Haier Case
Abstract
Haier makes, designs and sells home appliances such like washing machines, air conditioners and refrigerators around the world. Haier founded in China in the mid of 1980s by Zhang Ruimin, and it has become one of the country's leading brands today. In 2006 Haier was ranked as the world's sixth largest maker of large kitchen appliances with a 4% global market share. In this paper, it is going to analysis Haier's performance management, why Haier is so successful and challenges that Haier will face when its going globally.
Introduction
In 1985, Zhang Ruimin asked his employees to destroyed 76 refrigerator by hammers. This action awaked the employees who had no ideas about Haier's goal, Haier would no longer produce substandard products.. Also this action founded Haier's culture, to be an outstanding brand. After that day in 1985, Haier with its outstanding performance management system to survive in China's market even the global market.
Performance management Analysis
Haier Group had many unique management systems such as OEC, 80:20 principle and racetrack Model. These systems helped Haier to be successful and outstanding among the world. Haier asked their employees must finish all tasks planned for that day before leaving work and met their supervisor for self-assessment This system indicated that Haier's plan was small and clear. Haier divided the company's goal to each employees. For example, to make a good refrigerator, it is not one or two manager's responsibilities. Its everyone's responsibilities in organization. Also, Haier's 80:20 principles emphasized that Haier's managers are had more responsibilities than employees. Haier believes that good leaders could makes the organization more efficiency. However, in Haier, every employees are underwent frequent and transparent performance appraisals, which was against the traditional Chinese culture. This showed that Haier used the strategy for performance evaluations and promotions.
Beyond
Haier makes, designs and sells home appliances such like washing machines, air conditioners and refrigerators around the world. Haier founded in China in the mid of 1980s by Zhang Ruimin, and it has become one of the country's leading brands today. In 2006 Haier was ranked as the world's sixth largest maker of large kitchen appliances with a 4% global market share. In this paper, it is going to analysis Haier's performance management, why Haier is so successful and challenges that Haier will face when its going globally.
Introduction
In 1985, Zhang Ruimin asked his employees to destroyed 76 refrigerator by hammers. This action awaked the employees who had no ideas about Haier's goal, Haier would no longer produce substandard products.. Also this action founded Haier's culture, to be an outstanding brand. After that day in 1985, Haier with its outstanding performance management system to survive in China's market even the global market.
Performance management Analysis
Haier Group had many unique management systems such as OEC, 80:20 principle and racetrack Model. These systems helped Haier to be successful and outstanding among the world. Haier asked their employees must finish all tasks planned for that day before leaving work and met their supervisor for self-assessment This system indicated that Haier's plan was small and clear. Haier divided the company's goal to each employees. For example, to make a good refrigerator, it is not one or two manager's responsibilities. Its everyone's responsibilities in organization. Also, Haier's 80:20 principles emphasized that Haier's managers are had more responsibilities than employees. Haier believes that good leaders could makes the organization more efficiency. However, in Haier, every employees are underwent frequent and transparent performance appraisals, which was against the traditional Chinese culture. This showed that Haier used the strategy for performance evaluations and promotions.
Beyond