THE IMPACT OF GLOBALIZATION ON HAIER
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THE IMPACT OF GLOBALIZATION ON HAIER
People across the world have been interacting with other cultures in numerous ways, many of them for economic reasons. Integrating the insights of the past, one could envisage that it was difficult initially for people to communicate and do business together. However, these obstacles still subsist even in today in international business. Despite that, our world has become undoubtedly smaller in the last decades, cultural and geographical contexts still take place in shaping different societies and their methods of relations. The term globalization is ...view middle of the document...
At this time the company was facing insolvency with a debt of 1.47 million RMB and had 800 staff members (Gareth , 2001:420). Due it its persistency and continued innovation, the company has succeeded in setting up 10 industrial parks world wide and 22 other plants overseas. According to ChinaAbout.net (2013),
“Haier Company has established itself as a global manufacture and enabling timely action to satisfy local user needs for quality Haier products that in turn greatly anchors the company to achieve its goals of world-class brand”.
This involves a new commercial reality in which products and ideologies have been standardized in an unimagined scale of magnitude in the global markets. This is observable in Haier Group Company as a corporation that has geared to this technological reality benefits from enormous economies of scale in the market chain at large.
Through the help of globalization, Haier Company has been able to integrate its organizational structure in order to help achieve its set goals. Apparently, it is using divisional structure under the product divisions in order to help the companies in each group to produce similar product lines. However, the company has further used functional and matrix structures under globalization to benefit from the economies of scales. In addition, when similar departments are combined under the original product division into a distinct functional department, replication of personnel and equipment would be abridged. On the other hand, adoption of the matrix structure adoption has helped achieve equilibrium through specialization and cost management in Haier Group Company. This is echoed from the impact of globalization that has brought about commonality across the world (Suo and Bardhan, 2013:202).
Over decades, the company embraced on the task and relationship behavior and this contributed much in integrating the follower’s capacity of motivation, aptitude, experience as well as interest in accommodating responsibility. The actual leadership styles observed in this company are telling, participating, selling, and delegating. However, in the current leadership style observed as the effect of globalization is based on its unique strategy. This resulted from the realization of the changing market where the company found out that the domestic consumers would soon have quality options from overseas competitors. Due to this, the company embraced on the participation style by giving the employees a sense of belonging. The objective of these measures is to meet employee’s emotional needs and provide many opportunities to make them participate in the company. Men are excellent business leaders and have assisted in generating incredible amount of wealth for their companies as well as investors (Li, 2005:301). Zhang Ruimin has helped in inventing many great products with customers’ specifications and has revolutionized the concept of modern...