Managing Performance at Haier

Presented by:Harsh Narula | Sachin Bajaj | Ajit Kumar | Ankur Sethi | Dileep Kumar | Ayush Garg

(Group II)

How and why does this work?

Performance management system was more of a distributed system in which different type of systems were combined together to form a system which yielded output for the company.

• The OEC system – over all every and control and clearance • 80:20 Principle • Race track model• Tracking profit and loss of individual loss• Incentive – related to the target achievement• Notice boards & floor footing was used + training at

company expenses• Job role’s based PMS for managerHaier has some limitations to PMS in respect to its implementation in expansion and local culture, but its PMS system planned was well executed and developed.

Can this system be applied internationally?

THINK GLOBALLY, ACT LOCALLY

Localization does not mean that everything should be localized; a more appropriate explanation is that it endows a company to be more flexible or more adaptive to the local environment in its HR management. A global company should focus on a combination of global integration and local adaptation, allowing its employees to “think globally, act locally” (Vladimir Pucik)

Globalization OR Localization?

GLOBALIZATION VS LOCALIZATION!

The question is not the choice between globalization and localization, but the optimal balance between the two.

Any business is an organism; it needs to develop a global brand to ensure its organizational characters in global expansion. However, a global brand itself is never adequate for a multinational - it must see to it that employees in different locations convey to the public the same corporate image and have the ability to adapt to the corporate strategy, and that its resources and knowledge are shared and transferred effectively among its divisions.

How To Tackle This Tension?

• Hire people whose values are consistent with the management philosophy and aligned with business strategy

• To be effective in different geographies, consider the following factors:• Differences in the cultural dimension and change the

reward system accordingly.• The nature of the Industry/Business• Firm’s specific Corporate Culture• Systems based on Fairness/ Transparency may be well

received despite cultural differences

Operation strategies must be Global, but HR strategies MUST be Local!

XIE XIE!