Key elements and guiding principles of Haier’s management system
Being the world’s sixth-biggest maker for kitchen appliances, Haier had approximately 4% global share of the market and a strong position in refrigerators and washing machines (Yang, 2018). Ideally, the core success behind it was probably Zhang, the chief executive officer that brought fortunes to the firm. In that case, a variety of human resource practices of management get introduced. First, the firm acquired a set of colored footprints across the floor of the factory. That implies that an employee who has not worked well had to stand up across the yellow print and express to the employee the reason behind their weakness in performance and also how they will improve. Yang explains that the employee that had worked effectively had to stand on the red foot and narrate why they had executed an excellent job. Besides, another tool utilized by the firm to evaluate workers’ performance on their daily basis work was to converse with their supervisor and develop some clear objectives for employees before starting their shift.
Accordingly, during the fall of the day, they met each other again for evaluation. After, the employee would be given a colored face within the board to depict an informal grade signifying the day (Zhou & Jing, 2018). Their performance was reviewed and evaluated every week for the managers, and the outcome gets displayed in the cafeteria. Furthermore, for the performance appraisal in Haier, the above 10% got a promotion while the bottom 10% got sent back for training at the company’s expense (Zhou & Jing, 2018). when the movement was below 10%, they were given leave, and in this case, the employees could go training but at their expense. For the third review, when they become below 10%, then they were sacked.
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