Haier Europe: The Challenge of Implementing RDHY in a Multinational Environment

Even though it is a subsidiary of Haier, the implementation of RDHY in Haier Europe is far from straightforward. Haier Europe is a complex mix of regional companies, languages, norms, habits, and cultures. Implementing a business model developed in China in such a heterogeneous environment is not a task for the faint-hearted. This chapter explains how Haier Europe has carefully introduced RDHY in such a delicate environment, translating Haier’s values into an understandable language. The chapter also details how Haier Europe has redefined its organizational architecture to embrace the micro-enterprises structure of its parent company. Furthermore, the chapter addresses the challenge of transforming employees into entrepreneurs in a European context, where employees traditionally are not accustomed to taking on entrepreneurial responsibilities and place a high value on their leisure and family time. Haier Europe also integrated this entrepreneurial attitude into its incentive structures, aligning rewards with the principles of RDHY. This meant designing incentive systems that recognize and reward innovation, accountability, and performance, while also respecting employees’ need for work-life balance.