Rendanheyi Model

Definition: the Rendanheyi Model is an innovative way of organizing a multinational firm used by appliance maker Haier.
The corporation was divided into 4.000 self managing micro enterprises, of which about 250 are market facing ("users"). The others (called "nodes") are supplying the "users" with components and services such as HR, finance and IT. The users may hire or fire nodes or outside providers as they see fit. All micro enterprises are ultimately accountable to the company's customers and a highly entrepreneurial culture is cultivated.

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More on organizational structure: Formal Organization, Informal Organization, Organization Chart, Organizational DNA, Reorganization, more on organizational structure...

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