Process Reliability

[…] Hamel and Zanini (2018) published a case study in the Harvard Business Review about the Chinese appliance maker Haier, the biggest of its sort in the world, with 75,000 employees around the world, who created their own organisational design based on practices they call RenDanHeYi that focuses on self-management and autonomy, abandoning the formal hierarchy on an organisational level, and moving towards “microenterprises” that function with minimal coordination. This is a special case, since most of the self-managing organisations’ core businesses revolve around creative services, not manufacturing. Following Bernstein and colleagues’ (2016) logic, self-management should not work for an organisation that is in the manufacturing business, as it would be depending on the Reliability of Processes.

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Nelis M (2018): Decision Making in Self-Managing Organisations and Its Implications on Conflict Management. pdf