Economic globalization and the Open-Door policy make China market more significant around the world. On the other hand, intensive competitions are making progress. This paper examines the economic and society change, labor laws altering, and human resources varying since 1949. As the dynamics of competition accelerate are perhaps the only truly sustainable sources of competitive advantage in China firms. Thus, successful management of human capital may be more ultimate determinant of organizational performance and survival than physical capital. Strategic human resource management (SHRM) emphasizes the through the improvement of within reliable bundles of human resources practices and human resources management system, which are appropriately matched or linked to existing organizational environment. Most particularly business strategies could result in higher organization performance achievable. An empirical analysis is presented by gathering data from 80 China firms in 2003. That is on purpose to examine the determinants of the accomplishment of human resource management system and the coverage to human resource management system influences on organization performance.