Page 78 - Fundamentals of Management Myths Debunked (2017)_Flat

CHAPTER 2 • The Management Environment 77
in China. Li Beibei, the director of public affairs of China commonly recycled metal in the world. Clearly, this approach
Zhongwang, believed the award showed that the company’s permeates enterprises such as Zhongwang as part of its overall
achievements went beyond its production and technology. It commitment to social responsibility.
was recognized for its innovative business culture, management Zhongwang is committed to the lifelong learning and career
practices, and broad vision. development of the employees, helping each person to effectively
The company’s single principal shareholder, Liu combine their talent development goals with corporate develop-
Zhongtian—a self-made billionaire, who according to Forbes ment. The company conducted operational and theoretical skill
had a net worth of US$3.2 billion as of May 2015—said the training for specialized operational personnel; they also worked
company’s rapid growth has been a result of “perseverance and with local government bodies to offer Pre-appointment Bridge-up
determination.” Training,” a training program for laid-off workers to help develop
As a result of its long-held desire for the business to become their professional skills and operation capabilities. Training pro-
a world-class international producer, the company has initiated a grams were organized with a total participation of 27,470 indi-
shift toward high-end, high-value-added products. The business viduals, with all staff members having enrolled. To acknowledge
has expanded not only by increasing its production capabilities, the achievements of the employees, Zhongwang awarded titles
but also through horizontal expansion. This expansion has al- of “May Day” medal and “Workers’ Vanguard” for excellent
lowed it greater dominance in the domestic Chinese market, as performance.
well as the export market. As a member of the Hong Kong Stock Exchange, China
China Zhongwang’s core values are fivefold. First, it tries to Zhongwang continues to have great access to potential invest-
add value and grow alongside its customers; second, it develops ment. The company is ranked first among the major Chinese alu-
its own talent, particularly in relation to innovation, teamwork, minum companies and continues to expand. In retaining its core
and pursuit of excellence. Third, China Zhongwang wants to values of commitment, diligence, responsibility, and innovation,
create sustainable earnings growth and reward investors and the business has become a major developer and manufacturer of
shareholders. The fourth core value is to be a responsible cor- high-quality aluminum products in the world, and at the same
porate citizen and to do business with integrity, which includes time reflects thoughtful response to demands from the external
supporting charities and community events. Finally, it is to es- environment.
tablish a business that is trusted by customers and to retain and
develop key employees to push the business forward into the fu- Discussion Questions
ture. The company also professes a “customers first” philosophy. 2-23 What are China Zhongwang’s corporate values? How do you
Employee training focuses on responding to customer require- think these values influence the way employees do their work?
ments and changing market needs in order to achieve high levels 2-24 Using the company’s corporate values (from Exhibit 2–4),
of customer satisfaction. describe the organizational culture. In which areas would you
The aluminum business had to position itself carefully, say that the company’s culture is very high (or typical)? Explain.
responding to the demands of the external environment. Rather 2-25 How is China Zhongwang’s corporate culture maintained?
than react to environmental issues, organizations like Zhongwang 2-26 “The right culture with the right values will always produce the
have taken immediate steps to cut down on energy use and reduce best organizational performance.” What do you think of this
waste. Globally, the industry can boast that aluminum is the most statement? Do you agree? Why or why not?