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Literature review-------the reason of the talent flows from a state owned bank to a private bank - Essay Example

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The reason of the talent flows from a state owned bank to a private bank Table of Contents Table of Contents 2 2. Literature Review 3 Reference List 14 2. Literature Review In the present era of knowledge-based economy, a successful company is one, which acquires new knowledge continuously and distributes the same throughout the organization…
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Harnessing and understanding the knowledge of the employees, helps in improving the ability of the organization by getting the right knowledge to the right people. This leads to the concept of talent management that advocates certain important positions, which are seen to make significant contribution towards the proactive development of the talent pool in order to fill up position and helps the organization to sustain the competitive strategy. In context to the Chinese enterprises talent definition and talent management recognition are quite unclear.

After the economic reform in China that started in 1979, the management and structure of Chinese enterprises has undergone dramatic changes and a new type of enterprise namely private-owned enterprises have emerged. The private owned enterprises have become a significant contributor towards the growth of the economy. Presently there are two types of enterprises that are operating in China; the private-owned enterprises and the state-owned enterprises (Chow, 2004). This literature review focuses on the state owned and private enterprises, the state-owned and private banks in China and the selection and reward system that they follow. 2.1 State-Owned enterprise The State-owned enterprise refers to a business entity that is established by the local or state government and the supervisory officials working in this enterprise are all from the government.

Here the state-owned enterprises are signified as the firm that runs wholly through the funding of the state. This definition signifies the ownership status of the state-owned enterprises prior to the reform, where the privatization and corporatization has not been implemented fully. Since mid of 1990s the term “state-owned and state-holding enterprises” has been used (HDwiki, 2013). The state holding enterprises and state-owned enterprise refers to two different categories. The state holding enterprises are those firms, whose maximum shares are held by the government.

On the other hand the sate-owned enterprises are those that are wholly funded by the state. 2.1.1 Performance of State-owned Enterprises The productivity of the state-owned enterprises of China provides a mixed picture. In order to measure the performance of the state-owned enterprises, their productivity and financial performance was compared with the non-state owned enterprises. This evaluation revealed that the state-owned enterprises outperformed as compared to the non-state owned enterprises till 1992.

Deterioration in the productivity was noticed in the state sectors after 1992 and the non-state owned enterprises were seen to outperform. A study conducted in 1992 on the consumer electronics, cotton textiles and garment industry to find the efficiency or the absolute level of total productivity of the state-owned enterprise found that the technical efficiency of the non-state owned enterprises were same as that of the state owned (Li, 2008). A study conducted by Jefferson et al., (2000) found that the efficiency of the state-owned enterprise reduced as compared to the collectively owned enterprise and the foreign invested enterprise.

On the other hand when the financial performance was evaluated through various types of ratios related to tax on assets and profit, it was seen that until 1990 the performance of

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