The Management Countermeasure Study On The Over Speed Company

Siemens VDO Automotive Changchun Co., Ltd (SVCC) has a very good development opportunity from 2002. With the fast development of Chinese auto market and more and more critical requirement about the environment and safety, electronic part has been the potential biggest product; meanwhile, because of the technical bulwark and the technical development, Siemens' product has very strong competition in the market, the only competitors are also from abroad. And, from Siemens Group stratagem plan, China and Pacific region is the most important market for Siemens development. So, Siemens Group directorate increase invests to SVCC. Just because of the good station both inner and outside, SVCC start to development. Exactly, should be over speed expand. The headcount from260 to about 1000 from 2002 to 2006, sales from 0.3 billion RMB to 1.3 billion RMB. And we build a new facility in Economic Development Zone at 2004; from 2005 we start to set up the R&D center in Changchun. From our budget, we will reach 1500 people and 2 billion RMB sales till the end of this fiscal year. (End of Oct 2007)This paper discussed the problem the Siemens has when he expands, the countermeasure he take and the success and lesson learnt he has. There are five chapters in this paper. Chapter 1, the introduction of this paper. Introduce the background and the significance of this paper, and also showed us the study method and paper structure.We demonstrate the problem and the countermeasure from the thought way and working way when the SVCC is in the expand phase in chapter 2. First is the maladjustment to the manager because of the working load change, they changed the working way from taking care everything themselves to macro control. If they want to match the requirement of the company development, they have to change their working way and thought way. They can be seasoned with company development as they do that. The second, the conflict between Siemens culture and new culture because of more and more new comer. Especial conflict between Siemens culture and some traditional plant culture. So the same requirement for the managers is changing the thought way and working way, and lead the new comer and your team to go to right direction. After 150 years development, Siemens accumulate and deposit very deep company culture, this is very great fortune. For the managers, we must fully understand the culture then accept and develop it. The third one is the effect from the organization change. With the company development, it is necessity of the organization change. The result of the change is some of the managers feel the power change to weak; some other managers, just promotion from low level, do not make fully preparation not only from capability but also from their psychology. It caused a lot of communication problem, especial between different departments. It has affected the working efficiency in the company. Aim at these problems, Siemens takes some actions from the employee training, organization change and company culture building in order to solve these problems.We talk about the problem and countermeasure from the organization during SVCC in expand phase in chapter 3. We analyze the maladjustment of the original organization firstly. Because of there are only 2 level and line structure in original organization, it is impossible to support the company expands, especial for the new things in this phase. Flat and simple structure cause very low efficiency, the leading time for problem solving is too long. Then, we analyze the new company organization. The new company organization is the matrix organization, row is division function and column is location function. The whole organization is very big and complex. How to make the organization running agile and efficiency and share the equipment and other source and reduce the running cost is a big problem for SVCC. So, SVCC takes a lot of action to solve the problem, the main action is some power is be hold in location, and some power is to assign to division. Detailed is organization, human resource, finance and information and security is highly be firmed by location, but the business development, production operation and R&D are controlled by division. SVCC make the organization running smoothly and efficiency from obeying this principle. Mean while, from this letter we can see that the organization is keep changing with the different outside/ inside situation. We have to update and change the organization in order to make sure the running is efficiency.We talk about the Human resource in chapter 4. Indubitably, people are the greatest riches in a organization, mean while, human resource is one of the biggest element of the department development. In the beginning of the SVCC expands, HR is bottle neck of the company. We could not get the people we need and some people inside is leaving us because lot of reason. It makes the company operation is very difficult. So, SVCC expands the interview channel and depress the admittance to SVCC especial for some technology in English skill. We are sure the right person in the right position. Just because of this action, we almost solve the technician problem. And then we set up the human development rules for the SVCC employee inside to deter the SVCC employee; Balance the salary between SVCC and social average salary. From these actions, we solve the HR problem, not only clean the obstacle of the company development, but also set up a deep foundation of the SVCC.We talk about the experience and lesson learned during SVCC development in fast speed. We wish this is can be referred by other company.