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The United States "New York Times" on November 13, 2006 described the traditional "iron shovel" enterprise that will celebrate the 90th birthday. "Cummins is like the engine industry's Mark Twain. People have repeatedly predicted it in the past 20 years. It's almost over, but what's surprising is that the company's days are getting better."...
This nearly 90-year-old traditional machinery manufacturing company has become the only company in the world that has the industry's leading patented technology in the five engine systems. It is the only independent diesel engine company in the world. In 2005, it was named "The American Business Weekly." "As one of the top 50 companies in the United States. From 2003 to now, the stock price has nearly doubled. In the eyes of Cummins, this is not a legend. It is based on solid internal strength and correct strategic decisions.
The former chairman of Cummins Inc. had travelled to China with the US delegation as early as 1975. In 1979, Cummins became one of the first foreign companies established in China. Cummins has gone through more than 30 ups and downs in China. According to Shi Yuan, East Asia's human resources director, the key to Cummins’ success in China is "human." Since joining Cummins in 1995, there have been more than a dozen of them. year. She also couldn't count how many times she refused to make phone calls. Not only that, but there were four or five headhunters who said to her: "Why is the Cummins (China) people so hard to dig? How much persuasion and temptation is indifferent?" Hearing such a candid and honest headhunter, he told her from one side: Cummins has high employee loyalty and satisfaction. This is inseparable from the efforts made by the Ministry of Human Resources. It is also inseparable from Cummins's globally consistent and unique culture and employment philosophy. This is exactly the game of Cummins' strategy in the Chinese market.
Layout Before 1996, Cummins was only a representative of foreign companies in China and did not have independent personnel rights. It was not until 96 that the company was established to provide after-sales services. In 1997, an investment company was established. The Cummins strategy in China began as early as the early 1980s. Cummins relied on technology transfer to establish a cooperation with Chongqing Engine Factory and Dongfeng Motor to produce high-powered engines, followed by the establishment of medium and small horsepower engine production companies, as well as the production of parts and components.
After the chess game was put in place, Cummins officially established an investment company in China and began its operations in China. As Shi Yuan said, Cummins has played a key role in the establishment of China. Human resources strategy is closely integrated with corporate strategy. As early as 1998, Cummins had just started up in China. The company had a boat in the Three Gorges Package and invited all employees to participate. On the ship, the company's senior officials made clear the development strategy of China from 1998 to 2005. , Let every employee participate in the strategic planning, so that each employee is aware of the company's future development direction. Everyone was confident after the meeting and the meeting was very encouraging.
At that time, China's future strategy was to establish that by 2005, all Chinese product sales reached US$1 billion. Under the concerted efforts of the Cummins people in China, the booked strategy was completed one year ahead of schedule. Cummins is now implementing the strategic goals set out in 2004 up to 2010. With more than ten years of experience at Cummins, Shi Yuan said that the main task of this strategic goal is to obtain the return of previous investment, and the pressure is great. But Cummings is very organized in doing things. Strategy development is by no means empty talk. Currently, Cummins is implementing this strategy step by step. She believes that the goal will be achieved successfully.
Use people
The success of Cummins globally depends on people. This is evident in China. Cummins attaches great importance to people and values ​​human development. Today, Cummins’s CEO and President, as well as several VPs, have been in Cummins for decades, and they have come to Cummins from the human resources at the very beginning. Perhaps it was for this reason that Cummins had paid special attention to people and was bold and courageous in employing people. Shi Yuan verified this.
Prior to joining Cummins, Shih-yuan, the director of human resources, did not have any human resources experience including education background. After joining Cummins, he began to do some administrative coordination work and later changed to human resources. She laughed that she had never imagined she would do HR work before. She thought she was fortunate enough to meet several Cummins bosses. With their selection and training, she began to work in the human resources department. The company sent Shiyuan to the United States in 2000 and is responsible for international human resources work at the US headquarters. She admits that in the three years of the United States, she has indeed learned a lot of things, especially cross-cultural differences, and learned how western people do things.... The experience of the United States left a precious work experience.
However, not only Shiyuan, since 1995, Cummings began to send employees to the United States to work, after the return of the important task. This is one of Cummins's important talent strategy.
Global Cummins’s important move in employing people is “localized human strategyâ€. When Cummins (China) was just established in 1996, it recruited a large number of Chinese employees. However, at that time, China did not have a suitable local management team. Cummins moved to Singapore’s management team at the time and introduced foreigners to manage it. Cummins’s global strategy, the introduction of foreigners is only temporary, and the management model is set up as soon as possible. At that time, Cummings started to attract a group of very good Chinese local managers. What they lacked was only foreign work experience. After the introduction, Cummings sent the managers to the U.S. Headquarters for training. He returned to China a few years later and gradually led the Chinese leadership team into localization.
"Chinese people lead foreigners" is commonplace in Cummins. For example, Cummins's largest joint venture in China, the general manager is Chinese, and half of his director-level figures are foreigners. Such personnel layout is the most scientific and most reasonable in Cummins's opinion. Must be Cummins in China, regardless of product, market or customer, are Chinese, hire Chinese as general manager, they will understand more about the Chinese market, the Chinese people's direction, strategic decisions will not go wrong. However, the core technology of the engine must come from the United States, and foreigners do have professional advantages in doing their own thing. Both China and the West learn from each other. Even for expatriates, Cummins’s principle of employing people must be an fluent Chinese speaker who reads Chinese characters and recognizes Chinese culture.
In Cummins (China), there is no one who does not know the name of Steve Chapman, the group's vice president in charge of Cummins International Emerging Markets, at the US headquarters. This is the name he played for Cummins in China. Another reason that everyone knows about him is his "Chinese self-introduction": "My name is Cao, Cao Cao's Cao, and Zhang Side's." There is no deep recognition and understanding of Chinese culture, I believe there will not be any foreigner. People will use this method to introduce themselves.
Cummins employs people who are not rigidly adhered to academic qualifications and backgrounds and are completely capable of doing things. This is not empty talk. The general manager of Cummins’ largest joint venture company in China is a legal consultant of Cummins China Investment Corporation. Prior to joining Cummins, his business capabilities left a deep impression on Cummins executives during numerous business cooperation and negotiations. He invited him with great ambition and entrusted him with heavy responsibilities.
Perhaps it was precisely because Cummins’s top leaders were born of human resources in the early years. They are particularly talented and knowledgeable. This is true of the global talent strategy. When an employee is entrusted with an important task, the company will give him the greatest support to help him succeed.
Although Cummins employs people bold and courageous, he is also very cautious. Every employee who joins Cummins must undergo a rigorous review and check whether the content of a resume is consistent with the actual situation. There were once candidates who even lost their jobs with Cummings because the professional names mentioned in the resume were inconsistent with reality. Many people think that Cummins's approach is too much of a surprise, and Cummins is the basic requirement for honesty and integrity.
Each year, Cummins employees are required to make a complaint, whether they have complied with ethical standards of conduct for the past year, and whether the employee’s family members have business dealings with Cummins. Each employee must also take a computer examination in the Legal Department to review relevant business conduct guidelines and laws and regulations. Cummins has never done anything with the law.
It is Cummins's consistent employment philosophy to allow local people with integrity to do the right thing and lead upright Cummins employees to succeed.
As early as the 1970s, Cummings of the United States recruited 100 black managers. In the era of very serious racial discrimination, Cummins's approach is undoubtedly ahead of schedule. "In the process of pursuing noble morality and dedicating ourselves to it, we must abandon the prejudices inherent in our concept, and even cherish it. The virtues, abilities, and talents are not based on gender, nor are they distinguished by accent or race. It won't change because of the college we graduated from. If we are trapped by these ridiculous prejudices, the most damaging will be our own. And in competition with those who are more open and fair, we must fail." Cummings Chairman Miller used this sentence to guide Cummings' employment.
In China, the true meaning of this statement has also been inherited. Shi Yuan said that whether Chinese employees are recruited, promoted or sent to the United States to study, the important assessment indicator that the headquarters gives her is whether the proportion of men and women is balanced and there must be no discrimination against a certain gender, so she sometimes feel helpless. It is not easy to achieve a 100% average.
Diversification and giving back to society
It is precisely the concept of recruitment and promotion based on a balanced ratio of men and women that makes Cummins (China) have to be "constrained" in employing people, and this does not affect the employment development of Cummins (China).
In China's colleges and universities, mechanical or engine specialty is not bad, even a lot of leading in the world. However, there are only a few female students majoring in mechanical engineering in Chinese universities. Many of them learned the profession and forsaken their profession.
In order to train reserve talents to send out scholarships to colleges and universities, Cummins (China) is not behind. After investigation, in the eyes of Cummings (China), famous universities do not lack scholarships. Cummins (China) only offers high-level scholarships to underprivileged female students in high school mechanical or engine specialties in colleges and universities, and starts from the big ones so that they can successfully complete their studies and continue to do so in the machinery industry. The implementation of this plan made many colleges and universities feel novel.
Cummins (China) pays great attention to the return of society, and the way to return to society is also originality.
Cummins (China) has always believed that education can help lift the poor children in China out of poverty. They donate regularly to impoverished children so that they can complete their studies, and donations are made in a very special way.
Cummins (China) has a Community Service Committee that specializes in corporate public interest activities and a Diversity Committee that is responsible for diversity.
The Charity Events Committee held regular Cummins (China) auctions and asked employees to bring their children to the company and bring their own homes to auction. The CEO of Cummins (China) personally put on the "apron" and picked up an auction hammer to host the auction. The employees were very enthusiastic. Even the children of the employees joined in. The original 20 yuan may be sold for 200 yuan or even higher, which shows everyone's enthusiasm. The auction money is donated to the school to help poor children. This event has been held many times in Cummins (China).
The charity activities committee found that children in poor schools lacked extracurricular books. Although the school has its own library, many books are not suitable for children to read, so they want to donate books for the children, and the money raised is also quite creative.
Every Friday, Cummins (China) allows employees to wear jeans to work. This is not surprising for many companies. It seems that they have to go to the weekend. In Cummins (China), all employees who wear jeans to go to work on Friday must donate five yuan to the donation box as a fund dedicated to buying books for children in poor areas. This activity actually had some 'humor' colors. After the charity committee fully communicated with the staff, everyone accepted it happily, and every Friday was 'pleasing'. Each donation staff will receive one. "Love brooch." At the end of the year, the company has a special appraisal, that is, to see who's love brooch much more.
Cummins also has a Social Club. This club is an employee's own organization, and regularly organizes a variety of cultural and sports activities. The positions of chairpersons, liaison officers, etc. are rotated every two years. The club organizes various employee activities each year. Such as football, basketball, badminton, table tennis competitions, spring tours, autumn tours, New Year's parties and so on. Shi Yuan introduced that the company has used the public welfare committee, the diversity committee, the staff club and other organizations to open up another career rising channel for employees. Employees have led or participated in various activities, exercised their own leadership, communication, and cross-departmental organization and coordination capabilities. They have more opportunities to show their capabilities to the entire company. Lay the foundation for future development.
Last elimination
While we appreciate Cummins (China)'s colorful employee activities, Shiyuan, the human resources director, also bluntly stated that Cummins (China) is very strict in management and the work pressure of employees is high. Cummins (China) conducts a strict performance appraisal system every quarter and implements the last phase out system. Shi Yuan said proudly that Cummins (China)'s performance management system is doing very well and can really make performance assessment work.
The implementation of the last phase-out, perhaps a small one can determine the "life and death" of employees, and must not be a half-hearted one. From top to bottom, the entire company attaches great importance to performance evaluation.
Cummins's performance management has been used for decades, forming a set of effective assessment methods. Since 2001, the global unification has realized this system electronically, and the evaluation system is complex and complete.
The performance appraisal system needs to achieve self-evaluation of employees and 360-degree evaluation of the superior and subordinate. This is not a simple, good-neutral rating but a written comment. Human resources director Shiyuan calculated that each quarter employees spend at least half an hour in the system to complete the self-assessment within the system, and then he must also evaluate him for other employees. There is no shortage of time. It takes a minimum of five or six hours for employees to complete the assessment within the system every quarter.
After the evaluation within the system is completed, the manager and each employee will have a very thorough performance interview, summarizing the progress and insufficiency of the work since the quarter, and of course including the career development of the employees in the organization.
Cummins (China)'s CEO has set a good example for the company's performance management. He has always been very careful to complete the work of the assessment system, and never ask anyone to do it. Afterwards, the interview work was also very meticulous. He would systematically conduct a job interview every quarter of his director's time. For a half-day interview with the system, he will also take an hour to invite HR Director Shi Yuan to discuss the development of the organizational structure and the development of the personnel.
This has led to the entire Cummins (China) serious about performance appraisal. The company has indeed tasted the sweetness from this set of mature management methods and achieved a leap forward one after another.
Shi Yuan, who has worked for Cummings (China) for more than a decade, has experienced every step of Cummins' development in China. She said that Cummins’ development in China is like playing chess and is an excellent player playing chess. At the beginning of the layout, it was very far-sighted. From large engines to small parts and components, as well as after-sales services and logistics distribution, it began to spread out. Afterwards, it began to play a game in the Chinese market. It not only saw the chess in front but it was far-sighted. Looked at two or even three moves. Now every time Cummins (China) takes a step, it not only pays attention to the Chinese market and products, but also pays more attention to the professional development of Chinese employees and the future of China. When promoting the company's better development, it does not forget to use love to return to society.
抽 1 1 1: The important move of Cummings in the world is "localized human strategy". It is common for Cummins to "lead Chinese in foreigners."
Pick 2: Now every time Cummings (China) takes a move, it not only focuses on the Chinese market and products, but also pays more attention to the career development of Chinese employees and the future of China. When promoting the company's better development, it does not forget to use it. Love returns society.
Company Name: Cummins (China) Investment Co., Ltd.; The New York Times
View related topics: Cummins - world-class engine manufacturer