Haier Case Essay

872 WordsSep 23, 20134 Pages
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…show more content…
For example, they use positive reinforce to motivate the managers to doing better. Zhang believed that each manager was accountable for only a small portion of the overall profits and each one could function as miniature company. Therefore, they had deposit book for each managers with his own profit and loss statement. The more a division profited, the more the manager accumulated in his resource bankbook. Also, whoever reaches his goal earlier will receive more income. This is an incentive to do a better job. Also, they gave bonuses to managers who performed well. However, Haier used the punishment to 'motivate' their employees. For example, for everyday, the employee who had the lowest performance would stand on the yellow footprints to 'reflect'. This employees should tell why he was doing bad and how should him improve in the future. This helped the employee to lower the probability of repeating being the lowest performance worker again in workplace and showed to other employees do not make the same mistake. Moreover, Haier is care about their training system. They recruits tried out two or three different jobs before being finally assigned to a position, even an employee performed well in a particular post, but he was rotated into a new job. This is because Haier wants everyone understood the different areas of the company in order to better managing their performance in the future. Problems Haier with its unique

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