Zoomlion is a new hi-tech company based on Changsha Construction Machinery Research Institute. In the 13 years from the company’s foundation, yearly growth ratio on turnover and profit all over 60%. For present, company’s total assets count to over 3.8 billion RMB, with over 6000 employees. Zoomlion’s development is benefit from its “Scientific Industry, Industrial Science” strategy, more important, is benefit from its human resource policy, which had trained a brave and qualified team with spirit of dedication, it’s the team that keeps the company continual and healthy development.

 

Zoomlion started from research institute, its development is the sample of traditional research institute reform from plan economy. “Science is based on human”, this scientific conclusion is validated in this company.

Changsha Construction Machinery Research Institute of Construction Ministry founded in 1956, was the biggest construction machinery integrated research institute in China. In those plan economy era, institute was in charge of domestic construction machinery development and technology upgrading, and competing with the west developed countries. National Construction & Urban Construction Machinery Quality Supervision & Testing Center, Concrete Machinery Technology Research Center of Construction Ministry, and all secretary office of 13 professional commission under China Construction Machinery Association are all located here. Over 75% of the industry technology standard made here, and over 20 billion RMB social profit created here yearly.

From the middle of 1980s, national technology system started reformation. Till 90s, Changsha Construction Machinery Research Institute experienced its tough time, over 500 people live on allowance from government. 1992, Zhan Chunxin, the vice chairman of the institute led 7 employees, with 500,000 RMB loan, founded Zoomlion Construction Industry Company, started its “Industrialized Science”.

Zoomlion developed a brand new system on human resource management and development. At first, Zoomlion build a good motivation system—technology post recruitment system, kept technical engineer’s achievement and level increasing, meanwhile, their payment increased with their post, for example, chief researcher has the same payment as vice GM. At the same time, expanding channel of human resource introduction, keep on recruiting outstand engineers. In 2001, company set up post-doctor work station; build a platform for senior specialists. Company developed a scientific training system, open the road for employees’s study and self-development; Company developed technology innovation system formed with decision sub-system, R&D sub-system and industrialized science sub-system. All research issue will be opened in and out the company, anyone, no matter the degree, no matter the post, could participate the bidding. On the foundation, company built its competition system. With industry’s expansion, Zoomlion’s team expanded as well. Till now, over 40% employees are special technical person, among them, 21 person enjoy special allowance from the state council, 9 person are middle-aged and young specialist in the state, ministry or province.

 From the beginning, this brand new human resource system of Zoomlion exhibited its strong libido. Based on the industrialized science platform of Zoomlion, Changsha Construction Research Institute started its commercial way in the market, results from technology research transferred into productivity, and company also gained its remarkable economical profit and social profit.

In the 13 years, along with the development of the research institute, the company realized its jumping-development. From 1993 to 2004, Zoomlion’s yearly growth ratio on turnover and profit both over 60%. The research institute with 400 people and 20 million RMB total assets at that moment had developed into today’s technology industry group engaged in engineer machinery with 9000 staffs, over 5 billion total assets, over 5 billion annual turnover, and listed in the top 500 Chinese enterprises, top 500 hi-tech corporation in China, and top 100 in Chinese machinery industry.

 

Lots of enterprises view the talent staffs as technical talent staffs, they blame lots of the problems in the enterprise’s operation to the lack of technical talent staffs. This made the enterprise counts on the technical staffs too much, and ignored the building of the talent people management system, this blocked the stable development of the enterprise for long term.

Born from research institute, Zoomlion always enjoys the reputation of strong R&D capability, and specialists with technology background always interest Zoomlion. Till the end of 2004, R&D staffs of Zoomlion and Changsha Construction Machinery Research Institute had completed 637 national key science and technology subjects, participated in making of 176 national industry standards. For present, most top managers in Zoomlion are from researching and technology fields.

From the experience of research results transferring and industrialization, Zhan Chunxin and company’s management team felt: Top products need top technical workers to produce. No advanced research achievement could be competitive products without outstanding technical workers. Zoomlion engaged in hi-tech driving machinery manufacture industry, hi-tech needs research force, and hi-tech needs lots outstanding industry technical workers. In the fierce market competition, company’s development not only needs research talent staffs and management talent staffs, but also the technical talent staffs. The ability of technical workers are the key of products quality, more than that, are the important force to motivate company’s technology innovation and research achievements industrialization. For that, Zhan Chunxin, the chairman of Zoomlion, defined the conception of talent people: anyone with a skill is a talent people. Technical skilled team, along with R&D team and marketing team are viewed as three talent staff stanchion of the company’s development. Talents view become the important sign of Zoomlion’s Human-oriented management realization. 

Zoomlion set special motivation system, insure motivating workers in front line’s skill study and training. In annual recruitment on special technology staffs, skilled worker’s age limitation expanded to 50. In 2001, after Zoomlion acquired Powerpoly, tow research engineers were sent to British in 2002, and four skilled workers were sent to British in 2003, including a locksmith aged 24, whom were not only skilled in all manufacture work, but also skilled in computer and English. To those skilled worker, Zoomlion’s door is always open.

 

Operation of corporation must be based on human. Talent view of Zoomlion includes: First, admit every duteous staff who is willing to develop with the company is an indispensable talent of the company; second, admit every staff is trainable; third, let every staff developing in this company.

The staff career development leading team under directorate, based on examination result yearly, will make investigation on “Staff’s Career Plan”, through “Shifting position, discover staff’s potential” and “Motivate resource of post and position, built new career life”, to discover staff’s hobby and skill, and based on that, suggest career development direction, realize staff’s career plan.

The Zoomlion’s human resource guideline is: Inspiriting and competitive “3+X” payment system with examination system, to keep inspirit and restrict cooperate and interactive in one nature process. Keep the staff with payment and welfare, to build a good environment of study, working and living for the staff, to offer humanized welfare to the staff. All these years, the ratio of losing talent people is always the lowest in the industry.

On this base, Zoomlion build complete staff training system, insures realization of study and training from regulation, and motivate employee study by themselves through award. Zoomlion had set internal training center, through cooperation with universities, insures all employees’ study. Company made employee training plan in short, middle and long term, through internal training, external training, co-training and many other ways to prompt employees’ quality, to train employees’ capability for career for lifetime.

In Nov. 2003, cooperating with State Council National Assets Commission Research Center, Zoomlion founded “Lecture of Celebrities”, the first corporation session in China, till now, it had been hold for over 20 sessions. On this senior platform, started from corporation internal training, company organized period training for middle and senior managers, efficiently prompted management skill and career moral, made a base for innovation study organization, and promoted realization of regulation corporation and culture corporation.

Attract staff with career, organize staff with love, stabilize staff with system, and keep staff with emotion. In the process of corporation expansion, Zoomlion purchased British Powerpoly, Hunan Machine Factory, Puyuan Group, Puyuan Co., Ltd, and other corporations, over 95% former staffs have been carefully positioned. Zoomlion’s culture, in the process of corporation purchasing and reorganization, kept advanced human resource, and fused middle and senior management team. Former GM of Puyuan Co., Ltd, Yin Zhengfu and former vice GM of Puyuan Co., Ltd, Su Yongzhuan are Zoomlion’s GM and financial majordomo, former chairman of Puyuan Group, Gao Tong and former GM of Puyuan Group Wang Chunyang, are also playing key position in the new group. In the family of Zoomlion, we are establishing corporation culture of respect, trust and harmoniousness.   

Individual’s value comes from corporation, and corporation’s value comes from social. This is Zoomlion’s understanding on the value of corporation culture. Staff, corporation, united with social responsibility, formed the base of harmonious corporation and social. In 2004, the time of macro-economical policy adjustment, the state reduced some investments in base construction. Engineer industry met austere challenge which had never before. Layoff was lots of enterprises in this industry’s solution, some enterprise even cut over 1000 jobs one time. Under the pressure of macro-economical policy adjustment, Zhan Chunxin raised development guideline of “Survive together, gloried together”, to be responsible to employee who is responsible to corporation. He said: Under the pressure from the market, if layoff is the first idea to the corporation, the staff will not be loyal to the corporation, let alone the idea of “Corporation Family”.