Huawei also encourages loyalty with its unique employee ownership structure. Long-Term Thinking The employee-ownership arrangement not only helps Huawei attract and retain dedicated employees, but also allows the company to plan for the long term. Chapter- 6: Major Findings • Huawei, the multibillion-dollar Chinese telecom infrastructure and mobile device maker, just announced a new CEO — but only for the next six months • Under the system, three executives take turns acting as CEO • Huawei and China are in a period of rapid change, and having three CEOs will keep the company nimble. References:, Iaoyzy. Change ), Level5,TowerA,799 Pacific Highway, Chatswood,Sydney,NSW, Australia 2067. Ren Zhengfei has only a 1.4% share in the company, with the rest spread among more than 80,000 employees who have earned a share. Change ), You are commenting using your Facebook account. Change ), You are commenting using your Google account. Huawei EBG is the management and supportive organization for the marketing, sales, and services of products and solutions specifically designed for enterprises and industry customers. An ambitious growth strategy based on rapid expansion overseas now sees the company operating in 170 countries around the world – with revenues of nearly $100bn, Huawei currently employs over 170,000 people. Abstract . By 2010, du had acquired almost 40% of the region’s market share, and it was able to maintain a growth rate of over 32%.The company’s leadership had no desire to rest on their laurels, though. Organizational Culture Huawei launched its “Huawei Basic Law” in 1998. The major organisational culture of Huawei Company, which demonstrates the set of key values, beliefs and attitudes shared by organisational members, is known as ‘wolf-culture’. Situated in a fast changing modern environment and facing relentless international competition, Huawei has so far thrived. 1-13). People of Huawei believe that the resources could be exhausted, but the culture could last forever. Organizational culture is similar to geological rock formations, where there are a … Ren Zhengfei has also credited it with allowing them to stay close to their goals and long-term vision. Huawei announced last week changes to its organizational structure and management team, creating a fourth business group for its cloud computing and artificial intelligence (AI) divisions in a sign that the telecommunications giant is priming to ramp up its efforts in this sector. Therefore, many aspects of human resources management were covered and discussed in detail. The second character of wolves is resistant to coldness. Huawei: An Exemplar for Organizational Change in a Modern Environment 1 Huawei Technologies Inc. (hereafter Huawei), a world leading Information and Communications tech- nology (ICT) solutions provider, has become the world’s largest telecoms-equipment-maker by surpass- ing Sweden’s Ericsson in its annual revenue in 2012 (The Economist, 2012). (2011, April 1). A Organizational Chart showing Huawei . Different levels of employees in Huawei all play an irreplaceable role in the construction of the organisational culture even they are responsible for diverse task (Iaoyzy, 2011). & Copyright Info | Site Map, Disclaimer Strategic Management Of Huawei 6892 Words | 28 Pages. Having proper organisational culture inspires people in Huawei to perform successfully in the competition and restrict employees’ behaviour. Huawei’s trade union is an organization registered under Shenzhen’s Federation of Trade Unions. However, Huawei now faces a decision point. (2010, June 4). The organizational chart of Huawei Technologies displays its 255 main executives including Zhengfei Ren, Wanzhou Meng and Yan Lida × We use cookies to provide a better service. 6. The latter are how values are translated into day to day actions by members of the organization. Today, Huawei is the only Chinese company out of the 91 mainland Chinese companies listed on the Fortune Global 500 list earning more revenue abroad than in China. The organisational culture contributes to ensure workers have certain idea about how they should behave, which leads to the performing of high quality tasks. Huaweis revenue from overseas markets exceeded that from the Chinese market for the first time in 2005. Since the personal values of employees are well aligned with the organisational culture, which means that the culture exists in the believed level, staffs are motivated and feel more enthusiastic for their jobs. Huawei EBG is one of Huawei's three major business groups. Cost structure optimization for sustained profitability; Transaction model adaptation that improves financials ; Participation in emerging disruptors such as cloud computing; Huawei’s role is to help clients understand how and when to do these things so that time-to-market and commercial risk are minimized. Huawei: an exemplar for organizational change in a modern environment Conference Paper. The ‘wolf-culture’ brings Huawei a high level of keen insight about the unsteady market and assists the company to quickly react to any existing opportunities. The third character of wolves is taking actions in teams. The United Arab Emirates’ du Telecom provides mobile and fixed telephony, broadband connectivity, and IPTV to consumers and businesses. There are very strict performance appraisal systems inside the company, and only those who perform well enough qualify to be awarded with company shares—Su has not yet got a share. United States: Informing Science Institute. Chapter six: strategic management in Chinese companies. Huawei group is making organizational changes in its house, all mobile service (including AppGallery, APP Assistance, wallet, Huawei ID, MemberCenter, IAP, Points, Themes, Screen magazine, Music, Mobile cloud, Browser, AppAdvisor, Assistant, and Health) are being transferred to Huawei service (Hong Kong) co. ltd from Aspigel incorporated limited on 1 st November 2019. The logic is simple: whenever customer needs change, product offerings—and hence the organization that delivers them—have to change accordingly. First, Huawei is structured primarily around customer needs to ensure the customer is at the cent re of everything it does. Huawei is putting itself forward as the 'poster boy for sustainability' That’s all now changed. Retrieved May 3, 2014, from  http://wenku.baidu.com/link?url=kmveDEJKrJWzQWsAAbkV9HOiwa0VrQkcyPKusbDog-GnH4qNEYMnJ1C5ovj3itDFfKexv0S0NwAgqJ_DO0Q7z5lt96nK3wqRqqwAJQrfqim, Heissougly. Moreover, the clear division and cooperation of variable works between employees in Huawei make sure all the tasks are done in the most efficient and effective method, which helps Huawei to obtain impressive profits and develop successfully. Some of the prominent partners include Motorola, Vodafone, Talk Talk, T-mobile, Clear wire, Bell Canada, etc. Copyright © 2018 University of Wollongong. A Framework For Huawei’s Change In order to maintain a competitive and sustainable in market change is one of the factor skills to all organizations must master. The managers in low level pay more attention to the build of teams and make sure the organisational culture are understood and shared by the staffs. Overall, it’s no doubt that the ‘wolf-culture’ is the cornerstone of success for Huawei and lead Huawei to make significant breakthroughs in such competitive market of modern society. Huawei is a collective company now and not privately owned anymore. 28, NÚM. Huawei clearly defines the roles and responsibilities of its organizations to ensure the effective separation of authority and responsibilities as well as checks and balances through mutual oversight. In 2013, du Telecom signed a M… The wolf-culture of Huawei. 56, JULIOThDICIEMBRE DE 2016 response in various countries of the world, through products and … This law makes every details into formal regulations on the basis of summing up its own development experience. Only with change will businesses be able to lay the foundations for long-term success.According to Cambridge Dictionary, organizational change is:“A process in which a large company or organization changes its working methods or aims, for example in order to develop and deal with new situations or markets.”Many people would disagree with Cambridge Dictionary’s descrip… Over the years, Huawei has dramatically altered its organizational structure several times, as the needs of its customers have changed. Over the past decade, the way in which people are managed and developed at work has come to be recognized as one of the primary factors in achieving improvement in organizational performance. ( Log Out /  The normal employees should understand the organisational culture and connect it with the way to do tasks and achieve goals. Finally, the idea of having a fixed-time period to rotate CEO leadership is inspired by the rotating four-year system that is used for the presidential elections in the US. ( Log Out /  Refer to Figure 1 a model by Nadler and Tushman is one way to classify change where is the change can be ordered according to 2 dimensions. Having proper organisational culture inspires people in Huawei to perform successfully in the competition and restrict employees’ behaviour. Therefore, the leader team put plenty effort into the integration of organisational culture, which is actually coming from the employees’ ideas instead of the leader team (Iaoyzy, 2011). Proceedings of Informing Science & IT Education Conference (InSITE) 2014 (pp. In line with the duck’s flying behaviour, Huawei has decided to counteract the possible negative consequences of having only one leader (CEO) by introducing a system where the enacting CEO changes regularly as well. Employees of Huawei are extremely sensitive to the market information and could response promptly to any changes. Change is something that should be embraced rather than feared. According to the cultural trends and directions, the managers in middle level focus on the right methods to develop organisational culture. Nowadays, leaders of Huawei devote their effort on the cultural construction about international business since the cultural construction should be coordinated with company strategy (Heissougly, 2010). Second, its support functions are built around flexible platforms. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. It aims to make Huawei’s development plan and to determine Huawei 's second pioneering concepts, strategies, principles and basic policies. The atmosphere of team cooperation is particularly strong in Huawei and people are encouraged to develop and share personal opinions with each other (Iaoyzy, 2011). An organization that is structured properly is able to make efficient decisions and adapt to changes in the business world much easier. By continuing your navigation, you consent to their use. However, Huawei now faces a decision point. The organisational culture of cooperation, honesty, sacrifice, study, creation, benefit and fairness are applied to problem solving and goal achievement of each employee in Huawei (Iaoyzy, 2011). Situated in a fast changing modern environment and facing relentless international competition, Huawei has so far thrived. By the year 2010, 80% of the top 50 telecom companies worked with Huawei. Fourth, its culture is obsessed with maintaining the pace of change. Huawei's organizational structure obeys the requi-sites of a global enterprise that responds to the pressures of demand and for rapid 5 information from Huawei (2013). Huawei to re-structure its executives – things are changing Efe Udin October 10, 2020 Huawei is trying all it can to make sure that its businesses do not go under during these trying times. Huawei’s Organisational Culture. Huawei: an exemplar for organizational change in a modern environment. Organizational Structure: Front and rear line mode of combat troops. Huawei’s landmark year on the global stage came in 2005 when international contract orders first exceeded domestic Chinese sales. Zhu, H. & Jones, M. (2014). It is an organizational process in order to help the change stakeholders to accept and embrace changes in their own business environment. As we all known, the organisational culture exists in three levels: seen, heard, and believed. As a result, Huawei could expand its business volume about approximately twenty percent every year (Heissougly, 2010). 6 Data from Huawei (2013); in this division, mexico is in the north america region. The organisational culture contributes to ensure … Huawei 's corporate culture embodies its "core values." CRICOS Provider No: 00102E, Privacy | Disclaimer The company began operating in 2006 in a highly competitive market. Huawei has implemented a mature governance structure, with clearly defined authorization and accountability mechanisms. Coincidently, when we check Huawei’s profile (Huawei Company Profile, 2004), we found the following missions: “Huawei does not strive to maximize its profit, but to achieve sustainable growth and success through prolonged, close cooperation with customers and partners. & Copyright Info. You can edit this Organizational Chart using Creately diagramming tool and include in your report/presentation/website. In 2012, Huawei surpassed Ericsson at that time the world leader in telecommunications and networks in terms of sales revenue and net profit, and this tren… Confused structure, or a structure that creates bottlenecks in the decision-making process, can be counter-productive and have a negative effect on revenue. Structure of the team/company : Xiaomi Technology has an extremely flat structure. Huawei: An Exemplar for Organizational Change in a Modern Environment 1 Huawei Technologies Inc. (hereafter Huawei), a wo rld leading Information and Communications tech- … The organisational culture of cooperation, honesty, sacrifice, study, creation, benefit and fairness are applied to problem solving and goal achievement of each employee in Huawei (Iaoyzy, 2011). For the development of organisational culture, real actions are expected to be taken rather than stirring slogan. Given that continuous growth will yield increased pain, should Huawei choose to settle into their market and perhaps stagnate or should it reinvent itself and continue its youthful, but painful, path towards market growth? Bern, 26 th May 2014 – Huawei Technologies Switzerland AG, a subsidiary of Huawei Technologies Co. Ltd., a leading global information and communications technology (ICT) solutions provider, announces that some changes in its organizational structure have been made, to better face the strategic business transformation and better meet customers’ needs for future growth. The first character of wolves is bloodthirsty. The fearlessness of difficulties and eagerness of making progress are insisted by every member of Huawei, no matter how complicated the hardship is. There are advantages in this organization like the short-line communications are quicker and more efficient as well as the decisions are… 38 FRONTERA NORTE, VOL. The governance structure comprises the Board of Directors (BOD), its committees, group functions, and multi-level management teams. The change management includes the Mission changes, Strategic changes, operational changes, structural changes, technological changes, changing the attitudes and behaviors of personnel. In addition, new staffs should try to fuse with the organisational culture through seeing, hearing and believing. Retrieved May 3, 2014, from  http://wenku.baidu.com/link?url=JMKW64kxDlI4LB_alrHbt9b-pA99cvhM_O1OH9PvGE9dzBSzcqhA8k8AZg0W2OwLDtgzls0jjFzl7oelOOjvgvJ0FGCZlx0G5HXqZ-wW4-W. The most commonly cited practices of HRM practices include recruitment, reward and compensation, performance appraisal, trainin… ownership structure is what helps the company maintain a strong collective fighting spirit. ( Log Out /  Overview; Background; Identity; Additional Document Info; View All; Overview. In Xiaomo, there the not much hierarchy, only 3 – the core founder of the Xiaomi, the department leader and the employees. Change ), You are commenting using your Twitter account. … 6.1 Introduction The growth of the Chinese economy, particularly in the past 20 years, has been staggering, today Chinese competitiveness is no longer confined to lower-end production, and labor--intensive, low-value-added goods. The managers in high level take in charge of the supervision of cultural trends and directions. Third, its management-level employees are continually rotat ed between different jobs. ( Log Out /  Organizational structure of Huawei EBG. All now changed connectivity, and multi-level management teams 6 Data from Huawei ( 2013 ;... The cent re of everything it does trade union is an organization registered under Shenzhen ’ s of! 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