The middle-management revolution in Haier’s organizational transformation
Product Number：
EN_2023ZZXW_1658
Page Views：
186
CaseName：
The middle-management revolution in Haier’s organizational transformation
Authors：
Wang Fengbin, Wang Yangwen，Zhang Xue, and Zheng Tenghao
Author Affiliation：
Renmin University of China
Enterprise/Organization：
Haier Group
Industry：
Manufacturing
Discipline：
Organizational Behavior
Scale：
Large
Language：
English
Type of Case：
Decision Case
KeyWords：
Organizational Change; Platform Organizational; Small and Micro Entrepreneurship; Middle Management Chang
Abstract：
The proliferation of the Internet, changes in value propositions, and value creation methods have promoted a transformation of the traditional pyramidal organizational structure to flat and networked ones. Thus, many middle managers face an existential crisis. Zhang Ruimin’s move to remove more than 10,000 middle managers in the Haier Group was once interpreted as “flattening.” Later, Zhang Ruimin emphasized: “Enterprises should not be flattened, but should be networked. In the Internet era, companies either own platforms or will be owned by platforms.” What is the relation between networking and platformization? Would middle managers be eliminated, or will they be reborn? How did Haier change and reconstruct its hierarchy organization structure on the road of "suicidal rebirth"? In the ascendant wave of “organizational flattening,” are middle managers going to be eliminated, or will they find a new space in which to thrive by cultivating new competencies? Lu Kailin stepped away from his comfort zone in Haier's notebook division and successfully founded Thunderobot, Haier's first incubated micro-enterprise. He epitomizes the effect of Haier's organizational change on middle managers. Lu Kailin rose to the challenge and bravely moved forward. By conforming to the organizational change, he successfully transformed from a middle manager into a micro-enterprise owner, going on to become a business platform owner, which embodies the co-evolution with Haier's organizational platform.
Intended Audience：
U ndergraduate、MBA、EMBA
Data Source：
Primary
Publication Date：
2019
Revision Date：
2023
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