【正文】 ation amp。 criteria were found for evaluation ? No clear criteria for promotion ? Poor cooperation ? Irresponsible work Incentive system amp。 structure 199720xx* Turnover per employee * [RMB ‘000] 1997 1998 1999 20xx * exclude staff in Beijing Office 74105981998 1999 20xx * Estimation Production Admin Sales CCS 11% 2% 6% 6% 15% 17% 19% 31% 29% 25% 23% 59% 54% 52% 52% 129 138 148 151 +13% 0% 154 The general manager can not gain necessary and correct data from the pany for decisionmaking Main problems of data/reporting ? No control of data input (. no cross check in the warehousing) Data input ? A lot of useful data aren?t available (. scrapped product report) Data processing ? No strict control system (. no parison of actual cost and standard cost) ? Data is only for document, not for analysis Data controlling ? Too high figures in budgeting and sales forecast Planning Poor quality decision basis 155 Performance evaluation and incentive system in GSHA is very weak, leading to low motivation and mitment Problems Evaluation amp。 logistic Ken Leung 7 months CCS Administration H. Schuette Process engineering 24 years Quality control 1 month Logistic 5 months Outside purchase 5 months Production control 32 years Production 3 months Maintenance 5 months Local purchase 2 years Controlling 1 year EDP 2 months Doc. Admin 17 years Material Dev. 2 months Personnel 32 years Accounting 2 years Production dep. Pasttime Quality management N/N Process dep. N/N 6 months 3 6 months 3 months 1) 1) 1) 1) 1) 151 . Management structure 152 The high hierachy management design in GSHA leads to low efficiency, and slow decision making process Organization amp。 logistic Admin 150 General manager is directly in charge of sales and administration by being the department manager, leading to no middle management team. Most 3rd tier managers are newly appointed, which results in lacking continuity in management 1): Employees from Lida 2): The management team of sales department is relatively stable, but the turnover of sales staff is relatively high GM H. Schuette Sales amp。 logistic CCS Admin ? Two parties exist leading to internal conflicts and plexities ? Unclearly defined authorities and responsibilities, leading to overlap of some functions ? CCS is separated from the pany?s system, leading to inefficient cooperation and low efficiency GM Dpt. GM CCS Sales amp。 processes 146 . Organization structure 147 GDAI’s anisation structures and management team have been improved after the change of the ownership, providing the basis for further improvement GDAI Base for further improvement is established ? Wholly controlled by Geberit ? Organisation structure is clear and followed ? Authorities and responsibilities are clear ? GM?s management skills are accepted by the employees ? Chinese middle management team is setup ? Reporting system has setup ? Positive corporate culture is forming ? Internal munication and cooperation have been improved ? Employees are generally motivated and have the positive attitude to the future of the pany 148 In GSHA, Geberit and Lida have not integrated well from the foundation of JV. This creates a lot of internal conflicts and management chaos GSHA Lida Geberit ? Corporate culture ? Management style/skills ? Product lines ? Markets ? Work style 149 HR HR HR HR More importantly, in GSHA, the official anization structure is not implemented Official anization structure Organization structure in reality GM Dpt. GM Sales amp。 provisions Total share capital amp。P analysis 7 , 8 8 48 , 5 4 71 0 , 2 0 49 , 2 5 91 4 , 2 5 12 0 , 6 4 298 99 2 0 0 0 (1 7 )Current ratio Quick ratio Current assets Current liabilities +29% +127% Development liabilities and assets [RMB ‘000] 144 Due to huge losses, the pany is solely financed by interpany loans. Liabilities increase faster than assets. Balance sheet Geberit (Daishan) 1998~ [RMB ‘000] Backup 1998 1999 20xx Fixed assets Intangible assets Inventories Other prepaid expenses