NCBA & E
Project on HAIER in Lieuof principles Of Management.
TO: FROM:Mr.Amjad Ghafoor. Usman Jamshaid
Muhammad MohsinShahrukh Butt.
T H E M E
Study an organization that employs work teams to conduct its operations. What are its
characteristics and how does it differ from traditional hierarchical organizations? What
are the strengths? What are its limitations? How their competitors are affecting their
strategies and what suggestions can you offer to this organization to enhance the
effectiveness of their work teams.
2
3
T A B L E O F C O N T E N T S
History
H A I E R in Pakistan
Vision
Mission
Organizational Hierarchy
Team Work
Haier’s Cross-Functional Team
Characteristics
Chain of Command
Spain of Control
Centralization
Suggestions & Recommendations
References
4
H I S T O R Y
Haier was incorporated in 1984 producing house hold refrigerators Qingdao with 800 employees
and only one product line, Haier has grown to become a globally recognized name brand.
Over the past 20 years, it has grown and prospered as a world’s 2nd Largest Home Appliances
Company.
It is only Chinese brand that has been nominated in the list of top 100 companies of the
world; Haier was ranked 95th number in the list.
On the list of the most respected global companies 2002 issued by the Financial Times, Haier
was placed first.
5
H A I E R I N P A K I S T A
N
Haier Pakistan is one of the milestones in
the expansion of Haier Group of
Companies.
Haier Pakistan is the Pakistan Sales &
Marketing division of the International
Haier Group, a globally recognized
manufacturer of world-class electrical home appliances.
The joint venture between Ruba General Trading Company and Haier Group of China has
brought Haier to Pakistan with an initial investment of about US$35 million and a
commitment to provide world-class innovative products based on uncompromising quality
to Pakistan consumer.
6
In December 2001 Haier brings global expertise to work for Pakistan market. Alongside the
vast range of Haier products that include refrigerator, air-conditioners, deep freezers and
washing machines, microwave oven, vacuum cleaners, television sets and mobile phones etc.
V I S I O N
To be a leading home Appliances business with strong brand and a team of exceptional people.
M I S S I O N
Complete and latest product range
Controlled Company Prices
Highest Values with Haier warranty
Reliable dealer network
Exciting Customer Incentive
Guaranteed Genuine Product Quality
7
Marketing Manager
Imran Yousaf
ProductionManager
DistributionManager Sales Manager
Promotion Manager
Other FunctionManagers
Product AManager
Product BManager
Product ADistributor
Product BDistributor
Product ASales
Manager
Product BSales
Manager
Sales ManagerFinal Consumer
Sales ManagerOrganization Consumers
Country ManagerFaraz Fiaz
Human Resource Manager
Waqar Khadim
Finance ManagerM Faraz
CEOShah Faisal
ORGANIZATIONAL H I E R A R C H Y
8
T E A M W O R K
H A I E R is a team-orientated organization who
encourages team work in order to be more flexible
and more responsive towards the changes. This is
one of the major reasons why they prefer team work as compared to the individual work. H A I E
R believes in team work because it increases the overall productivity of the organization, is more
responsive towards changes, improves the performance of the employees, specialization of the
employees in various fields, allows the managers to do more strategic management and increases
the workforce diversity.
The teams are mostly made on the basis of functions performed by the employees such as they
have separate teams for marketing, research & development, human resource etc. And then there
are other teams which are made on the basis of skills and expertise. They are also dealing with
the virtual teams having people from different regions who are electronically connected with
each other for a specific purpose such as their Advertising team which is composed of the people
from different branches but working together.
9
There are several types of teams i.e. Problem solving, Self managed work teams, Cross
functional & Virtual teams. Haier is working in Cross functional way.
C R O S S – F U N C T I O N A L T E A M
Haier is working in Cross functional team.
Members of various departments are inter-connected for performing functional team
work.
Managers prefer on functional team work of the Haier Company.
The manager believes that team work is more effective.
But there is Limitations the team members can not make the decision with out the consent
of high level of authority.
Haier team member’s work is more reliable as compared to individual’s work.
There team task depend on different situations.
The Haier’s members are consisting of 5 - 8 employees in each Team.
The major problem of Haier’s team work is Politics.
An-other issue is fewer co-operation.
10
C H A R A C T E R I S T I C S
H A I E R do have some Strengths i.e.
H I G H G R O W T H: one of the strength of Haier is its growth, which is 20%
G O O D I M A G E: Image of Haier in the world is building rapidly, in January 2004 Haier
comes first 100 most known brands in the world.
GERMAN TECHNOLOGY: Although Haier is china base company but its biggest strength is
its German technology.
WIDE DISTRIBUTION: Haier has vast distribution channel and has 38000 sale points across
the world and the Group is present in 160 countries
AFTER SALE SERVICE: Haier is providing the facility of after sales services to its customers
DEPTH IN PRODUCTS: Haier has 11000 products available in 69 categories but in Pakistan it
launches only three products, washing machine, air conditioner and refrigerator.
BRAND AWARENESS: In Pakistan, Haier is trying to create its brand awareness by using the
medium of advertisement.
INNOVATION: Haier is more innovative as compare to the other companies in market and is
trying to provide new versions of products to the people.
MERGER: Haier come in Pakistan through merger with a local group name Ruba group and
have an edge of heavy investment regarding competitors.
IN HOUSE ADVERTISEMENT: In house advertisement: Haier has its own in house
advertisement department, which enable Haier to advertise its products in better way.
Highly active R&D department: as the technology changes day-by-day Haier has his own
research and development department. Its people are busy to provide maximum quality and
11
innovative products to the customers with the help of research and development department.
C H A I N O F C O M M A N D
Chain of command is considered as a cornerstone
of organizational design in HAIER as it is the
continuous line of authority that extends from
upper organizational level to the lowest levels and
clarifies “Who reports to whom”. To facilitate decision making and coordination the
organizations managers are part of the chain of command and are granted a certain degree of
Authority to meet their responsibilities. The whole organization including all the departments is
working under the authority process. Every department has a director and sub managers having
authority over the subordinates and they are assigned specific tasks related to their job and in this
way they coordinate and integrate the work of employees and the employees then assume a
responsibility to perform those duties.
12
S P A N O F C O N T R O L
Span of control basically means the number of employees a manager can manage efficiently and
effectively. The span of control in H A I E R ranges from 4 – 8 such as for example one area
manager of a region has 4 subordinates and each subordinate is having further assistants more
than 4 and up to 8. This span of control is consistent with managers to reduce costs, speed up
decision making, increase flexibility, get closer to their customers and empower employees.
C E N T R A L I Z A T I O N
H A I E R is quite centralized in managing its team issues. As most of the decisions are taken by
the top management which is there in the Singapore and then conveyed to the lower levels this is
because some issues at certain teams/areas or at specific level are of major concern in which
company’s future and stability is involved then those issues are centrally discussed. But on the
other end company is also decentralized to some extent mostly at lower levels. In
decentralization lower level employees provide input feedback or actually make decision where it
is necessary. Mostly it is seen that functional level employees are more familiar with their tasks
or the areas they are dealing with so H A I E R highly appreciates the participation of their
employees in the functional level decisions in order to be more flexible and more responsive
towards changes in the market. All the assistant managers and executives are involved in the
functional level decision making related to their specifics.
13
SUGGESSTIONS/RECOMMENDATIONS
Suggestions and recommendations are needed where there is any deficiency in activities or where
there is a need for the improvement. But in case of HAIER it is very difficult to suggest or
recommend any thing because it is an ideal, fast growing organization and its working is
excellent. However after great consideration and thinking we have made following
recommendations:
The company should try to adopt unique competitive strategies in order to handle the
team.
They should try to focus on the research and development department in order to be more
flexible and improve their innovation process.
The company does not have a policy of giving chance of internships to the students of
MBA. It should try to give this opportunity to students by making a policy of internship
and should give stipend if possible.
There should be high level of co-operation among team members
Responsibilities should be clear
14
Rewards for teams
Unified commitment.
R E F E R E N C E S
1. Interview with the Mr. Amir Basharat Butt
2. Website of H A I E R www.haier.com.pk
3. The book “Principles of Management” (Author Stepen P. Robbins)
15