Nemo Holdings Singapore: Promotion Blues

The case describes the business growth of Nemo Holdings Private Limited (NHPL), an electronic component distribution and marketing firm, and the human resource management practices of Bruce Poon, the company's chief executive officer from 1998 to 2003. In mid-1997, Poon appointed Ben Tan, a friend and former colleague as the sales manager for a NHPL joint venture. Impressed by Tan's performance, Poon promoted him to senior sales manager in 1999. In 2000, affected by slowdown in the electronics sector, NHPL's growth slowed. To boost growth, NHPL bought controlling stakes in three businesses in the non-electronics sector from 2000 to 2002. To manage new joint ventures better, Poon created a position of general manager. He short-listed two NHPL's sales managers Ben Tan and Dora Khoo, and promoted Tan again in October 2002. The number of staff reporting to Tan rose from 2 to 40. By mid-2003, NHPL's growth had declined, an Enterprise Resource Planning project was delayed, the company lost a long-term vendor managed inventory contract in the Philippines and a bulk component supply agreement for a large Shanghai MNC. Overseas and local staff members complained about Tan's indecisiveness. Faced with these setbacks, Tan resigned in November 2003, a move which stunned Poon.