Prioritising HR to Succeed in China

Heidrick & Struggles have released an article discussing the importance of prioritising HR in order to succeed in China. 

While the HR function is almost universally acknowledged as a critical source of business value, the situation on the ground in many privately owned enterprises in China suggests many companies haven’t gotten the message.

At a Chinese life-sciences company with global ambitions, the head of HR is a close relative of the founder. The appointment reflects the importance that the owner attaches to HR, and it is consistent with the traditional practice of putting someone you trust in charge of highly critical functions. Unfortunately, the owner’s relative has no experience managing the HR function.

Similarly, a Chinese medical device company hired a head of HR whom the owner met through his personal network. Although the owner trusts him, the HR head is not a specialist in the healthcare industry and is relatively inexperienced. As the company expands globally through acquisitions in overseas markets, the organization is realizing it does not have enough of the right people or the HR infrastructure required to integrate and manage the newly acquired entities.

For the full article, please click here.