Haier Performance management (A) - 1150 Words

Case 4: Haier Performance management (A) 1. What are the specific practices of Haier’s performance management system? What are the guiding principles behind those practices? Haier, being the world’s sixth largest maker of large kitchen appliances, had 4% global market share and strong positions in the production of washing machine and refrigerators. The key success behind was Zhang, the CEO who brought the company fortunes. Several innovative human resource management practices were introduced. First, there was a set of colored footprints on factory floor. Any employee who has not performed well has to stand up on the yellow footprint and tell the employee why they have not performed well and how they will improve their performance.†¦show more content†¦This was considerate and lenient. Also, the meeting with supervisors made the expectations and standards of works crystal clear. They set up, achieve and were accountable for the targets. Their performances were closely monitored, evaluated and rewarded and that’s why they were motivated. Moreover, under the 80:20 principle, the mangers had to have the courage and conscientiousness to assume responsibility at Haier. Thus, they had to be more dedicated and care more, leading to great effort and productivity for both the managers and workers. However, Haier s management is in contrast to the old management of socialism. So there are maybe some potential pitfalls. â€Å"Face† and human relation are the two deep-rooted traditional Chinese concepts. If the Chinese employee cannot accept or adapt to the new practices, it arouse resentment among the employees. In long run, working under keen competition may impose heavy burden to the employees, leading to stress and mental problems. A disadvantage in the footprint method is that it did not give any ranking to the employees so it would be difficult for decisions related to appraisals and salary increments. Sometimes, it might embarrass the employee as well. Haier ranked top 10% and bottom 10% of the employees. This could be morale. The greatest challenge of this method is to differentiateShow MoreRelatedHaier Case Essay872 Words   |  4 PagesAbstract 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 countrys leading brands today. In 2006 Haier was ranked as the worlds sixth largest maker of large kitchen appliances with a 4% global market share. In this paper, it is going to analysis Haiers performance management, why Haier is so successful and challenges that Haier willRead MoreFacing The Changing Of Enterprise External Environment1319 Words   |  6 Pagesasks for managers should stand at the height of strategic management to makes an overall plan for the development of the enterprise. 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