Professional Documents
Culture Documents
Submitted by
GROUP 8
ABHISHEK JHA 10PGHR04 ANNESHA PRAMANIK 10PGHR08 ANKITA BAGCHI 10PGHR24 KUNAL DAYANI 10PGHR21 KUNAL KASHYAP 10PGHR22
Managing Performance
CEO Zhang Ruimi gathered all factory personnel outside the factory and destroyed 76 refrigerators
Unique performance management system
Emphasis on Quality
Multinational company
In 2002 it produced a wide range of household electrical appliances Ranked 5th worldwide in white goods industry 3.7 percent global share Exported 445$ million worth of goods 5th largest exporter overall
Virtually bankrupt
Between 1984 and 2002 Revenues from RMB 3.48 million to RMB 71.1 billion
Product diversification
1 refrigerator to 86 different product categories
Product innovation to create niche markets Marketing initiatives that emphasized product quality and market research Globalization Innovative human Resource management practices
Management Philosophies
Integration of
Japanese management philosophy, American innovation, and Chinese culture
Sense of Urgency
Heightened by internal + external competition Each employee is a customer of his fellow workers Divisions ranked across Group by Quality, Cost and Output Avoided problems of
OEC
Overall
All performance dimensions considered
Every
Everyone, everyday, everything
80: 20 Principle
Racetrack Model
System of performance evaluation (Promotions/ Demotions) All employees compete in workrelated races
Winners have to keep defending title No permanent promotion Every employee to undergo frequent and transparent performance appraisals
Managing Performance
Appraising Managers
System of weekly review based on partly on achieving quantifiable results and the degree of innovation and process improvement Performance grades - A,B,C Every 8th day of month, announced in a meeting Results displayed at entrance of the cafeteria with a green and red arrow Promotions and demotions were also
Responsibility
Domestic or overseas business development Division head
Indicators
Volume of sales, selling speed, share of local market and share of global market Number of product orders, quality, cost, time for delivery Strategic business unit results, profit and loss
Senior manager
80 mid and upper level managers were identified in the Group Courses at Haier University every Saturday morning were conducted Interactive Learning sessions developing action plan, implementing improvements in operations Grades in these courses accounted for 40% of performance evaluation
Developing Talent
New positions ensured a wide pool of candidates competed Job Rotation critical, promote employees development and to avoid territorialism Average length of stay in a position was 3 years(max 6 years) New recruits tried out different jobs before being assigned to a position
Monthly management evaluation meeting identified top performers with most potential Selections were drawn from every scratch every quarter Point system assess performance standards; score <10 for several months>out of talent pool
5 points for monthly performance 5 for accumulative performance 5 for current project reviews
In 2000, 13 of 58 senior managers were penalised- not performing to ever increasing Haier standards
GOING GLOBAL
2002 only major Chinese manufacturer to have established manufacturing bases internationally The ground breaking philosophies when adapted at another countries like U.S.A will give rise to a cultural shock We need to adopt our Human resource practices according to the local culture and importantly to ensure accordance with local labour laws
Footprints
American employees regard asking the lowest performer to stand on the footprints a human rights violation Instead, according to the American culture, they love to show off Its best to ask best employees stand and speak This will motivate the lower performers to come and analyze their mistake
Standard Management evaluation should be followed to give the final ranking Formal and Informal meetings between employee and managers to set action plan/goal plan
Differences in Practices..
In U.S, by law the employer is not allowed to with hold the wages
So, they can with hold the opportunity to come to work and earn money