; it is an
investment in talent. In contrast, many students are not outstanding, so many people's
resumes have nothing to write. It is easy to pay attention to and fill out at random,
choosing a company to join the job arbitrarily. Social recruitment is the primary
recruitment method for enterprises. Still, it is easy for bad candidates to forge resumes
to increase the probability of screening through computers and improve interview
opportunities. These subjectively conscious behaviors are indistinguishable from the
computer, and it is difficult to guarantee the quality of the interview. Lightening the
screening work in the early stage but increasing the interview work on the later stage
makes it more difficult for companies to screen personnel.

(4) The disconnect between corporate recruitment and corporate demand

Lack of communication is the most important reason for increasing corporate
recruitment expenditure.

The company's demand for talents is visualized, the feeling of feeble is obvious.
What is wrong with the process, who is missing in which position, the management at
all levels of the company is evident and understand the situation. The company knows
that its development needs talent and that it needs to recruit talent. But in the choice of
personnel, the company began to be confused. Mr. Long Gu wrote in his work "Seven
Weapons": "The person who knows you most often is not a friend, but your
opponent." It can be understood in this way that the opponent will continue to expand
your shortcomings, looking for weaknesses, own ignore their own shortcomings more.

Everyone knows of their shortcomings and needs, and so is the enterprise.

Avoidance is not a good solution. To meet the recruitment needs of enterprises and
save capital expenditures, it is common practice to increase the requirements of
academic qualifications, titles, and various certificates and limit the conditions to
increase the probability of obtaining the required personnel. Survival is the main
theme of the era. For enterprises to survive, this is especially true for individuals. Now
people and society are very hasty. Wealth has become the main concept, there are
many talented people, and the development of enterprises must require talent, for
example, the Qin Kingdom during the Warring States Period, Qin's power is the
appointment of many talents. The Warring States period was a very interesting period,
and the Warring States period was also extremely chaotic. Wu Qi, one of the top ten
generals in the Spring and Autumn and the Warring States Periods, a rare talent during
the Warring States Period, was called the "Yasheng" of the Soldiers. Still, Wu Qi is

37
also a rare person with corrupt moral character in the Warring States, corrupt,
unfaithful, unjust, unkind, and filial. He even killed his wife to gain military power.
Wu Qi is a powerful general, the only person who can resist or even counterattack into
Qin at the same time, Wu Qi is also a typical talented person with no virtues during
the Warring States period, the appointment can bring significant benefits and make the
country prosperous, but it also needs to have the existence of people who can manage
it. It is a double-edged sword.

(5) No feedback mechanism has been established

There is no feedback mechanism within the enterprise. The feedback mechanism
is an important system, and feedback is essential. People-to-people communication is
more about intercourse, and wherever you come, there must be intercourse. When the
company is recruiting staff, few companies provide timely feedback to the rejected
person. More is to ignore it and send an introductory email or newsletter to the
applicant hired to inform the interview or join the job. In the current environment of
the rapid development of society and technology, it is an easy task for groups to send
newsletters. It does not consume too much time and energy, and the capital consumed
is also minimal. This is more of social care. The lack of mechanisms shows that
enterprises still have many aspects that can be improved, which is the driving force for
enterprises to improve themselves continuously.

4.3.4 The enterprise human resource management system is not perfect

The survival and development of an enterprise are difficult. In the initial stage of
Haiwang Chemical, the growth was more dependent on the founder's interpersonal
relationships, which also laid the foundation for the enterprise's family structure. The
limiting factors determine the form of an enterprise, which is the main reason for the
formation of family-owned enterprises. The family-owned company has a stable
internal environment, strong cohesion, concentrated power, and fast command
transmission. The operation efficiency of the enterprise is high. The enterprise can
quickly find its development direction and produce economic benefits. During this
period, due to the high concentration of corporate rights, the company's founders had
the highest decision-making power in the enterprise. In the enterprise's development
and decision-making, the founder of the enterprise was often decided by one person,
and the fate of the entire enterprise was tied to one person. With the development of
the company and the increase in economic benefits, the company can't be fully
included in the members of its own family. In the face of vacancies in various
positions, the company needs to recruit external personnel to work. However, the
concept of family-owned enterprises is deeply rooted in people's hearts. Existing
family members are generally concentrated in high-level and middle-level
management positions, and there are relatively few grass-roots personnel. As external

38
personnel gradually enter, internal and external conflicts and conflicts will appear.

Enterprises do not trust outsiders, and outsiders are not reused. This kind of
distrust would cause companies to close up channels. Over time, the promotion is
hopeless, the outsiders will choose to leave, and the company has a brain drain
phenomenon.

Family members hold absolute power in a family-owned company, and the

human resources of the company are short-lived. Due to the influence of the family,
the cultural literacy of the management personnel of the company is not the same. The
concept of human resources exists only in the literal itself, without going into an in-
depth interpretation. In terms of application, attitude determines the way things are
done. Managers tend to use more tools than others. Enterprises do not have perfect
standards and systems for talent acquisition and appointment or long-term plans. The
overall level of human resource management is relatively low. With the continuous
improvement of the quality of life, the demand for people will continue to increase,
and the family-owned enterprises themselves are subject to more constraints.
Confusion and randomness in personnel management and keen subjective
consciousness hinder the construction of the entire human resource management
department of the enterprise. An imperfect human resource system cannot adapt to a
hostile external market competition environment or enterprises' development needs.
Extreme family businesses are more repulsive to outside talents and cannot motivate
employees to struggle.

Many factors are affecting the imperfect human resource management system.
One of the main problems facing family businesses is the massive loss of talent. The
development of enterprise needs people, and the failure of abilities becomes a problem.
If there is demand, it must be met, and if there is a problem, it must be solved. The
loss of talent makes companies need to recruit new talent continually, and the existing
system will lead to a continuous loss of ability. The round-trip situation wastes a lot of
human resources, material resources, and energy for the enterprise raises the
enterprise's human resources cost and forms a bad cycle. But in addition to the real
leadership of the company, other family members hardly consider the cost. The
enterprise's waste materials have little to do with them, and family members generally
lack a sense of responsibility for their position. The imperfect human resource system
is prone to cronyism, there are other phenomena inside and outside, and the blood
relationship is constant. The situation that arises is that the lack of professional
qualities of management personnel improves the turnover rate of staff. The process of
circulation will increase the negative influence of the enterprise and bring losses to the
enterprise. Enterprises have not only lost excellent employees but also lost technology
and experience. Higher staff turnover rates will also affect the order and stability of

39
the enterprise. The unstable atmosphere is destructive and is prone to
self-endangerment.

Due to their own development needs, family founders will appoint a large
number of family members and appoint them to various vital positions to maintain a
high degree of control. In the later development of the enterprise, although the
requirements of the state have established a modern organizational structure, it has
played a limited role, most of which are like a dummy. The degree of centralization of
the enterprise is high. In a standard corporate structure, an enterprise should have an
independent supervisory body, such as a supervisory board. In family-owned
enterprises, because the board of supervisors is mainly composed of senior
management, the middle and high-level managers of the enterprise are mostly from
the same family. In actual supervision, because of the existence of kinship, it cannot
play a perfect supervisory role. The family management of an enterprise makes simple
control more prevalent within the enterprise, and many rules and regulations have no
specific provisions.

4.3.5 Lack of training awareness and weak training

Through its continuous growth. Haiwang Chemical has continuously expanded
its scale, continually improved its economic benefits, and changed its employees'
needs. Haier Company once said that an enterprise is a person, a person is an
enterprise, and the person is the most valuable asset of an enterprise. Enterprises need
to continue to develop, the market is continually changing, and employees also need
to increase their human capital continuously. The scale of the enterprise is
continuously expanding, the economic benefits are steadily improving, and the growth
of the ability of the enterprise's employees need to meet the development needs of the
enterprise. This requires not only the efforts of the employees themselves but also the
company's attention. Because of the rapid development in the early stage and the
incomplete infrastructure construction of the family-owned enterprise, there will be
apparent weaknesses in the later enterprise stage. In recent years, the national team's
small and medium-sized enterprises have become more critical, and various regions
have different policies to support them. Many enterprises insist that science and
technology are the first productive forces, enterprises transform, promote innovation
and development, integrate resources, increase investment in scientific research, and
various measures have revived the vitality of enterprises. The enterprise's
development must meet the needs of the times, the human capital within the enterprise
must also make progress with the enterprise, and the knowledge structure and
management level of the personnel must be continuously improved to ensure that
there is sufficient source power within the enterprise. Because of the family-style
organizational structure, it is far from feasible to rely solely on family members, and it

40
is also unrealistic to rely exclusively on external human resources. Therefore,
enterprises must strengthen the proportion of employee training in their social
resource management activities and pay attention to training issues.

Corporate training is an essential way for a company to grow and an opportunity

for employees to improve their human capital. Through excellent training, employees
cannot only enhance their abilities, but companies can also cultivate elite teams. Both
enterprises and individuals have been improved and developed, and training is
essential. General corporate training is mainly aimed at middle-level employees, and
training for job skills is relatively simple. Now, even the most basic training is not
available in many family companies. To reduce labor costs, companies often choose
experienced old employees in the recruitment process and can work directly after a
short period of familiarization. This is negligence and neglect of the company's
employee training. There are many types of corporate training, including skills
training and professional literacy and management levels. The enterprise training
camp is a whole through training a single person to improve the organization's
performance. Enterprise training is necessary. It is not only the growth of employees'
capabilities but also the growth of enterprises.

As the size of the business grows, expand the size of family members. It is
understandable. Enterprises are developing, and the economic benefits are increasing.
To meet the needs of enterprise development, the internal personnel capabilities of
enterprises also need to be jointly improved. In terms of personnel training, most
family businesses generally do not pay enough attention to the coach. The study is a
long-term process and cannot achieve immediate results. Moreover, the course is
mostly undertaken by the human resources management department, due to the
imperfection of the construction of human resources management system in family-
owned enterprises, related activities cannot receive sufficient support and funding, and
large-scale personnel training activities cannot be carried out. In the recruitment
process, recruiting employees with work experience has become the first choice of the
company; however, due to the blockage of corporate ascending channels and the high
mobility of personnel, the cyclical process inadvertently increased the company's
labor cost input, repeated increased costs were wasted, and funds were not effectively
used.

At present, many enterprises have several problems in their training activities,

poor organization, mandatory, and most of the time is on employees' rest days. The
training method is the traditional face-to-face. The training content was not targeted.
Arrange the training content at will, and there are no training plans. As the training
target, employees are compulsorily participating in training activities and are also
occupied with average rest time. The training content and process are monotonous and

41
boring. Employees are easily resistant to training activities, the content of the training
is useless, and the awareness of receiving training is weak, thus refusing to participate
in the enterprise's training activities. In the long run, employees pay less and less
attention to exercise. Companies will no longer pay attention because of the small
number of trainees, resulting in a reduction in the overall emphasis on training.

As companies pay more attention to training issues, many SMEs will also
conduct corporate training, but most of these pieces of training are elementary on-the-
job training, or a few dialogues, lack of specific skills training, the company does not
have professional training personnel to take care of related matters, enterprises lack
sufficient training experience, mostly based on company rules and regulations,
familiar with the environment and work content. In the training process, there is a lack
of appropriate supervision and management, and there is a situation where the leader
starts the training, and the leader ends the exercise. No feedback after the training.
Feedback is an important mechanism. The training organization should assess the
preparation, and what expectations and results have been achieved. The discipline of
an enterprise should be carried out according to its situation and needs and meet its
survival and development needs. Appropriate training can have a suitable effect.

4.3.6 Analysis of the salary and performance task index

Performance is an important issue that directly affects employees' economic
income at all levels of the enterprise. Any problem related to money in an enterprise is
an important issue. Now almost all enterprises will implement a performance appraisal
system. Generally speaking, years of exploration and research have made the
development of the performance system quite perfect, without too many problems.
There are several significant issues in the performance system.

(1) The performance appraisal of family-owned enterprises is mainly responsible

for management. Such personnel usually have the absolute right to speak in the
enterprise, and employees will not dare to resist. There are more private discussions
and complaints about problems and doubts. There are few cases of directly looking for
the theory of the boss, which exacerbates internal contradictions.

(2) Performance evaluation is not transparent and open. The purpose of the
performance is to improve employees' enthusiasm, so the assessment standards and
results need to ensure fairness, let employees know how performance is calculated,
what the assessment criteria are, how to achieve high performance, and get rewards.
Performance evaluation should not be biased. For example, it is vague about
subjective consciousness performance evaluation standards without clear boundaries.

42
Performance evaluation should be fair, just specific, and quantifiable.

(3) Anchor point and technical control. An anchor point is like a ship anchor,
which fixes the entire ship in place. An anchor is a crucial part of a boat, but an anchor
point is not an example but a comparative and achievable example. In human resource
management, standards are like anchors. McDonald's is a significant global
multinational restaurant chain, founded in 1955 in Chicago, the United States, which
has a 65-year history, McDonald's entered China very early. A large number of loyal
users accumulated through coupons have been rapidly developed across the country.
Now, almost every city will see the shadow of McDonald's. The performance of every
McDonald's employee was very high. In McDonald's recruitment, the clerk
recruitment qualification requires a junior high school or higher, and the store
manager recruitment qualification requires a high school or higher. After these people
entered McDonald's for a few years, they became the standard performers, and
everything in their daily work can be standardized and completed with standardization.
They have achieved excellent results and are welcomed by significant headhunting
companies. McDonald's does this, standardizing the system, standardizing behavior,
any store, anything, McDonald's has its standards. There are standards for item
placement, standards for mopping, and standards for food processing. There is nothing
at McDonald's that has no rules.

There is an organization in China called the Performance Improvement

Association. They advocate a point of view to solve human control problems through
technical control. For example, a bread machine needs to bake bread in five seconds.
In this machine, you don't need to put the dough in, and it will automatically pop out
in five seconds. In McDonald's, there is a rule that when hamburgers are made for
fifteen minutes, no one will have to throw them away. When the incubator's door is
closed, the timer starts and the timer will be reset as soon as it is closed. When the
timer changes from green to red, the alarm will sound, and then the staff next to you
will know that it needs to be taken out and destroyed. Solve many human control
problems through technical control and improve management efficiency. McDonald's
system, even if ordinary employees go in, can give excellent performance.

The establishment of the salary system is a necessary condition for the

development and growth of the enterprise. The basic salary system is also the basis for
maintaining the enterprise's stability. The main reason employees come to work for
the company is to get money, employees do not get their due remuneration for work,
there is a problem with the remuneration system, and the company has no proper
human resource management and performance management. Under the premise of
lack of performance, strengthening the enterprise's management and strengthening the
performance system will only make the team collapse faster and dissolve faster, which

43
will not benefit the development of the enterprise and the team.

The salary of an enterprise should be reasonable and specific. In the United

States, the annual income of CEOs of many companies in the United States is very
high, but its employees rarely envy it. Because employees know the source of income
of these CEOs, their salary and performance account for a minimal number of them.
The rent is mainly derived from long-term compensation income, and revenue is
obtained through options. However, there are also employees with options. It's just a
matter of how much, and the employees still have high wages. Under this salary
system, employees work for the company, and the CEO also works for the company.
Everyone wants to get a high return on their benefits. I need to work hard, everyone is
on the same front, in disguise, the company's CEO is working for employees,
everyone is an employee, and everyone is a boss. Among domestic enterprises, there
are fewer employees holding shares, and there are more criminal enterprises. The
salary system is an essential point for the employees. Enterprises should be more
transparent and open in this regard, reduce employees' suspicion, and better enable
employees to recognize their shortcomings, what needs to be done to improve and
supplement their abilities and skills, in the family business. There are gaps in salary
between employees. The internal staff pays more, the external team pays less, the old
employees pay more, and the new employees pay lesser. The wages are not paid based
on ability, which causes many problems within the company. Salary management
lacks transparency and fairness, which is also one of the disadvantages of family-
owned enterprises in the management process. Senior executives inside family
businesses often assign key positions in the business operations to members of the
core family, guarding against outsiders everywhere, and distrusting them. Distrust is
the leading cause of contradictions within the family business. This type of salary in
the family business is prone to discord between internal and external personnel. The
environment within the company is harsh.

4.3.7 Single corporate culture

The corporate culture valued by family businesses is mostly the "home" culture,
emphasizing the concept of family members, and everyone struggles together and
gains together. But people are complicated, and there are many uncertain factors, such
as Lenovo layoffs in 2003. The purpose of the enterprise is to create economic
benefits, and you can't create economic benefits. You have to leave. This is the case
with family members, not to mention that they are not real family members.
Employees are not here anymore about the concept of resources. Wolf culture is the
core corporate culture of Huawei's enterprise, which was advocated by Mr. Ren
Zhengfei. In nature, we know that wolves are social animals. Although wolves often
move alone, they are the most united animals. There would never be a phenomenon of

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giving up their companions and running alone. This level of understanding is also a
decisive factor in the success of the wolves. When the group is acting, even if it is
fierce, like a lion king, facing the wolf pack alone is difficult. Huawei's corporate
culture and strict management systems have created substantial economic benefits for
Huawei. Before this, the wolf culture had only been mentioned. Since 2018, this
culture spreads widely. Many companies have followed suit and have learned from
Huawei. Wolf culture is valued by many companies, and these companies know that
wolf culture can bring considerable economic benefits to enterprises. They think this
culture can unite the enterprise and bring in real money.

Corporate culture cannot be changed frequently. Today, the company is a family

culture. Tomorrow, the company is a wolf culture. This is not allowed. The
transformation requires a process. The wolf culture and the strict management system
of the wolves are worthy of learning by enterprises. It will play a perfect role in
promoting the development of enterprises. Do not make too many narratives about
wolves, but wolf culture requires a specific understanding of the wolf pack. The wolf
is fierce, but the wolf is also the highest achiever of all mammals. British zoologist
Shao Ellis said: "Of all mammals, the most emotional person is the wolf; the most
resilient person is the wolf; the most accomplished person is the wolf." This passage
explains the characteristics of wolves and has a high evaluation of wolves.

The wolf culture application by Huawei companies has led private entrepreneurs
to imitate. Wolf culture is a very excellent corporate culture, the wolf pack is a very
close group, which is doomed to be learned by many companies. Most private
enterprises in China are family-owned enterprises. Chinese companies have a
universal familial tendency. They attach importance to the development of the family.
Huawei was not an absolute family-owned company. Its employees have company
options. Employees own the company’s stock. Although there are restrictions,
employees have high wages and benefits, and the year-end awards are abundant. They
will work harder.

Companies that promote wolf culture must be aggressive. Otherwise, it is not

recommended to implement wolf culture in the enterprise. Some companies have a
wrong understanding of wolf culture. They don't want to establish a wolf culture
together, but they want to have a wolf team for him to use. This is not a good idea.
Under heavy money, there must be brave men. Warriors are born under ample funds,
and so are the companies. Groups with no performance are not managed, and the
salaries received by employees largely determine their work enthusiasm and the
difficulty of team management. While learning about wolf culture, many companies
only emphasize cultural construction and strict management methods, improve work
intensity, increase the number and time of overtime, force employees to do

45
self-humiliation, test their compliance with the organization, etc. were all errors
behavior.

The high-intensity work of Huawei employees is well known. Entrepreneurs

learn about Huawei's strict management system and Huawei's overtime culture. But
the wolf pack is whole. When the wolf king eats meat, other wolves watch, even the
fierce wolf pack will soon die out. High pay requires the corresponding top return
support. The wolf king is the core of the wolf pack, just like the chairman of the
enterprise, but the wolf king could be openly challenged. The failed wolf chooses to
stay or leave. Most of them decide to go. Even if they choose to stay, the wolf king
will not bully their companion. In many companies, also as middle-level leaders,
authority cannot be challenged. The wolf culture emphasizes absolute obedience and
immediate execution. It has the meaning of prohibiting orders. Even if you don't
understand the command or have no clue, you must execute it first and then ask. The
entire team acts like a wolfpack, seeing the target is like seeing flesh and blood, bite
tightly, significantly improving the offensiveness and motivation of the whole team.
Through treatment, leader wolf, communication, responsibility, system, control,
supervision, reward, and punishment, in terms of treatment alone, this is one reason
for the restriction of many family businesses.

Chapter 5 DISCUSSION AND CONCLUSION

5.1 Countermeasures and suggestions

Human resource management is now an old topic, whether it is a large or small
or medium-sized enterprise, a state-owned enterprise or a private enterprise, because
the market competition is getting fiercer, and the development of most enterprises is
not optimistic. Everyone has to start paying attention to human resources if they want
to improve market competitiveness actively and passively wish to survive. Human
resources reform is now the key direction of enterprise reform. The most important
feature of a family-owned enterprise is its high concentration of power. The power of
the enterprise is mostly in the hands of the founders and their family members. The
internal kinship of the enterprise is complicated, and problems will inevitably occur in
enterprise management.

5.1.1 Improve the enterprise supervision system and standards

(1) Improve the enterprise's monitoring mechanism. Based on the supervisors'
board, the management authority is decentralized to the human resource management

46
department, and professional management personnel is hired to inspect the various
affairs and activities of the enterprise from time to time and report to the upload.

(2) Formulate standards for corporate behavior. Management is not something

that is talked about high and high, it is concrete and can be reflected in work. Any
activity of an enterprise can set standards and improve the standard system. All the
enterprise's affairs must have measures to follow, and employees will perform
according to the rules. The establishment of standards should be specific and feasible.
The standards come from the summary of experience and practice has proved whether
the measures are attainable. Criteria are particularly crucial to the necessary level of
an enterprise. Rules are the norm of behavior. With standards, the work becomes more
specific. Even if several parts of the same job are dismantled, and different people
complete different regions, the sum's efficiency and quality will not be very different
from the original. If there is no standard, there will be no specific process for the job
to follow. For the same position, different people will have different skills and results,
and the corresponding quality will also be problematic. The development of an
enterprise is an upward process. As the development enterprise's interior becomes
more and more complex, this advantage allows people to collaborate to a maximum
extent. Still, the more complex the system, the more vulnerable it is. The operation of
the machine needs to be driven by the gears, and the action of the equipment needs to
be run in. The standardized system can reduce the losses caused by running in
enterprise development and ensure enterprise development's safety and speed.

5.1.2 Establish and improve the human resource management department

(1) Update management concept. The old thinking and old management models
are no longer suitable for the current fierce market competition environment.
Enterprises need to clarify the concept of human resources and make changes.
Haiwang Chemical is an excellent company in the industry. According to the
company's operating status, there are disadvantages shared by many family-owned
companies. Enterprises need to break the original concept of personnel management
and understand the importance of human resource management for the later
development of an enterprise.

(2) Pay attention to the formulation of corporate strategy. Corporate strategies are
an essential direction for the company's future development. A strategy guides all
organizational activities. The "people, things, things" of an enterprise must conform to
the enterprise's strategic decision. Enterprise strategy is the premise of human
resource management and the goal and direction of human resource management.

(3) Establish an independent human resource management department. Human

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resource management includes past personnel management, which requires its
workers to be more difficult and complicated. It needs to have more professionalism
and be responsible for handling various affairs related to the enterprise's human
resources, not just the personnel work. The professionalism of the work and personnel
of this department requires more requirements. The rest of the departments should not
interfere with the work of the human resource management department in their daily
work and do an excellent job of coordination between the departments.

(4) Clarify the importance of human resources. The 21st century is an era of
rapid development. Whoever has the talent will have the key to opening the door to
success. This era is the era of expertise, and human resources are the most precious
resources of this era. During the decades since the reform and opening up, the society
and economy have developed rapidly, and talents play a central role. Knowledge is
wealth. Companies gain wealth. One is to rely on the conversion of labor, increase
labor, expand output value, and obtain economic benefits. The second is to use
advanced knowledge systems to develop enterprises, improve enterprise industrial
innovation, and achieve economic benefits. Human resources are intangible assets of
an enterprise, their value is priceless, and it has crucial significance and impact on the
enterprise's internal environment and external environment. The family business has a
natural sense of hostility towards foreign talents, and fears that external personnel
endangers their status and interests. The kinship within the family-owned enterprise is
complicated. The thought of exclusion against outsiders is secure, which is also the
main obstacle encountered in the development of the family-owned enterprise.

(5) Establish a talent reserve database and improve the system of introducing
talent resources. People are enterprises, and the development of an enterprise requires
talents, and human resources are essential resources for enterprises. Companies
shouldn't be hiring if they are missing. The first recruitment time is limited. Hasty
recruitment can't determine the quality of personnel, too long time affects the work of
the corresponding position. Second, during the recruitment period, employees' work
efficiency will drop or vacancies will affect the work progress. The talent pool is very
important this time. The reserve and introduction of talent is a system. The expansion
of the production capacity of an enterprise depends on numerous external
environments. The biggest limiting factor for the demand and development of talents
is the enterprise itself. In the current difficult situation, only by introducing excellent
talents can the development of the enterprise be further developed and strengthened.
Only in this way can it be sustainable, win a bigger market, and obtain more economic
benefits. For the inside of the enterprise, first of all, the human resource management
department establishes files for the personnel of the entire enterprise and sorts them
out. Secondly, the company's management personnel need a certain amount of
precipitation, and need to have a better understanding of the company and work, so

48
that they can quickly get on the job, have a standard, and plan to carry out training
activities for grass-roots employees to improve their workability and professional
qualities to form an enterprise. Finally, give employees full opportunities for their
development and optimize the internal promotion channels of the company. Internal
employees are given opportunities where they want to compete for jobs. Internal
employees have a good understanding of the company's development and have a
certain sense of dependence. The appointment and promotion of personnel from
within the enterprise can stimulate employees' work motivation and improve their
knowledge of fairness and job expectations. Give full play to the influence of culture
and enhance the cooperation of enterprises. When internal recruitment cannot meet the
needs of enterprise development, consider the needs of external recruitment. For the
outside of the company, first of all, regularly and systematically conduct campus
recruitment and human resources market recruitment and absorb the talents needed for
the development of the enterprise. Secondly, in the recruitment process, we take every
applicant seriously, respect every applicant, keep abreast of all aspects of information
and organize them into files, even if it is not hired, there will be materials for
reference when there is a need for the supplementary recruitment in the late
recruitment period. Finally, a timely understanding of personnel's information in the
same industry, establish a file and file, enter the enterprise through the introduction of
acquaintances and friends, and understand and appoint staff.

(6) Improves the ability of managers. If you compare an enterprise to a

framework, then managers are the supporting structure of the frame. An enterprise is
an extensive collection, and many people come together to ensure the integrity of the
organizational structure. Managers are an essential part of an enterprise, and the
management level of managers directly affects the development of the enterprise. The
ability is high and low, and contrasts create gaps. Enterprise managers need to
continue to learn, establish the concept of lifelong learning, meet their own needs for
continuous development of the enterprise, and continuously improve their human
capital. Enterprises need to pay attention to the improvement of managers'
management literacy, carry out training activities from time to time, conduct detailed
management training for managers at different levels of the enterprise, and establish
management personnel files. Appropriate external training, organized managers to
visit other excellent companies, learn management experience, and conduct seminars.
Discuss the problems encountered in the development of the company and share
management experience. Improving the management ability of managers is a long-
term process. It needs to be carried out in a direction, in a planned manner, step by
step, and in a good plan.

(7) Stimulate employees' crisis awareness and establish an elimination

mechanism. The times are evolving, the world is changing every minute, and every

49
second, countless scientific and technological and research results are born, and
stereotypes can only be eliminated. Crisis awareness is an essential driving force and
guarantees for the sustainable development of the enterprise. The enterprise needs to
establish an elimination mechanism to make employees feel a crisis when slacking off
their work and improve their work enthusiasm. Maintaining everyone's sense of crisis
can improve the company's action and responsiveness and adapt to the fiercely
competitive external environment.

5.1.3 Formulate recruitment standards and optimize the recruitment process

(1) Establish recruitment standards
Enterprise recruitment is an essential way for companies to obtain fresh blood.
Companies need to have a detailed process and standards for the recruitment process.
With rules and procedures, the human resource management department has criteria to
follow when recruiting. Whether it is internal recruitment or external recruitment, it
can be implemented by the rules. Recruitment problems are a major disadvantage for
family-owned enterprises. The main employees are from friends and direct families.
The quality and professional skills of recruiters are uneven, and the internal and
external contradictions of the company are sharp. Formulate recruitment standards and
clarify the recruitment process. This method can effectively control the quality of the
company's employment, weaken the impact of family management on the enterprise,
and reduce the enterprise's internal and external contradictions and potential
employment risk in the future. Standards can limit the internal contact between family
members in an enterprise. All applicants are treated equally, and there is no
relationship between family and non-family members. All positions require
competitive employment. Standards can also improve the responsibilities and
awareness of managers. In front of the standards, there is no difference between
family and non-family members. Let managers realize the important role of human
resources for the enterprise and seriously and responsibly recruit the talents needed for
the development of the enterprise. Standards can increase the visibility of the
company. Applicants do not recognize the chaotic company. When everyone knows
that a company can recruit talents openly and transparently, more people would be
willing to understand the company and join it. The strict implementation of the
standards not only enables companies to recruit truly effective talents, improves the
overall quality of employees, but also enhances the company's popularity in the
human resource market. Knowing that this is a standard company and principled.

(2) Optimize the recruitment process

When recruiting personnel, companies should clearly define their strategic
development needs and recruit according to their need. The actual employment
department should also actively connect with the human resource management

50
department to determine the recruitment standards for the required positions, what
personnel are required, and what professional skills are required. I have a plan and
direction to recruit. When recruiting, we must strengthen the publicity of the company,
increase the cost of corporate publicity, and make full use of various recruitment
platforms for personnel recruitment. According to the comprehensive situation of the
recruitment position, the salary and treatment should be realistic and release the
recruitment information. The column is clean and tidy, the company's recruitment
information is released in a targeted manner. The various standards and qualifications
required by the applicant are clearly defined, and the recruitment is carried out in a
scientific and standardized manner. When dealing with job-seeking information of
applicants, the human resources department should take a correct attitude, take it
seriously, and record all kinds of information seriously and rigorously. For the
personnel who are going to be hired, register, and fill out forms, background checks,
medical examinations, and other work.

Simplified recruitment processes. The enterprise recruitment process is

complicated and unclear, and the overall process takes a long time. It is simply the
lack of communication between departments and the vagueness of administrative
orders. The employment and human resources management departments generally
lack communication, and communication is an important skill. Enterprises are open to
freedom of speech, and employees must dare to say and dare to do that. The easiest
way is to talk about things. Others keep silent, and the entire system will fail if there is
no communication. People cannot rely on guessing at each other to understand the
wishes of others. Recruiters set standards for employees. The employment department
has requirements for the human department. Without understanding the other party's
needs, the problem cannot be solved in a targeted manner. Work efficiency is very low,
and a lot of useless work is done. Those who do not meet the requirements for
responsible recruitment can only re-recruit, which is not responsible for job seekers
and companies. The executive order of the enterprise must be clear and unmistakable.
There must be no vague meanings. You cannot rely on guessing at each other to
understand others' wishes and express problems promptly.

(3) Recruitment rules

The recruited personnel are the external manifestation of the corporate image,
which respect is mutual, during the interview. The examiner's respect for the applicant
is the respect of the enterprise for the applicant. Not only people but also the treatment
of resumes are submitted. Correspondingly, applicants respect the examiner and the
company. This is an etiquette. The interview should be rigorous, there are many types
of employees, and the positions are different. The corresponding candidates are
divided into two types: no work experience or work experience. Different situations
should be treated separately. Employees without relevant work experience, such

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personnel are mostly graduates, have a theoretical basis but lack of work experience
and social experience, based on the applicant's various information, giving open
questions, mainly testing the applicant's responsiveness and handling ability, whether
it can accept the team, integrate into the organization, discuss issues with the applicant
through conversations and confirm the results based on the applicant's performance.
There are simple written tests with admission intentions, such as work stress tests and
psychological tests, to check whether the applicant can adapt to the company's
working environment and the needs of the company's development. Employees with
relevant work experience would ask questions to applicants according to the specific
work content. Please ask the applicants to answer the questions from a professional
perspective, test whether the applicant meets the development needs of the company
in terms of professionalism, and examine the professional knowledge and work of the
applicant's ability. Recruiters should maintain a parallel attitude during the interview
process, respect the interviewers, and make moral appointments, such as asking such
questions. Do you plan to work here for a few years? What kind of person do you
want to be when you leave?

Optimize human resource allocation. Human resources are the first to obtain, and
the second is to configure them. People do their best, and they do their best. At the
right time and in the right place, but the right employees in the right place. The
optimal allocation of resources can reduce unnecessary losses and improve the
organization's overall efficiency. According to the obtained employee information, job
requirements, employee quality, job compensation, employee contributions, and
matching the corresponding positions for employees.

(4) Recruitment Method

Broaden recruitment channels, formulate scientific plans, promote organizational
culture, and establish a good image. With the advancement of technology, human
resource recruitment channels are now more and more abundant, human resources
market, campus recruitment, online recruitment, headhunting companies, etc. This is
an important channel for enterprises to obtain human resources. Because of different
recruitment methods, the recruitment time also needs to be adjusted slightly. Online
recruitment is simple and fast, and can effectively publish recruitment information for
a long time. There is a time limit for campus recruitment, mainly in the autumn, and
regularly do relevant work for recruitment. It can also get excellent human resources
and good publicity for the company. The human resource market is the most active,
and recruitment activities can be carried out from time to time. The main time is in the
spring, and the corresponding recruitment intensity is adjusted according to a specific
time. In the recruitment process, we strictly abide by the company's recruitment
standards, according to the process in a planned manner. Planning is an effective
method that can promote development. Without planning, it would be easy to confuse.

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A good recruitment plan also pays attention to human resources, and it is necessary to
give full play to the role of planning. According to the past situation, employees in
any enterprise department need to complete their recruitment after leaving or adjusting
their positions. There is a lot of work stretched out by people in the middle, which is
tedious and complicated. The human resource management department's work is to
simplify human issues and allow other departments to work more efficiently. It is a
process of decomposing and recombining work and the manifestation of the progress
of production methods. Everyone has their unique places. People are a necessary
prerequisite for the survival and development of an enterprise. A good employee can
make the enterprise prosper, and a bad leader can also make the enterprise die.
Enterprises must correctly understand the important role of people. Enterprise
recruitment requires not only the professional knowledge of the applicant but also the
character of the applicant. For talented and talented people, whether or not to appoint
and how to appoint is a question that requires careful consideration. The rise and fall
are not the powers of one person, but sometimes they are tied to one person.

(5) Recruitment outsourcing

Outsourcing services are a supplement to the incomplete system. The growth and
development of an enterprise are multifaceted, and all stages of the enterprise's growth
require the support of human resources. For enterprises, human resources are now the
biggest shortcoming. With the prosperity of human resources in recent years, human
resource outsourcing services have developed rapidly. This service solves the problem
of insufficient personnel for enterprises, provides help for enterprises to obtain
sufficient human resources and reduces enterprises' recruitment costs. The main
feature of outsourcing services is simplicity and speed, which improves the flexibility
of enterprises, the enterprise only needs to be responsible for the audit work, which
greatly improves the efficiency of the work, but this kind of human resource
outsourcing service is essentially a supplement to its lack of ability. The best solution
for enterprise development is internal recruitment and internal selection. The
promotion of personnel is an important activity for enterprise management. The
promotion of all personnel must go through a systematic review. The internal staff
themselves have a certain degree of loyalty and dependence on the company.
Employees have a full understanding of their work and the company's situation, and
they can quickly enter the working state. Internal recruitment can also improve the
promotion system of the enterprise and strengthen cohesion and Centripetal force. A
few inadequate positions can be compensated by external recruitment; these methods
greatly reduce the unnecessary labor costs of enterprises. Unimportant, grass-roots
positions can be properly outsourced. Outsourcing has many advantages, but the
development time of human resource management outsourcing services is too short,
and there are not enough laws and regulations to restrict it at the legal level. There are
too many unknown, hidden rules and tricks. Service quality is difficult to control, and

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enterprises should pay attention to the risk factors brought on by outsourcing services.

5.1.4 Improves the salary system

The basis of management is the growth of enterprise benefit, and the core of
enterprises is profitability. The more profitable the enterprise, the simpler the
management, and the more income the employees get, the easier it is to manage.
Without the growth of performance, the effect of strengthening management is not
ideal. The establishment of a salary system is a necessary condition for the
development and growth of an enterprise. The salary system is the basis for the
survival of the enterprise and the main way for employees to obtain money. A good
salary system can motivate employees, stimulate their work enthusiasm, and stimulate
enterprises' vitality. Bad salary systems will also cause the loss of enterprise personnel,
the exhaustion of human resources hinders the development of enterprises. The salary
system determines whether the allocation of human resources in an enterprise is
reasonable and affects employees' expectations and fairness. It is an important factor
influencing the sustainable development of an enterprise. Salary and performance
systems are often integrated, the two are closely linked. With the harsh market
competition environment, more and more companies have begun to pay attention to
this aspect. Adjust the employee salary ratio, adjust the enterprise performance system,
the salary and performance system has become more and more perfect, regardless of
the method and method, the purpose is to improve the enterprise's economic efficiency
and enable the enterprise to thrive. Here are a few suggestions.

(1) Cut the wages and benefits of senior management. In the enterprise, there are
a lot of comparisons between employees. Simply distinguishing salary and
performance by job level would aggravate internal conflicts in the enterprise and
seriously cause a sense of loss and unfairness among employees. Fierce competition,
the loss of personnel, or passive shutdowns would have led to a decline in the
enterprise's economic benefits. The salary and welfare coefficients of the company's
top management would be lowered, and the income should be based on equity
dividends and performance. As the enterprise's decision-makers and managers, they
are responsible for supervision and decision-making and do not participate in actual
production work. Lowering the salary and welfare of high-level employees can
weaken the enterprise's injustice and increase employee satisfaction and work
enthusiasm. The salary distribution of the senior management of the enterprise is
adjusted, for example, the annual salary of 500,000 is divided into fixed salary and
performance salary. Half of the salary needs to complete the enterprise's
predetermined and achievable goal. The realization of this plan should be specific and
executable. To mobilize the enthusiasm of senior management staff to avoid
redundant and costly situations.

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 (2) Raise the basic salary of middle-level management personnel and reduce the
benefits. Welfare benefits do not lie in many ways, but the frequency. To maximize
profits, companies will use many ways to encourage employees to work enthusiasm.
Employment income includes fixed salary, living allowance, job allowance, bonus,
performance, welfare, etc. Generally speaking, the more you play, the higher your
salary. There are many unreasonable phenomena in the actual society, such as a
mobile branch company that has caused discussions in China. The performance of
corporate executives is more than ten times that of employees and more than five
times that of middle-level management. Wages, living allowances, job allowances,
bonuses, and other incomes far exceed ordinary employees. The design of this salary
system is extremely unreasonable. As far as bonuses are concerned, companies have
bonus settings. Its fundamental purpose is to motivate employees and increase their
enthusiasm for work. The bonus is an affirmation of my work. Bonuses are different
from the benefits. Bonuses are an incentive method which is paid according to the
degree of contribution and is competitive. Welfare is based on rank. The staff of the
same level and staff in the same position enjoy the same welfare treatment as
everyone else. Welfare is fair and equal. Bonuses are not benefits, but many
companies view bonuses as part of corporate welfare, which is wrong. The salary
system design must be reasonable and fair, and reducing bonuses is an important part
of it. The distribution of benefits should be reasonable, the benefits are mainly in kind,
and specific and quantifiable items are given to employees as corporate benefits. For
example, subsidies such as various subsidies that cannot be converted into kinds, such
as shopping carts or fuel cards, are issued to reduce unnecessary currency issuance.

(3) Balance the fixed salary level among middle-level and lower-level
employees, and improve welfare benefits. When determining how much remuneration
to be given to employees, enterprises should follow the standard, taking into account
the positions, skills, qualifications, and working ability of employees, and other
factors. The main purpose of balancing compensation is to reduce internal
contradictions in the enterprise, improve the compensation system's fairness, and
increase employee motivation and corporate cohesion. Enterprises implementing
standardization have standardized measurement standards for each employee's salary
in human resource management, and the salary system must have its standardized
standards.

In family-owned companies, many standards are passed on by word of mouth

and secrets. The main influencing factor is the close relationship with the enterprise's
family, and the closer the blood relationship, the higher the treatment. For the
enterprise's middle-level employees, because the main body of the enterprise standard
is family, the established standard has more advantages for family members, and there
must be a certain gap between foreigners and family members. When faced with

55
various pressures from society and family, the unfairness within the enterprise will be
magnified indefinitely, and the contradictions begin to intensify. To reduce the
unfairness within the enterprise and the sense of the unfairness of the employees, it is
a good measure to balance the salary level of the personnel and increase the benefits.
Divide the occupational grades for employees. What level corresponds to the level of
treatment, employees enjoy treatment according to their level, so that wages become
the most important part of employees to get money. When there are standardized
standards, it is easier to layer on employees. For example, employees of the same
position have different performances and different performances, and the wage gap is
created through the performance system to improve employees' work enthusiasm. Or
different skills at the same level, through skills and job wages, to create a gap in
wages, improve the sense of fairness within the enterprise, and reduce employee
suspicion. The most important standard for wages is distribution according to work,
and different salary levels are distinguished according to the contribution. The same
environment and different contrast. The gap generates motivation, and the changes in
employee compensation vary according to different employees. The salary scale
among employees is opened, so there is a difference between employees, but it is not
out of reach and competitive. The higher the seniority, the more positive the working
attitude, the higher the salary, and become the backbone of the enterprise and the
backbone of the enterprise's development. Employees with an average performance
are properly beaten and motivated to motivate employees to work, and employees
with poor performance are given warnings and dismissals. Enterprises need to know
what kind of employees need to be maintained and what kind of employees are their
strength, focusing on motivation and training, improving welfare and salary levels,
increasing employees' dependence on the enterprise, attracting talents, and reducing
the loss of human resources. It is recommended to use the secret salary system, but
there is no restriction on disclosure. Employees can choose whether or not to disclose
their wages. However, the company's regulations should not disclose salary levels,
disclosure is an individual behavior, and bear responsibility for undesirable results.
Improving employee benefits. The weaker the group, the more sensitive it is to the
environment, and improving welfare can effectively balance people's inner unfairness.
The benefits are the same. It does not change because of the different factions and
different identities. Everyone's income and income level are the same. Reasonable use
of distribution methods, there are many forms of welfare, from the most direct
currency to the rice, oil, and salt in life. This is a kind of welfare. Welfare is a way
that can greatly narrow the relationship between the organization and its members. It
is not a transaction to narrow the relationship between the two parties. Distributing
items will be more specific and image than money, regardless of the price, and it will
be more convenient to strengthen the bond between the two sides.

(4) Performance evaluation system. Performance appraisal should adhere to the

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principle of distribution according to work and reduce subjective awareness
performance evaluation elements. Perform performance evaluation by level and
position. Each performance evaluation should be specific and quantifiable. Set up
performance assessment anchors to let the appraisers know the problems they have in
their work, improve them, and improve their performance. Establish a performance
evaluation feedback system and publicly and transparently publish the results of the
evaluation. When the appraisers raise objections, they can promptly and effectively
provide information feedback, clarify the fairness, fairness, rigor, and seriousness of
the performance evaluation system. Play the role of a performance appraisal system,
establish a reward and punishment system, if the corresponding reward and
punishment mechanism does not work, the performance appraisal system has no
meaning. Let employees realize the importance and seriousness of performance
appraisal, remove unqualified employees on time, and dilute family members'
concept.

5.1.5 Strengthen enterprise human resource management training awareness

Most family-owned enterprises are engaged in labor-intensive industries. With
the intensification of market competition, enterprises' development also needs to be
transformed into high tech. Grassroots employees are not just blind manual workers.
Enterprises need innovation, and high tech talents are needed. With the increase of
high-level employees, the company's original management concepts and systems no
longer meet the needs of enterprise development. The work of every high-tech talent
is irreplaceable and special. With the increase of high-level employees, the company's
original management concepts and systems no longer meet the needs of enterprise
development. The work of every high-tech talent is irreplaceable and special. Talents
have become a valuable resource for enterprises, and the loss of talent has become a
loss for enterprises. Strengthen employee training, increase the training strength and
training fund of management personnel, both managers and staff at all levels should
improve their human capital, both in terms of knowledge, culture, and technical
capabilities, whether they are active or passive.

(1) Increase investment in training funds. Corporate training is a systematic

process. Not only do employees need training, but corporate managers also need
training. Training for employees can improve employees' human capital, and it is a
guarantee for the development of enterprises. The specific content of the training
should also be adjusted according to the level of the training object.

First of all, the training of senior managers tends to be at a strategic level. At

present, human resource management is developing rapidly. The responsibilities of the
human resource management department have risen to the entire enterprise level. The

57
core work of senior management is an issue of employment. How to do things with
people. The company's strategy is determined by the company's senior managers and
executives. There are many types of corporate strategy. It is a top-down overall
development planning process for the enterprise. When a company successfully
formulates and executes an effective corporate strategy, market competitiveness will
increase. Therefore, the company's strategy directly determines its development
direction and even the fate of survival. The decision of the high-level is prudent and
prudent, and can't tolerate any sloppy and mistakes. The senior management of an
enterprise should fully understand and master various strategic decision-making and
planning, carry out sufficient training and learning, improve their strategic planning
capabilities, assist the enterprise's development, and adapt the enterprise to the fierce
external market environment.

Second, the work of middle managers and grass-roots managers is a combination

of management and specific affairs, management is the mainstay, and the training of
these people should be comprehensive, including management and specific work.
Improves not only the management ability of managers but also improves the working
ability and business level of managers. Managers at the grass-roots level are an
important backbone of the enterprise, the mainstay of the enterprise's development,
and an important guarantee for the enterprise's sustainable development. Training is
an effective way to improve managers' ability, and it is also an important measure to
improve the ability of all employees of the enterprise as a whole. The improvement of
managerial ability can effectively lead to employees' work, and there are better
communication and exchange between management and employees. Systematize,
streamline, and standardize management, further improve the utilization rate of human
resources, and maximize people's role. Effective management can also create a good
working environment, optimize corporate culture, allow employees to integrate into
the organization faster, and improve the company's cohesion and centripetal force.

(2) Increase my training time. Learning is a repetitive process, as is training. This

is an era of rapid development in all aspects of society. If you do not study, you will
fall behind, and you will be eliminated. This is true for employees, as well as
enterprises. For the enterprise to develop better, create greater economic benefits, and
for human resource management to be better carried out and improve the enterprise's
personnel's business capabilities, the enterprise needs to carry out training
continuously. External recruitment alone is far from being able to solve enterprises'
needs, and enterprises themselves need strength. Encourage employees to participate
in training and encourage them to learn about new science and technology. Not only
will their abilities improve, human capital will be increased, but the overall
competitiveness of the company will also be improved. Most family companies have
only a shallow understanding of training and believe that training is to increase

58
corporate capital expenditures. Half of the new employees have only a few days of on-
the-job training or no training. Enterprises like to hire people with work experience, no
follow-up employees' development plans, no post-employment training, and daily
refresher study, and seriously ignore the development of their strength. The training
must determine clear training goals and training requirements and be carried out in a
planned manner. Blind training would only waste time and enterprise funds. Effective
training can meet the needs of enterprise development. Targeted and effective training
of personnel in different positions of the enterprise so that the training funds invested
by the enterprise play the greatest role. Before training, employees should be warned
about the importance of training. The purpose of training is to accept new knowledge,
emphasize the importance and purpose of each training, and let the employees have a
clear understanding of the training. The training process should also be strictly
supervised, avoid formalization, and go through the stage. The relevant responsible
managers should also actively participate in the entire process. At the end of the
training, the manager should summarize and organize the training content to develop
the company's training activities into a complete system. They are planning,
organization, summary, and reporting.

Most senior managers of family-owned companies are generally older and have a
lower level of knowledge and culture, which has become resistant to corporate
development. Senior managers should fully recognize their shortcomings and strive to
improve their knowledge and cultural level, and seniors cannot be a reason for
refusing to study. For senior executives with higher ages, the state does not impose
age restrictions on adult college entrance examinations. As a senior manager of an
enterprise and having sufficient ability to complete relevant studies, it is necessary to
improve their knowledge and cultural level. Middle-level and grass-roots personnel
also need to learn about this, in addition to learning in knowledge and culture,
competence and technology also need to be strengthened to improve their human
capital and competitiveness. Enterprises should also increase the corresponding skills
training. Training should become part of employee benefits.

5.1.6 Optimize corporate culture

Corporate culture is one of the important components of an enterprise. It is a
spiritual pillar of the organization. The core purpose of the culture is to strengthen the
cooperation of the organization. The culture of family-owned enterprises is mainly a
family culture with strong family characteristics. Family businesses with different
characteristics have a different family culture. Family businesses should take family
culture as the center, take its essence, remove its rubbish, and accept family members
while also actively accepting external personnel so that the company and individuals
can establish close ties between the two parties.

59
 (1) Employees' sense of belonging. Different corporate cultures should be
adjusted for different periods, but the overall cultural direction cannot be changed.
The enterprise is a whole, and the whole process should inclusive. Employees are
responsible for their positions, and work for the company is their obligation. The
employees are part of the company. When employees regard themselves as outsiders,
companies must treat their employees as their own. When employees have a sense of
belonging, employees will truly treat their work with utmost dedication and be
responsible for the company. Enterprises have natural advantages for individual
employees, and lowering their posture can greatly gain acceptance and favor of
individual employees. At the same time, it is easy for employees to integrate into an
organization faster. For all employees, the company should be respectful. Respect is
not only courtesy but also the norm of the company. A good environment will
spontaneously improve employees' sense of belonging and mobilize their enthusiasm
for work. On the one hand, it creates a good working environment within the company,
forming a strong corporate cohesion and centripetal force. On the other hand, it also
shapes a good corporate image and improves corporate cultural soft power.

(2) Year-End Party. The year-end party is a summary of the work and the
company's expectations for next year's development. With the gradual rise of the
annual meeting, more and more companies like to hold the annual meeting very much,
and the format of the annual meeting has become diversified. For example, employee
recognition, reward excellent employees, and boost morale, enthusiastic performances
to create an organizational atmosphere, invite small and medium-sized tour partners to
promote communication between enterprises, and strengthen exchanges. The annual
meeting is an important moment to encourage employees to improve team cohesion.
The annual meeting is an important part of the corporate culture. With the continuous
development of the annual meeting, the annual meeting has also begun to have
problems. The planning of the annual meeting was tedious and difficult. The average
company cannot plan an annual meeting by itself. The annual meeting is a whole, and
the plan is systematic. Any mistake in one part will affect this whole situation.
Therefore, many companies do not plan for themselves and hire professional
personnel to plan the enterprise's annual meeting. Such a move increases the capital
expenditure of an enterprise.

The annual meeting is gradually becoming utilitarian. The enterprise itself is an

internal competition platform. No matter how it develops, the attributes of the
competition will not change. One person per job, someone who takes a position,
means someone is stepping down. In the eyes of many people, the annual meeting is
an excellent opportunity. Most of the annual meetings have employees to commend
this link, the company's senior executives are there, and through the follow-up, the
program to show themselves, you can give your career performance points less.

60
Therefore, the annual meeting has also become a platform for self-expression. The
annual meeting is not only a year-end summary meeting but also a place full of fame
and fortune, for example, many female employees spend a lot of money to buy dresses,
participate in physical training classes and dance classes, just to be able to stun four at
the annual meeting, some hire professional make-up artists and stylists just to make a
stunning appearance in front of their colleagues. The practical nature of the annual
meeting makes more and more people dislike the annual meetings. If employees
commend themselves without it, many employees will refuse to attend the annual
meeting. There are many advantages to the annual meeting, which is why
entrepreneurs like to hold the annual meeting. Still, if you can't handle this problem
well, the annual meeting will become an important link to destroying corporate culture.
The annual meeting was at a party. The purpose of the party is to relax and entertain,
and not to increase stress. Many annual meetings were too complicated and wasteful.
Simplifying the annual meeting is necessary. The annual meeting should be held at the
end of the year.

First of all, employees are coming in advance. Separate employee recognition in

the annual meeting and make changes within the company the day before the end of
the year. On the day before the year-end party, all the enterprise's work has ended, and
it will not affect the work progress and the year-end party on the second day. The
company's internal environment is familiar to employees, and it is more persuasive
and influential in commending the employees within the company.

Second, cancel the sense of ceremony and change the traditional hotel to a buffet.
The traditional annual meeting usually chooses a hotel as the venue for the annual
meeting. From planning, preparation, opening to the end, the total cost is huge, the per
capita consumption ranges from 1,000 CNY, and the extravagance and waste are
serious. The buffet was an excellent choice for leisure and relaxation. The style of the
buffet determines a relaxed and comfortable atmosphere. There is no limitation of the
traditional hotel round table specifications, and the staff can freely combine them. The
buffet is only consumed per person, there are no other costs, no planning or
ceremonies are required, and the luxurious buffet does not exceed 500 CNY. The
buffet promotes communication between people. There is no utilitarianism. No one
would wear expensive dresses to participate in the buffet. There will be no bells or
whistles. Everyone is the most authentic person.

Finally, clarify the meaning of the party. Enterprises with fewer staff can be
together, and enterprises with a larger number of people can pack up the entire venue
and meet in groups or batches. The employees in the enterprise are very familiar with
the staff in this department. It is easier to communicate and promote feelings when we
gather together in the same department. At the same time, this is also a process of

61
mutual understanding between department leaders and members. Separate gatherings
would avoid excessive ritualization. The entire gathering focuses on drinking and
chatting and does not talk about official matters. Although the department leaders are
present, each person can also freely combined without pressure.

5.2 Execution guarantee

Under the new market environment, enterprises must adapt to the new external
environment on time. With the supporting program measures, it also needs to have
matching execution and guarantees.

5.2.1 Organizational guarantee

As the main executive department and responsible department, the human
resource management department must have certain standards for itself. The
department's development must meet the requirements of enterprise development, and
the professionalism and professionalism of the personnel must also meet the
organization's requirements. The job of the human resource department is to deal with
human affairs. The core of the work lies in serving the enterprise's strategic decision-
making.

First of all, the personnel in the department should clarify their duties. The
human resources department is a management department, but it is also just one of its
attributes, and it occupies a small part. It is more of a service department, and the
nature of services is higher than that of management. Specific staff should also pay
attention to the role they play, changing from managers to service personnel, serving
other departments of the enterprise, and serving strategic decisions of the enterprise.

In itself, as an important department of an enterprise, the human resources

management department is responsible for enterprise recruitment, training, salary
performance, team building, etc. Human resources planning for the entire enterprise,
the development requirements of the department itself need to be higher than other
departments, play a leading role model. The departments' leaders should strictly
demand themselves with high standards. The high standards require the development
of the departments and have a higher human resource plan for the construction of the
departments.

5.2.2 Institutional system guarantees

The department's construction should be complete, and the plan for human
resource planning should be specific. If the enterprise has supporting system measures,

62
it must have a matching implementation plan conducive to the better development of
human resource management. The institutional system guarantee emphasizes the
requirements of the system itself and the improvement and cooperation of the system.

5.2.3 Information system guarantee

Information system guarantees mainly refer to the processing of information by
enterprises. Information is a perception of the outside world. The more information
you get, the easier it is to understand. Information plays an important role in human
resource management. It requires department personnel to discover and summarize
problems and report the information to the company's management personnel on time.
For human resource management departments, information is an important
influencing factor. Sufficient information is convenient for enterprises to adjust
themselves, and it is convenient for human resource departments to optimize the
planning and allocation of human resources. It can make a correct judgment on the
development of enterprises.

Nowadays, the external environment is rapidly deteriorating, and the scope of the
epidemic is increasing. This is a huge obstacle to enterprises' development, which has
certain requirements for enterprise information systems. When the external
environment changes drastically, it will inevitably impact the enterprise's internal
environment. At this time, the importance of information will become more and more
important. If the environment of enterprise changes, human resource planning should
also be adjusted. Information is an important point of view. Whether the human
resource management department can develop excellent human resource planning, the
enterprise's information system is an important guarantee.

5.2.4 Regulatory guarantee

The development of an enterprise is inseparable from supervision, and people are
an important factor in the development of an enterprise. A department that mainly
manages people with higher requirements for regulations. The human resource
management department belongs to an enterprise's important management department,
and its supervision is crucial. It needs to maintain its integrity and integrity. First of all,
the enterprise's senior management personnel need to focus on the department's
supervision from time to time and strengthen the department's inspection. Secondly,
improve the salary level and welfare of the human resource management department,
and implement the concept of high salary and integrity. Finally, increase the rewards
and punishment of department personnel, and give timely warnings and punishments
to employees who encounter problems.

63
 Since modern times, with the continuous implementation of national policies,
social and economic progress and development, enterprises have encountered more
and more development problems and become more intractable. SMEs have become an
important driving force for the development of the country's national economy.
Family businesses are an important part of SMEs, and the problems of family
businesses have become the main problem of enterprise development at this stage.
The rapid economic development has provided a hotbed for enterprise development;
at the same time, rapid development has weakened the foundation of the enterprise
itself. Many links are immature, and many problems arise. For many years, the short-
lived phenomenon has become the biggest obstacle to the development of family
businesses. Most companies cannot complete an intergenerational inheritance. There
are numerous examples of the second generation demise, and enterprise development
has reached a bottleneck. Affected by traditional values, the concept of family is the
main concept of the family business, and family cu/lture is the core corporate culture
of the family business. Affected by cultural concepts, family businesses are inherently
flawed and have obvious problems in human resource management. It restricts the
transformation of the institutionalization of enterprises and restricts the development
of enterprises.

5.3 Conclusion
This era is an era of rapid development in technology and information. The
market is changing rapidly, and the competition is fierce. Seize the opportunity, and
the enterprise can develop. In the final analysis, people are the main bodies of an
organization. The company is composed of different individuals, each of whom has an
important role and meaning. The core competitiveness of an enterprise includes two
points. The first is technology, and the second is talent. Technology also requires
people to master it, so human resources have become the most important resource in
this era. If an enterprise wants to continue to develop, it needs to strengthen its
emphasis on talent. Family companies must recognize their management deficiencies
and adjust their strategies as soon as possible to cope with the increasingly
competitive market environment. This article elaborates on the concepts related to
family-owned enterprises and human resource management. Taking the family-owned
company Shandong Haiwang Chemical Co., Ltd. as an example, it analyzes and lists
the problems and deficiencies of family-owned enterprises in human resource
management. Provide suggestions for improvement through governance structure,
management philosophy, organizational structure, staffing, salary performance, staff
recruitment, etc. Through the analysis and research of the paper, the following
conclusions are mainly drawn.

(1) A large number of family-owned enterprises occupy the dominant position in

64
my country's private enterprises. It is of great significance to study the human
resource management of family-owned enterprises. The situation in my country is
now much more complicated. Small and medium-sized enterprises have gradually
become the main force of my country's economic development and an important
driving force for the development of the national economy. Science and technology
must innovate, and the economy must develop. There are still many problems facing
this country. The growth of private enterprises can solve many difficult problems
encountered in our development. Still, because of time and own reasons, the
development of family-owned enterprises in China faces many problems and
challenges. With increasing competition in the market and the impact of external
environmental factors, many enterprises are on the verge of bankruptcy, and the
reform of enterprises is imminent.

(2) Studying this subject helps reveal the deficiencies of family-owned

enterprises in human resource management. An enterprise is a collection of people,
and people's problems are the core issues of enterprise development. Through research,
Shandong Haiwang Chemical Co., Ltd. is a typical family business, with the general
problems of the family business, centralized management rights, a large proportion of
family members, imperfect salary systems, lack of standardized and standardized
systems, etc. Research and analysis, asking questions and analyzing problems, can
effectively provide guidance for the human resources management of family-owned
enterprises, which is conducive to the reform and innovation of the institutionalization
of family-owned enterprises.

(3) At present, our family-owned enterprises still face many problems. As far as
the enterprise itself is concerned, the biggest problem faced by the family-owned
company is that it cannot complete the generational inheritance. There are natural
advantages in family-owned enterprises, but if this advantage not handled properly, it
will become the biggest disadvantage of enterprise development. This factor is
cultural. The important basis for the maintenance and operation of family-owned
enterprises is blood relationship. The core position of the enterprise is for all family
members. It is conducive to the formation of corporate culture, high cohesion, strong
resistance to the external environment, and not easy to be impacted, with the
continuous development of enterprises and the continuous increase of wealth, the
probability of family-owned enterprises subjected to internal shocks increases. The
management system has begun to loosen, and enterprise owners cannot deal with
problems within the family. Internal struggles and power seizures may occur within
the enterprise, with serious internal friction. Improper handling of internal issues will
also affect the intergenerational inheritance, and the future of the enterprise's next
generation is slim.

65
 (4) The family business has a strong sense of external rejection. During the
operation of a family business, because of the influence of traditional ideas, the clan
concept has become an important part of corporate culture, and family members
naturally have a repulsive mentality to outsiders. The family business itself has natural
defects, and the phenomenon of internal groups in the organization is obvious. In an
enterprise, family members are an interest group, and external personnel is an interest
group. Compared with family members, foreigners come from different regions,
different families, and are independent individuals. Family members come from the
same region, the same family, and their home positions. They have the core
management rights of the enterprise, and kinship is spread throughout the
management system. In terms of management, outsiders are subject to the
management of family members. Outsiders do not have a unified concept, cannot form
a tight whole, are easily divided and managed, and are not united. In the long run, the
enterprise's human resource management system lacks effective construction. The
system is unreasonable, the standardization is lacking, and the enterprise's internal
environment lacks a fair and competitive atmosphere. It is difficult for foreigners to be
promoted, and it is not easy to obtain the power to fight for their interests. Restricted
by family members, they can't play, can't create enough achievements, reflect their
value. Therefore, they will not be reused by enterprises and form a vicious circle.
When an enterprise's ascending channel is blocked, and excellent human resources
cannot play a role, employees will choose to leave the enterprise, and the enterprise
will lose human resources.

(5) Trust the crisis. Trust is the result of both parties. In the family business, the
family concept is heavy, and business managers generally lack trust from outsiders.
Nowadays, society, economy, science, and technology, information is changing with
each passing day, and changes are happening every moment, the external environment
is unstable, and the market competition is becoming fiercer and fiercer. The reform of
enterprises is already an inevitable result. Several major problems faced by family
businesses, management concepts lags, centralized management rights, imperfect
system construction, low standardization progress, reflected in the enterprise, is that
the management system does not meet the needs of enterprise development.

For enterprises to meet their own development needs, external recruitment of

human resources is an important way. Family members are willing to make fewer
changes because of their superior and stable environment. Recruiting foreigners to
enter the enterprise can stimulate a stable environment within the enterprise, increase
employees' sense of crisis, and promote employees' enthusiasm for work. However,
the family business has its defects. The family members are unified, and the
advantages become disadvantages. From the enterprise's resistance to the external
environment to the small group's resistance to the external environment, internal

66
friction is formed, which hinders the development of the enterprise. When
professional managers with professional knowledge outside the enterprise enter the
enterprise, it brings with it the impact of external forces on the body, internal and
external contradictions begin to emerge, and how to deal with the confrontation
between the two forces is an important issue that business owners need to consider, it
is also an important issue to maintain the stability of the internal environment.

(6) Institutional reform of the family business is a long way to go. Enterprise
institutional reform is an important way for enterprises to standardize and standardize.
Family businesses need to change existing management concepts, learn new ideas,
standardization, and institutionalize enterprises' development trends. Regulations are
the conditions for ensuring the progress of enterprises, and standardized systems can
ensure the development of enterprises. Family culture is a characteristic of the family
business. The family business can only become a family business because of the
existence of family culture. Culture is the strength of the family business, but this
strength is also a weakness. Born in anxiety and died in peace, the development of an
enterprise must have sounded the alarm.

The problem of human resource management in family companies is

comprehensive. There are many fields of design. With the deepening of research,
there are still many detailed problems that need to be discussed and studied in the
construction of family companies. This article only analyzes and discusses from a
general perspective, and the small part cannot be given a deep description due to the
limitations of personal abilities and knowledge. The problem with human resource
management is very complicated. This is a problem that every entrepreneur needs to
consider carefully. Countless enterprises are split and disintegrated due to human
problems, and human problems need to be taken seriously. This article gives
theoretical guidance from a macro perspective and provides suggestions for the
construction of the enterprise human resources system, which has certain reference
value. With the continuous development of society and the market, the competition
will become more intense, and the environment will worsen. The problems
encountered by family businesses in the development process will also become more
difficult and more challenging. Human resource construction is to enhance the
resistance of enterprises. These issues need further discussion and research to build
and improve and enhance the comprehensive strength of family businesses.

67
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