Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director
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Haier’s Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director 1
Introduction of Haier Before Today 5 R&D Centres 24 Manufactories 18 Countries …… 80,000 Employees 61 Trading Companies USD 25.8 billion Turnover World’s No.1 major appliance Profit CAGR: 35% from 2007 to 2012 Haier ranks No. 8 in “The World’s brand for four consecutive years 9 Most Innovative Companies” list 8 RMB •Haier is the only Chinese brand 7 billion 6 1 8.6% 5 4 among the top ten Companies list. •Haier ranks the best among 3 2 5.5% 2 1 0 enterprises of consumer and retail 3 4.2% sector Source: Euromonitor, ranking according to retail volume sales in units based on brand 2012 data 4
Haier’s Exploration of Networking Strategy and Structure Determine Ecosystem of Win-win model of ZZJYT parallel individual-goal Strategy Structure connection platform combination under opening system Follow 8
Haier’s Transformation in the Internet Age Before After Transformation through cloud platform Platform of open resources Platform of product resources & channel service Platform of mechanism and culture Platform of mechanism and culture Haier creates competitiveness of single brand Haier creates platform competitiveness of multi-brands There are no successful enterprise but only enterprises changing with the times. Mr Zhang Ruimin 9
Organization Change Self-ownership teams bid to join the unity of Strategy Self-organization stakeholder to create value added decides driver Organization (Win-win Model of Employee-Customer Sharing value added and optimizing constantly Integration) Self-driven Former department s Former Former Partner Consumer Past The unities of stakeholder become end-to-end nodes of networking platform rather than points of linear process chain. External opportunity capturing and internal mechanism innovation Hierarchy Inverted triangle Dynamic network organization 11
Talent Management Model Change Resources gathering and dispersing based on goal and customer needs Reward by value added; Profit sharing based on performance against target Human capital management in a Wiki way: On-line employee rather than contracted employee 12
Performance Management Transformation Haier Strategic P/L (I) Interactive users (II) Human resource (ZZJYTs) (strategy) Leading competitiveness of The ecosystem of ZZJYT interactive users is the key, parallel connection platform or the core under opening system ZEUS model (III)Zero difference (161) (IV) Closed-loop optimization (the rewards system) Daily conclusion goals under the principle of three zeros Automatic optimization cycle (Zero inventory, zero signature, of individual-goal Haier 2-D Matrix zero redundancy) Leading Y (strategic performance) competitiveness 10 Zones each has leading targets for different Zone 10 - target quadrant. - zone 8 Between Zone 2 to 10 are to create user value - zone 6 in stages from templates to the whole. - zone 4 Building the parallel connection platform system, closing the gap by implementing the individual-goal positive feedback mechanism Zone 2 - basics and motivating ZZJYTs to create added value and to be the best performance COI. Allocating all the company’s liabilities to X (market competitive) each individual and everyone taking the Zone 1 - prerequisite responsibility for performance and goal. 2 4 6 8 10 average average No. 1 Leading Continuous Quadrant I - IV 1.2x improvement 13
Performance Management Transformation(Con’t) Subordinate Customer Superior Peer Item BD online interaction Target Ownership Design Customer Focus Marketing 0 distance super experience Integrity Customer Customer 360 ° 360evaluation evaluation Best Performance Incentive Team work Confidence Logistics On-time delivery Communication 0 defect Authorization Skill Development Traditional 360 ° evaluation Customer 360° evaluation (classic practices by multi-nationals) 14
Employee Transformation New role of employee : I am my own CEO. Micro company Different external Micro company parties including customer, supplier Micro company Micro company joint Haier to Haier’s Platform become community of interest to meet Micro company Micro company the customer needs Micro compnay and goal , they create and share the value added on Haier’s platform. Command Resources Entrepreneur & CEO receiver interface (Employee follow the command (Employee interact with the (Micro companies incubated on Haier passively ) customer needs and global platform, gathering and dispersing resources) based on customer needs 15
Challenges of Global HR Management There are plenty of issues to consider and balance in Global HR Management 1. Strategic alignment cross countries 2. Cross-cultural adaption and language barrier 3. Consistency and differentiation of HR policy and processes among region 4. HR compliance with local country’s labor law 5. C&B design for employees in varied economic environment 6. Platform to handle complex global HR management Decentralization? Centralization? 16
Challenges from Business How to motivate my Where are my talents to talents and achieve who are they business around the objectives? world? How can HR work as a strategic business partner to drive the Where is the business change under the most effective Is my internet era? place for organization Supply healthy? Chain? Dancing with Business 17
I. Introduction of Haier II. Haier’s Global HR Management III. Haier’s HRIS - Workday 18
Roll out Overseas HRIS Workday Project at the Right Time From strategy to implementation, HRIS project paves the way of transforming challenges into achievements in the internet era by cloud technology Aligned global Proper HR process to business and HR sustainably realise the strategy strategy Technology platform to implement the process 19
What Can Workday Bring To You? • Provide a holistic view of company and its workforce Executives • Provide comprehensive data to Executives to make strategic decisions • Make the process efficient and accurate HR • Enable HR teams to act as business partners • Provide managers a more strategic people management role Managers • Provides a dashboard of reliable and comprehensive workforce data • Incorporate self-services functions, for example keep a timely Employees tracking of their various application processing status 20
HRIS Management Overview Strategic Decision 360° Talent Searching Engine Talent Management - Big data deployment - Global talents network - Identify talents - Data accuracy and on real time - Holistic view of organization - Use best fit talents for and people achieving business objectives Base Personnel Information, Org, C&B, Processes & Policies etc 21
HRIS Management Overview Strategic Decision 360° Talent Searching Engine Talent Management - Big data deployment - Global talents network - Identify talents - Data accuracy and on real time - Holistic view of organization - Use best fit talents for and people achieving business objectives Base Personnel Information, Org, C&B, Processes & Policies etc 22
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