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2024 | OriginalPaper | Chapter

6. Step 5: Crafting Human-Centric Organizational Structures

Author : Umberto Lago

Published in: Global Business Model Shift

Publisher: Springer Nature Switzerland

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Abstract

Exactly 70 years ago, Peter Drucker called for an appreciation of employees as key resources rather than cogs in the industrial machine. He provided insights for the decentralization of companies, the empowerment of employees, and a focus on results over processes. This chapter reviews these principles, which are at the heart of RDHY, to illustrate how Haier has brought them to life. Principles are only theoretical until someone has the courage to make them real, and I believe that Peter Drucker would be very satisfied and proud if he could see what Haier has achieved by treasuring his suggestions.
The chapter then analyzes how other companies implementing RDHY are adapting these same principles, translating them into their unique business environments. This section highlights the necessity of customizing organizational structures to align with the existing culture and operational framework of each company. It emphasizes that while the foundational principles of RDHY are universal, their application must be carefully tailored to fit the specific circumstances and challenges faced by different organizations.
Moreover, the chapter discusses the importance of a gradual and mindful approach when crafting new organizational structures. Companies must recognize their current state and carefully implement the transformation process, acknowledging that each path to implementation is unique. Through detailed case studies and practical examples, the chapter provides insights into the diverse ways organizations have successfully integrated RDHY principles, promoting a culture of empowerment and decentralization.

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Footnotes
1
Hamel, G., Zanini, M. (2020).
 
2
Minnaar, J., de Morree, P. (2019).
 
3
Minnaar, J., de Morree, P. (2019, p. 11).
 
4
Drucker, P.F. (1954, p. 45).
 
5
Drucker, P.F. (1954, p. 202).
 
6
Drucker, P.F. (1954, p. 203).
 
7
Drucker, P.F. (1954, p. 202).
 
8
Zhang Ruimin interestingly leads back the concept of profit sharing to that of equality: “The French Enlightenment thinker Montesquieu had a notion of equality. Equality has the following forms: equality in results (impossible), equality in origin (impossible), equality in opportunities (unlikely but possible) and equality in rules (possible). So we’ve created a set of rules to distribute excess profit among employees. The distribution is based on how much value you create for users, not on your seniority or department” Zhang Ruimin Interview, April 2023.
 
9
Drucker, P.F. (1954, p. 199).
 
10
Drucker, P.F. (1954, p. 205).
 
11
Drucker, P.F. (1954, pp. 214–216).
 
Literature
go back to reference Drucker, P. (1954). The practice of management. Harper Business. Drucker, P. (1954). The practice of management. Harper Business.
go back to reference Hamel, G., & Zanini, M. (2020). Humanocracy. Harvard Business Review Press. Hamel, G., & Zanini, M. (2020). Humanocracy. Harvard Business Review Press.
go back to reference Minnaar, J., & de Morree, P. (2019). Corporate rebels. Corporate Rebels. Minnaar, J., & de Morree, P. (2019). Corporate rebels. Corporate Rebels.
Metadata
Title
Step 5: Crafting Human-Centric Organizational Structures
Author
Umberto Lago
Copyright Year
2024
DOI
https://doi.org/10.1007/978-3-031-64857-1_6

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