Title
Market Economy Model of Chinese Management-Case of Haier-
Abstract
To explore a new style of Chinese management by the case study of Haier
is the objective of this paper. Haier is the largest consumer electronics
company in China. Wages of workers are only based on piece rate and determined
by the rightly done jobs and the defects in their jobs. The evaluation
of workers for wages is individualistic, instantaneous, quantitative, monetary,
competitive and open. There is practically no room for discretional evaluation
by supervisors and managers. Engineers who want to become the heads of
new product development projects apply for the position with new product
development plans (open competitive bidding). The salary of project managers
and their subordinate engineers is determined by the market performance
of new products such as the sales, the quality claims from customers and
the costs of new products. Haier's management is based on the market principles
of economics. It is the market economy model of management. And it is spreading
among growing Chinese companies. We may say that they are more capitalistic
than Japanese companies and even American companies.
Hideki YOSHIHARA
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: (81) 78 803 7036
Fax: (81) 78 803 7059
Tao Hua OU-YANG
Tsinghua University and Zhongshan University, China