Decentralized design of Haier's organizational structure
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David Su, founder of Columbus cat project and core developer. Geek genius, Hefei University of technology, postgraate suspension, blockchain bottom developer, participation in Neo HPB and other community development work
The organizational structure of Haier's current business division system
Business division system, also known as departmental structure or decentralized organization, is to establish business divisions or branches under the unified leadership of the company according to different procts, regions or markets. Each business unit carries out proct design, procurement, proction and sales activitiesreason: the division is not only a profit center under the control of the head office, but also a responsible unit for proct proction and marketing, with its own procts and independent market. Because each business division has its own functional departments, it is relatively more efficient
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extended materials:
the history and development of business division system
the business division system was first proposed by Sloan, President of General Motors in 1924, so it is called "Sloan model", also known as "federal decentralization", which is a decentralized management system under highly centralized power
it is suitable for large enterprises with large scale, variety and complex technology. It is a kind of organization form adopted by large foreign joint companies. In recent years, some large enterprise groups or companies in China have also introced this kind of organization form
Business division system is a form of hierarchical management, hierarchical accounting and self financing, that is, a company is divided into several business divisions by region or proct categoryfrom proct design, raw material procurement, cost accounting, proct manufacturing to proct sales, the division and its affiliated factories are responsible for independent accounting and operation. The company headquarters only reserves the power of personnel decision-making, budget control and supervision, and controls the division through profit and other indicators
some business divisions are only responsible for directing and organizing proction, but not for purchasing and sales, and implement the separation of proction and supply and marketing, but these business divisions are being replaced by proct business divisions. Others are divided by region. Here is a brief introction to the proct division and regional division
the proct business unit
organizes business activities according to procts or proct series, which has become increasingly important in large enterprises operating a variety of procts
Proct departmentalization is mainly based on the procts proced by the enterprise, which puts the activities related to the proction of a certain proct into the same proct department, and then subdivides the functional departments in the proct department to proce the proct. In the design of this kind of structure, some common functions are often centralized and assigned by the higher authorities to guide the proct departments, so as to achieve resource sharing
The advantages of proct departmentalization are as follows:① it is concive to the use of specialized equipment, and can maximize personal technology and professional knowledge
(2) every proct department is a profit center, and the Department Manager is responsible for the profit, which is helpful for the general manager to evaluate the performance of each department (3) it is easier to coordinate the related functional activities within the same proct department, which is more flexible than adopting the management of functional departments (4) it is easy to adapt to the requirements of enterprise expansion and business diversification The disadvantages of proct departmentalization are as follows:① more talents with comprehensive management ability are needed, which are not easy to obtain
(2) each proct division has certain independent power, which is sometimes difficult for senior managers to control (3) the proct divisions often do not make good use of the functional departments of the headquarters, such as personnel and finance, so that some services of the headquarters can not be fully utilized
regional business division system
(also known as regional division)
for geographically dispersed enterprises, division of departments by region is a common method. Its principle is to centralize the business work in a certain area or region and appoint a manager to take charge of it. Division by region is especially suitable for large-scale companies, especially multinational companies
this kind of organizational structure is often designed with central service departments, such as procurement, personnel, finance, advertising, etc., to provide professional services to various regions
The advantages of departmentalization are as follows:① responsibility goes to regions, each region is a profit center, and the head of each regional department is responsible for the business profit and loss of the region
(2) when the power is delegated to regions, each region has its own special market needs and problems, so it will be more appropriate and practical for the headquarters to let the regional personnel handle it (3) it is concive to regional internal coordination (4) better understanding of customers in the region is concive to service and communication (5) every regional director should undertake all the activities of management functions, which is of great benefit to the cultivation of generalists The disadvantages are as follows:1. With the increase of regions, more and more personnel with comprehensive management ability are needed, which are often difficult to obtain
(2) each region is a relatively independent unit, and e to the limitation of time and space, it is often "high in the sky and far away from the emperor", which makes it difficult for the headquarters to control (3) it is difficult to maintain the centralized economic service work because the headquarters and the regions are far apartin the 23 years of Haier's development, in order to create a mechanism for continuous innovation, maintain the efficient operation of the enterprise and the ability to respond quickly to the market, its organizational structure has undergone a series of dynamic adjustments
at first, Haier implemented the line function system. With the increasing sales volume of Haier, this kind of functional organization structure makes the senior leaders of the company's work complicated, so they have no time to deeply study and properly solve the strategic problems in proction and operation
since 1994, Haier has adopted the organizational structure of business division system. However, for each division, the organizational structure of the division system is still centralized, which is not concive to the long-term development of the division
as a result, Haier once again adjusted the business unit system and established the organizational structure of the business unit system, that is, two profit centers and one cost center were established on the basis of the business unit. The group headquarters has the first level profit center of the group headquarters, the second level profit center of the business division, and the factory is the cost center. In the two-level profit center, the group headquarters is a very important coordination department, and the important profit function is in the two-level profit center
as the external environment of the enterprise changes from the seller's market to the buyer's market, Haier adjusts its organizational structure again, that is, business process reengineering, and merges the functional departments under the business division. Set up overseas promotion business headquarters, overseas sales business headquarters, etc; The distribution finance personnel of the group headquarters manage the finance of each headquarters
after business process reengineering, every headquarters of Haier is a profit center, and there are market relations between departments, up and down processes, and up and down companies, which transforms Haier's external market pressure into internal market pressure, and solves the contradiction of how to maintain its innovation ability after the expansion of Haier Group's scale, And provide personalized innovation space for each employee to meet the personalized needs of customers
PS: because the chart can't be published, I have Haier's organization chart and related articles in my space. You can go and have a look. I hope it can help you.
Haier Group adheres to the full implementation of the international strategy and has established a global design network, manufacturing network, marketing and service network with international competitiveness. There are 18 design centers, 10 instrial parks, 22 overseas factories and manufacturing bases, and 58800 marketing outlets. In the domestic market, the market share of Haier's refrigerator, freezer, air conditioner and washing machine is about 30%; In the overseas market, Haier procts have entered 12 of the 15 Dalian chain stores in Europe and the top 10 chain stores in the United States. In the United States and Europe, the localization goal of "Trinity" of design, proction and sales has been initially realized. All overseas factories are in operation
with the advancement of Haier's internationalization strategy, Haier and international famous enterprises have also developed from competition to multilateral cooperation. On January 8 and February 20, 2002, they established cooperation and competition relations with Sanyo company of Japan and Shengbao group of Taiwan respectively, realizing complementary advantages, resource sharing and win-win development
on March 4, 2002, Haier purchased the landmark building of the former Greenwich Bank building on Broadway in New York City as the headquarters of North America, which marks that Haier's Trinity localization strategy has risen to a new stage, indicating that Haier has established a brand image of localization in the United States. On August 20, 2003, Haier's neon advertisement was lit up in sidingmu, Ginza, Tokyo, Japan. This is the first billboard erected by Chinese enterprises in Ginza, Tokyo, and also a sign of the rising influence of Chinese enterprises overseas
Haier's reputation abroad is expanding day by day: according to the latest survey results of Euromonitor, a global authoritative consumer market research and analysis organization, according to the company's sales statistics, Haier Group currently ranks the fifth among the global white appliance manufacturers, and according to the brand sales statistics, Haier has risen to the second largest white appliance brand in the world. In January 2003, the Financial Times published the list of the most respected enterprises in the world in 2002, and Haier ranked first among the most respected enterprises in China. On December 7, 1999, the financial times ranked "30 most respected entrepreneurs in the world", and Zhang ruiminrong ranked 26th. In August 2003, Fortune Magazine selected "25 most outstanding business leaders in the United States and the world outside the United States". Among the "25 most outstanding business leaders in the world outside the United States", Zhang Ruimin, CEO of Haier Group, ranked 19th
in response to the challenges of network economy and China's accession to the WTO, Haier began to implement business process reengineering (BPR) with market chain as the link in 1998, focusing on order information flow to drive the movement of logistics and capital flow, speeding up the realization of the "three zeros" goal of zero distance with users, zero inventory of procts and zero operating cost. Business process reengineering enables Haier to create new resources on the basis of integrating internal and external resources. At present, Haier's logistics, business flow, manufacturing system, etc. have begun to operate socially all over the world. In 2002, Haier created new resources and made great achievements in home furnishing, communication, software, finance and other fields. In 2003, Haier was allowed to preside over the formulation of four national standards, which indicates that Haier has changed the competition among enterprises from technology level competition and patent competition to standard competition
Haier's innovation and contribution in management and corporate culture have also attracted the attention and high praise of the world's management circles. At present, more than 10 cases of Haier have been included in the MBA case base of world famous universities such as Harvard University, European School of business administration, Switzerland's Lausanne School of international management, and have become the general teaching materials of global business schools
the development theme of Haier is speed, innovation and SBU. 30000 Haier people are striving to become SBU operated by everyone
Haier's short-term goal is to become one of the top three white appliance manufacturers in the world, and on this basis, to hit the top of this field.
1. OEC management mode
Haier has created OEC (overall every control and clear) mode by learning from foreign advanced management methods, namely the management mode composed of target system, Riqing system and incentive mechanism, which is called Haier's management mode
2. "Market chain" debt mechanism
since 1999, Haier has innovated its management mode: Implementing "market chain" SST debt mechanism
3, 80 / 20 responsibility principle
Haier Group flexibly applies "matlay rule", also known as 80:20 rule, to cadre management. That is to say, from the perspective of management, we should take 80:20 as the ratio, focus on the key people, key links and key projects, that is, 20% to drive 80%
extended materials
Haier Co., Ltd.
Qing Haier Co., Ltd. was founded on April 28, 1989. It is a joint-stock Company Limited by directional fund-raising based on the reorganization of the former Qing refrigerator factory
the company issued shares to the public on October 12, 1993, and was listed and traded in Shanghai Stock Exchange on November 19. The stock name is Qing Haier, and the stock code is 600690. In the past ten years, the company has made great progress
Introction to Haier
Haier Group is the first brand of white household appliances in the world and the most valuable brand in China. Haier has established 29 manufacturing bases, 8 comprehensive R & D centers and 19 overseas trading companies in the world, with more than 60000 employees worldwide, and has developed into a large-scale multinational enterprise group
