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

INTRODUCTIONIn this report, our group will analyze Wahl Clipper Ningbo Ltd.'smisalignment between humanistic management principles and thestrategic transformation of the company.. In 201

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 2012250041

Nguyễn Trúc Linh 2111210063

Nguyễn Dương Nhật Mạnh 2113250024

Trương Tú Quyên 2013250025

Vũ Duy Thanh

Nguyễn Hà Thuỷ Tiên

2112250088 2011150212

Hanoi, June 14, 2023

TABLE OF CONTENTS

B CASE EVALUATION & IDENTIFY PROBLEMS 3

2 Summarize organizational strategic change in company 3

II Evaluate the opportunities and challenges of strategic change to the

III Identify case problems & key objectives 5

1 Identify the root cause of problems 5

1 Problem 1: Develop a culture that fits the sale department 6

2 Problem 2: Apply traditional Chinese culture to increase sales revenue: 8

1 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 9

2 Problem 2: Company has not had suitable cultural framework for R&D

D RISK MITIGATION - A PLAN FOR RESISTANCE TO CHANGE 10

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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

1 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

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2 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

1 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

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often sets beauty trends Hence, the company can capitalize on this

market to expand its reach, increase market share, and establish a

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

2 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

1 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

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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

2 Identify the key objectives

In response to the aforementioned challenges, our team has identified two key objectives that require attention:

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a Establish a comprehensive and tailored human resource

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

1 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: Combination of Eastern and Western cultural

philosophy:

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Human Resource -good

Human Resources 100% (1)

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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

1 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

2 Ambitious China people they would like to

achieve a high goal in their life

3 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

4 Independence US people they like to

work independently as they can control the job

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6 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

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Competitive In US, you need to

make the most of yourself and let people know about your successes

2 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

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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

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II R&D Department

1 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

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