Event: Jianlong Group, one of the leading private steel enterprises in China, encountered resistance during the acquisition and restructuring of Tonghua Steel. Due to dissatisfaction with the acquiring party, employees gathered and caused a disturbance. In the chaos, Chen Guojun, the general manager dispatched by Jianlong Group, was beaten to death, and production at Tonghua Steel was halted for 11 hours. On the evening of July 24th, the Jilin Provincial SASAC immediately announced through the local television station the "Notice on Terminating Jianlong Group's Capital Increase and Share Expansion of Tonggang Group," declaring that Jianlong would never participate in the restructuring of Tonggang again, and requested that all cadres and employees of Tonggang Group quickly restore normal production and operation order. (Xinhua News Agency)
It is said that the employees who gathered continued to chase and beat Chen Guojun, even blocking the police and doctors from entering the scene to provide assistance, ultimately resulting in Chen Guojun's death.
Commentary: Jianlong's failure lies in its relatively crude approach to mergers and acquisitions. While financial restructuring may be easier, management integration is an extremely difficult path. It clearly underestimated the level of difficulty in integrating Tonggang. It is recommended that companies, when undergoing restructuring, establish not only hard power in production and operations but also soft power expansion measures, combining both rigidity and flexibility. This restructuring ended at the cost of compromise and life. Have the managers considered how to learn from this failure?
Side note: I am not a party involved, but regarding the incident and Chen Guojun's death, my personal opinion is: no matter how serious the matter, it should not result in someone's death! Moreover, given the scale of the issue, there are always ways to resolve it. Even if the company’s management system does not align with employee preferences, systems and structures are rigid, but people are adaptable—there are always solutions. However, once a life is lost, how can it be recovered? How do those who physically assaulted Chen Guojun feel now?
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**Source:** The enthusiasm of employees is the foundation of a company's success. Awww.zp-nmg.com