KEY FINDINGS · An HR system that emphasizes basic control practices and also includes commitment practices yields better business results for Chinese firms than a Western-style high-performance system. · Control HR can be thought of as traditional HR practices, such as getting employees to perform their duties and paying wages that are not closely tied to performance. Commitment HR—also known as “high involvement” or “high-performance” HR—has the goal of improving a firm’s competitiveness by developing employees’ potential and maximizing their buy-in to the company’s mission. Commitment HR practices include promotions from within, regular performance reviews, opportunities for employee input, training, and formal grievance procedures. · In order to be most effective, HR systems need to be understood in the context of a country’s business, political, social and cultural realities.