Organizational Behavior

Another solution can be seen in 3M. In this case an extra layer of management was placed between headquarters and the divisions to ensure continuity between divisions towards achieving company goals, the Sector structure . This could be adapted for Haier as a measure for overcoming the loss of the leader. Successful achievement of this would rely upon Zhang Ruimin developing Individualised consideration now, to groom this new layer of management to achieve the same level of efficiency and effectiveness to that found currently.
We have offered two possible solutions to this area of concern, though many more may be available. The important point remains, however, that Zhang Ruimin needs to act now if he to protect the business he has worked tirelessly for eighteen years to build.
Overall conclusion
The current structure of Haier is not only appropriate to the rapidly expanding environment, but has efficiently and effectively contributed to phenomenal growth. The linkage between the structure and Zhang Ruimin's Transformational leadership style is also highly efficient and effective, overcoming deficiencies associated with the Divisionalised form, and building a hugely motivated, committed and innovative workforce.
However, the continued reliance on the leader could result in a dramatic collapse of that effective linkage, and result in a serious catastrophe for Haier.
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