Haier is a leader in the white goods industry. Haier has always been perceived as a low cost white goods. Aware of the importance of the internet of things and connected objects. Haier led a huge transformation and did a lot of investment in human resources and in research and development. From 2013 to 2014, Haier had laid off approximately 26000 workers, and most of the staff were mid-level employees. (Job Market Monitor 2014). It undertakes a strategy to increase networking and encourages micro-enterprise within the company working on research and development Xu et al. (2006).
The aim was to transform employees into innovators and to follow the advancement in the internet age. In 1984, Haier was a troubled state-owned company making losses. The employees lack discipline and have poor attendance. The company was an obligation to make a radical change to this situation. The change starts from human resources and management decides to lay off 26000 workers. Now, Total quality management is everywhere, the company rewards talents. Employees are encouraged to innovate. high levels of innovation can’t be reached if TQM was not implemented first. Now, new levels of quality and reliability are set. Company four reinventions Xu et al. (2006)
Due to these decisions, Employees are getting more innovative and creative. It helps Haier to keep a closer relationship with customers and provide personalized user experience. It saves labor costs and spends more effort on innovation.
- More interaction with customers,
- More efficient,
- self-managed teams.