(Tiểu luận) humanistic management and strategictransformation of a us funded chinesecompany

FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION ………….oOo………… HUMAN RESOURCE MANAGEMENT Report on case study: Wahl (Ningbo) – Humanistic Management and Strategic Transformation of a US-funded Chinese Company Lecturer: PhD Ngo Quy Nham Course code: QTRE403(GD2-HK2-2223).1 Group members: Đỗ Diệu Linh Nguyễn Trúc Linh Nguyễn Dương Nhật Mạnh Trương Tú Quyên Vũ Duy Thanh Nguyễn Hà Thuỷ Tiên 2012250041 2111210063 2113250024 2013250025 2112250088 2011150212 Hanoi, June 14, 2023 TABLE OF CONTENTS A INTRODUCTION B I CASE EVALUATION & IDENTIFY PROBLEMS Summarize case situation About Wahl Ningbo Summarize organizational strategic change in company 3 II Evaluate the opportunities and challenges of strategic change to the company Opportunities Challenges 4 III Identify case problems & key objectives Identify the root cause of problems Identify the key objectives 5 C SOLUTION RECOMMENDATIONS I Sale Department Problem 1: Develop a culture that fits the sale department Problem 2: Apply traditional Chinese culture to increase sales revenue: 6 II R&D Department Problem 1: R&D is a new department, so the company does not have a specific plan to train and develop personnel for this department Problem 2: Company has not had suitable cultural framework for R&D department 10 D RISK MITIGATION - A PLAN FOR RESISTANCE TO CHANGE 10 E TIMELINE FOR SOLUTIONS 11 F CONCLUSION 12 G REFERENCES 12 A INTRODUCTION In this report, our group will analyze Wahl Clipper Ningbo Ltd.'s misalignment between humanistic management principles and the strategic transformation of the company Due to the limits of the current corporate culture and human resources management methods, the company encountered difficulty in meeting its Sales and R&D goals As a result, the corporation realized the need for strategic change to stimulate innovation and collaboration to fulfill its strategic objectives The study begins with a history and background of the company, followed by a discussion of the obstacles it faced and the primary drivers of its strategic transformation Finally, the paper finishes with an examination of the techniques recommended for Wahl Clipper Ningbo Ltd to communicate effectively with the Sales and R&D department and meet the five-year strategic goals B CASE EVALUATION & IDENTIFY PROBLEMS I Summarize case situation About Wahl Ningbo Wahl (Ningbo) is a wholly owned subsidiary of Wahl, located in Zhejiang Province, China Initially, it was a manufacturing plant for Wahl products such as electric clippers, hair trimmers, and massagers In 2018, Wahl defined its corporate culture as the "Wahl Way," emphasizing the company's values, management, and business philosophy The company emphasizes its "Wahl Way" corporate culture, focusing on long-term sustainability rather than short-term profits and caring for employees By following this philosophy and committing to employee trust and respect, Wahl has achieved 15 consecutive years of profitable operations worldwide Summarize organizational strategic change in company In 2018, Wahl (Ningbo) was on the verge of bankruptcy due to various internal management issues In response, Qian Moxing was appointed as a general manager at the time of the crisis and initiated a series of personnel management reforms by integrating traditional Chinese cultural values teachings into Wahl (Ningbo) They introduced management reforms to encourage 'working and living happily for common development', and focus on employee benefits Within a few years, Wahl (Ningbo) transformed and experienced positive impacts on both human resources and financial performance However, this reform led the US-based headquarters to adjust the strategic positioning of Wahl (Ningbo) when they see a very potential opportunity to develop within China domestic market: from a manufacturer to an enterprise integrating independent R&D, production, and sales and from a producer of middle and low-end products for overseas households to a manufacturer of high-end products for Chinese hair salons With this strategic positioning reform, what opportunities and challenges does Qian and his company have to face ? II Evaluate the opportunities and challenges of strategic change to the company With the strategic positioning reform shifting Wahl (Ningbo), Qian and his company face both opportunities and challenges Opportunities Tap into the Growing Chinese Domestic Market: With China being the most populous country globally, there is a massive customer base to target Moreover, the beauty industry in China is thriving, with a strong demand for hair care products and services, and the country often sets beauty trends Hence, the company can capitalize on this market to expand its reach, increase market share, and establish a strong presence Integration of R&D, Production, and Sales: The reform presents an opportunity for Wahl (Ningbo) to optimize its operations by integrating R&D, production, and sales This integration allows for better coordination, improved efficiency, and the ability to tailor products to meet the specific demands of the high-end Chinese hair salon market Challenges Lack of experience to operate 02 new departments: Without a history of operating R&D and Sales departments, the company may lack established processes, methodologies, and best practices in these areas This can hinder the efficiency and effectiveness of these departments Require a shift in corporate culture for better fit: Another challenge arises from the company's existing workforce, which primarily consists of employees experienced in manufacturing Integrating R&D and Sales into the existing organizational structure may require a shift in mindset and skill sets for the current employees, leading to a shift in corporate culture for a better fit III Identify case problems & key objectives Identify the root cause of problems The problem identified in the case study is the misalignment between humanistic management principles and the strategic transformation of the company, shown at 02 significant challenges in terms of personnel a The company failed to establish a comprehensive and tailored human resource development plan for its two new departments, R&D and Sales Previously, Wahl (Ningbo) implemented effective human resource development plans for the production department However, with the addition of Sales and R&D departments, a one-size-fits-all approach is challenging Consequently, as a new division, the company is facing a significant challenge in how to build and develop a team of skilled personnel for its R&D and Sales departments In the highly competitive Chinese market, the company requires individuals with creativity and technical skills in the R&D department to identify customer demand However, most employees lack the necessary qualifications, resulting in wasted resources and higher product prices This can lead to a loss of potential customers b The company encountered challenges in successfully integrating and instilling the principles of traditional Chinese culture within the two newly established divisions Wahl (Ningbo) successfully integrated traditional Chinese culture into its corporate culture, primarily in the production department However, the challenge arises when applying this culture to the R&D and Sales departments Employees in these departments struggle to find a relevant company culture that aligns with their specific needs In the sales department, managers believe a culture emphasizing competitiveness and adaptability would better drive performance, rather than traditional Chinese cultural practices Identify the key objectives In response to the aforementioned challenges, our team has identified two key objectives that require attention: Document continues below Discover more from: Human Resources Trường Đại học… 196 documents Go to course Tutorial - for revision 55 Human Resources 100% (17) Chapter 05 - Human 46 resources… Human Resources 100% (2) HRM - NOTE 52 Human Resources 100% (1) Chapter 12 pay for 47 performance and… Human Resources 100% (1) Hrm-testbank74 chapter - chap2… Human Resources 100% (1) a Establish a comprehensive and tailored 19 Human Resource good human Human resource Resources development plan for its R&D department b Successfully integrating and instilling the principles of traditional Chinese culture within the Sales department C SOLUTION RECOMMENDATIONS I Sales Department Problem 1: Develop a culture that fits the sale department a Step 1: Identify the salesperson's portrait To create a culture fit with desired traits, companies should reflect the characteristics of their salespeople Firstly, persistence is essential for salespeople to secure a purchase, as deals are rarely closed in the initial meeting Secondly, ambition drives excellent salespeople Salespeople are motivated to exceed quotas and provide exceptional service, and some companies offer commission-based salaries to further motivate them Patience is required in cases where the sales process takes longer due to customer concerns or the need for additional evaluation Independence is another trait that defines successful salespeople Salespeople are often self-driven, allowing them to achieve their objectives with minimal guidance Honesty is essential in sales, as it can lead to repeat purchases, recommendations, and positive online reviews Empathy is also essential for salespeople to build trust and understand their clients, which can lead to long-lasting relationships Finally, their competitive spirit fuels their desire to excel and meet the expectations of the business b Step 2: philosophy: Combination of Eastern and Western cultural 100% (1) We use Hybrid culture to identify combination of Eastern and Western culture: ccombining traditional Chinese values with a results-driven mindset Open dialogue and consultation between leadership and departments is essential to understand their challenges and expectations, and to create a culture that meets their needs while upholding the organization's core values Identify the right combination of Western and Eastern culture to help the sale department operate more fluently: Traits China culture US culture Persistent The Chinese are slow decision makers, preferring to build consensus and foster relationships before taking action Deadlines may only be met when the project is complete Ambitious China people they would like to achieve a high goal in their life Patient Chinese people will avoid confrontation to save face, as shouting at someone can damage a relationship This is why Chinese executives will often avoid giving a straight answer in order to save the other person's face Independence US people they like to work independently as they can control the job Honesty Both Both Empathy Chinese will try to forge relationships and connections, known as guanxi Trust is essential before doing business Colleagues tend to socialize together as part of relationship building and business entertainment is lavish Competitive In US, you need to make the most of yourself and let people know about your successes Problem 2: Apply traditional Chinese culture to increase sales revenue: a Short-term solution: Leading by example: Qian emphasizes that managers should be the first to learn and engage in activities By following the principle of "educator should be educated first," managers can motivate employees, build trust, and increase accountability Lecture a small group: Instructor-led training is an effective technique for gaining a deep understanding of Chinese culture and its application in business concepts It involves lecture-style presentations, visual aids, and inviting experts The company has successfully applied this method in the past Behavior modeling: Training sessions involve observing others demonstrating desired behaviors, followed by opportunities for participants to practice those behaviors themselves Sessions can focus on specific interpersonal skills, such as communication or coaching Cross-cultural experiences: Encourage employees to engage in activities like attending cultural festivals, volunteering with cultural organizations, or participating in exchange programs Qian and 30 other employees have previously participated in the Chinese classic reading camp to deepen their understanding of Chinese culture Peer-to-peer learning: Employees can share ideas, teach each other effective ways to participate in Chinese culture, and manage each other's participation and adjustment b Long-term solution: Integrate Traditional Values into Strategies: Integrate traditional Chinese cultural values into sales strategies, emphasizing trust-building and long-term relationships over short-term profits Emphasize filial piety and respect for elders to enhance customer satisfaction Foster a Supportive Environment: Create a workplace that encourages open dialogue and sharing of experiences related to traditional Chinese culture Organize team discussions, cultural events, and celebrations to appreciate and apply traditional values at work Design job specifications that emphasize require employees to have a specific level of knowledge about the Chinese cultural 10 II R&D Department Problem 1: R&D is a new department, so the company does not have a specific plan to train and develop personnel for this department Solutions for this problem follow step by step to the strategic HRM model a Step 1: Recruiting A recruitment plan should target individuals with the necessary skills and experience for R&D roles, using creative acquisition strategies such as partnering with academic institutions, leveraging social media, implementing referral programs, and interviewing industry experts b Step 2: Selection Advanced technology for efficient resume screening and consider diverse candidates from various backgrounds to foster innovative thinking in the R&D team c Step 3: Training and development Develop a comprehensive plan involving formal training, on-the-job learning, coaching, and mentorship Incentivize staff participation, prioritize market research skills, and use digital visualization tools to improve customer satisfaction d Step 4: Compensation Develop a competitive total rewards package including salaries, bonuses, equity packages, and employee benefits Consider alternative pay models to promote work-life balance and flexibility e Step 5: Performance management 11 Establish a performance management system aligned with R&D objectives, focusing on innovation, creativity, and quality Provide continuous feedback and offer a Performance Improvement Plan (PIP) when necessary f Step 6: Employee relations Create an employee engagement plan to foster a positive work environment, work-life balance, and open communication Offer support for mental health and stress management through Employee Assistance Programs (EAPs), explore methods to enhance employee motivation, and address potential obstacles to future departmental development Problem 2: Company has not had suitable cultural framework for R&D department The recommended cultural framework for an R&D department should prioritize innovation, a learning culture, and collaboration It should encourage the exploration of new ideas and concepts without fear of failure, provide resources to stay up-to-date with industry trends, foster collaboration among team members, emphasize attention to detail, learn from failures, and be open to change Incorporating aspects of both traditional Chinese and Western cultures can highlight distinct values while ensuring adaptability to evolving employee needs D RISK MITIGATION - A PLAN FOR RESISTANCE TO CHANGE When implementing a strategic transformation, it is important to anticipate and address potential resistance to change To effectively mitigate resistance and ensure a smooth transition, Wahl (Ningbo) should consider the following plan 12 Communicate the Need for Change: Clearly communicate the benefits and reasons behind the transformation, emphasizing the market potential in China and the opportunity in the beauty industry Engage and Involve Employees: Involve employees in decision-making, encourage active participation, and recognize their contributions for ownership and commitment Provide Comprehensive Training and Support: Address skills and knowledge gaps through training programs and mentorship, empowering employees to succeed in new roles Address Concerns and Provide Create a Guidance: supportive environment for employees to express concerns and seek guidance, addressing their concerns transparently and providing timely support Recognize and Reward: Implement a recognition and rewards system to celebrate employees' efforts, reinforcing positive behavior during the transition Manage sentiment, Resistance involve change Proactively: Assess champions, effectively and employee communicate the benefits of the change to proactively manage resistance Adjust the Change Plan: Regularly assess progress, gather feedback, and make necessary adjustments to the change management plan to be responsive to employee needs Provide Leadership Support: Equip leaders with the necessary skills to guide their teams through the change process, providing support and guidance Following these points, the company can navigate transformation, foster a positive change culture, and ensure the long-term success of the initiative 13 the 14 E TIMELINE FOR SOLUTIONS F CONCLUSION In conclusion, Wahl Clipper Ningbo Ltd is confronted with the critical task of harmonizing its humanistic management principles with the strategic transformation it is undergoing The integration of traditional Chinese culture into the newly established R&D and Sales departments offers a unique set of opportunities and obstacles that the company must navigate to thrive in the competitive landscape of the Chinese domestic market By implementing the recommended solutions outlined in this report, Wahl Clipper Ningbo Ltd can successfully navigate these challenges and leverage the potential of the Chinese domestic market 15 G REFERENCES Indeed Editorial Team (2023) 18 Key Qualities for Successful Sales Professionals TMA World (2019) 10 Cultural Differences Between China and the US Löfstedt, R., & Kasperson, R E (1999) Risk management in a dynamic society: A modeling problem AMACOM Div American Mgmt Assn Elliott, M W (2017) Risk management: principles and practices Routledge Layton, M., & Smith, C (2017) The art of risk management: lessons from leading practitioners around the world John Wiley & Sons Hull, J C (2018) Risk management and financial institutions John Wiley & Sons Institution of Civil Engineers (2004) Risk analysis and management for projects Thomas Telford 16 More from: Human Resources Trường Đại học… 196 documents Go to course Tutorial - for revision 55 46 Human Resources 100% (17) Chapter 05 - Human resources… Human Resources 100% (2) HRM - NOTE 52 47 Human Resources 100% (1) Chapter 12 pay for performance and… Human Resources 100% (1) Recommended for you 24 Đề cương môn Khoa học quản lý quản lí hành chín… 100% (1) Tutorial - for revision 55 46 Human Resources 100% (17) Chapter 05 - Human resources… Human Resources 100% (2) HRM - NOTE 52 Human Resources 100% (1)