The Development And Implementation Of Human Resources Management Policies During SD Company’s Corporate Change

The world in the21st century is a world full of global competition. Global competition becomes increasingly evident, and the international division of labor also becomes increasingly clear. Every country occupies a position in the value chain according to its competitive advantages.China’s current industrial pattern is export-oriented and manufacturing-based. For example, China is a primary OEM manufacturer of electronic products. This industrial pattern relies on its competitive advantage of labor resources. However, with the shrinking size of potential labor resources, the current international division of labor built up by China’s competitive advantage of labor costs is put in a dilemma. The labor shortage in the southeast coastal areas of China in recent years is an outstanding example of this dilemma. On the other side, the labor costs in Vietnam, Mexico, India and other countries become increasingly attractive. These countries also continuously strengthen their competitiveness in manufacturing capability. Therefore, Chinese companies are facing a more and more complex and volatile environment. The competition and challenges faced by every company are increasingly intensified. For better survival and development, business change becomes an unavoidable choice for every Chinese company. Change is an extremely complex process. In order to change, people must be first changed to embrace and get engaged in it. Therefore, the role of human resources management in corporate change is very important. It has a direct and profound impact on the success of corporate change.SD International Electronic Devices (referred to as SD Company hereafter) is a joint venture set up by a U.S. public company, the POWER-ONE and the SD Industrial Co., Ltd, Shenzhen. Its main business is switching power supply, power management technology, LED drive power, and green power. The Business model is that the POWER-ONE company develops and sells products to the customers, where the SD Company manufactures these products. In recent years, the business of SD Company continued to decline due to bad market environment. And even worse, many other problems existing within the company exacerbated its crisis. Therefore, the SD Company had to perform a reorganization to regain its competitive advantages and hence market share. In this thesis, we first analyze the situation of the SD Company and identify its main problems. Then, we develop human resources management policies for the reorganization with theories of organization change and human resource management, and the actual situation of the SD Company, in order to achieve the strategic objectives of the change. Insights, strategies and methodologies obtained from this case study can also benefit other companies to develop their own human resources management policies for corporate change.