Gree Company’s management methods

Gree Company’s management methods are well known. Dong Mingzhu, chairman of Gree Group, is upright and resolute in her work. Her company management philosophy and management experience have been widely used in many companies. Be the best in the family. Let’s take a look at Gree’s management methods. Gree Company’s management method 1

1. When Gree first arrived, he single-handedly pioneered the industry

In the early 1990s, the domestic air-conditioning sales market was still in a barbaric pioneering period. Manufacturers and distributors of air-conditioning appliances generally implement the "delivery first, pay later" transaction model. It is common for dealers at all levels to default on payment, causing many merchants to be saddled with "triangular debt."

In 1990, 36-year-old Dong Mingzhu first arrived at Gree as an ordinary salesman. Soon after, Dong Mingzhu was transferred to work in Anhui, but what she inherited was a mess in which "the merchant owed Gree 420,000 yuan in payment."

Dong Mingzhu has no obligation to take care of this matter, but Dong Mingzhu regards the company's affairs as her own business. Dong Mingzhu believes that since he has taken over the Anhui business, he should take on the responsibility of collecting debts for the company.

Dong Mingzhu besieged the dealer day by day. After more than 40 days of hard work, the dealer finally confessed to Dong Mingzhu that he was insolvent. So Dong Mingzhu arranged for someone to take away the other party's existing goods to offset the debt, and ultimately avoided this loss for the company.

Since then, Dong Mingzhu has set a rule to abandon the traditional "delivery first and pay later" model. When purchasing goods, dealers must "pay first and then ship the goods." At that time, Gree Chairman Zhu Jianghong was well aware of the seriousness of the company's "triangular debt" problem and was very supportive of Dong Mingzhu.

Since 1992, the "pay first, then deliver" model has been very successful and has been extended to the entire home appliance industry. It can be said that Dong Mingzhu has set the rule of "pay first, then deliver" in the home appliance industry.

2. Dong Mingzhu: Even my own brother cannot seek public benefit for personal gain

In 1995, the air conditioning industry was developing rapidly, and Gree air conditioners were in short supply. At this time, Dong Mingzhu was already the business manager of Gree Electric Appliances and had control over Gree's inventory.

A merchant wanted to be given priority in picking up goods, so he approached Dong Mingzhu’s brother for help and promised a 600,000 rebate. So my brother went to Dong Mingzhu to explain his intention, but Dong Mingzhu decisively refused. Afterwards, the brother approached Dong Mingzhu’s mother to lobby, but Dong Mingzhu still firmly said two words: "No."

This incident also caused the Dong Mingzhu brother and sister to stop communicating with each other. The dealer was also blacklisted by Dong Mingzhu.

It was not until Dong Mingzhu's brother fell ill and was hospitalized in 2005 that the two reconciled again.

Dong Mingzhu once said: No matter how great the power I have now, it belongs to the public and must be balanced by a bowl of water. It is absolutely not for the sake of benefiting the family or using public affairs for personal gain. Otherwise, if all employees follow suit, Gree will have no future.

"Iron Lady" Dong Mingzhu may seem ruthless and does not "take care" of her family, but she is the most steadfast and has warmth and self-discipline engraved in her bones.

Even if you are a close relative, you will not lose your principles.

3. Enterprise management, nothing can be achieved without rules

In terms of talents, Dong Mingzhu has always insisted: There can be no success without rules.

Gree once introduced a doctorate from Tsinghua University, and Dong Mingzhu valued this talent very much. But after this postdoctoral fellow from Tsinghua University came to Gree, he did not concentrate on technology research and development, and spent all day calculating kickbacks with dealers.

In 2001, Dong Mingzhu launched Gree’s internal “style rectification” and was the first to expel the Tsinghua doctor. Dong Mingzhu warned Gree employees: No matter how capable or highly educated they are, Gree will not want “talents” whose conduct cannot keep up.

In March 2020, a Gree driver violated company regulations by having a private dinner and was summarily fired by Dong Mingzhu, along with his department leaders. Some employees think: This is too unkind. Leaders do not have the ability to supervise employees 24 hours a day. If employees make mistakes, why should even the leader be dismissed?

Dong Mingzhu responded: Special period, special policy. The department is under the responsibility of the leader. If there is a problem in the department, the leader is the first responsible person.

Some people believe that Dong Mingzhu’s management model is too tough, unreasonable and does not conform to the modern business model. But a company's ability to gain a firm foothold in the competition and provide employees with a stable working environment depends on leaders like Dong Mingzhu.

In July 2020, Dong Mingzhu once talked about Huawei's "corporate wolf nature". Dong Mingzhu said: The wolves have a clear division of labor and fulfill their duties. Dare to compete within the rules and refuse to admit defeat, this is the spirit of Gree.

4. Conclusion

The management philosophies of Dong Mingzhu and Ren Zhengfei are the same: there is no rule without rules.

Dong Mingzhu’s “iron-fisted” management laid the foundation for Gree’s success, and at the same time cultivated a group of Gree employees who abide by the rules and have strong execution capabilities.

Dong Mingzhu said: Execution is the principle, there is no bargaining.

Gree's management method 2

Corporate culture

Gree's culture is based on the core values ??of "honesty, trustworthiness, honesty, innovation and courtesy" and "loyalty, friendliness, diligence and enterprising spirit". " is the spirit of enterprise and the pragmatic work attitude of "talk less empty words and do more practical work", making world-class products and serving the world. The company is people-oriented and respects its employees.

Establish a full-scale human resources system that trains, trains, appoints, and promotes people on their merits and gives full play to their talents; requires employees to treat colleagues, customers, and related parties with courtesy; respect leadership; enforce orders and prohibitions; and unite colleagues ; Cooperate sincerely; treat others equally and treat others in a friendly manner.

Profit model

Gree relies on its strong brand influence, continuous innovation of cutting-edge technology, and excellent product quality to provide consumers with high-quality products. Air-conditioning products and service levels create maximum profits for dealers, help dealers grow and innovate independently. This is the development creed of this China's only large electrical appliance manufacturer focusing on air-conditioning products.

At Gree, we have always adhered to the principle that "you will be given as much as you want to invest in technology, and you will be given as much as you want to spend." Gree's emphasis on independent innovation is evident. Gree proposes that "service without after-sales is the best service" and strives to establish a service system with product quality as the primary guarantee.

In enterprise management, systems and norms are guarantees

Without rules, it is impossible to achieve perfection. Dong Mingzhu has always been vigorous and resolute in management, advocating the system to manage people. It is notorious in the industry for being tough on its employees.

Because in her view, details determine success or failure, and corporate governance must adhere to principles and abide by systems. Therefore, a set of "people management" systems suitable for the actual situation of the enterprise is the most important guarantee for the long-term stable operation and development of the enterprise.

Dong Mingzhu said, "Excellent entrepreneurs must be responsible and know how to create a sense of security for employees and make them feel dependent."

Therefore, she believes that companies want to be more To manage employees well, in addition to strict systems, there should also be relevant talent welfare policies.

If a company wants to retain good employees, it can provide benefits according to the company's income and expenditure, and give certain material and spiritual support, so that the entire team can wholeheartedly consider the company and repay the company.

Unqualified employees will be eliminated in time

Any team in the world will have good employees and bad employees. Just as there is a law of survival of the fittest in nature, in the process of management, managers must face the choice of elimination.

Among the employees who need to be eliminated, in addition to those who are not motivated, there is also a type of employees who are also extremely destructive, that is, employees with bad character.

An employee with bad character is a time bomb for managers. It may be "detonated" at a certain time, and once it is "detonated", it will be very lethal.

Summary

Gree’s success is precisely due to its management model. Dong Mingzhu, President of Gree Company, is hailed as a “legendary marketing master” by industry insiders. In the air-conditioning war, not only the marketing tricks are talked about, but the corporate culture and management philosophy based on honest management with "Gree Charm" are talked about.

One of the biggest features of Dong Mingzhu’s management of Gree is her strict focus on the system. She mentioned in many speeches: The success of an enterprise is not only the success of marketing, but also the success of marketing. Technology leadership and management leadership. An excellent management system is a catalyst for the formation of a good corporate culture and an important component of the company's intangible assets.