The Research On The Human Resource Integration Of Chinese City Commercial Banks Merger&Acquisition

China’s city commercial banks have sped up their efforts to conduct mergers andacquisitions in recent years to meet the fierce competition in the banking industry.Mergers and acquisitions by the city commercial banks have resulted from the maturityof the market economy and, as an important form of capital transactions, serve as animportant channel for city commercial banks to develop in a coordinated way, improvetheir financial quality and increase their economies of scale.As human resource has increasingly become the core asset of bankingmanagement, human resource integration, together with strategic integration, riskintegration and financial integration, has become a key factor behind the success ofbanking merger and acquisition. Since the history of human resource managementintroduced into the banking sector has been very short, the Chinese city commercialbanks have not yet realized the importance of human resource integration, leading tothe poor quality of merger and acquisition. After the merger and acquisition process iscomplete, city commercial banks have failed to optimize and reconstruct humanresources, affecting quality of the mergers and acquisitions. Some city commercialbanks have met their growth bottleneck and it is very hard for them to survive anddevelop. A set of human resource integration solutions, which cater to those banks,need to be established to develop and expand the city commercial banks and explorewhether city commercial banks have failed to need to be established, to explore how tomeet their strategic targets through such integration.This thesis will focus on improvement of human resource integration efficiency ofcity commercial banks and establishment of a scientific and effective human resourceintegration strategy and system. Based on the motives of banking mergers andacquisitions and human resource integration theory, this thesis studies the integrationof city commercial banks after the mergers and acquisitions of the Chinese city banksthrough case studies, surveys and comparative analysis. The human resourceintegration status and issue of Huishang Bank after merger and reorganization wereresearched. Structure of this paper is as follows:1. The integration status and issue of corporate culture, compensation management, and performance management of city commercial banks after merger andacquisition are studied and the deficiencies of human resource integration is analyzed.2. Based on the case of Huishang Bank, formed after6city commercial banks and7urban credit cooperatives were merged in2005, this thesis describes the backgroundinformation, improvement of human resource integration and issue after integration inrecent years through information collection and surveys.3. Based on the human resource integration practice and comparison of US banks,Japan banks and Hong Kong banks, and analysis results of city commercial banks, thisthesis put forward suggestions on city commercial banks’ human resource integration.It is hopeful that this thesis will shed new light on the human resource integrationof Chinese city commercial banks after merger and acquisition. Given the difference inreforms of city commercial banks, many problems could arise in merger andintegration practices. Based on their own experiences, the city commercial banksshould each make their own assessment on the final effect of integration. Finalintegration results are needed to be validated and summarized based on eachcommercial bank practice situation.