Write an article on Causes of a Problem of Haier.
It needs to be at least 1000 words.
These systems were very successful regarding the Chinese culture of management but since the company wants to increase its global installed base there is a question on how it is going to achieve it by following the same human resource management practices. These are the following: increase of employee internal competition by implementing an internal ranking of employees. Employees are judged by all performance dimensions and they have to complete their tasks the same day and have continuous self-assessments. Each employee is almost an independent profit center so entrepreneurship is developed. Managers are also continuously appraised like employees and both are given chances to improve their performance by providing abundant training.
A talent pool inside the company is also created. Haier has followed a product diversification strategy i.e. it has expanded to 86 different product categories. It is doubtful if Haier can pursue the same following strategy since product expansion requires heavy investment. Then the second part of its strategy was product innovation to niche markets i.e. developing products for specific market segments. Under careful consideration, this is a strategy that can be pursued at the current moment. Globalization which is the third component of the strategy is expanding to other countries in all aspects i.e. production, alliances etc. Globalization can also be limited for the time being since it requires heavy financial investment when it comes to building new factory sites that can be quite risky at this period of time. Globalization demands also understanding foreign cultures so it requires further research on this issue. The fourth component was marketing initiatives that emphasized product quality and market research.