Human Resource Management
The Haier has changed itself from a struggling company, to one that is ionic in Chinese market. The company’s CEO knew that the traditional leadership method applied will not be able to support the western effect. The company has grown into a global player that is rigid with a strong brand value.
Its success can be credited to the strategic human resource management efforts, more so the management of staff performance which acquired an organizational culture that affected the staff culture to an individual and company objective (Lane, et al, 2012). Zhang being affected by western and Japanese management tendencies realized the value of an ongoing future-based operation so as to elevate a long term company performance.
The performance management system is composed of a general management procedure which features an open and learning based company objectives. The application of the performance management is through the applications colored footprints on the company floor, where a staff or manager that has acquired success, would be from their experiences. This is like a reinforcement theory so as to add force and show vital and needed staff tendency. Moreover, it states a process where a staff may learn from other staff members so as to instill motivation.
Haier’s efforts to objectify and quantify objectives is supported by an open and well described pay for the performance system that is connected to the market-chain based performance and compensation distribution models (Lane, et al, 2012). This attribute acquires that every business unit is a client to other parts of firm and it is through this that accountability and performance is measured and allocated in the best manner.
Another tool applied by Haier is the day to day performance assessment issues of the company staff and monthly performance assessment of the management. This method is connected to a cultural aspect of China, where focus is placed on operations which acquire the best of the general preferences of the company so as to safeguard their image (Lane, et al, 2012). Adding to this, an open and fair is common with displayed charts showing good and poor performing staff. Moreover, the managers share an audience every month so as to meet and talk about their performance successes and share ideas amongst other things. Additionally, legitimacy is acquired using the performance management system method with regard to transparency and fairness, pressing on staff to staff relationship that hence brings about equitability.
Even though Haier’s success is grounded on revolutionary performance management system, the flexibility and variation of the general setting as well as the Chinese protectionism may offer some form of risk and limit the model’s prevailing competitive advantage. The prevailing climate of Chinese collectivism is added through personal rewards using their racetrack model of promotion and financial benefits (Lane, et al, 2012). This may bring about a risk of displacement in cases where rewards look to bring about motivation in a person, though motivating and rewarding another person. This person may offer individual success of the failures so as be connected to the long term success which may on the other hand be disastrous and lower competitive advantage.
Recommendation and Conclusion
It would be of benefit if the present goal acceptance is kept within the company by a person using cultural inclinations as opposed to a success of external rewards, this is seen where an individualistic setting may bring about a decline in staff efforts task performance and company commitment adding to stress, absence and over working. This may be corrected if there was effective alignment to cultures that are the same.
The performance management system offers competitive advantage by shifting towards a better model, motivating and winning over staff tendencies using performance management and staff advancement. The management system provides a self-controlled learning, offering the staff the tendency to advance and show their talents which is aligned with the management results. The system may have cultural issues due to the varying cultural and legal settings present in the states.
References
Lane, et al (2012). International Management Behavior: Leading with a Global Mindset. Case 8. New Jersey: John Wiley & Sons, Pg 283.
