1. HaiDiLao case

2. Structure
Introduction
Management success reasons
Conclusion

3. Haidilao Hot Pot 海底捞火锅 LOGO
Haidilao hot pot established in 1994,is a Sichuan hot pot to operate mainly around the hot pot is characterized by fusion of one of the major inter-provincial Direct food brand hot pot restaurants.The company has worked in Sichuan, Shanxi and Henan provinces was awarded "Advanced Enterprise", "customer satisfaction", "famous hot pot" and dozens of titles and honors, and innovative characteristic service won the "five star" hot beauty shopname.February 2010, comments by the public network 2010 "Top 10 most popular hot pot restaurant.
LOGO

4. Management success reasons
Leadership Subordinate-centered style (以下属为中心)
The employees in Haidilao are allowed to make most decisions by their own. Give them freedom. The employees in Haidilao can be fully empowered and they can make some of decisions by their own without the managers’ permission, which may brings them a sense of ownership and trust.

5. Management success reasons
Employee motivation
1. Rewards and punishment
Haidilao has a special, just and fair performance measurement system. Supervisors take down the front-line employees’ daily performances, including clients’, colleagues’ and managers valuation. This is better than the systems in many other restaurants which are based on people’s diploma. The rewards and punishment will base on this system.

6. Management success reasons
Employee motivation
2. Management by objectives (MBO)
Haidilao will convey its main objectives to employees. And every week a meeting will be held in which people are able to discuss some cases they met that week and this enables employees to make progress.

7. Management success reasons
Employee motivation
3. Participative management
Haidilao fully empower its employees to make decisions. For example, they can use money without manager’s permission as long as it is essential.

8. Management success reasons
Employee motivation
4. Make jobs more satisfying and motivating
As an enterprise of service industry, the success of Haidilao is based on the service of its employees. So the motive system of Haidilao is more based on Haidilao’s understanding of human nature. It satisfies the employees’ physiological needs, psychological needs, needs of sense of belonging, and needs of respect and self innovation.

9. Management success reasons
HRM
1. Recruitment
Haidilao takes the advantages of the net of public relationship, it enables some relatives to work in the same shop. Meanwhile, it adopts open promotion system, which enables every employee to compete equally.

10. Management success reasons
HRM
2. Training & development
Haidilao will give its new employees
orientation, telling them some policies and
rules as well as service concept.

11. Management success reasons
HRM
3. Performance appraisal
Haidilao has a special, just and fair performance measurement system. Supervisors take down the front-line employees’ daily performances, including clients’, colleagues’ and managers valuation. This is better than the systems in many other restaurants which are based on people’s diploma. The rewards and punishment will base on this system.

12. Management success reasons
HRM
4. Compensation
There are three types of compensation in Haidilao. First, the employees can receive the base pay. What’s more, Haidilao use a unique performance measurement system, that’s the incentive. Last but not least, employees can choose some fringe benefits such as free board (膳食) and accommodation or paid vacation.

13. Management success reasons
Unique promotion
Foretaste the food for free, although the customers won’t consume in Haidilao. It seems increase the cost, but in fact it can save the cost because of using no expensive media but low-cost word of mouth as its promotion

14. Conclusion
What can other companies in catering or other industries learn from HaiDiLao’s experience?

15. Conclusion
1. First-line workers are the group of people who contact closely with customers and get most feedbacks directly from them. Therefore, the enterprise should pay attention to the cultivation of the organizational atmosphere through different ways such as building common value and setting corporate goals among employees as well as adopting some more effective communication ways to collect the employees’ ideas initiatively. 

16. Conclusion
 2. To be more patient and understanding. The manager should listen to the employees’ ideas and thoughts earnestly. Besides, complaints from the employees shouldn’t be kind of burden to the managers. They need to keep eyes on the employees’ suggestions and analyze them. For suggestions that are highly constructive, positive acknowledgements and actual implementation should be conducted.

17. Conclusion
3. To set up proper reward system. Company need to consider what its employees need and to satisfy them by setting up related reward system, which can encourage the employees to improve their working effectiveness. 
4. To train employees effectively. Only when a company cultivates its own talents, can it better combine its mission and culture to build a shared value and common objectives. By practicing this, employees will be more loyal to the company.

18. Conclusion
5. To cultivate open organizational culture. The managers should be honest and take initiative in shouldering responsibility as well as allowing employees to involve in the operation and undertaking risk. To increase the employees’ expectancy on the organization, the managers should always keep consistency between what they say and what they do. By fostering the relationship between employees and organization, conflicts can be effectively avoided.

19. Thank you!