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Project on HAIER in Lieu of principles Of Management.

TO: Mr.Amjad Ghafoor.

FROM: Usman Jamshaid Muhammad Mohsin Shahrukh Butt.

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.





H A I E R in Pakistan Mission


Organizational Hierarchy Team Work

Haiers Cross-Functional Team

Characteristics Chain of Command Spain of Control Centralization Suggestions & Recommendations References

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 worlds 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.




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.

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.

To be a leading home Appliances business with strong brand and a team of exceptional people.

Complete and latest product range Controlled Company Prices Highest Values with Haier warranty Reliable dealer network Exciting Customer Incentive Guaranteed Genuine Product Quality



CEO Shah Faisal

Country Manager Faraz Fiaz

Finance Manager M Faraz

Marketing Manager Imran Yousaf

Human Resource Manager Waqar Khadim

Production Manager

Distribution Manager

Sales Manager

Promotion Manager

Other Function Managers

Product A Manager

Product A Distributor

Product A Sales Manager

Product B Sales Manager

Product B Manager

Product B Distributor

Sales Manager Final Consumer

Sales Manager Organization Consumers



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.

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.


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 members work is more reliable as compared to individuals work. There team task depend on different situations. The Haiers members are consisting of 5 - 8 employees in each Team. The major problem of Haiers team work is Politics.

An-other issue is fewer co-operation.


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 innovative products to the customers with the help of research and development department.




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.





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.

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 companys 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.



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 Rewards for teams

Unified commitment.


1. Interview with the Mr. Amir Basharat Butt


Website of H A I E R The book Principles of Management (Author Stepen P. Robbins)