ACKNOWLEDGEMENT

We are greatly indebted to our compensation and benefits teacher Sir Habib Khan for
his continuous support and guidance in completing this project. Without his
encouragement, we could not have finished this job.
Besides this, we would like to thank the management team at HAIER PAKISTAN and
ABB engineering for supporting our project by giving in their precious time.
Last but not the least; we would like to thank our parents and friends for their
unconditional support and encouragement to pursue our goal.

History
Haier was incorporated in 1984 producing household refrigerators and over the past 23
years, has grown and prospered as a transitional company widely recognized in world
community. Haier now manufactures a wide range of house electrical appliances in 86
categories with 13000 specifications and exports products to more than 160 countries.
Haiers international promotion framework encompassed globalize trading, design,
production, distribution and after sales service network. Haier footprint stretches over
36000 sales points as well as electrical appliances factories setup in America, Pakistan,
Indonesia, Philippines, Malaysia, and India- to name some of the market.
Haier In Pakistan
Haier Pakistan is the Pakistan Sales and 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 $35 million and a
commitment to provide world-class innovative products based on uncompromising
quality to the Pakistani consumer.
The plant spreads over a vast area of 63 acres with a covered area of 0.6 million square
feet including a workers colony at Raiwand Road, Lahore. The project is produce 0.9
million pieces of household appliances per year with plans to export to the Middle East
and all over Asia.
The roster of products to be launched immediately in Pakistan includes Refrigerators,
Air-Conditioners (Window and Split), Deep Freezers and Washing Machines, Microwave
Ovens and Small Appliances with Dishwashers, Vacuum Cleaners, Televisions sets and
Mobile Phones to follow shortly.

Haier has entered a local market with commitment to help its consumers reap the
benefits of modern lifestyle and to provide them world class innovative products,

unmatched nationwide customer support, a vast dealer network and a steadfast aftersales-service thought the country.
Haier has been developing Cfc-Free technology and Industrial Waste treatment
systems, so that in addition to providing excellent value for money there is a
simultaneous improvement in the quality of life. Haiers production and management
system restricting has enabled Haier to diversify internal and external recourses. At
present, Haier has put its worldwide logistics, distribution and manufacturing facilities
into efficient operation for customer demand satisfaction. Haiers goal is to obtain
worldwide recognition and become one of Fortune global.
Nature of Business
Haier was incorporated in 1984 only producing household refrigerators. Over the past
23 years, the company has witnessed significant prosperity and is now a transnational
organization widely recognized in the world community. Haier currently manufactures a
wide range of household electrical appliances, 15,100 varieties of items in 96 product
lines, and exports products to more than 160 countries. In 2004, Haiers global sales hit
RMB100.9 billion and Haier brand, valued at RMB61.6 billion, topped all Chinese
trademarks at a nationwide survey. Haier was ranked first in the row of Chinas Top 10
Global Brands August 30, 2005 on the Financial Times. Haier CEO Zhang Ruimin was
placed 26th of the Worlds 50 Most Respected Business Leaders on 17th November,
2005 on Financial Times. Zhang Ruimin was ranked 6th of the Asias 25 Most Powerful
People in Business on Fortune in August, 2004 and first of the 25 Most Powerful
Business Leaders inside China on the Chinese Edition of Fortune in April 2005.
Haiers international promotion framework encompasses global networks for design,
procurement, production, distribution and after-sales services. Haier has established 15
manufacture complexes, 30 overseas production factories, 8 design centers and 58,800
sales agents worldwide. From Zhongyikang Statistics, Haiers leadership position in
Chinese home appliance industry has been solidified by obtaining the domestic market
share of 21% for overall appliances, far ahead of all its competitors, 34% for white

goods, exceeding globally recognized domination line, and 14% for small electric
appliances, overtaking all previous competitive rivals.
In the world market, Haier has gained first place in the United States for sales of
compact refrigerators and wine coolers, in Iran for washing machines and Cyprus for air
conditioners.

From Euro-monitor Statistics, Haier is currently ranked fourth among the global white
goods makers by revenue and Haiers goal is to play a leading role in the world white
goods industry.
On March 4, 2002, Haier unveiled its American headquarters in the landmark neoclassical building, the former offices of the Greenwich Savings Bank, on Broadway,
Manhattan, New York, and an indication that Haier had moved into a new phase for
globalization of product design, manufacture and sales and had a strong determination
for long-term development in the United States. On August 20, 2003, Haier erected an
electric billboard in the shopping district of Ginza, Tokyo, symbolizing that Haiers
determination to reach Japanese marketplace.Facing the challenges brought by Ecommerce and Chinas accession to the WTO, Haier began a management
restructuring program in 1998 backed by the efficient Haier Market-chain System
practice. During first 5 years, Haier focused on the organization restructuring,
management decentralizing with application of advanced information and network
systems in order fulfillment, Market-chain performance, logistics, capital operation, aftersales service, product inventory and operational cost reduction. During second 5 year
period from 2003, Haier carried out the SBU (strategic business unit) management to
stimulate the enthusiasm of every employee and to enhance Haiers competitiveness in
global marketplace.Over the past 23 years, Haier provided more than 100 million
appliances to worldwide consumers and paid cumulatively a total tax of RMB13.6 billion,
of which RMB2 billion in 2004. Haier has scheduled to finance 100 Project Hope
primary schools, of which 47 are put into operation. Haier has 51,000 full time
employees and hires 175,000 contract service personnel, providing a total of 230,000
job opportunities.

Bard of Directors

Managing Directors

Originzational Structure
Advisor
G.M (C.E.O)

Systems

Technical Commercial
Industrial Relation
Mill Manager
Finance Manager
Production Manager Marketing
HR
Manager

Deputy Marketing Mgr.

Imports
Local Purchase
Area Marketing Mgr.

Senior Sales Mgr.

Corrugated Packaging

Flexible
Regional Sales Mgr.

Assistant Sales Mgr.

Sales Executive

Compensation and benefits of Haier

Category of employment
Usually they prefer Master and experience person but sometimes it depends on the
nature of job. If they require a sale person haier do not look for higher qualifications
there is not any compultion for the masters. They look for B.com or B.A with experience
of sales department.
Employee turnover
The employee turnover is very low round about 1% because they satisfy the needs and
wants of employees with compensation and benefits.
Performance appraisals
Following are the objectives of performance appraisal

To measure the work performance

To motivate and assist employees in improving their performance and achieving
their professional goals
To identify employees training and development needs

Performance Management
The company has set various standard for various jobs, some of them are

Regularity and puntucal attendance

Knowledge of procedure and regulations
Capacity for ensuring promt disposal of work
Submission of cases in proper order
Standard of work
Allocation of work so that no man is unduly burden
Maintanence of record
In personal trait he should be intelligent coperative and polite
To provide a solid path for career planning for each indiviual

Increment/ Bonus

The Bonuses in haier are given on the basis of performance. It can be on Monthly and
Annualy basis. They also provide some other kind of increments on special occasions
like on Eid.
Branch network
Haier have 1 branch of Sales and 3 of customer services in Lahore