Haier

Haier CEO Meets with GE ex-CEO to Discuss Enterprise Operations GE ex-CEO Jack Welch creates performance culture to encourage employees to shoulder heavier responsibilities. On November 6, Haier CEO Zhang Ruimin met with GE ex-CEO Jack Welch and had lunch with the latter at the home of the President of Northeastern University in Boston. Zhang gave an introduction to how Haier had grown from a small factory on the verge of bankruptcy into world's fourth largest white appliance group. Welch, with much interest, had a long discussion with Zhang on the issue of enterprise management, such as delegating power to the lower levels, establishing independent operation bodies, etc. "What GE has created and developed is a kind of performance culture. We encourage employees to shoulder heavier responsibilities and create their performances. When they have shouldered their responsibilities, they know their future will be bright. However, if they haven't taken any responsibility, they know they won't have good result. Such culture has been integrated into the overall operational system of the enterprise", said Mr. Welch when talking with Zhang about independent operation. When they came to the issue of "delegating power to lower levels and losing control", Welch said, "GE has a perfect financial system, and if anyone attempts to go beyond his/her power to transgress the system, the system will automatically give a warning. The system is even more experienced than me." It is recalled by Diao Yunfeng, person in charge of Haier CMI Overseas Areas who was on the scene that day, that what impressed him most in the talks between Welch and Zhang is that Welch said when they discussed the differences in management between Chinese and American enterprises, "The cultures between China and America is totally different. As a result, the enterprise management method that works well in US enterprises does not necessarily work in Chinese enterprises. China should make management innovations of its own corporate culture."