Research On The Management Mechanism Of SBU

Haier's SBU management model has achieved great success, arising the concern of scholars at home an abroad. People usually studied it from the perspective of structure or model rather than mechanism in it, which keeps it from spreading widely. It is believed that Haier's SBU management is a management revolution, and it has fundamentally changed the traditional organizational structure, formed a dynamic new mechanism of incentive—SBU closure, enabling employees to have the motivation, the ability, and the pressure, and this is Haier's source of power.This paper introduces background of the Haier's SBU management and its operation at first, then explains the Haier's market chain management model and sums up the Haier's SBU management features. On this basis, a SBU closure consisted in equivalent powers, responsibilities and interests is proposed when interpreting Haier's SBU management from the perspective of powers, responsibilities, and interests. SBU closures have the independent and closed characteristics, and each SBU closure can become an autonomous, self-financing profit center. By comparing enterprise profits and employee interest between the traditional management and the SBU management, it explains the employees' incentive of hard working triggered by SBU management from the perspective of economics. In the end, SBU operating mechanism is explained with the concept of market chain. SBU management successfully introduces market competition into internal management by use of market chain , guiding the SBU to maximize the whole enterprise profits while pursuing the interests of its own.