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.

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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

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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.

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H A I E R I N P A K I S T A

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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.

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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

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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

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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.

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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.

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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

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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.

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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.

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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

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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)

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