ORGANIZATIONAL BEHAVIOUR
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Organisational BehaviourConduct a critical appraisal of the organisation's structure, highlighting whether you feel it to be appropriate for the environment within which the organisation operates;Select one aspect of organisational behaviour and critica Introduction
The Chinese company Haier has enjoyed phenomenal growth during the last eighteen years. It has been transformed from a loss making provincial factory on the verge of bankruptcy, to become the sixth largest domestic appliance manufacturer in the world. This incredible growth is attributed to the resilience, vision, and leadership of the CEO Zhang Ruimin. Haier's structure and the appropriateness to its environment will be examined. In addition the relationship between Zhang Ruimin's leadership style and the structure will be evaluated, leading to overall recommendations how either, or both of these aspects may be made more efficient and effective.
Outline of company and its environment
In 1984, in Qingdao City in Shandong province of the Peoples Republic of China, (PRC), the near bankrupt Qingdao Refrigerator Company manufactured a single range of refrigerators using imported technology from Germany. Since then, this inefficient and ailing company has grown into Haier Group Co. (Haier), a global manufacturer of Domestic Appliances with a turnover of $5 billion in 2001 and now ranked the 6th largest Domestic Appliance manufacturer in the world .
The number of employees has risen from 800 to 30,000 and it now produces 86 different categories of goods with 13,000 different specifications. These range from refrigerators, air conditioner units, and washing machines, to electronic goods and beyond...