Haier is not only a brand of greatest value in China, but also the forth manufacturer who produce white household electric appliances around the world. Haier from a small business who was at the verge of bankruptcy, grows into a prestigious business group whose products are sold across the world and employees from around the world. What made Haier break the situation and create much mpressve performance? What caused the thirty thousands employees of Haier who came from different regions or different ethnic groups work selfless?
Of course, it is a dynamic and innovative Haier’s corporate culture which provides Haier human miracle power. In Haier,a slogan can be seen everywhere impressive: “response rapidly, act immediately “, which is a style of work that every employee must have. Haier’s employees say that the eight Chinese characters not only reflects the concept of Haier’s market and service, but also concentrates the power of Haier’s corporate culture. Haier is serious about “the concept of revolution”, which permeated every aspect of Haier and was rich condensed into many philosophical concepts.
Such as “Only the off-season thinking, no the off-season market “,” light the east and then re-light the West “,” Slope sphere theory “,” having the market first, building the factory then “and so on . Although these ideas are mostly from Haier’s CEO, Zhang Ruimin, no doubt they have produced a strong response in the spiritual world of the staff. Since it was established, Haier put the corporate culture banner hoisted on high. Yang Mianmian, president of Haier Group, said the staff of Haier needs corporate culture, which not only always gives employees new ideas, but also stimulates their endless creativity.
If you read “Haier’s corporate culture handbook” which is filled with connotation of times and owned by each Haier’s employee, you can savor the affection and harmony of Oriental culture, and also you can feel the advanced management experience and minds which are affected by the West. Haier’s corporate culture is recognized by all the staff that the values of business leaders’innovation, which produced and formed a unique cultural system gradually by the two decades’ development process. The core of Haier’s corporate culture is innovation.
The culture looks the concept of innovation as a guide, a strategic of innovation as the direction, the protection of innovation as arganize, technology of innovation as a means, the market of innovation as the goal. Accompanied by Haier developing from small to big, from big to strong, from the China to the world, Haier’s culture itself also innovated and developed constantly. The most significant feature of Haier’s culture is that the staff generally agreed and took part in on their own initiative. At present, Haier’s goal is to create Chinese famous brand in the world to win glory for the nation.
The target combines the development of Haier with its employees’ value of the individual pursuit perfectly. Each employee will bring about value of the individual pursuit fully under the process of realizing the target. On one occasion, Zhang Ruimin, the CEO of Haier vsited a large company in Japan, and the company’s chairman has been keen to Chinese wisdom. When the chairman to introduce the company’s corporate philosophy and corporate culture, he set forth “the truth,goodness and beauty”, and quoted the thought of Laozi.
Zhang also expressed his own view: There is a statement in “Dao De Jing” having the samemean with “ the truth, goodness and beauty”, which is “all things are born of having in the world, having is born of nothing” . Zhang explained the importance of Haier’s culture With those words. He said that there are two points about corporate governance keeping in my mind. The first is that the intangible things are often more important than the physical ones. The leadership Often focus on the physical stuff too much, while the invisible too little.
They always ask how much the general production and profits, but do not see the cultural attitudes, atmosphere are more important. If enterprises do not have a culture, they are without a soul. The second point is that people should “dealt with gently ” to do something claimed by Laizi. Zhang said: “In the past, people remark the point as a negative. In fact, it is a process to advocate strengthening the weak and change the small to the big. As an entrepreneur, you are always vulnerable. If you are really familiar with your own weak, you go forward to your goal stubbornly, and it will be successful. On another occasion, a reporter asked Zhang: ” What knowledge should an entrepreneur understand first? ” Zhang thought for a while, said: “we must first understand the philosophy first! ” Zhang can link with the corporate’s reality, realizing that the “no” is more important than “yes”, “having is produced by “no”, the soft can control the strong and modest can make progress by Laoz’s thought. Arrogance and insolent are always a source of corporate’s decline. For the twenty-first century enterprise, “corporate culture” is no longer a strange term.
Since China introduced “corporate culture” from abroad, a number of entrepreneurs on their research for it. However, due to different situations, the companies have different corporate culture, and even succeed or fail. Haier’s ” three-tier ” (material culture, system behavior, spiritual culture) is the most typical. Haier’s culture has a significant impact on employee behavior. In Haier, you can see the Haier factory workers are always walking in the street within the edge of the yellow line. If you ask him why he goes inside the yellow line, he would be very natural to tell you that he should go there.
Because from the day he went to Haier he had received training and this culture has been deeply rooted in his mind. If you enter Haier’s workshop, you will find that Haier’s shop is bright, clean and Haier’s employees are also dressing the uniform, which is also a manifestation of culture. An excellent corporate culture gives employees a collective sense of honor, and love the company. Haier circulates such a story: In Haier’s washing machine factory, there is a girl walking into the Haier Group at 19 years old, and receiving the baptism of Haier’s culture for three years. She got the disease three years later and was diagnosed with leukemia.
As she would have to leave this world, she presented her last wish to her family that she wanted to look around Haier finally. What does this show? It is Haier’s culture and the charm of Haier’s culture which make the people of Haier have such love for the group. Corporate culture not only can cause a business defeated, but also can make a business prosperous or develop sustainly. Red Star was also a very famous electrical factory to produce washing machines and used to be the third in the peers before 1995. Because of its poor management in the early 1995, it was already insolvent and made a loss more than one million.
More than 3500 workers are out of work and the washing machines were often sent back. At that time, the government had made a decision that let Haier annex Red Star. For Haier, it was a very significant event, because Haier had no large-scale expansion of its business at that time. Subsequently, the general manager of Haier made a comprehensive analysis about Red Star. During the process, they found that washing machine factory was no shortage of funds firstly, it had modern equipment for production process secondly, and it was also no shortage of technical strength thirdly.
They analysed and concluded that Red Star defeated because of its management model and its corporate culture. As a result, through its analysis, Haier decided to use culture to revitalize the Red Star Electrical Factory. At the same time, Haier made such an acquisition strategy for Red Star. Then Haier quickly dispatched the first group of people stationing in Red Star Electrical Factory. Haier’s presence sent the first batch of people to Red Star who was not the president, not the finance staff, and also not the stocktaking, but who was in the Haier’s cultural center.
The first thing they did was the cultural advance, which was looked as the acquisition strategy. After that, Zhang Ruimin, the CEO of Haier Group went to Red Star Electrical Factory several times and made speeches for all employees about value and culture of corporate. At the beginning, the first group of people told the full staff that they were selling the credibility first and then selling products. Second, they launched all of the employees to find their own problems to reduce costs to increase profitability. Last but not least, they set employees’ own development goals for the future.
Three months later, the Red Star Electrical Factory was profitable. To the fifth months, it got a profit of 150 million for the first time. Spending two years, Red Star Electrical Factory became the first washing machine industry in China. Corporate culture can coordinate the relationship between business and employees. During the first month when Haier annexed Red Star and moved into the factory, an incident that a product which was unqualified was not found had occurred, and the result was released the next day. The worker who didn’t find the unqualified product was fined of 50 yuan.
The person who made a mistake should be fined, which was a normal thing, and also it had been recognized as there was no problem and everyone agreed on that in Red Star. But just this thing, it reflected the characteristics of Haier’ corporate culture. At that time, Haier sent Cai Yongsen as a general manager of Red Star. He decided to seize such an opportunity to educate the employees what is corporate culture. The day after the event, in the newspaper that called “Haier human”, he issued a public topic that everyone could discuss: Who should be responsible to the mistake, punishable employees or culpable leadership?
In the Red Star Electrical Factory, the employees started a very intense discussion about the topic. It was normal that employees were punished in the Red Star, but a small number of people controlled the majority in Haier’s corporate culture, so the minority should bear the responsibility of the majority. If a mistake happened, the leadership should be responsible for it first. Following the adoption of the great debate, the result was that Cai Yongsen fined 500 yuan, then the relevant personnel and leaders at all levels who imposed a fine of one yuan.
Subsequently, this matter that made the staff of Red Star feel the characteristics of Haier’s corporate culture completely caused a great shock at the Red Star, which named 20/80 principle. The principle is that a small number of leaders must bear a large responsibility, which is the concept of Haier’s corporate culture. Employees always give top priority to collective interests in an excellent culture. 20/80 principle of Haier that a small number of leaders should bear the responsibility for the large, which is a Haier’s culture idea known by everyone.
In Haier’s quality inspection center, there was a director of quality inspection department supervising the last line. If the quality of product was checked well, the product can be sold in the market. However, the director placed a little paper in a hidden place of a refrigerator in the first inspection process, but the quality inspector did not check out it at the last minute. As a result, the director of quality inspection department was fined. At the same time, according to the Haier’s human resources management, he was dropped. Someone asked him that he thought of the today’s result when he put the paper.
He said he had thought of that paper may be not checked out by inspector, but he must do like that. Because only by doing so, he could ensure that the products are the bests and the quality of the products. About the meaning and essence of Haier’s culture, Zhang has a very well-known theory named “slope ball”. The growth and development of a enterprise like a ball which moves long the slope up, and the ball not only need a suspend power to maintain it not rolling down, but also demand an increase power to make it move upward. The suspender is the basis management of enterprise, and the increase power is the ability of innovation.
Zhang believes that the companies must solve this problem, if they want to continue to growing in the market that the competition is very fierce. At the beginning, Haier did not have the great spirits that is “pursue excellence, work hard to serve our country”, but they struggled for their company’s survival facing the situation of lax internal management. Through the event of “smashed fridge”, Zhang made Haier employees establish a concept that is “the defective product is waste”. Later, Haier pay close attention to controlling the quality of product and constructing management system, so Haier stride forward on the rapid development.
By improving quality management, Haier acquired the first block of gold medal for refrigerators in China, and the brand was set up initially. On this basis, Haier drew the science of company’s management and operation from Europe, United States and Japan, continuing a full range of management innovation. “OEC management” model makes the management more rigorous, and 20/80 principle has enhanced great sense of responsibility of managers. At the same time, leading by market and targeting by consumers’ need, Haier enriched their service awareness and the sense of innovation.
Haier group is also from refrigerators to washing machines, color TV, air conditioners, computers and other areas, going abroad gradually and entering the European markets. Developing step by step, the typical concept of Haier was formed, consolidated and strengthened, and it came into being a unique corporate culture ultimately. Thus, corporate culture and business management have a natural and inseparable connection. Corporate culture is the product outlined, summarized and derived by the process of constant innovation in the enterprise’s internal management.
Enterprise’s internal management is the foundation for building enterprise culture. Enterprise management can not be set aside to talk about the building of enterprise culture, and it is impossible for the culture of culture. We must strengthen enterprise management and innovation which is looked as a carrier to go on the construction of enterprise culture. The key of corporate culture construction is to enhance the culture of business management and combine business management with cultural construction closely, to create atmosphere of management culture.
To sum up, we can see the importance of corporate culture. Corporate culture is the soul of enterprises, a commander in business activities, and the enterprise guide to act. It has a central role that can not be replaced in business activities. Therefore, a successful enterprise must have a very good corporate culture. On the contrary, there are no corporate culture enterprises who are failing. Corporate culture plays a vital role on the development of enterprise.