CASE STUDY: MANAGING

PERFORMANCE AT HAIR
Group members

Haji Shahzaib
Abdul wahid
Kaleemullah
Naimat
Waheed
Masroor umair

submitted to

sir Masroor Ali lecturer HRM

Q1

Answer

hair had high professional efficiency in term of recruiting best talent, managing innovation and
providing variety of product lines in core business which cause to increase overall efficiency of
business, secondly hair had maintain good relationship with supplier which provide integrative
bonding towards successful and efficiency of over all business.

Q2

Answer

hair is multinational home appliance producer in founded in 1984, headquarter of company is

exist in Shandong, hair has also owned various brands such as Casarte and leader, hair group
mainly produces two categories’ products such as Hair smart home and Hair electronic group,
according to the data hair is found to be number one brand produces appliance for 9
continuative years from 2009 to 2018.

Key elements of performance management system

 Product diversification: product category is diversified to 13000 specifications from

first refrigerator model in 2984 to smart appliances.
 Creating Niche markets with innovating products by using latest technology to product
effective home appliance with long last durability.
 Globalization: expanding business by producing more production facilities in different
countries, globalization process was initiated in 2007.

some key aspects of the cultural context 

Zhang has stablished the performance management system in China in which system design to
encourage the morale of employees to that their performance can be increased in this case
Zhang has used some changes such as indicating the colors to represent the performance of
employees secondly reward and encouragement of increasing the promotional chances were
also based upon individual performance rather than the group performance.

Q3

Answer
Differentiate Haier’s Business strategies and Performance Management
Strategies?

No Business Strategies Performance Management

. Strategies
1 Introduction of effective human Haier set colored footprints on the
resource policies where internal factory floor serving as performance
management infrastructure and indicators where each and every
employees were powered to cope employee used to stand given their
up with internal stress and pressure color.
of market competition.
2 Haier had belief in “A sense of A board was placed or located in
Urgency” where outside world was factory workshop that used to record
always insisting or pushing to move worker’s daily performance.
forward without stopping
3 Haier firmly believed that each Employees used to set clear goals for
Haier employee is a customer of themselves in discussion with their
his fellow workers. consequently, supervisor at the start of their shift.
novel and successful designs of
manufacture of goods can be done.
4 At Haier, 20% of employee who It had set a three-phase system tailored
were the Managers were held to evaluate the performance of
accountable for 80% of company employees who did not meet set
results. It was supposed to stress expectations.
the sense of guts and
conscientiousness to assume
responsibility.
5 Haier introduced a Deposit Book If an employee developed or enhanced
which assumed that each manager the or improved the product, or
could role as a miniature company suggested an improved procedure, it
(MMC), each with his own profit carried the employee’s name and
and loss statement. notice of it was displayed and shown.
6 For Managers performance, evaluation
involved both achieving measureable
 and quantifiable goals and the degree
of innovation, improvement and
enhacement.
7 The outcome of manager’s
performance ranking were openly
displayed at the entrance of the
company cafeteria with a green or red
arrow.

Q4

Answer 

Why does Haier's performance management system work?

Hair performance system work because it is purely based on transparency and fairness such as
while distribution of rewards is purely based on performance of employee, secondly hair has
created their strong vision which direct them and where the business wants to exist, hair has
management philosophy which is consistent throughout the time and aligned with business
strategy such as value maximization. Hair also works on career development of employees
which is purely based on internal completion and work performance, holistic HR management is
also key factor for the performance management system in hair.

Q5

Answer:

The overall performance evolution procedure has neglected a few essential elements such as:
motivational troubles and a few outside troubles at workplace. They additionally forget about
dangerous competitiveness. As the cash in now no longer the handiest one component for
employee morale motivator its employee morale is absolutely broken due now no longer having
a collaboration and inefficient group workers. Haier Company makes use of a few very harsh
technique to get paintings performed. The rating associated with managers is positioned on
board openly. The terrible overall performance of manger taken into consideration as a horrific
overall performance. They decide upon or placed extra emphasis on quantitated procedures
instead of constructing accurate members of the family with personnel during the overall
performance assessment. The different racetrack version is insecure the personnel associated
with their process progress. The footprint approach which they have got used it additionally
works in opposition to the personnel goals they have got felt insult and ask for layoff.

Q6

Answer

The sustainability for overall performance control device at Haier has an excessive amount of
importance for better control as it must determine whether they need to cross for to maintain
aggressive benefit in future. And I might say yes, the overall performance control device is
sustainable having many motives of that. as we see the globalization is anywhere with inside
the global or maybe each nook of the global. So, it has a big effect on each area and each of us
of a across the global. Because of globalization cultures are blended and matters going to be
widespread that is was once prohibited. So, it does now no longer be counted for Haier. If Haier
overall performance control device goes to in step with west in preference to Chinese culture. I
thought this is the motive that it labored until now and it'd maintain to paintings sustainability.
the tendencies of industries are changing, the most effective manner to set up a sustainable
aggressive benefit is to hyperlink with international control and control practices till and until it'll
in opposition to the social values. People need to want to undertake new approaches if it's far
no in opposition to the middle values. The device which Haier follows at their enterprise is
concord which support the concord via way of means of following middle social values even
though on occasion it is going in opposition to the middle values however the ones aren't so
essential on the way to influence human relations. The Current enterprise tendencies want to
satisfy the specified wishes of clients via value and fine control. Moreover, via way of means of
having a developing effect of China on international global order as a developing superpower.
China needs to want to be bendy and observe international practices which they're already
following at a few instincts. Due to this, agencies which can be in China need to want to observe
international control practices on the way to appeal to overseas budget or investments. That is
the proof that different organizations in China failed as though we as compared with Haier even
though they've even control practices consistent with the Chinese culture

Q:7
Ans: we can’t guarantee a hundred percent success if Haier’s Performance management
system is used outside China specially in Europe or America. As we can see many of the
Haier’s policies had to change when they opened their factory in South Carolina. Few of their
policies were human right violations in American culture. They didn’t love the idea of yellow
footprint where a low performer will stand and tell the causes of his failure. Or they were given
colored “smiling face” which showed their performance level, they also rejected this idea of
performance appraisal. The power distance in USA and Europe is low and these people are
highly concerned about their personal life or privacy. They don’t like their performance to be
displayed publicly in the company. In many countries, employees are evaluated on the bases of
monthly, semiannually or annual outcomes not daily bases. Many European and American
countries have higher level of Individualism, so, employees in such countries wouldn’t prefer to
be controlled and managed by their managers every moment during their work. This system
may work better in most of the Asian countries where there is a similarity between cultures like,
Pakistan India, Bangladesh, Korea and middle eastern countries. These countries share almost
same cultural contexts with China. Most of the Asian countries are collectivist not Individualistic
and the power distance is also high in these countries

Q:8

Ans: Haier may face many problems outside China due o changing demographics in other
countries. Following are list of issues that the company must face outside the home country.

To go global Haier would need to compete new competitors in each countries’ local industry and
several multinational companies. So, it will be very difficult to introduce and capture the market
share from existing players. The market entry can be a failure o the company. So, they’ve tot
make a complete market analysis to get their objectives.

Haier’s some of the products may not be suitable to customer need due to different
demographics or the culture or weather. For instance, the Refrigerators or air conditioners won’t
be having demand in cold areas so, they can’t sell each product everywhere. they would need
to identify the target market and their product requirements. In most of the Asian country’s
families are very large so, their mini Washing machines will need satisfy their products need.

Haier didn’t cut prices to beat competition butt, they provided a product which was expensive
with superior quality compared to competitors. This strategy may not work in low or middle
income-level countries. People focus more on product’s price instead of quality.
Political instability, ineffective laws and corruption

How effective the politics is a very important question hat every company should ask before
entering a new country. Many companies and investors are afraid of investing or initiating a new
venture in developing countries. One of the reasons is the ineffective government and their
policies. Government has lo of intervention in industry of such countries and corruption may also
be a threat to overall performance of the company. In such countries where every new
government have different objective regarding the country and no rules are followed then I might
be a risky investment which may affect any time in the future.

The Business environment:

The way people do business, communicate in business environment, work and reward culture
may differ in many countries. So, it would be a big problem to implement the same strategic
management techniques that has been observed in in China. Like discussed in Question 7 that
not everybody in different culture works in a same method. People will be having different
approaches towards their job routine and would be expecting from the employer something that
has been practiced by many companies in the country. Like reward and appraisals, work
environment or the kind of communication style they prefer.

Q9

Answer:

Hair management system contradict with chines, cultural management, harmony, face and
relationship, however hair is successful in China due to different characteristics such as hair is
more focused towards product diversification and innovation, it was found that there are 86
different models with 13000 specifications in total, and there is vast range of product line from
home utensils to electronic gadgets, hair is innovating products to specifically for niche market
segment, secondly hair is making different marketing initiatives which leads to mass
consumption of products offered by hair, this giant company was also emerged by imitating
other companies and doing research and development to make even batter products as
compare to other competitors in the marketing. There are also innovative HRM practices, finally
hair is training and attracting best talent from the market which is continues source of improving
product and marking customer centric strategies which are required to be competitive in the
market.