Managing in rugged environments: A case study of human resource management in Chinese banks, 1911 to 1945

This study explores the labour management strategies of Chinese banks during a period of significant social and economic instability. It reveals a two-tiered labour market within these banks, where lower-level employees received standard pay and career prospects, aligning with tournament theory to identify skilled workers cost-effectively. By contrast, higher-level roles utilised efficiency wages to motivate senior staff and mitigate moral hazards. Banks also prioritised comprehensive monitoring policies and fostered a harmonious corporate culture rooted in Confucian ethics to ensure the smooth operation of their systems. This approach to labour management was a response to the unique challenges of institutional voids and social transition in emerging markets, offering insights into white-collar management strategies in developing economies.