This paper introduces the concept of small-sized enterprise and the importance of Human Resources Management (HRM). In addition, the situation of HRM in small-sized enterprises has been analyzed. Furthermore, the differences, in terms of concept, characteristics and methodology, between HRM and the traditional management system have been highlighted. Based on the review of problems existing in small-sized enterprises, such as constant personnel change, staff conflict and family-style management, two common types of methodologies of performance management, reward and encouragement have been outlined. Finally, the author takes an example of ShenZhen Jitong Company, in which the efficiency of HRM system has been improved considerably as the result of the setting up of both staff performance assessment system and reward system.
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