Since his beginnings as the director of a refrigerator manufacturing plant about 30 years ago, Zhang Ruimin, the CEO of Haier, has built a global brand that exports products to 165 countries. His starting point was an electric home appliance company on the verge of bankruptcy. He pushed through a merit-based personnel system that raised employee motivation. Recently, Zhang divided his company into as many as 2000 independently managed units and created a system to transfer authority and responsibility to selected employees. These moves have attracted attention from entrepreneurs in Europe and America alike. The secrets of Zhang's method for developing human resources are revealed in this episode.