Chapter I. Introduction
1.1 Research Background
With the rapid development of economy, the relationship between our companiesand employees has undergone enormous changes; "from the former political interestsbased and administrative control operated mode to benefit of economic interests basedand coordination type mode" (Zhao, 2008). Along with this change，labor disputes andlabor conflicts between enterprises and employees continue to emerge, and intensified.Facing the increasingly frequent and more and more intense labor conflicts，thegovernment strongly advocated the establishment of harmonious labor relations. Butwhat is a harmonious labor relation? And how do we build one? It requires scholars andresearchers to do deeper studies of labor relations.The study of labor relations can be roughly expanded from three differentperspectives; the perspective of government, the perspective of enterprise and theperspectives of employee. Research from the government perspective mainly concernsabout the related regulations of labor relations; research from the employee perspectivemainly concerns about employee rights protection, and research from the enterpriseperspective aims at an effective employer strategy, more focused on the interactionbetween corporate employees. Literature search shows that our scholars' researches onlabor relations are mostly concentrated on employee perspective and governmentperspective; while gradually increased in recent years, the research from the enterpriseperspective are mostly based on the social exchange theory; expanded from two differentlevels of enterprises and employees; often focused on labor relations in a particular issue;make a new interpretation of the model, or verify some important assumptions, drawingsome useful conclusions, but rarely attempt to open the ”black box" of labor relations.
1.2 Research Meaning
In this study, the breakthrough point of the research is "the nature and content ofcorporate employment relationship", starting from the exchange of business andemployees, through the analysis of exchange and the property of exchange objects,opening the ”black box" of employment relationship (individual labor relations), andthrough the development of enterprise scale measuring the employment relationship，setting this scale as a basis to measure if the employment relationship situation affectsemployee attitudes, behavior and performance. The results of the study will have apositive impact on the theory and practice of employment relations and employmentrelationship management. Specifically, the meaning of this study includes the followingaspects:First, we will ignore the subtle differences in the employment relationshipconceptual, by capturing the essential nature of employment - employees transfer itscontrol power to the enterprise, to review the employment relationship. Therefore, wehope for a more comprehensive study to summarize, analyze and evaluate the existingrelevant literature at home and abroad，so as that it provides the foundation to our deeperunderstanding of the employment relationship and accurately grasp of the developmenttrend of wage labor relations, while also provides a reference for future research.Secondly, based on the essential attribute of the employment relationship, exchangebetween the enterprise and its employees and the theoretical analysis of the exchangeprocess, this study logically deduces the contents dimensions of the enterpriseemployment relationship, thus, we can grasp the essential nature of the employmentrelationship in minimized unit in the employment relationship ( between individual unitsand individual employees )，and thus, in theory, enriching our understanding of theenterprise employment relationship, helping us to correctly understand the collectivelevel and macro-level phenomena of different employment relationships, such as theunderstanding of "why employees choose to strike rather than leaving the job" and so on.Meanwhile, the study also brightens the employment relationship a little bit, providingthe theoretical foundation for the enterprises to effectively manage the employmentrelationship.
Chapter II. Literature review
2.1 Employment Relations Theory
Most traditional research focuses on social labor relations and collective laborrelations, with little attention to individual labor relations. Thus the objects of theirresearches are often at the national level, regional level or industry-level. Althoughtraditional researches are also concerned about the interaction of labor relations bodies,but they are pointing to the rules generated by the interaction. In such studies，thefollowing important theories (individual labor relations) are meaningful to the knowledgeand understanding of the employment relationship of enterprises and employees on anindividual level.Dunlop's labor relations systems theory. Dunlop starts from system theory that thelabor relations system consists of specific behaviors，exists in specific behavioralenvironment, flooded with the labor relations system ideologies and constraint rules oflabor relations in the composition. Because of the conflicts between the bodies，the taskof labor relations system is turning conflicts into rules through negotiation, mediation,arbitration or legislation. In Donlup's theory, the general relationship between corporateemployees has been reduced to a term "conflict" and even considered only a tiny part ofthe "conflict".
2.2 Content dimension of the employment relationship
The study on the content and structure of psychological contract, in some extend,can be understood as a research on the content and structure of the employmentrelationship. Due to differences in study objects, research methods and other aspects, thecontent of the psychological contract researchers derived is not consistent, for example,the "responsibility of organizations" in psychological contract includes; promotion, highremuneration，performance incentives and career development etc, 12(Rousseau，1990 )training，justice，caring，trust , security, etc. 12 (Herriot & Manning, 1997); blatantappreciation, performance incentives，meaningful work，etc. 9 (Porter & Pearce, 1998);job security，regularly up wages, participation in decision-making etc. 16 (Tumley &Feldman, 1999; 2000); equal pay，equal benefits，relating rewards and responsibilitiesetc. 9 (Shapiro & Kessler, 2000); flexible working hours，competitive work，safeworking environment etc. 11 (Kickul & Lester, 2001; 2002) and so on . "Employee'sresponsibilities" in psychological contract include: overtime working, loyalty, engagingin work voluntarily and other responsibilities etc. 8 (Rousseau, 1990); punctuality,honesty, love of assets, reflecting the image of the organization, etc. 7 (Herriot &Manning, 1997); due diligence, achieving work requirements required, compliancewith regulations etc. 13 (Rousseau & Tijoriwala, 1999) and so on . It is not difficult tosee from the study above that the specific content of the psychological contract is notstable enough, some of which performed relatively stable, while others change relativelyrough.
Chapter III. The analysis of the employment relationship.......... 15
3.1 The nature of employment: the exchange of control power over employeebehavior.......... 15
3.2 Analysis of attribute of control power over the employee behavior .......... 17
3.3 Structural dimension of the employment relationship .......... 20
Chapter IV. The empirical research of relationship between.......... 25
4.1 The theoretical foundation and hypotheses.......... 25
4.2 Research Methods .......... 33
4.3 Data analysis and hypothesis testing ..........35
4.4 Results and Discussion ..........40
Chapter V Conclusions .......... 43
5.1 Research conclusion.......... 43
5.2 Research Prospects.......... 44
CHAPTER IV. The empirical research of relationship betweenemployment relationship and employee's performance
4.1 The theoretical foundation and hypotheses
From the foregoing analysis, the exchange between enterprises and employeesdetermines the existence of interdependence between the two. "Degree" as an importantmeasure of the relationship between the two is mainly used to measure the impact ofinterdependence on the size of the both sides which，on the one hand, depends on theimportance of resources from that side for this side, on the other hand，depends also onthe substitutability and replicability of the resources from the other side. In the realisticprocess of exchange, the resources that enterprises and their employees have are notequal, which will lead to positions presented differently in the mutual exchange ofenterprises and employees, namely the differences of the degree to the dependence.Under different dependence degree, different sides will present the obvious inequalitieson power and status.
The purpose of this study was to investigate the specific dimensions of theemployment relationship and whether employee attitudes, behavior and performance aredifferent in different employment relationship. We take the theoretical and empiricaldeduction method to exploratory research the dimension of the employment relationshipand the impact it may bring. Despite that the problems we discuss are more complex anddifficult to study and the conclusion cannot be drawn just by simple study, from ourcurrent existing research results, we have obtained fairly encouraging results andproposed a number of important propositions for the next study.The current conclusions are mainly as follow: 1. Theory deduces the internalstructural dimensions of the employment relationship: employment, in essence, is thetransference of the behavioral control power of employees in exchange for economic andnon-economic benefits. Since the exchange is carried out under the premise of voluntaryof both sides，therefore, it means that there comes interdependence that the exchange isestablished between the enterprise and its employees. However, on the basis of valuecreation of the exchange, the division to the exchange value leads to the existence ofcompetitive relationships between the employees and the enterprise. Also, according toColeman 's view, employees' voluntarily transferring the control power to the enterpriseallows the enterprise to have a well-deserved authority over employees.