# RenDanHeYi 1.0 – Independent Operating Units In 2005, inspired by the work of Michael Porter, the first version of RenDanHeYi organised the firm into market chains of around 2,000 ‘Independent Operating Units,’ or ZZJYTs. Simultaneously, Haier introduced an internal labour market where employees must bid for work in one of these independent units.
The independent units were given far-reaching decision-making rights and permitted to transact with each other as if they were on the open market. The introduction of this RenDanHeYi 1.0 model enabled Haier to successfully **bring market dynamics into the firm**. However, the independent units were organised into three different hierarchical levels, which mostly obstructed the decision-making of the lowest-level units.