As David Lin (Michael’s youngest son, and integrant of the executive committee said), “one of the most important managerial issues at Great Wall was creating a fertile ground for the smooth transition of operating control to senior staff, thus allowing members of the executive committee to turn their attention more fully to Great Wall’s long term opportunities”. The areas of concern for the desired smooth transition are: ? Recruiting: Great Wall wants to reduce the turnover level below 4% ? Training & development: Remove the SOE culture from employees
II. Possible solutions: Recruiting: They already detected that its workforce has a migrant nature. For that reason, no matter how good the job is, most people will be decided to go back to their own place once they have saved “enough” money . A potential solution to this case would be to offer employment to the entire family, performing different activities (low skilled probably). That way, the sense of necessity to go back will be reduced to a minimum, and turnover would be reduced too below market level.
Another potential solution is to hire more local and/or more ex-pat employees/managers. That way hiring more professional people will reduce the turnover and the communist behavior. Training & development: HR needs to be creative. Communist countries “normally” pay the same salary to everybody for the same type of work, especially if people used to work for state-owned enterprises (SOE). This policy doesn’t motivate the employee to perform better than somebody else because it won’t be rewarded.
This culture has to be eliminated radically, including good performers in incentive plans, and also offer them the possibility to grow in the company and make a decent and proud career. III. Which is the best solution and why? I consider that bringing the family of key employees would be an excellent idea, because any way Great Wall is already offering housing benefits to its employees. Keeping “mama”, “papa” and/or “brothers and sisters” close or inside the working area would be extremely beneficial for the employee, reducing the stress level and improving their performance.
The sense of loyalty would be created when employee perceives the company is helping the entire family. Also, put in action the incentive plans. I know it is hard to implement a capitalist plan inside a communist country. Take in consideration that these people grew up under these policies, but I am pretty sure they like money and benefits because it is part of the human nature. IV. How we will implement the changes? : I would say the plan needs to be implemented and evaluated in a year term for many reasons.
First, that way management and workers can see plan’s behavior and results on a monthly, quarterly or half year basis, and feel the feedback to re-design or make some adjustments to the plan if necessary. Second, that will give senior management some extra time to take control over the operation (smooth), learning, understanding and implementing the instructions and strategies coming from the executive board of directors, and convert them in tactics to be applied to the business. V. How we will measure the outcome? :
? The general behavior can be measured thru customer surveys and/or employee surveys, where the customer/employee satisfaction can be measured constantly. Remember the mission of Great Wall is to be one of the best golfing facilities in China. ? The turnover can be measured easily based on hiring and ending date based on the total amount of people working for the company. This metric can be updated on a monthly basis and it will bring information about how many people (%) compared to total are leaving the company. VI. What if it doesn’t work? :
If after some time measuring results they detect key metrics didn’t improve, then senior management and/or executive directors needs to evaluate the possibility to extend the implementation some more time until the necessary culture is created. If not, I would go back and start hiring more local people, and potentially ex-pats with previous experience, even at lower levels of the organization until the capitalist culture is created. That way the dependency of foreigners from other provinces of China will be reduced and most of the problem will be solved.