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Haier demotes six executives for poor performance

By Tuo Yannan (chinadaily.com.cn)
Updated: 2009-01-12 14:04

Haier, one of China's largest electrical appliance producers, has demoted six vice presidents to department heads for poor performance.

They were from the departments of television, PC, logistics, law affairs, administration and home service.

Haier's 2008 sales of white goods, such as refrigerators and washing machines, had exceeded target. But the PC and TV departments had underperformed.

The elimination of the six vice-president posts is seen as part of a management restructuring move to streamline control and simplify the reporting channel.

Under Haier's reward system, the top 10 percent managers will be commended while the bottom 10 percent will either be dismissed or moved to a lower position in other departments.