Sample of assignment: Management system and enterprise culture of Haier group

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Organization background

It is well-known to everyone that the Haier group was established in the year of 1984 located Qing Dao of China. As a matter of fact, you might never know such a worldwide multinational corporation with more than 100 billion sales volume has also experienced a so-called conversion period from an unknown of small scale of enterprise which name is Liebherr at that time to an amazing enterprise through the effort of twenty years. It is no doubt that the outstanding performance should attribute to the hard work of its staff members. Especially a resounding name——Zhang Ruimin who acts as the chief executives plays an important role of management during the process development. Under his talent leadership, such a popular enterprise is undergoing a continuous reforms and innovations and always on the processing. As a result, they are making effort to approach higher goals and intend to extend its business to the world. To the end of the year of 2009, Haier group has already established about 29 manufacturing base, eight research and development centers and 19 overseas trade companies around the world. At the same time, the amount of its employees exceeds about 60 thousand within global enterprise. And Haier group turnover rate is about 124.3 billion (18.2 billion US dollars). The value of its brand is worth about 81.2 billion. Since 2002, it has won the most valuable brands for 8 consecutive years in China. It is because Haier group has built a favorable management system and ideal enterprise cultures which will make the company go further and further in a constantly changing and complex marketing environment. (baike.baidu.2009) And you can clearly figure out the following image, which show the turnover trend of Haier group under three different years.(unit: billion)

(wenku.baidu.2011)

Q1

In simple terms, the theory of Hersey-blanchard is a kind of leadership style the moment the leader manage its business or team members that cannot use unchanged or unique method on different situation. Instead, they should adopt varieties of managerial style accordance with the change of circumstance, environment or even the behavior of its employees in order to provide better services and products to their customers. As we all know how important it is for an organization to have a good leader, especially of all kinds of aspects that are experiencing rapid change and development within a given society. Actually the leadership style will directly influence an organization development or even it will determine whether the performance of an organization is success or not. In other words, the key point of management activities should attribute to the managers themselves. In my opinion, the Hersey-blanchard is a theory which is highly respectful to its subordinates. A great deal of evidence prove that the efficiency of leadership is depends on the degree of how they will be accepted by their subordinates or employees. All in all, the effect will be ultimately determined by subordinates’ reality behavior of whatever the leadership style or behavior model. Moreover, the managerial level should pay more attention to the subordinates characteristics and be certain of correspond leadership style accordance with their specific personality characteristics. For instance, for those who lack of capability and confidence or the subordinates who are highly skillful, strong ability of independent working and full of confidence should adopt different leadership style under a specific situation. As a result, Haier group of leadership style which draw on the experience of Panasonic, Sony and so forth of western large scale of enterprises advance management concept and combine Chinese traditional management model to form a set of unique management system that adjust to such a great company. The successful of Haier has proved the fact that the purpose of its management is intends to promote efficiency and draw up their profits. The following are some of the management characteristics during the process of development: On one hand, it is important for a leader to have broad management awareness. On the other hand, practical is more meaningful than theory. Furthermore, it will be more persuasive that leader themselves act as avant-garde rather than any form of didactic constraints. Last but not least, the art of management skill not only need scientific but also should be humane.(wenku.baidu.2011)From above discussion I come up with the idea that leader and its management philosophy cannot live without one another. As long as the leader knows how to manage well, then the management direction can better reflect its process of decision making. Early in the Haier growth, for such a enterprise which face difficulties, a kind of task-oriented leadership style taken by its chief executives. It is obvious that the purpose of task leadership style is on the development objectives, which also means it is a kind of management pattern that force the company employees to accept the order even though they are not willing to acknowledge it. Nowadays, under more and more fierce competition for an enterprise of which facing difficulties, task-oriented leadership will let the subordinates clearly know what their objectives are, and through these operational targets will make it easy for managerial level to motivate the employee enthusiasm and passion. As a matter of fact, all of different kinds of “condition factors” are serve for the activities of development. One of the most important that we should realize is that Zhang Ruimin who act as the chief executives always emphasis on the principles of “any types of enterprises should based on the people” from the beginning to an end. As a result, you can clearly figure out the importance of people can never be abandoned from the viewpoints of Zhang Ruimin. In other words, the truth show that his leadership style in the early stage of enterprise is mainly based on task-oriented, then the support of relational could be secondary. From this point, I want to express that when the employees life condition cannot be better satisfied and a phenomenon of low comprehensive quality on majority of staff members which need the president of given company spend most of their time and energy on the guidance and education associate with some of so-called incentive measures instead of just communicate with them, as you should know that finish their job on hand need to be treated priority at the time. Only in this way, the subordinates can be managed well by enterprise managerial level under such a ordinary situation. You might know the fact that he has intended to change some of his leadership style at the beginning of Haler growth and the style of leadership is more preferred relational at that time. The management concept is fully trust employees capability, let them better understand the market so that empower them to join the event of innovation and at the same time the leader is processing monitor and guidance throughout the activity of management rather than clearly tell them how to do and what should be done during the process of operation. The appearance can be called a delicate change on Haier inherent management and such a change is not only need to adapt to the marketing environment but the enterprise itself. At the time, the enterprise has already on track under the guidance of its executives and the employees enthusiasm has been improved more and more better than ever before on the support of relational model of incentive measures. In addition, he is starting to pay more attention to the employee life quality, welfare and ideas that they will enjoy of their lifetime, also active create necessary employer and management mechanism that suitable for them to carry out a series of developmental activities. The reason why it can get rid of trouble and to approach success in their field within decades is because the enterprise has followed an appropriate management technique and leadership style. (Yu Zhi 2008)In my mind, there are great deals of advantages of such a model of leadership style. First of all, it is easy to understand and manipulate. On the other hand, according to the circumstances and changes in the environment so as to change his style of leadership, then can give full play to their potential and to mobilize their enthusiasm, provide continuous power for enterprise development. But it also has certain shortcomings and limitations, such as leaders with responsibility, work content concerns are too trivial. For this point, which make me think that really need the managerial to adopt diversity of management techniques under different kinds of circumstances. Opposite, it is becoming easier to ignore the essence of management skill and leadership style if they excessive concern about the details. And this is what I understand the principle of Hersey-blanchard theory.

 

 

Q2

When it first comes to globalization I come up with the terms of economic globalization immediately. This refers to the countries of the world economy in the production, distribution, exchange, and consumption aspects of the global trend of convergence. The essence is the flow of production factors caused by the development of productivity that will be going to happened across the global so that it is becoming more and more convenient for them to find a place which suitable for them to carry on the activity of investment. The following are some of the main performance of the economic globalization that we experiencing today: On one hand——the globalization of production which means the multinational corporations is becoming more and more important in our daily economic development trends. On the other hand, turn to the aspect of marketing globalization. Many of evidence show that the international trade is undergoing a rapidly development in our daily life. And it is no doubt that the marketing trends have already become bellwether of the world economy. What is more——capital globalization which caused by the rapidly change of international finance and huge amounts of money can flow from one country to another without any restrictions. Last but not least, we should focus on the globalization of application of science and technology and information widespread and so on. Indeed, the economic globalization is influencing each of economical organization around us. (Tony.2003) Haier is no exception and under such a background the Haler group is also influenced by the economic globalization. As we all know the fact that for any enterprises of around the world——China is a potential market with tremendous opportunities for them due to its rapidly economic development and it is cannot be ignored by anyone of enterprises leader. With enormous attractiveness that guide lots of foreign companies enter into this market and most of them are always equip with strong strength, precious talent workforce, advance technology, management experience and excellent enterprises cultures and so on. The purpose of these multinational corporations is sometimes means to capture the market at the expense of zero profits for about five to ten years. But you may know that most of the Chinese enterprises like Haier generally do not have such strength. A phenomenon that most of talented person are pay more attention to these multinational corporations as their priorities choices is due to its wonderful salary and compensation system, excellent development opportunities and sophisticated atmosphere on enterprise cultures. It is no doubt that the loss of talent is more than serious situation that Haler group and some other Chinese enterprises have to face on their future career. Furthermore multinational corporations have enough strength on scientific research and development, whatever in the field of technical reserves or technology transactions is accounted for initiative around the world. As a matter of fact, more and more complex market environment, survivability requirements getting higher and higher, competitors more competitive pressure is also growing, product life cycle becoming shorter and shorter, more and more difficult for new product development competition are getting more sophisticated. All of above are the factors that Haler group experienced in the past several years which caused by the reason of globalization. It is certain that, the policy of globalization for Haier is not only related to challenges, but also the opportunities in some sense. Since 2006, in order to adapt to forms of global economic integration, Haier has entered a new stage of development strategy—— the stage of global brand strategy. As a principle has stated that if you intend to build a good brand reputation and let your business go further after the situation of global economic integration, then you have to make it to the world and try your best to create international brand. Brand strategy of globalization is creating localization in each national market the Haier brand. Such a globalization brand strategy taken by Haier group which could promote the product competitiveness and the ability of enterprise operation in a given period of time and ultimately achieve a “win-win” situation from single culture to diversity of cultures in order to bring about sustains development for enterprise itself. From then on, Haier has followed the global brand strategy; make their products successful in the United States, Australia, Japan, and more developed countries and so on. And now, Europe, Southeast Asia, Africa or the Middle East market occupies a seat. Under the precondition of such a successful business, I think the Haier group will be possible adjustments to the business model and product structure within the next few years, such as follow the consumers demand and at the same time release of high, medium, low end products at all levels, because the slogan of “market first, another factory” is a strategy of Haier’s market – oriented principle. Again for some adjustment of Government policy, pressure of rising raw material costs, and increased consumer cost of living, under the background of a combination of factors influence the overall market, Haier should put more effort towards internal integration, rationalizing mechanisms to enhance efficiency. Only in this way the Haier could build a more integrated platform, reduce the cost of marketing operations and lay the foundation for the development of more distant.

 

 

Q3

As everyone knows the fact that Henry Mintzberg manager role theory is all about focus on the role of the analysis of the management in order to inspect management duties and working status. Furthermore, Henry Mintzberg specific analysis of the day-to-day management of the manager and came up with the ideas of ten roles of that are important for effective managers within an organization. As a matter of fact, this will be going to influencing the organization internal and external behavior through the roles of acting. And these ten roles can be divided into three categories: the role of information delivery, interpersonal relationship and policy decision making. This is the first time in the history of management from an empirical perspective to full analysis manager activities. The three types are:

 

  1. The role of information delivery

As you might know that the information delivery contains about three roles that are monitor、disseminator、spokesperson. As monitor, which need the managers search the information of internal and external of an given organization in time, including market dynamics and the economic situation and new development of science and technology and operational status of their organizations and major events. With this information, will make it easier for managers adjust the relevant economy strategy accordance with the change of current marketing environment in order to obtain a better prospect during the process of development. On the other hand, if you act as disseminator, it is necessary for managers to convert serials of important information to staff members and sharing among them so that it will better serve for the employees. Last but not least, as the spokesperson is pointing to the outside world publishing organization’s goals, plans and measures of information. To be a good information deliver, which need the manager to have a keen eye, clear mind, good sum and expression, can grasp the overall situation.

 

  1. The role of interpersonal relationship

Interpersonal roles include three roles of figurehead, leader and co-coordinators. As figurehead, it needs to represent the organization and effective communication and interaction between the peer and external organization, legal and social obligations. Leader is responsible for encourage subordinates, orderly organization of work and do event of rewards and punishments, such as recognition of advanced, performance certainly; liaison contact with the outside world refers to the development and maintenance of organization networks. As a result, managers should play role which needs to have strong language skills good interpersonal relationships, good at communication, clear – thinking, and should have the capability of speech in public area.

 

  1. The role of policy decision making

We should know that decision making roles include entrepreneurs, chaos control and resources allocation personnel and negotiators. As an entrepreneur, you need to know how to identify opportunities, develop, implement and oversee the improvement program, grasp policies, such as the establishment of a development strategy, check the implementation of the resolution and so on; as chaos controller, when you face a major incident, for remedial measures, correctly handle the crisis. As resource allocation personnel, to organize internal resource allocation decisions. As the negotiators should be as representative of the organization, negotiations for important activities, play decision making roles require managers have the business expertise, experience and competence in the field, to have a keen eye to identify market opportunities, good at weighing, with the psychological quality that does not surprise, act decisively, keep the overall situation, good at decision making when handling the problem.

 

Although in a variety of organizations of all levels of managers has play the role of mentioned above, but on a scale of different enterprises and organizations of all levels has a large difference. If small enterprise managers grasp of the corporate law of development and play management role, will serve as an effective Manager. (management.atwork.2008)

 

In conclusion, I think the reason why Haier group is so successful in our daily life must be has a close relationship with its leadership style and outstanding management concept within the enterprise, nevertheless, whether managers in the organization is playing a right role will also going to determine business successful in a given period of time. The managers of Haier group has adopted reasonable methods of organizational roles enable Haier and fit no matter what the circumstances are able to maintain sustainable development. One of the most important for chief executives Zhang Ruimin throughout the organization not only serves as a single administrative role, but also served as the role of leaders, entrepreneurs and monitors. Thus these three management role played an important role during the process of development. Zhang Ruiming is not only develops the correct strategy plan for Haier, but also came up with the innovative ideas of management model that suitable for Haier staff members, it is precisely because of him, Haier was able to continue to grow, which lead such a group to become one of the most popular multinational corporations around the world. All in all, you can clearly figure out that how important it is for an organization has an effective manager.

 

 

Q4

For this problem, I really think that the different gender will be going to making a different on the leadership style. In other words, there must be a distinction on leadership style and its essence between the managerial level of men and women. Since last century 80’s, a great deal of statistic showed that the proposition of women leaders has rapidly increased from less than 10 percent to almost 20 percent. But you might know the fact that there always exists an appearance that the women leaders is far less than men from high level of management to the line manager. Furthermore, among activities of job promotion, you will always find that the higher position it is going to be choosing from male and female, the fewer women there would be. For example, a poll of “Do your supervisor is woman?” Then about 27 percent of answer is positive. And when asked the question about “how many women supervisors are there in your company?” Then about 14.32 percent of answer is that we have no any women supervisors in our company. About 63.36 percent of answer is there are few of them are women and only 8.61 percent expressed that most of the executives are women in their company. Indeed, of all China enterprises there is a widespread phenomenon that the proposition of male managers is about 57.9 percent. Yet women are about 42.1 percent. As a result, such a proposition shows that there is balance between men and women among middle level of managers. However, high level of managers is another case that there are about 83.4 percent of men supervisors whereas women account for 16.6%. The following image and relevant statistic will show you the detail information about male and female managers:

 

(hui Wang.2006)

From above relevant data I can figure out the fact that wherever it is, the women leaders is always account for minority of all level of managers. In other words, it has indirectly explained that the leadership style is truly different among them. Most of the people believe that, the female leader has their unique advantages that male leaders do not have——delicate and carefully decision making when handling a similar problem on hand. And this could be their bottleneck the moment the female leaders involve the activity of job promotion. Therefore, this would cause them lack of comprehensive, strong, decisive, rapid and profound decision making capability. Otherwise, male leaders are precisely containing the features of which women’s lack of. That is to say most of male leadership styles are strong, whereas female leaders are more delicate and cautious in some sense. But I think that women’s special temperament of delicate and gentle should be treated as their strength and an important quality in leadership activities. And also the female leaders should make full use of such a special nature to fulfill the work that male leaders cannot achieve in his lifetime. Nowadays, when deeply observe the leadership style of Asia businesswomen, we can still find out that almost all of women managers are try to promote a so-called “female principle” at the same time. For example, they totally care about, educate, train and support other’s development without caring about one’s own rank in their work positions. Instead, they would positively treat such a gap as part of their life rather than unrelated groups. Follow these principles the women managers have developed a new model of “communication and encouragement” leadership style, which can gradually replace the pattern of traditional and male dominated era of “command and control” leadership style in some days. It is no doubt that we cannot ignore one possibility of which character differences will lead to varieties of leadership style between male and female. But in the traditional values of society, male values characteristic are still closer to the ideal image of the boss in the minds of people than female values of features. Of course, the above mentioned is of my own opinion, and we cannot accept to be simple. In fact, we should hold a comprehensive attitude to better recognize daily affairs when we attempt to deliberate any problems. The chairman of The Export-Import Bank of India Tarjani Vakil who is considered to be the region most senior female bankers has ever said that “Management has no gender style. Whether male or female, each has their own style. You should not excessive concern about whether you are a woman or not, but should pay more attention to the level of excellence.”Therefore, on the management, gender difference should not be regarded as obstacle. As long as with the right and fit leadership style, then everyone could become successful leaders. (hui Wang.2006)

 

 

Q5

The organization chart is the form of expression designed by specific organization, which is one of the core problems that need to be solved by organization function department. Through such an organization chart we can directly figure out that diversifies setting circumstance, hierarchical structure, division of labor and relationships between supervisors and subordinates among departments and so on. As you might know that the range of management and managerial level, division of power and department are three fundamental factor of organization chart. The traditional form of organization chart that include: the system of linear, functions, linear functions of general staff and division of the general staff and so on. Whereas, the up-to-date organization chart contains: the system of matrix, project, multidimensional structure, learning organization, team-based structure and borderless organization. Nowadays, the most commonly forms of sectors are: product sectors, functional organization, customer sectors and regional department and so on. Next, we are going to have a look at the organization chart of Haier group.

From above image we can clearly conclude that the aspects of whatever organization division or redistribution is so vivid and such an organization chart fully show that the so-called division or branch is built accordance with different type of product, areas or market-place under amazing leadership style. Each division is all processing the activities of product designation, make a purchase, and produce product and even sales in a particular period. Profit center under the control of the Division is both a corporation and sales unit in charge of production unit in charge of product and market, with its own products and independent market. But because the functions of the sector are set, resulting in more managers, management institutions overlap management costs are relatively high.(wenku.baidu 2011)

 

In my opinion, there are another two form of organization chart of Haier group, the following is the first kind:

 

The above organization chart is the most widely used organization forms in reality. It combines the linear organizational structure and function of organization structure of benefits, both to maintain unity of command, and can play the role of staff officers, Division, and responsibilities clearly, only on its own should be responsible for the work of various departments, higher efficiency.

Then we turn to the second one:

 

We can see this structure easy to manage, similar businesses under the same department, responsibility for setting conducive to establishing effective working order, prevent mutually making excuses and have too many things to take care of at the same time, able to adapt to modern industrial production and technology, management work refined and can give full play to functional role of professional management, reduce the workload on line leadership. The disadvantage is also apparent that it hindered necessary centralized leadership and unity of command, forming a long leadership; is not conducive to establishing and perfecting the Administration Executive and Department of accountability at all levels, management tends to appear a phenomenon of active in “rob” the outstanding performance and push the fault from one to another when something went wrong. In addition, the superior executive direction and guidance and commands between a functional, subordinates at a loss, affect the normal work, easily lead to discipline, disorder in the production management. Inconvenience in administrative collaboration between organizations of the sector as a whole, easily forming an appearance of interdepartmental co-ordination, and also it is difficult for executive leadership to be coordinated in some sense.

 

 

It is no doubt that the Haier group has achieved a great success within dozen of years from the viewpoint of public. As you might know such a group has always been focusing on their original product in related industries over the years, and then experienced a diversification and relative specialization course. The president has ever said that “ I hope Haier can provide you almost all the electrical products if you have an empty house.” As a matter of fact, the group has indeed done——from the year of 1992 that Haier was based on the production of refrigerator to 1997 electron group joint venture Hang-Zhou west lake and Haler electrical appliance, Haier group had expended into almost all of the household appliance industry, its products have developed an industrial chain. In recent years, Haier has also launched the whole kitchen and bathroom products and entered home devices and knowledge industry. Because of the correlation between household electrical appliance industry and furniture equipment industry, Haier can take advantage of the home appliance industry in technology and they also can take advantage of the home appliance industry in market sales network. As a result, Haler succeed accomplished transformation from simple scale of economic to the complex structure of economic for a very short period of time. Furthermore, Haler is still followed the footsteps to the Chinese market and even the world is continually adjusting their strategies and management principles. Such a rapid diversified extension paced, high efficiency and economies of scope are obtained based on the core capacity of more than 10 years, that is, brands, technology, management, sales, service and other aspects of the formation of a unique capability.Recently, Haler is involved in the areas of IT, e – commerce, the face of competition and risks are self-evident. But also demonstrates the determination of Haier to have more diversified development in the future. All in all, I think the Haler group should enhance existing products, play a brand of its core capabilities and focus on developing products with growth potential. Whereas, for emerging products such as the aspect of information communication can be appropriate engaged but should to avoid the full attack to get rid of risk.( wenku.baidu 2010)

 

Enterprise’s organizational structure is the basis and guarantee of the goals of enterprise management strategy, is a management system of the carrier, and also a tool for corporate profits. In today’s “only unchanged laws of the market is always changing” “Haier” concept of the situation, the enterprise’s organizational structure must be innovative. Persist in comprehensively implementing the strategy of internationalization of Haier group; this massive international strategy will promote reform of organization structure of Haier Group, Haier’s organizational structure to change with the change of enterprise strategic objective also important factor of Haler to achieve such a great success in the eyes of people of all over the world.

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