Archives April 2010

Charles River to buy WuXi Pharma for $1.6b

The purchase of China’s WuXi PharmaTech Inc. will give Charles River Laboratories International Inc. the ability to offer drug makers one-stop shopping for preclinical drug development and testing, executives of both companies said yesterday.

Charles River Labs, a drug testing contractor based in Wilmington, agreed to acquire Shanghai’s WuXi (pronounced who-shee) in a cash and stock deal valued at about $1.6 billion.

The alliance is a good fit because the two companies serve a similar client base of leading pharmaceutical and biotechnology companies in the United States and Europe but provide different services, said James C. Foster, chief executive of Charles River, who will lead the combined company.

While the Massachusetts company conducts animal tests for drug developers before clinical trials, its new Chinese partner, among other things, manufactures the primary ingredient in drugs — known in the industry as the API, or active pharmaceutical ingredient, the substance in drugs that is biologically active.

“We’re doing this because our clients, particularly large pharmaceutical and biotechnology companies, want to buy an increasing number of services from a smaller number of providers,’’ Foster said in an interview. “We want to be one of those providers.’’

Edward Hu, the WuXi chief operating officer who oversees US operations, said the deal will allow his company to expand faster, and serve a broader customer base, than it could have on its own.

“It creates a formidable company in the early development space,’’ Hu said in an interview, citing the ability to handle a range of services for clients, from designing molecules to safety and animal testing. “No other service provider has this capability today. This is going to reshape the pharmaceutical and biotechnology industry.’’

But investors apparently thought WuXi stockowners got the better part of the deal, which the boards of both companies have approved. Shares of Charles River tumbled $6.22 (15.6 percent) to $33.55 on the New York Stock Exchange yesterday, while WuXi shares vaulted $2.84 to $19.41, a 17.1 percent gain.

Charles River agreed to pay $21.25 a share for the Chinese company. That includes $11.25 in cash and $10 in Charles River common stock. The deal represents a more than 25 percent premium over WuXi’s closing stock price Friday. It is expected to be completed some time before the fourth quarter.

The merger reflects a consolidation trend among both drug makers and the companies that provide services to them.

Increasingly, many drug makers have been outsourcing development and testing services to contract research organizations, such as Charles River and WuXi, and focusing their own efforts on clinical trials and marketing. The outsourcing business, which allows drug makers to cut costs and increase their speed to market, has been growing by an estimated 30 percent annually.

“This is another way of reducing risk,’’ said Harry Glorikian, managing partner at Scientia Advisors, a Cambridge consulting firm that focuses on life sciences. “It’s less risky for large pharmas to outsource their drug development functions and become marketing shops pushing these drugs onto consumers. When you think about it, this is similar to Procter & Gamble or Dell outsourcing component design.’’

Under their definitive agreement, the combined company will retain the name Charles River Labs and its global headquarters in Wilmington. The Chinese operation will continue to be called WuXi and be run by its existing management team of mostly Chinese-born, US-educated executives.

WuXi was one of the companies visited by Governor Deval Patrick on a trade mission he led to China in 2007. The company currently serves about 20 customers from Massachusetts, including Vertex Pharmaceuticals Inc. of Cambridge.

While the deal helps to cement the role of China as low-cost venue for drug development, Charles River’s Foster said he expects operations in Wilmington will expand as the company grows. Charles River also plans to reopen in 2012 an animal testing site in Shrewsbury where it suspended operations early this year because of a slowdown in business from its customers in the Boston area, Foster said.

“Our footprint will get larger in Massachusetts,’’ he said.

Charles River, which had $1.2 billion in sales last year, employs about 8,000 workers worldwide, including more than 800 in Massachusetts. The company was founded by Foster’s father, veterinarian Henry Foster, in 1947. It went public on the Nasdaq exchange in 1968, and was purchased by medical technology company Bausch & Lomb in 1984.

A management group, led by James Foster, repurchased the company in 1999 through a leveraged buyout and took it public again in 2000, this time on the New York Stock Exchange.

WuXi, a 10-year-old company that posted revenue of $270 million last year, is the largest Chinese maker of chemical compounds for the pharmaceutical industry. It acquired three US research sites in 2008 when it bought Minnesota-based AppTec Laboratory Services Inc. WuXi employs about 4,000 workers worldwide.

Chief Accountant(fi272)

Job Title: Chief Accountant
Location: Shanghai
Our client is a Italian restaurant group which has 10 brands in the world and over 100 stores. Now they are developing their groups in Shanghai, need good professionals to join them.

Responsibilities:
1. Prepare profit and loss statements and monthly closing and cost accounting reports.
2. Compile and analyze financial information to prepare entries to accounts, such as general ledger accounts, and document business transactions.
3. Establish, maintain, and coordinate the implementation of accounting and accounting control procedures.
4. Monitor and review accounting and related system reports for accuracy and completeness.
5. Prepare and review budget, revenue, expense, payroll entries, invoices, and other accounting documents.
6. Analyze revenue and expenditure trends and recommend appropriate budget levels, and ensure expenditure control.
7. Explain billing invoices and accounting policies to staff, vendors and clients.
8. Keeps proper record of all the transactions of the company like sales, purchases, expenses, payments, receipts etc and to administer payroll for employees
9. Ensures compliance of local laws as related to running of business and Mercantile laws applicable to the group
10. Keep up to date with all local tax legislation and to advise group of strategies to minimize local tax exposure
11. Resolve accounting discrepancies.
12. Recommend, develop and maintain financial data bases, computer software systems and manual filing systems.
13. Interact with internal and external auditors in completing audits.
14. Other duties as assigned.

Requirements:
1. Bachelor degree or above.
2. At least 3 years working experiences as accountant, preferable in a foreign company.
3. Knowledge of finance, accounting, budgeting, and cost control principles including GAAP.
4. Knowledge of financial and accounting software applications. Ability to analyze financial data and prepare financial reports, statements and projections.
5. Work requires willingness to work a flexible schedule.
6. Be excellent in both oral and written English.
7. Customer service originated
8. Good team work spirit.

* Please send us your complete resume (in Chinese and in English) to: ‘topjob_fi272@dacare.com'(Please replace “#” with “@”)
* In the email subject please include the position name and job #

Purchase Engineer(mn233)

Job Title: Purchase Engineer
Report To: Head Sourcing
Location: Shanghai

Our client is one of the largest integrated textile companies in Asia, also being a large company in the world for denim. They are one of the key suppliers to companies like GAP, Marks & Spencer etc.

Responsibilities:
1. Take charge of Dyes & Chemicals purchasing and guarantee the quality and punctuality;
2. Collect and analyze marketing information based on which to build up the corresponding purchasing strategy and policy;
3. Make suppliers management and optimize the supply network, continually reducing purchasing cost;
4. Highly matrixed with sourcing head to insure development and execution of global purchase strategies to insure maximum leveraging of our requirements and supplier relationships;
5. Develop detailed points of view and understand of the chemicals and raw material supply chains;
6. Push the warehouse to strengthen management of materials with scientific method, keeping each item at its proper stock level;

Requirements:
1. With an academic background in Chemistry and about 6 years experience of Dyes & Chemicals sourcing;
2. At least 3-5 years chemical materials purchasing experiences in foreign company;
3. Excellent knowledge of the purchasing tools and good knowledge in purchasing process preferred;
4. Familiar with cost control system, materials process and with more skilled value chain analysis expertise as well as negotiation skills;
5. Good English communication.

* Please send us your complete resume (in Chinese and in English) to: ‘topjob_mn233@dacare.com'(Please replace “#” with “@”)
* In the email subject please include the position name and job #

Head Sourcing(mn234)

Job Title: Head Sourcing
Report To: Sourcing Director
Location: Shanghai

Our client is one of the largest integrated textile companies in Asia, also being a large company in the world for denim. They are one of the key suppliers to companies like GAP, Marks & Spencer etc.

Responsibilities:
1. Develop and implement global sourcing strategies and programs;
2. Lead sourcing initiatives and develop, execute and manage sourcing strategies with coordination of several factories internationally;
3. Forecast raw material cost and address budget variance;
4. Ensure comprehensive spend analysis for strategic sourcing;
5. Monitor market trends and supply shifts;
6. Search and select sources of supply, manage and develop relationships with suppliers to reduce costs and ensure on-time delivery;
7. Evaluate supplier bids, and participate in negotiating pricing and contracts when appropriate;
8. Provide internal support to quality, engineering, program management and manufacturing relative to supplier selection, supplier qualification, material cost and delivery;
9. Develop the lead-time reduction programs and solutions;
10. Develop a balance scorecard of key performance indicators using policy deployment to track both vendor and functional performance;
11. Build the required business processes and systems to manage the global sourcing function including the maintaining of key documents, agreements and contracts;
12. Travel to visit key vendors on a regular basis and as a means of identifying potentially new vendors;

Requirements:
1. Degree holder in textile education with 7 to 8 years experience of procurement of Yarn – cotton , linen , lycra/spandex , poly-lycra etc.;
2. At least 5-10 years’ material sourcing experience in MNC with 3 years in supervisory level, with exposure in Grey Fabric-Woven fabric like Shirting fabric, bottom-weight , Denim Fabric and Knitted fabric.
3. Experience in global sourcing/supply chain. Experience in cost/inventory reduction/management;
4. Inspection of above material as per international standards is preferred;
5. With ability to work and lead different level of people independently;
6. Negotiation skills of high rate and easy going and open-minded nature;
7. Rigorous, autonomous, result-oriented;
8. Fluency in English, both written and verbal;
9. Able to work under pressure and manage issues with priority.

* Please send us your complete resume (in Chinese and in English) to: ‘topjob_mn234@dacare.com'(Please replace “#” with “@”)
* In the email subject please include the position name and job #

Finance Manager(fi268)

Job Title: Finance Manager
Report To: Chief Executive Officer
Located in: Shanghai Songjiang District

Company Introduction:
Our customer is a leading fast fashion retailer from Australia. With a famous brand and a lot of stores in many famous cities.

Job Description:
1. Preparation of monthly and YE financial, management and Cash Flow Reporting, reconciliations, and analysis, including inventory and daily takings by store;
2. Preparation of full annual budget and quarterly forecasts including detailed cash flows ;
3. Facilitate the expansion of the business into selected overseas markets, including the preparation / coordination of due diligence as required for joint venture partners;
4. Maintenance and review of all financial policies and procedures;
5. Developing financial KPI’s for all areas of the business to drive and monitor business performance;
6. Recruitment and establishment of Accounts Payroll and Finance Teams for PRC;
7. Managing all aspects of diva in PRC and ensuring compliance to all authorities.

Responsibilities:
1. Preparation of monthly management results and commentaries, including graphic presentations
2. Preparation of Cash flow forecasts
3. Implementation and maintenance of all financial policies and procedures
4. Implementation and review of trend analysis for all products,
5. Develop business critical finance KPI’s
6. Review and report on all revenue, margins, product mix and any other analysis as required by the business
7. Analyzing the variances of margins, overheads, etc between actuals vs. budget vs. forecast
8. Modeling of forecast and budgets, including preparation of assumptions templates for business input, collating data provided by the business
9. Ensure that all analysis required by the business are completed on a timely basis
10. Facilitate the expansion of the business into PRC including Taiwan, Macau and Hong Kong markets, including the preparation / coordination of due diligence as required for joint venture partners
11. Provide excellent customer service in relation to suppliers
12. Observe the human resource policies of the company as varied from time to time
13. Responsible for all accounting functions including accounts payable, accounts receivable, general Ledger, stock control and cash management

Qualifications:
1. Bachelor’s degree in Finance or Accounting;
2. About 5-10 yrs finance working experience in multinational chain enterprise with at least 5 years management experience ;
3. Familiar with the Chinese and international Accounting?IFRS?, strong analytical skills, financial and tax policy; Sound knowledge about financial software; ERP software knowledge desired, good presentation skills;
4. Should demonstrate a sound understanding of category management including G.M.R.O.F. (Gross margin return of floor space), G.M.R.O.I. (Gross margin return on inventory) and G.M.R.O.L. (Gross Margin Return on labor) etc.
5. CA or CPA qualified
6. Ability to find solutions and achieve objectives and drive to completion;
7. Excellent organizational and planning skill – Proactive problem solver;
8. High level communication skills;
9. Self motivator;
10. Team player, excellent interpersonal skills and understanding of different cultures / work environments;
11. Good command of English both in oral and written is a MUST.

* Please send us your complete resume (in Chinese and in English) to: ‘topjob_fi268@dacare.com'(Please replace “#” with “@”)
* In the email subject please include the position name and job #

No Short-Term Solution to China’s Talent Gap – Global Staffing Strategy

Substantial challenges exist identifying and recruiting the right high-tech telecommunications staffing talent in the Chinese market. In fact the need for high tech telecommunication leadership talent, for example, has produced a staffing gap in China that no longer remains balanced. Many view China’s immense market as the long-unchanging high tech industry’s biggest promise for growth. “Therefore it is critical that companies have a full understanding of their particular stage of globalization and seek to recruit the right leadership talent for that stage” (Luo, 2007, p. 1). Different needs develop at different stages of globalization. A comprehensive strategy for the acquisition of a company in China will prepare the expected audit of HR systems. “I define ‘strategic staffing’ as the process of identifying and addressing the staffing implications of business plans and strategies, or better still, as the process of identifying and addressing the staffing implications of change, ” (Bechet, 2000, p. 1). Challenges to the strategy might arise because of this acquisition–that include unequaled cultural and regulatory factors. This prepared staffing strategy should help make the Chinese acquisition a flourishing investment undertaking for each entity.

It is imperative to associate the company objectives with the globalization concept when considering a staffing strategy. Objectives will prove easier since China has entered the World Trade Organization in 2002. Plus, its continued liberalization of rules governing foreign investment can ease the transition. A difficult challenge remains comprehending exactly where Chinese operation stands according to corporate evolution; then, staff must be recruited to match. Awareness of this fact will prevent detrimental stumbles. A lot of companies in China’s market today find themselves at this beginning development stage. “Indeed, with surprising frequency, foreign companies operating in China have tended to make identical hiring mistakes at each stage of evolution of their operations there” (Luo, 2007, p.1). The company must deliberate if a candidate succeeded at a company at a like developmental stage. The company realizes a general manager candidate must do what it takes to close a deal. Human Resources must also realize that present relationships a general manager candidate might bring to the job might not be of much value. Much of this results from important clients altering their inner decision-making dynamics. At a testament to this realization, three major Chinese telecommunications companies replaced CEO’s in 2004 (Luo, 2007). This fact, alone, could cause middle management modifications. Another consideration includes, “general manager candidates who are accustomed to working in a multinational environment with far more advanced supporting infrastructure and whose core competency is to mange resources may find it a stretch to produce results-oriented, hands-on salesmanship” (Luo, 2007, p. 1).

While recruiting and staff of employees proves challenging in any market, it proves especially so in China since there is a deficit of management and executive talent (much of the labor shortage due to the lack of pragmatic training). “Under the pressure to move quickly in China, companies must resist the temptation to hire leaders who appear to be candidates generally but who lack the specific skills required for success at the company’s particular stage of globalization” (Luo, 2007, p.1). The management of human resources and incorporating the present talent from the two companies in the acquisition might prove challenging. Without a doubt, ineffectual management consolidation may significantly influence the company’s vision. Human Resources must reduce the distance between gaps in the two companies, both culturally and geographically. The merger will realize the challenge of differences in business cultures and practices. Realizing all these factors, HR strategy employs a sponsored-mobility approach. When considering staffing, career, and succession systems in respect to “sponsored versus contest mobility norms” Rosenbaum found a “sponsored-mobility approach stresses the early identification of talent. Firms following this norm attempt to benefit from the efficiencies of specialized training and socialization by providing high-potential candidates with challenging assignments and other opportunities believed to be conducive to employee development” (Dreher & Dougherty, 2001, p. 25). China creates a great challenge since the cultural differences (language, particularly) obviously remain immense. Additionally, interaction with leaders in China proves limited.

Not uncommon in other countries (like Czechoslovakia; for example), the Chinese people see those they work with as part of the family—extended. The “personal” element comes much more into play: the manager finds himself (or herself) looked up to like one would an older brother or sister; sometimes giving guidance on personal matters (even performing personal “undertakings.” In contrast, this type of behavior in America may be construed as “playing favorites” or unjust exaction. The complexity of this personal employee relationship in conjunction with the context of the workplace must remain at the forefront of Human Resources staffing considerations. In reality, this sort of workplace extended-family culture often precipitates business agreements. Additionally, though, this type of employee/employer relationship construction may produce organizational structure changes.

In the vein contrasting cultures, regulatory factor differences must be regarded. As mentioned previously, China’s World Trade Organization status has allowed ameliorated foreign approach—particularly to the service sector (most regulated) in China. This fact, in itself, has granted additional participation in financial, telecommunications, professional services, insurance, etc. A lot of mix-up abounds concerning China’s obscure 2001 Labor Law; which creates many ways of reading it from each side. A challenge lies in establishing clear guidelines for each side (since labor regulations appear lacking). Complications arise in staffing a multinational enterprise due to political, economical, legal, business, as well as cultural implications. The effectiveness and acceptability of Human Resources management rides on these factors. The company attests exhaustive cognition of Equal Employment Opportunity policies and their application in the acquired workplace. In this time of war, HR remains cognizant of final regulations clarifying the responsibilities of employers of military veterans according to the Uniform Services Employment and Re-Employment Rights Act of 1994. The law requires employers to reinstate returning service members within two weeks after they apply for reemployment. Returning veterans must be afforded the status, seniority, and pay they would have attained had they remained continuously employed.

Additionally, usually, staffing policies for the host country won’t come written with the vantage point of the parent’s. Arun Kottolli in “International Staffing Strategy” makes a fine point when he realizes, “Often this tends to be parochial and ethnocentric resulting in tensions between parent and subsidiary management. Often the subsidiary management will not directly point at the problem in the company’s HR policies, especially if the policy was written by the ‘headquarters.’ As a result real reasons are not noticed until it is very late” (p. 1). Ohme in his book, “Borderless world,” argues that companies should do away with the “headquarters” mindset and appropriate subsidiaries more freedom. “This freedom is more important in framing HR policies. The main point companies must learn that the HR policies followed at home may not be applicable in the host country” (Kottolli, 2007, p. 1). Human Resources will need to study the regional market circumstance and ply to it. It would behoove the company to take in major executives of the acquisitioned business to join the parent’s top management. Current Human Resources polices must change since their policies don’t apply to the company acquired.

Establishing loyalty and bonding between both companies starts with an internal recruiting procedure. Even entry level jobs will have a title, as Chinese culture ascertains the prestige of such. This will aid in appealing to potential recruits. However, the title significance could bring about organizational structural changes. The facilitation of early staffing will prove easier with the availability of an intranet Web site. Potential job candidates may view job postings on the Internet, various international newspapers, university/college newspapers and collegiate bulletin boards. An appraisal questionnaire assesses fundamental skills, while the application provides needed information for Human Resources (enabling a selection process). Then, HR can select candidates after an interview. They will not allow the candidate’s nationality to blind their decision concerning the best candidate for the position. Selectivity in recruiting remains paramount. “Hiring the right people means more than just securing employees who possess the knowledge, skills, and abilities required to perform a particular job; these people must also be able to acquire new knowledge and skills as jobs and environments change. In addition, employees must find that the work is satisfying and that the overall organizational climate and reward structure meets their needs” (Dreher & Dougherty, 2001, pp. 10-11).

From past foreign acquisitions, history shows a large degree of expatriate applications—producing a good mix with internationals. The lack of skilled management in China assures many expatriate applications. The labor shortage in China should produce a great number of young applicants (especially at the collegiate level). To direct the foreign subsidiary, Human Resources will appoint a home country national to build the parent company’s corporate culture in the adjunct. “While this reduces the communication between headquarters and the subsidiary and increased control by the headquarters, this policy has serious disadvantages. The cultural differences and environmental differences will be huge and expatriates may not be able to cope with. Thus resulting in costly management mistakes” (Kottolli, 2007, p. 1).

Human Resources considers the staffing strategy in as a longer-term context. And within this context, increased effectual shorter-term staffing determinations prove ascertained. This near-term aim might gain the attention of managers finding themselves assessed by and rewarded for attaining shorter-term targets. “Because it helps define appropriate short-term actions, it is more likely that the same line manager making the
staffing decision will still be in place to rap the benefits of that decision later on” (Bechet, 2000, p.1). The staffing focus will not remain on implementation concerns. Human Resources will deal with staffing from a planning perspective that’s proactive. Those staffing realize, “staffing constraints (e.g., an inability to recruit a sufficient number of individuals with critical skills) may impact the company’s ability to implement its plans. These constraints should be identified and addressed as part of the planning process, not left as surprises to be uncovered when implementation begins” (Bechet, 2000, p.1). No long-term staffing strategy proves necessary Human Resources may fill a job position internally (comparatively quick). This, too, saves time and resources. Top managers the company acquires from the acquisition could prove the most valuable asset: they know the market.

Human Resources often spends too much time on data and tables—devising reports and other staffing-related information (often the volume of planning data). For the merger of the acquisition staffing, the focus remains on acting and planning—not just reports. For example, if “you reallocate staff because of something you discern from a data table, then that data has become information. When it comes to staffing, make sure you provide managers with information, not data. If your reports provide managers with data that is simply ‘nice to know’ or ‘interesting’ but doesn’t directly influence decision making, don’t provide them” (Bechet, 2000, p.1). As result, organizational effectiveness increases remarkably. However, Human Resources realizes the extreme importance of auditing HRM practices and departments. “Finally, we bring to your attention a concept refined in the writing of Devanna, Fombrun, and Tichy: the evaluation of the HR function by way of the human resources management audit (HRMA).22 Any audit is typically considered to be a first step in an improvement or change effort” (Dreher & Dougherty, 2001, pp. 30-31).

Additionally, effective training and development proves paramount to increasing organizational effectiveness. English remains at the top of the list of those training and developmental programs. Writing for business, job-specific training, and skills in presentation top the list. Available training exists for retained management in both companies—classes ranging from managing resources, leadership, coaching, and stress and time management. A focus lies in cross-utilization and cross-training. Another perspective of training and development demonstrates orientation “driven by the need to be flexible and able to utilize employees even during times of production slowdowns. When people are able to perform multiple jobs, or are multiskilled, they represent a reserve of talent and are more likely to appreciate how their work and output levels affect the work of other employees in jobs related to their own…times when multiskilling is important and times when it is not” (Dreher & Dougherty, 2001, pp. 14-15). Human Resources will offer an overall understanding of Chinese business patterns and culture to all employees at both companies facilitated through simulations, as well as face-to-face. Human Resources realizes they, “must temporarily forget the old colonial model that often underpinned the multinational stage in which the parent company simply tries to reproduce itself on foreign soil, often transplanting managers from the home country in order to ensure that copy is accurate” (Luo, 2007, p.1). Human Resources will recognize its own strengths and weaknesses. And it will look for candidates for training and on-the-job experience to satisfy its own skill gaps. Despite cultural difference, HR has a working comprehension of the significance of gender in the work environment and overall development. They ensure the consideration of cultural averages in delineating actions and outcomes developed by the team.

First, HR defines the staffing levels and sum of employees needed (and their capacities) for strategy implementation. Staffing resources presently available require assessment. The strategy (through plans and action) will close talent gaps. “Successful implementation of a strategic staffing process lies no in how these basic steps are defined. The ‘devil is in the details’—or perhaps more appropriately in this case—the devil is in the implementation. It is not the steps themselves that are important, it is how they are developed and implemented that counts” (Bechet, 2000, p. 14). Part of the equation does not include predicting future staffing. Simply, a context for decision making proves paramount. Again (as previously mentioned) emphasis lies in proactiveness—a planning perspective. HR wants the implementation of its strategy to result in the new Chinese acquisition taking on the status of a prospector firm. “Prospectors attempt to be the first to market with new products and services. These firms rely on innovation, flexibility, and speed. They exploit new market and product opportunities” (Dreher & Dougherty, 2001, pp. 9-10). HR also realizes the paramount nature of strategic perspective: that staffing needs prove optimally met in manners that call for some beforehand preparation. An approach under consideration includes contacting graduate students to develop a relationship with them before their job market availability. These contacts might include internships, as well as a series of presentments. The development of these contacts should increase the likelihood of the graduate student working for the company at school’s completion. Staffing strategy will remain constant—an ongoing process (not just a yearly thing: implemented and updated regularly). Additionally, it may prove wise to integrate scenario planning into strategic planning. Each scenario could have dissimilar staffing entailments. HR will ascertain which scenario might occur and determine staffing plans accordingly. To cover this approach best HR assesses staffing requirements for every likely scenario. Then, look for things the scenarios have in common.

In summary, “China’s talent gap will not be solved in the short term. In fact, it is likely to get worse before it gets better. Therefore it is critical that companies have a full understanding of their particular stage of globalization and seek to recruit the right leadership talent for that stage” (Luo, 2007, p. l). Human Resources realizes the different needs of a company at different stages of globalization. In order for an effective implementation strategy the newly expanded company (whose revised strategy has resulted in an acquisition in China’s market) masters the significance of the connection between business objectives and the concept of going global. Tremendous stakes remain possible. The liberalization of rules governing foreign investment has enabled better business transactions with the country. A comprehensive strategy for the acquisition of a company in China will prepare the expected audit of HR systems. Challenges to staffing strategy may transpire because of this acquisition. These include unequaled cultural and regulatory factors. This prepared staffing strategy should help make the Chinese acquisition a thriving investment project for each company. Though staffing and recruiting of employees proves challenging in any market, it proves especially so in China since there is a deficit of management and executive talent—a lot of the labor shortage because of the deficiency of practical training. Human Resources must lessen the distance between gaps in the two companies on both the cultural and geographic levels. The merger will actualize the challenge of conflicts in business cultures and practices. Knowing all these factors, HR strategy uses a sponsored-mobility approach. The complexness of the Chinese personal employee relationship in conjunction with the context of the workplace must remain at the forefront of Human Resources staffing considerations. A lot of confusion exists about China’s vague 2001 Labor Law. Many interpretations abound from each side. Another challenge lies in laying down clear guidelines for each side as result of lax labor regulations. Human Resources looks at the staffing strategy in as a longer-term context. So, within this context increased sound shorter-term staffing decisions prove ascertained. Difficulties develop in staffing a multinational enterprise as consequence of political, economical, legal, business, and cultural entailments. The effectiveness and acceptability of Human Resources management depends upon on these factors.

Written by DG Farnsworth

Microsoft’s China factories break labor rules

GUANGZHOU, China — Two factories that make Microsoft Corp. products in southern China violated overtime regulations and failed to properly register the use of workers aged 16 to 18, officials said Monday.

The problems at the plants in the city of Dongguan were initially raised last week by the National Labor Committee, a New York-based nonprofit that monitors the treatment of foreign workers by U.S. companies. The group alleged that the teen laborers worked long shifts and were not allowed to use bathrooms during working hours at the plants, owned by Taiwan-based KYE Systems Corp.

The factories make Webcams, computer mice and Xbox controllers for Microsoft, the world’s biggest software company.

Investigators with Dongguan’s human resources bureau said in a report that factories are allowed to hire workers between the ages of 16 and 18 as long as the laborers are registered with the authorities. The KYE factories had 385 such workers — most supplied by vocational schools — and 326 weren’t properly registered, the report said.

Employees were also forced to work an excessive amount of overtime in March, clocking about 280 hours, the report said. Copies of the labor contract also weren’t given to employees, the document said.

But officials said that based on interviews with workers, there were no restrictions against using the restroom during shifts. The report said the company’s policy was to give workers 10-minute breaks for every two hours worked.

KYE Systems Corp. spokesman Lai Jin-hui told The Associated Press, “Assembly line workers are allowed to go to bathroom only if they report the need.”

Lai insisted that factories did nothing wrong regarding overtime and had followed regulations that limit the workweek to 60 hours. But Lai acknowledged that the factories failed to properly register workers and would now fix the problem.

The human resources bureau report said the factories have been ordered to comply with the law and would be monitored closely.

Last week, Microsoft said it does quarterly onsite assessments and gets weekly reports from KYE about certain labor and safety criteria. The software maker said a team of independent auditors would visit the factories and monitor the situation pending results of its inspection.

Associated Press writer Annie Huang in Taipei, Taiwan, contributed to this report.

ICBC Hires Deutsche’s China Head

SHANGHAI—Industrial & Commercial Bank of China Ltd. said Monday it appointed the chairman of Deutsche Bank AG’s China operations as a vice president.

ICBC, China’s largest commercial bank by assets, has been expanding its footprint outside its home market since it raised $22 billion in the world’s largest initial public offering in 2006, such as through acquisitions and by opening outlets.

ICBC said the appointment of Zhang Hongli, who also served as head of the Asia-Pacific region for Deutsche Bank’s Global Banking division, is still subject to the approval of China’s banking regulator.

“The board of directors is of the view that Mr. Zhang Hongli is familiar with international financial markets and circumstances of the country and is experienced in the management of international banks,” ICBC said in a statement on the Hong Kong Stock Exchange’s Web site.

Mr. Zhang, 45 years old, joined Deutsche Bank in 2001. Prior to that, he worked for Goldman Sachs Group Inc., U.K. asset management firm Schroders PLC and computer maker Hewlett-Packard Co.

Officials at Deutsche Bank in China weren’t immediately available for comment.

Deutsche Bank is the largest shareholder of medium-sized Hua Xia Bank Co., with a 17% stake. The German lender also owns one-third of Zhong De Securities Co. and 30% of Harvest Fund Management Co.

In September, ICBC agreed to buy part of ACL Bank PCL in Thailand. In 2007, it bought a 20% stake in Standard Bank Group Ltd., South Africa’s largest banking company by assets, for $5.4 billion. That same year, it also bought a 79.93% stake in Seng Heng Bank Ltd., Macau’s third-biggest bank, and a 90% stake in Indonesia’s PT Bank Halim.
—Rose Yu

Facility Manager(mn232)

Position duties:
• Design architects for further design and planning of buildings’ design and infrastructure by:
– Challenge the users with respect to synergies, absolute needs, and compliance to internal and other external rules and regulations
– Liaise with management, attend Leadership meeting where appropriate

• Provide consolidated input from project manager(s) and design architects for further refinement of needs to the users’ group representatives in order to fulfill cost effectiveness, aesthetics, and efficiency of building operations by:
– Challenge the design architects and project managers etc. in regard to prescribed needs of the users (e.g. Lab of the future, process / workflow etc.)
– Attend planner workshop and meetings where appropriate
– Assess planning documents

– Manage daily operations and maintenance of a building or buildings and all related duties performed either by internal resources or by external vendors
– Mange the facility service vendors to ensure the quality of maintenance and repair service, review vendor contracts and assure all necessary equipment and building systems are being maintained properly and cost effectively.
– Ensure all practice and standards are in compliance with government regulations
– Be involved in reviewing and recommending energy saving programs to building systems that are cost effective.
– Manage assigned construction and renovation projects
– Provide and implement comprehensive policies and procedures related to facility operations and services, together with the facility management team implement standardization programs to assure cost efficiency of facility management at the Shanghai site

Minimum requirements:
• Advanced degree in engineering or nature science
• > 5 years of working experience in project management or facility management, in particular, experience in coordinating major construction projects or managing large laboratory facility is preferred
• Experience in working in an internal R&D environment is preferred

* Please send us your complete resume (in Chinese and in English) to: ‘topjob_mn232@dacare.com'(Please replace “#” with “@”)
* In the email subject please include the position name and job #

Deloitte To Spend More Money In China For Business Expansion

BOAO, CHINA (Dow Jones)–Deloitte Touche Tohmatsu International, one of the world’s big four accounting firms, will put an additional $100 million in China in the coming years to support its business and staff expansion in one of the world’s fastest-growing markets, the company’s chief executive said over the weekend.

China is Deloitte’s fourth-largest market in terms of employees, with more than 8,000 people in 13 cities across mainland China, Hong Kong and Macau. Its business includes auditing financial results of companies, helping companies to prepare tax returns, and consulting.

“Deloitte is committed to China. An 8% growth rate and the prospect of sustaining superior growth going forward makes it an attractive place for a professional services firm to want to be,” CEO James Quigley said on the sidelines of annual Boao Forum, a gathering of government and business leaders on the southern Chinese island of Hainan.

“When I have made my investment decisions as the CEO of Deloitte, the market where we are investing the most is in China,” he added.

In 2004, Deloitte announced a $150 million investment for its China business over five years, with the lion’s share of the money having gone toward recruiting and retaining staff.

“We’ve now expanded. So another $100 million is coming this direction as we continue to want to grow our business here, and take advantage of the opportunities available to serve China companies and to serve companies outside of China who want to invest here,” said Quigley.

He added the $100 million would be invested over three to five years.

Christopher Lu, Deloitte chief executive officer for China, said the company will continue to hire between 1,000 and 2,000 workers in China annually as part of its expansion.

“If you look at complex transactions, for instance, derivatives and others, you need to have experts that truly understand these areas,” he said. “We spend a tremendous amount of our annual operation funds in training and developing people.”

In June, Deloitte will set up a team in Hong Kong of senior managers from 16 countries to help Chinese companies with tax services for international investments.

Deloitte’s main target clients in China are large state-owned enterprises, private companies, multinational corporations and high-potential rapid growth enterprises, particularly in the technology sector.

-Rose Yu contributed to this article, Dow Jones Newswires; 8621 6120-1200; rose.yu@dowjones.com