HR Due Diligence. Mergers and Acquisitions in China

180 Pages·2012·1.69 MB·English

by  ChyeKok Ho and ChinSeng Koh (Auth.)

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CHANDOS
ASIAN STUDIES SERIES:
CONTEMPORARY ISSUES AND TRENDS
Series Editor: Professor Chris Rowley,
Centre for Research on Asian Management, Cass Business School,
City University, UK; HEAD Foundation, Singapore
(e-mail: [email protected])
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is Subject Group leader and the inaugural Professor of Human Resource Management at
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Cass Business School, City University, London, UK, and Director of Research and
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Publications for the HEAD Foundation, Singapore. He is the founding Director of the
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HR Due Diligence 6
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Mergers and acquisitions 9
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in China 1
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C K H C S K
HYE OK O AND HIN ENG OH 2200
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First published in 2012
ISBN: 978-1-84334-657-9 (print) (Chandos Publishing)
ISBN: 978-0-85709-153-6 (print) (Woodhead Publishing)
ISBN: 978-1-78063-328-2 (online)
© ChyeKok Ho and ChinSeng Koh, 2012
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For our families:
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Lay Beng, William and Wilfred Ho 8
Whei Kiang, Lynn and Wayne Koh 9
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List of fi gures and table 6
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Figures 1100
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2.1 Core concepts of guanxi 20
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5.1 Phases of HR risk assessments 107
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5.2 Likelihood versus impact assessment 108
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5.3 Example of likelihood versus impact
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assessment 111
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5.4 Manageability vs Timeliness mitigation
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assessment plan 115
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5.5 Scenario 1 122
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5.6 Scenario 2 123
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5.7 Scenario 3 124
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5.8 Scenario 4 125
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5.9 Scenario 5 126
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5.10 Scenario 6 128
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Table
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5.1 Illustration of HR risk assessment 109
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About the authors 6
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Koh ChinSeng is an experienced senior HR professional with
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over 30 years of extensive human resource management in
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several large multinational companies of diverse industries.
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Organisations that he has worked with include Philips,
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Thomson multimedia, BOC Gases and Singapore Technologies
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Aerospace.
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His scope of responsibilities spans across South-east Asia
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to China where he was based in Shanghai and Beijing for the
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past ten years. Besides the traditional areas of HR portfolio
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such as Resourcing, Compensation & Benefi ts Management,
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Performance Management, Training & Development,
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Career/Succession Planning and Employee/Industrial
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Relations, he has built up a reservoir of expertise in the non-
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traditional segments of HR management to support business
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growth and sustainability. These areas include conducting
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HR Due Diligence for M&A activities and HR Risks
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Assessment, with particular focus on China.
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He has jointly delivered a refereed paper on HR Due
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Diligence to an inaugural business conference to an
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international audience organized by Australia’s Monash
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University and Beijing’s University of International Business
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and Economics. Moreover, he has also contributed papers
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relating to the application of change management in China
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as part of a book edited by Prof Ruth Alas, Estonian Business
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School, published in 2009.
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ChinSeng holds a Bachelor of Arts from the University of
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Singapore and speaks both English and Chinese fl uently.
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HR Due Diligence
1 Dr ChyeKok Ho teaches International Human Resource
2 Management and Management Information Systems at the
3 School of Business, Monash University Sunway Campus in
4 Malaysia. Prior to pursuing a career in academia, he was
5 practice leader and founder of The Knowledge Practice, an
6 organisational research and education advisory business
7 located in Melbourne, Australia.
8 Dr Ho coached organisational practitioners and business
9 managers on employment processes, professional
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1 reviews, overseas assignment and reward management and
2 human resource management technologies drawn from
3 multinational corporations, employers federations and
4 labour organisations located in Beijing, Ulaanbaatar, Hanoi,
5 Danang, Ho Chi Minh City, Kuala Lumpur and Singapore.
6 He has held leadership positions in compensation and
7 benefi ts management, and was head of human resource for
8 global corporations including investment bank JP Morgan,
9 government-linked conglomerate Singapore Technologies
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1 Seagate Technology International.
2 A researcher in organisation functioning, Dr Ho presented
3 his fi ndings in the areas of human resource due diligence,
4 organiSational learning and knowledge sharing, education
5 pedagogy and technology at peer-reviewed International
6 Business, Knowledge Management, Learning Theories, and
7 Small and Medium Enterprises academic conferences held in
8 Beijing, Hangzhou, Hong Kong, Penang and Singapore.
9 Dr Ho has degrees from University of Melbourne, Australia,
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1 Fellow of the Cambridge Commonwealth Society, United
2 Kingdom. His research interests are in the areas of organisational
3 learning and knowledge, knowledge sharing in Chinese
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Preface 5
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We write to share our experience in conducting human
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resource (HR) due diligence for mergers and acquisitions
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(M&A) activities in China. Our experiences are gleaned
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from years of exposure to and personal encounters in
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conducting HR due diligence in China. As overseas Chinese,
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we have done plenty, seen a great deal, and have learned not
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to be presumptuous working with the Chinese and in China.
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In a highly complex, and complicated, business
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environment where intense M&A discussions and effective
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negotiations take place across different time zones and
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cultures, intentions are often unseen, left unspoken or tacitly
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misunderstood. M&A and human resource management
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practitioners, management consultants, embarking and/
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or working on M&A related projects as well as graduate
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scholars of international business, international management,
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and international human resource management may fi nd
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our intentions, our exposure to and experience in HR due
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diligence meaningful and useful. Although our work on
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HR due diligence may not be intensively grounded on
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theoretical research methods, with hypotheses rigorously
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tested, supported, and reliably validated with empirical
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evidence gathered ethnographically or phenomenologically,
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we are assured that scholars and academic researchers may
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nonetheless be keen to learn about our life in the swamp.
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Through experiences obtained in diverse industries
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dispersed across Chinese provinces, we have had our mixed
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share of joy and pain; successes and setbacks; satisfaction
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