Internal-Control Oriented Human Resource Management Practices (hereafter referred as ICHRMP ) is found to be a typical type of human resource management practices among Chinese organizations in transitional period. The research firstly explored the connotation and structure of ICHRMP in consistent with qualitative research paradigm that follows the standard procedure of grounded theory; secondly, we conduct indigenous empirical research based on developing scale measurement of ICHRMP. Empirical results indicate that: 1) three dimensions of ICHRMP were found to include internalization, standardization and performance-motivation; 2) the operation performance and human resource performance were significantly predicted by ICHRMP in Chinese context; 3) the environmental dynamics and competitiveness moderated the effects of ICHRMP on operation performance.