A Human Resource Proposal for Research Partnership in Nantong

MP 4008
Sem 2 2013/2014

For
Prof Khong Poh Wah
Presented by
Ng Hai Woon Alwin
U1021910E
1

Contents
About Us ................................................................................................................................................. 3
1. Long Term Strategy: Sustainability & Viability .................................................................................... 6
1.1Analyzing and Designing Jobs ........................................................................................................ 6
1.2 Talent Acquisition and Training .................................................................................................... 6
1.3 Managing performance ................................................................................................................ 8
1.4 Maintaining positive employee relations ..................................................................................... 9
1.5 Establishing and administering personnel policies ..................................................................... 10
1.6 Managing and using human resource data ................................................................................ 10
1.7 Ensure compliance with labour laws .......................................................................................... 10
1.8 Support organizations strategy .................................................................................................. 10
2. Our Immediate Actions ..................................................................................................................... 11
2.1 Communicating Policies .............................................................................................................. 11
2.2 Designing and Analyzing Jobs ..................................................................................................... 11
2.3 Planning for HR ........................................................................................................................... 13
2.4 Compensation and Benefits of R&D ........................................................................................... 14
2.5 Preparing Employees for Successful Overseas Assignment ........................................................ 15
3. Changes to our Human Resources .................................................................................................... 19
3.1 Forecasting and Planning ............................................................................................................ 19
3.2 Training and Development.......................................................................................................... 19
3.3 Appraisal of Performance ........................................................................................................... 19
3.4 Compensation and Benefits ........................................................................................................ 19
3.5 Communication of HR Policies .................................................................................................... 19
4. Conclusion ......................................................................................................................................... 20
5. References ........................................................................................................................................ 21

About Us
A family-owned enterprise founded in 1985, we have grown to a global leader in oil & gas
remanufacturing.

(Courtesy of RollsRoyce & Wartsila)

We are now looking forward to our first ever research partnership with our global industry partners.
The partnership in a state-of-the-art R&D facility with our contract manufacturer in Nantong, China,
reflects our relentless commitment towards innovation and industrial leadership in oil & gas
remanufacturing.

Nantong Research Facility (Courtesy of Keppel Seghers, China, 2012)

Combining the expertise of top researchers from Singapore and China, we are expecting research
output to triple by 2016.

Our R&D Corporate Structure

Our current R&D department covers Surface Enhancement and Product Verification.

R & D Director

Project Managers

Project Managers

Surface Enhancement

Product Verification

Principal Scientists, Principal Engineers & Team

Headed by our Chief Technical Officer (CTO), the coming research partnership will allow us to cover
4 broad research themes consisting of Repair & Restoration, Surface Enhancement, Product
Verification and Enabling Technology by 2016.

Chief Technical
Officer (CTO)

Project Director
(Partner)

Project Director

Project Managers

Project Managers

Project Managers

Project Managers

Repair & Restoration

Product Verification

Surface Enhancement

Enabling Technology

Principal Scientists, Principal Engineers & Team

Enhanced Research Capabilities

The Singapore facilities will continue to focus on Product Verification and Surface Enhancement
themes.

Singapore Facility (Courtesy of Manufacturing Technology Centre, 2014)

Our Nantong facility will cover the scope on Repair & Restoration and Enabling Technology. These
projects will be shared equally between our Project Teams and that of our partners.
The HR teams responsibility in this partnership is to realize the research manpower needs for our
share of projects in our Nantong facility. Our report will focus on the HR needs of this research
partnership.

Researchers Exchanging Ideas (Courtesy of KOM Annual Report 2012)

1. Long Term Strategy: Sustainability & Viability

1.1 Analyzing and Designing Jobs
To produce the research output, I have to identify the tasks and responsibilities required in order to
achieve the desired output level. Currently, the research department is headed by a Research
Director with 2 Project Managers to lead the teams. With plans to expand in the foreseeable future,
the HR team will design the scopes of each new R&D job position to suit the companys goals. We
plan to fill the new job positions with talents recruited from Singapore and China.

1.2 Talent Acquisition and Training

1.2.1 Grooming and Attracting Young Talents
In the long run, we need to attract a steady stream of talented researchers who are passionate
about our business.
In Singapore, we will continue our efforts in recruiting outstanding undergraduates to fill the
Development Engineer positions.
My HR team will also collaborate with EDB and local universities to sponsor PhD studies of our
Engineers through Industrial Postgraduate Programme (IPP). An example of our marketing plan is
shown in Figure 1.2.1a, the brochure and posters will be sent through university networks and
company intranet. Participants of IPP will be supervised by top academics and researchers in our
local universities and complete their PhD in 3 to 4 years. After their rigorous training, they will return
to contribute to the research output of my company. We hope to secure a constant stream of PhD
candidates from this programme to fill senior positions as we move forward.

Figure 1.2.1a (Courtesy of NTU EDB-IPP, 2014)

Hiring R&D talents in China is beyond what my HR team has been exposed to thus far in this
company. We will discuss how HR consultants can help us in the short run in Section 2.4.2. In the
long run, our department envisions a robust plan to attract these talents. We will learn from our
partner and consultants on the manners in which to hire Chinese undergraduates to fill our Junior
Engineer positions in the Nantong facility.
My HR team has been granted a lavish budget to establish good relationships with Chinese
government officials in charge of to work towards collaboration between our
Nantong facility and leading Chinese research institutions under the Thousand Talent Scheme in
Figure 1.2.1b. The collaboration is likely to increase our companys exposure to top R&D talents in
China and hopefully attract a steady supply of high quality candidates for our senior research
positions in our Nantong facility.

Figure 1.2.1b (Courtesy of Thousand Talent Scheme, Suzhou, 2012)

1.2.2 Developing employees

My HR team will roll out plans for workshops and training clinics for the R&D employees. My
company will continue to sponsor the upgrading of our employees by sending our research staff to
relevant seminars and expo around the world.
For employees in the Nantong facility, we will include political courses aimed at inculcating
employees with the correct political views, as well as scientific-cultural topics to equip employees
with basic knowledge of relevance to daily life. For high-performing Chinese employees, companysponsored education leave will be granted to pursue further training. A continuing trend in China,
company sponsored education is considered a great privilege and employees who return from the
educational training trips are typically given a raise or a promotion (Huang & Cullen, 2001; Nyaw,
1995). Communication on the career path and planning of Nantong employees on these form of
training has to be conveyed clearly so as to align their expectations with my HR teams strategy.
Ultimately, the HR team aims to brand our company into a choice employer for research talents.
7

1.3 Managing performance

The attributes of a good employee as depicted in the leadership grid in Figure 1.3

High
Concern for People

Manager of a
Successful Sales
Group

President of a
Large Corporation

Manager of an
R&D Lab

Foreman on an
Assembly Line

Low

Low

Concern for Work

High

Figure 1.3 (Khong P W, 2014)

The HR team will appraise R&D employees based on the traits of the bottom left of the leadership
grid.
1.3.1 Performance Management System
We hope to achieve an employee appraisal system that satisfies 5 criteria:
1. Fit with Strategy: The system should guide employee behaviour and attitudes towards our
companys research strategy, goals and culture.
2. Validity: It measures all relevant aspects of the performance of our R&D staff, and
disregards irrelevant aspects. A system that is able to filter out contamination and deficiency
in performance measurement is desired.
3. Reliability: Interrater and Test-retest reliability must be met for the system to be robust
4. Acceptability: The method of appraisal must be perceived a fair for the employees it is
applied to.
5. Specific feedback: The measure must be able to tell an employee the actions to take to
improve and how to contribute more towards the companys business.
1.3.2 Methods of Measurement

The HR team will design a system that combines several methods of performance measurement that
includes
1. Making Comparisons: Using simple ranking on employees complemented by forceddistribution method or paired-comparison method to compare behaviours and attitudes
2. Rating Attributes: Using a graphic rating scale or mixed-standard scales, we can decide on
a score on each trait of the employee.
3. Measuring Results: For the R&D staff, the results can be measured in terms of time and
budget of project, patents and breakthroughs, as well as value-add factor due to research
output.
1.3.3 Sources of Performance Information
The information for performance will be drawn from various sources that includes
1. Superiors: Project Managers, Directors, Principal Engineers and provide invaluable insight
on employees under their supervision. It is safe to assume that the supervisors have a good
understanding of the employee in question and thereby giving reliable information on the
appraisal.
2. Subordinates: Research requires good information flow and team dynamics to achieve the
desired output. Getting information from subordinates can give us insight on the employees
suitability for R&D department.
3. Self: Used in combination with the other sources, self-ratings can be a useful tool that
precedes feedback sessions. It can prove to be a good tool to notice the difference between
the perception of the employee and that of the others.
In the short run, appraisal of our Research staff will defer in Singapore and Nantong facility. This is so
that the appraisal format can suit the culture of these 2 locations. In the long run, we plan to close
the gap between the differences in appraisal methods of the 2 facilities. However, we must remain
open to closed appraisal for Chinese employees. Due to the high power distance relationship that
prevails in China, it is likely to continue to be accepted be an effective tool (Latham & Napier, 1989;
Entrekin & Chung, 2001; Van Buren & King, 2008).

1.4 Maintaining positive employee relations

In a bid to foster good relations with the expanded research staff, we will include more materials on
our research facilities and breakthroughs in our employee handbooks and monthly newsletter as
well as company intranet in the future. We will also need to search for HR professionals who are
experienced in handling R&D employees to join my team to empower my HR department to better
address the individual problems and aspirations of our R&D talents.

1.5 Establishing and administering personnel policies

We have to work towards strong and effective channels to communicate and administer our HR
policies in English and Mandarin medium. In Singapore, our HR doctrines are currently documented
in English, a similar version in Chinese that suits the Nantong culture is needed to establish a
foothold in China. While consultants can help us in the short run, hiring and training our HR team for
this purpose will serve the company well in the long run.

1.6 Managing and using human resource data

A shared human resource database for Singapore and Nantong facilities will be used for this
expansion. By including the expanded facility under the Tableau analytics software already in use for
our Singapore operations, we can reduce the inconvenience and business costs associated with
using different analytic systems for human resource planning in both locations.

1.7 Ensure compliance with labour laws

The IPP sponsorship for employees will give higher priority to Singapore Citizens and PR. Other than
the tax rebates, this move will increase the high quality Singaporean core in our employees allowing
us greater flexibility in hiring more foreign talents in our Singapore R&D facility, thereby ensuring
that our companys manpower is steadily within the quota set by Ministry of Manpower.
The HR team will also carry out the hiring of employees in our Nantong facility within the framework
of the Chinese legislation and labour unions.

1.8 Support organizations strategy

(Courtesy of KOMTech, 2013)

The policies laid out by my HR team will ensure sustainable growth and performance of our R&D
partnership to the best interests of our company stakeholders. These efforts continue to make a
strong statement of our companys firm commitment towards industrial leadership and research
excellence.

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2. Our Immediate Actions

2.1 Communicating Policies
The impacts of the research partnership on the career path and aspirations of our employees have
to be addressed. Initial uncertainty is expected as some may speculate redesigning and restructuring
of jobs. The HR team will convey the changes in policies clearly and put our employees uncertainty
to rest through company Intranet, emails and

2.2 Designing and Analyzing Jobs

2.2.1 Work Flow Analysis
This process of work flow design helps us to identify the conditions to produce the output of the
R&D partnership. This will allow a better understanding of what tasks and conditions are required
before designing jobs and positions.
My HR team shall first identify and define the main elements in work flow analysis.
1.
2.
3.
4.
5.

Raw Inputs: Data, materials needed

Equipment: Special equipment, software, infrastructure required
Human Resources: Knowledge, skills and experience needed for the job
Activity: Tasks to deliver the output
Output: Innovation obtained and means of measuring output

Now, develop the Work Flow Analysis for new R & D department in Figure 2.2.1
Raw Inputs
Info on current
practices
Industry data &
measurements

Equipment
Metrology
scanners
Precision tools
Lab equipment

Activity
Technical planning
Execution
Project
Management

Human Resource
PhD in Engineering
Research /work
experience

Figure 2.2.1
11

Output
Improved
practices
Breakthroughs
Patents

From Figure 2.2 we can then proceed to plan department organization and specifications for the
type of positions the company requires to produce the desired output
2.2.2 Job Analysis
The Job Analyst from our company will go through the process of getting detailed information that
will include 2 important pieces of writing on
1. Job Description: Tasks and responsibilities of the job position
2. Job Specification: Knowledge, skills, abilities and other attributes (KSAO) for the job
Figure shows an example of a job scope and requirements of a Project Manager that we derived
from the previous steps.

Project Manager of Repair & Restoration

Working to unparalleled standards of commitment and delivery, you are a visionary
leader with practical management and technical skills. You will contribute crucial
elements towards our research excellence through supervision of projects responsible
for developments in repair and restoration. In a highly dynamic environment, you will
orchestrate strategy and technical planning of your project and lead a dedicated team of
Principal Engineers to strengthen our innovation and core capabilities.

Responsibilities

Oversee projects in repair and restoration

Application of state-of-the-art CNC and robotized machining/finishing
technologies for repair and restoration
Supervise technical planning, execution, delivery of development projects with
global industry partners

Requirements

PhD Degree in Engineering or in a relevant discipline

Deep understanding of adaptive machining
Familiar with Design of Experiments in remanufacturing
Work experience in remanufacturing roles in oil & gas or R&D in relevant fields

(Courtesy of A*STAR-NTU Advanced Remanufacturing and Technology Centre, Improvised)

Using the same method, the HR team can design the other jobs in the R&D partnership.

12

2.3 Planning for HR

Being a family-owned business, the CTO and Project Director positions are staffed by the family
members. Using a transitional matrix we can identify the movement of employees and their sources.
The HR team will be responsible for the staffing of Project Managers to Development Engineers.
Using hypothetical data, Figure shows a transitional matrix

1
2
3
4
5

2013
(1)
0.50
0.25

2009
Project Manager
Principal Engineer
Senior Engineer
Development Engineer
Not in organization

0.25

(2)
0.7
0.20
0.10

(3)

(4)

0.50
0.40
0.10

0.05
0.95

(5)
0.50
0.05
0.30
0.50

Reading across, we can observe that 25% of the Project Managers are still Project Managers in 2013
and 50% left their jobs by 2013. 5% of the principal engineers are promoted to project managers and
60% are still principal engineers.
Reading down, 50% of the Project Managers held on to their jobs, 25% were promoted from
Principal Engineer and 25% hired from other organization.
Similarly, we can also observe that 95% of Development Engineers are hired externally.
In order to meet the manpower needs of our company, we shall continue to hire Development
Engineers from external sources, Senior Engineers from internal sources and Project Managers from
both sources.
2.3.1 Internal Sources
The HR team will hold up our proud tradition of filling up positions with internal sources so as to
staff these positions with people who are committed to our brand and company values. We can
achieve this objective through company intranet, employee publications and lunchtime Career Talks
for employees.
2.3.2 External Sources
External recruiting is vital for the positions of Development Engineers as well as Project Managers.
As the R&D venture realize, the HR team has to seek out sufficient candidates for these openings.
The possible channels the HR team will adopt to reach out to potential candidates are
1.
2.
3.
4.
5.

Referrals
Third-party Recruitment Agencies
Undergraduate Career Fairs and Recruitment Talks
Tea Sessions with Research Institutions
Advertisements in mainstream and social media

13

Singapore has ample supply of suitable candidates from the local universities, research institutions
as well as companies. These measures are likely to help us to reach out to high quality candidates for
our companys venture.
2.3.3 Selection
Our methods of selection for candidates includes 5 stages
1.
2.
3.
4.
5.

Screening applications
Testing and reviewing
Interviewing
Checking references and background
Selection

We believe through these methods of selection, we are able to choose suitable candidates for our
expanding R&D department.

2.4 Compensation and Benefits of R&D

2.4.1 Bonus for Employees
A Group Bonus Scheme for Singaporeans and Chinese counterparts will be implemented. This will be
the same as that received by their counterparts in other departments.
Performance Bonus for individuals will be made eligible to employees in Singapore and Nantong
facilities, subjected to good employee appraisal.
2.4.2 Employee Benefits
The HR team is experienced in the demands of Singaporean employees. However, we have little
understanding of the aspirations and expectations of potential Chinese employees. We will need
advice from consultants who are specialists in Compensation & Benefits to guide us to tailor the
remuneration package for our employees working in the Nantong facility.
Salary for Chinese employees based in China will be competitive relative to China. If required for
overseas assignment to Singapore research facilities, a living allowance estimated from ACCRA Cost
of Living Index will be computed for work in Singapore.
Our initial study of the aspirations of Chinese employees suggests they regard public service job
positions with high prestige. The compensation package is expected to be competitive relative to the
packages, which includes generous paid leave and pro-family benefits. The HR team may
also have to factor in fringe benefits such as company-sponsored petrol and holidays for positions in
Senior Engineers and above hired from China.

14

2.5 Preparing Employees for Successful Overseas Assignment

The desire for collaboration means a need for our employees to travel to China to set up the venture
and look after our interests. The HR team will come up with a plan in identifying potential
expatriates for this venture.
My HR department is instructed to send Principal Engineers and Project Managers for the facilities in
China.
2.5.1 Table of Assessment
We have devised a list of attributes that allow us to select the best candidates for this overseas
posting.
A HR executive will assess the potential candidate and attach a score on each entry of the list.
On a scale of 1 to 10:
Strongly disagree / Extremely Bad 1
Strongly agree / Excellent 10
In order to be considered, candidate must
1. Be assessed for an average of 7.5 and above in each category.
2. No score entry is below 6.
3. Entry 6d must be satisfactory, if applicable
Table 2.5.1 shows an example of a potential candidates score from the assessment table
Score
1
1a
1b
1c
1d

2
2a

2b

3
3a

Motivation
Degree of interest in wanting to be
considered
Desire to work abroad
Realistic understanding of working and
living abroad
Positive attitude of spouse towards
overseas posting
Total
Health
Medical problems of candidate and his or
her family has no adverse effect on
overseas posting
Candidate has good physical and mental
health with no predicted change
Total
Language
Candidate possesses high potential for

10
10
8.5
7
35.5

4 =8.8

10
19

9
15

Remarks

2 =9.5

3b

4
4a
4b

4c

4d

4e

4f

5
5a

5b
5c
5d
5e
5f
5g

6
6a

6b
6c

learning new language

Ability of spouse is able meet language
requirement
Total
Resourcefulness and Initiative
Candidate is independent and able to
make good decisions and judgments
Candidate has intellectual capacity to
handle several dimensions
simultaneously
Candidate is capable of achieving
objectives and produce results with
whatever resources available, regardless
of constraints
Candidate can well operate without a
clear definition of responsibility and
authority on overseas assignment
Candidate is able to communicate goals
and philosophy of company to local coworkers
Candidate possess sufficient selfdiscipline and confidence to overcome
complex problems
Total
Adaptability
Candidate is sensitive, open to the
opinions of others and able to
compromise
Candidate reacts well to new situations
and show appreciation of the differences
Candidate is culturally aware, sensitive
and able to relate to local culture
Candidate understands his or her
culturally derived values
Candidate has a good understanding of
the Chinese government
Potential of candidate to develop
contacts with peers in China
Resilience of candidate, reaction to
setbacks
Total
Career Planning
Posting is consistent with candidates
career plan and progression planned by
HR
Candidates career planning is realistic
No history of disputes between candidate
16

8
17

2 =8.5

10
10

10

10

58

6 =9.7

9
10
10
9
10
10
67

9
9

7 =9.6

6d

7
7a

7b

and peers
Candidate is able to defer military duties
Total
Financial
Financial and legal considerations of
candidate that has no adverse effects on
overseas posting
No undue financial pressure on
candidates family
Total

9
36

4 =9

8
16

2 =8

Table 2.5.1 (Reference from Noe et al, 2013)

2.5.2 Language and Cultural Training

After being selected for the overseas posting, the employee will attend a Chinese Language and
Cultural Workshop arranged by the HR team. This is to ensure that the candidates language skills
and cultural awareness is up to date, increasing the probability of a successful deployment.

2.5.3 Compensating Expatriates

Employees selected for overseas posting will get to enjoy
1. A salary premium of
a. $2000 per month for a 2-year assignment
b. $1000 per month for a 1-year assignment
c. $600 per month for a 6-month assignment
2. Allowances worth
a. $500 per month for housing
b. $1000 per month for first 6 months of 2-year assignment for relocation
3. Health insurance coverage for expatriate and spouse
An example of how these benefits are reflected in the HRs Assignment Allowance Form is
shown in Figure 2.5.3. The employee is a Project Manager on a 1-year assignment.

17

Name: Alwin NG
Location of assignment: Nantong, China
Home base: Singapore

Effective Date: 27 Feb 2014

Title: Project Manager
Emp No: 506888A

Reason for change: Deliver Research Project A311

Monthly Base Salary

Old

New
7000

Expat Premium

1000

Housing Allowance

500

Relocation Allowance

Housing Deduction

-500

Other

-200

Net Monthly Salary

7800

Prepared by:

Date

Figure 2.5.3 (Reference from Noe et al, 2013)

This summary sheet will show clearly the variety of allowances and premiums received for each
employee on overseas assignment.
We plan to implement this for future expatriates from our Singapore R&D department.

18

3. Changes to our Human Resources

3.1 Forecasting and Planning
We are expanding our R&D department in terms of breadth and depth. We need more employees to
cover the wider scope of research themes to meet the organizations needs.
Now that we are hiring from Singapore and China, we have to be familiar with the hiring practices as
well as aspirations of the candidates in both locations. The timing in the supply of fresh graduates
differs, as well as the perception of prestigious jobs in these two location differs as well.
As the project demands in Nantong increases, there will also be more overseas deployment for our
R&D employees in Singapore. We must eagerly seek out employees who are willing to partake on
the overseas posting and start grooming potential candidates for future assignments.
We also plan to tap into opportunities to attract talents with IPP in Singapore, and Thousand Talent
Scheme in China, to better prepare for the increase in demand for senior research staff beyond 2016.
A systematic approach in the selection of expatriates for our Nantong facility covered in Section 2.5
will have to be implemented to see to the demands towards 2016.

3.2 Training and Development

The training for the R&D staff in both facilities will now include workshop and tea-sessions to
understand each others culture better. This is to boost the productivity and dynamics of the R&D
department and prepare the employees for greater cooperation in future.

3.3 Appraisal of Performance

As discussed in Section 1.3, we have to tailor an appraisal system for our employees in Nantong. It
has to be different as the current one in Singapore so as to better suit the local culture, yet it cannot
be too different to create disgruntled sentiments between the two locations.

3.4 Compensation and Benefits

With the expatriate allowance, Singapore research staff can now enjoy higher net salary by taking on
overseas assignments as discussed in Section 2.5.3.
Different remuneration packages will be implemented for Singapore and Nantong facilities
employees.

3.5 Communication of HR Policies

Now available in both English and Chinese, our employee handbooks will convey our HR policies and
be understood by employees in both locations. On top of that, Mandarin-speaking HR executives will
be stationed in Nantong to see to the needs of our employees.

19

4. Conclusion
This reports approach covers the main responsibilities of HR which includes
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Analysis and Design of Work

Recruitment and Selection
Training & Development
Performance Management
Compensation & Benefits
Employee Relations
Personnel Policies
Information & Data Systems of Employees
Compliance with Laws
Supporting Organizations Strategy

Our HR goal is to create an environment for happy and motivated employees who take actions to
the best interest of our stakeholders. We help the organization meet her strategic objectives
through our commitment towards effective HR policies for our employees.

The HR Team (Courtesy of KOM Annual Report 2012)

The contents covered in Section 1 to 3 are non-exhaustive. We recommend further studies and data
to supplement these suggestions to bring our HR plans further as we move forward to 2016.

20

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