Human resource is the primary resource for the enterprise and human resources management (HRM) is an important tool for the enterprises competitive advantage. This article takes an enterprise - a typical state-owned small & medium enterprise, Xiamen Instrument Factory (XIF) which is managed by author as an example, to study some problems of HRM practice in the state-owned small & medium enterprises. The article begins with the analyzing of the characteristics of small & medium enterprises and their HRM, then describes the necessity of HRM practice and also the current situation of human resources and its management in XIF. The article brings forward the methods which should be applied during the process of the HRM practice of XIF, and builds up an basic theoretic model which combines the features of state-owned small & medium enterprise with the theory of HRM, to gradually set up an integrated HRM system for the state-owned small & medium enterprises in order to achieve the competitive advantage. Using this model in the HRM practice in XIF, the article mainly concerns the two aspects of the practices: the foundation construction of HRM system and the employees' performance measurement. The article concludes with the several EXPERIENCES & REVERSE THINKING of state-owned small & medium enterprises HRM practice based on the author's HRM practices in XIF.
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