That is not an easy orientation to bring about. One important reason that people tend to focus so much on their
bosses is that their pay is determined by those bosses. So the second thing that I am currently very focused on is ensuring
that compensation provides an incentive for employees to behave in a market-driven way. We’ve changed
things such that Haier employees are rewarded in large part according to the performance of their teams. If a project
group is asked to increase the gross profit margin of a certain product from 8% to 10%, it might go about that in any
number of ways. It might change the product design, improve the manufacturing processes,figure out a way to pay
less for raw materials, or make other changes. Regardless of whether the group does this in the way I or some
other member of management would, if the task is accomplished, every member of the team gets a bonus in line
with his or her respective contributions. In fact, Haier does not have a positionrelated compensation system at all.
Instead of being paid according to their titles, employees are paid solely for results. It’s no surprise that people who
leave the company are often heard complaining about the low salary they received from Haier!