ABSTRACT: This case describes how the manager of Haina, a company of education and training, manages employees, and how the employees work everyday since the company was established. Yang Ze, the founder of Haina, believes in a flexible style in human resource management, that is, he usually motivates employees by the value of the organization, as well as by a flexible working and salary system. But what makes him confused, the employees gradually become lazier and lazier, instead of being efficient as he expects. Yang doesn’t plan to regularize employees with rules as stern as possible, at the same time, he do really want to transform the reality as well. He falls into a dilemma whether he should replace his flexible management with a rigid style.

KEYWORDS: flexible management; rigid management; organizational efficiency; entrepreneurial team