Haier
MANAGING PERFORMANCE AT HAIER (A)
Group E2
Problem Statement
How to improve Haier’s performance management system and make it adaptable or applicable in other regions of the world?
Environmental Analysis (PESTC)
Political: In 2006 company exported to 160 countries valuing to $ 1.7 billion, however they have not established their manufacturing base outside the China. While venturing to different geographies they would be exposed to different labour and wage laws. Different political setups in terms of laws and regulations would impact the performance management system of the Haier.
Cultural: Commonalities that can be characterised between Chinese culture and management practices at Haier are money, penalties, individuals, competition, openness, quantitative approach, instantaneous evaluation, competitive bidding, arithmetic evaluation rules and anti nepotism.
However the cultural setup in different geographies of world is different than Haier’s. Japanese culture is if measured on the scale of 5 for difference in cultural values would rate at 4. Team work, qualitative approach, discretionary power to managers, non monetary awards and punishment and fixed wages are the characteristics of Japanese management culture.
American culture would rate at 3 on scale of 5 for difference in culture. American culture reflects pretty similar traits as of new Chinese culture; however, there are prominent differences too. Teamwork, qualitative and quantitative approach etc are prevalent in American culture
South Asian countries (Taiwan, Hong Kong, Singapore, Malaysia, Thailand, and Indonesia) share common culture tradition as of China.
Economical: Due to globalisation, companies have their offices and employees spread across the globe. World has opened for the trade and commerce. Opportunities are greatly enhanced. Companies are exploiting resources available across the geographies. Dynamics in terms of volume of sales, selling speed, market share and business
Group E2
Problem Statement
How to improve Haier’s performance management system and make it adaptable or applicable in other regions of the world?
Environmental Analysis (PESTC)
Political: In 2006 company exported to 160 countries valuing to $ 1.7 billion, however they have not established their manufacturing base outside the China. While venturing to different geographies they would be exposed to different labour and wage laws. Different political setups in terms of laws and regulations would impact the performance management system of the Haier.
Cultural: Commonalities that can be characterised between Chinese culture and management practices at Haier are money, penalties, individuals, competition, openness, quantitative approach, instantaneous evaluation, competitive bidding, arithmetic evaluation rules and anti nepotism.
However the cultural setup in different geographies of world is different than Haier’s. Japanese culture is if measured on the scale of 5 for difference in cultural values would rate at 4. Team work, qualitative approach, discretionary power to managers, non monetary awards and punishment and fixed wages are the characteristics of Japanese management culture.
American culture would rate at 3 on scale of 5 for difference in culture. American culture reflects pretty similar traits as of new Chinese culture; however, there are prominent differences too. Teamwork, qualitative and quantitative approach etc are prevalent in American culture
South Asian countries (Taiwan, Hong Kong, Singapore, Malaysia, Thailand, and Indonesia) share common culture tradition as of China.
Economical: Due to globalisation, companies have their offices and employees spread across the globe. World has opened for the trade and commerce. Opportunities are greatly enhanced. Companies are exploiting resources available across the geographies. Dynamics in terms of volume of sales, selling speed, market share and business