Q-2 what was special about Haier Current management? How did the company create this system?
Zhang after entering the company changed the overall managementsystem. He understood the Chinese culture which was negligent towardsrules ad policies. So in order to engrave the policies and rules deploys plunge into the culture of the organization, zhang develop multiple systems and processes to ensure the obedience.In doing so, the first thing Haier dis, was the implementation of the inverted trianglestrategy. Previously and in many organization the triangle organizational structure is followed with top management at the peak, and liable to make decisions.Zhenginverted the triangle and made the front line workers, executives and officers to devise their own strategies, way of working and deciding what to do first.The approach enabled employees take charge of their wok which ensured that each employee work best in order to save the job and get rewarded. Theindividualistic approach each employee to outperform in order to get higher wages and rewards.
Secondly, the company developed the organizational culture, organizational structure and OEC management-control system which enforced the organizationalrules and discipline in the culture of the oargznation.in The OEC (overall, everything, everyone, everyday& control and clear)strategy the management outlayed a target based structure in the organization, which every individual has to meet. The factors ion OEC clearlydepicted that each employees is the soleowner of his work and that has oval control over the function. The system encouraged the employees to become efficient or else they will have to lose their position. The approach though seemed selfish, but it worked for the Chinese labor.
In addition to the following, the company introduced a cultural enterprise department to ensure the practice of the same culture through-out. Thecompanyplanned its expansion in different countries developed a mix of cultures (parent culture and host culture).It did this because to adapt with the external market, while stick to its parent system which was intrigued in china.In addition to this the management shifted its focus from its prime focus on china to JAPAN and other international markets. Indoing so, the company hired the locals of the region, to effectively grab and grip the market through understanding the culture, customer behavior, market forces and employee values.
The above mentioned factors are the key special elements of management which Haier took to outperform in the international as well as the local market.Now the question is how it develop such system.The companydeveloped such system by integrating the knowledge about different cultures, which for example are different inchina than in japan.It developed the R&D department and marketing channel to understand what the next coming demand of the customer are and planned prior to itscompetition. Moreover zhang being a Chinesehimselfunderstood the behavior of the employees in china and Duo who married to Japanese women understood the cultural difference, buyingpreferencesand market forces which enabled the organization to shape its management policies accordingly.Finally, being as a leader, he took keen measure to incorporate culture into thebusiness strategy make the business work in certainregion. Heknew that cultural values plays important…………………….
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