Continued - VS Huawei ZTE
Huawei: centralization> Decentralization
On the separation of powers, Ren Zhengfei a famous saying:
"Stability is the foundation of Huawei always centralization."
The decentralization issue, Ren Zhengfei is cautious: the centralization
of power, based on layers of orderly separation of powers, the slogan is
"full authority and strict supervision."
Personnel in the most important right, the "Basic Huawei"
clearly states: Division General Manager, Finance Director, Human
Resources Director and Audit Director, appointment and dismissal by the
company. The distribution of profits, division of all profits from the
company's strategy and objectives under the uniform distribution.
Meanwhile, the business decision-making power is not included in the
division of power among Huawei.
In this way, general manager assigned to the hands of Huawei power is
limited. As a division of the three major powers of the external
expansion of power - the right to operate, finance and personnel rights,
are vested in the firm. The division of the three powers are concentrated
in the company at the policy level, has actually resulted in the
organizational structure of the matrix structure.
In Zhengfei view, matrix structure is not only a flexible product
management, process management, but also relying on the full horizontal,
vertical, linear function of restricting an important tool of power. Ren
Zhengfei value of the matrix structure is expressed in the concept of
checks and balances.
Huawei, despite more than 200 vice president, but in addition to Ren
Zhengfei, SUN Ya-Li, and had left a man and so on, basically not much
decision-making power, control of all decision-making power in the hands
of a man Ren Zhengfei, and these were the Deputy jobs and benefits are
also very unstable; Zhengfei article to spread through their own ideas
and influence people's behavior, and to each meeting as a way to carry
out ideological work.
From the basic organizational framework is concerned, is characterized by
centralized management of linear functions, and is characterized by
decentralized system of management division, is generally found in most
enterprises. According to the principle of pragmatism, the right is the
best. Small business small, with few people, good control, they are often
taken to centralized management, high efficiency and flexibility. Large,
and the number increased, from a business sense to the division of labor,
division of labor can be specialized, speaking from personal efforts,
must be the separation of powers, decentralization can improve efficiency
and restore the flexibility of small companies. This is a change as the
business case has been the development of pragmatic management philosophy
and way of thinking.
Through decentralization, ZTE down to every level of economic indicators
implemented as a link of responsibility, the pressure transmission to
each employee, so the company felt the market up and down the operation
of enterprises Zhong »¯ the risk and pressure, to further inspire the
employees of the initiative enhanced sense of team and enhance the
company's order level of cohesion and Management.
Industry generally believe that the implementation of power as Huawei,
ZTE, but in fact, once the difficulties faced by ZTE, the power from the
grassroots level often make the company invincible. This is precisely
where the power is decentralized.
Realists vs paid to promote habitat
ZTE: "There is no mediocrity, and some just put in the wrong place
In the Restoration, there are three options for the runway, including
management, technical and operational functions of the three line system.
Business or technical lines as long as the climb to the highest level,
you can enjoy the same treatment and the president.
ZTE will set its own standards for the industry talent talents,
specifically, "in a particular area of expertise of the national top
5%." However, the talent hiring company can not ensure the
realization of its value, how to use these people to become more
important. Hou Weigui convinced that "there is no mediocrity, and
some just misplaced talent."
After a long period of exploration, the ZTE has formed a complete set of
internal flow mechanism to allow the right people at the right place. In
order to ensure the efficiency of such flows, ZTE has established two
standards: one is in line with company standards for human resources add
value. If a manager post vacant, will be issued a public notice in the
whole company, where employees can meet the conditions of registration
candidates. The second is the development of standards for individual
employees. ZTE provides that employees can be made 2 years of service,
mobile application. But departments often want stability, time, human
resources are often considered in the context of the employees, analyze
the reasons for the staff to mobilize in order to both sides in an
objective stance on negotiations.
ZTE believes that option is not the only way, it has a positive effect,
but also a considerable negative impact. So all along, ZTE is the
material incentive cash awards instead of the main options. Since 2001,
ZTE's basic wage growth, coupled with generous bonuses, the average
income of more than Huawei. Since 2003, ZTE Master graduates in college
recruitment, the minimum wage 20% higher than Huawei.
ZTE seeks to implement a people-oriented management, its core is
emotional, treatment, cause combined to keep people. This is due to Hou
Weigui, and others will be "basically good" idea as a basic
People first, not the company would pull their punches on the staff. On
the contrary, to maintain adequate competition to ensure that those who
can have their place. To this end, ZTE introduced a system of
elimination, so that around 5% per year to maintain the natural attrition
rate, in order to maintain the vitality of the entire organization.
Huawei: high salary is the driving force
In the eyes Ren Zhengfei, Huawei is the "three high"
Enterprise: high efficiency, high pressure, high wages. He firmly
believes that salary is the first impetus of finding only Isao.
2000 Love for the "big recruiting people," Emphasis is the
"salary is the first drive."
Salary policy, to a certain extent, resulted in the production of
Huawei's high cost of non-direct. In 2001, the domestic telecom market,
Huawei is expected to grow not as fast as a result, a lot of talent can
only "reserve" up and caused great waste.
But for "waste" one said Ren Zhengfei not agree that it is a
waste created Huawei. In fact, a waste of talent caused some degree of
monopoly of talent, but also restricted the development of competition.
In fact, Huawei is not only to employees with high wages, there are
options and other benefits. Stock options is the most high-growth
companies, especially high-tech companies are widely used as a form of
incentive, it was once the most attractive incentives. Prior to 2001,
Huawei's extensive use of employee stock ownership and profit sharing,
employee income is generally higher than the ZTE.
Huawei seeks to create such an atmosphere: here, only those adventurers
who can be reused characteristics. Huawei, you can overnight from a
regular employee promoted to senior managers, such as when one employee
was promoted to senior engineer 19 years old, still an employee was
promoted to senior engineer on the seventh day after work. Huawei, you
would like to have development, it is only one way to an official.
Huawei, the company's relationship with employees is a purely economic
contractual relationship, therefore, either because the company staff to
create effective (financial or otherwise) and the enhanced and rewarded,
either because of poor performance of automatic resignation . Treatment
fall short of the old employees, Huawei, if not actively dismissed, would
reduce the salary and benefits, allowed to leave voluntarily.
ZTE will provide a more selective and much more stable environment, is
ZTE called "realists habitat." It is said that more outstanding
graduates will normally choose Huawei, where the dry years, enough money,
then there will be a group to leave, a part of the flow of ZTE, because
of the technical staff, ZTE more home.
Business is not home, should not be at home, we do not need to be
discussed here. However, the example of ZTE and Huawei, ZTE's approach
was undoubtedly more prosperous popularity, has also been recognized by
Overseas Market Strategy
ZTE: "encircling the cities" of the overseas edition
January 2004, the spiritual leader of the new president Yin Yimin Hou
Weigui and others made ZTE Vision 2008: ZTE will have 50% of sales from
international markets, expand overseas markets for the ZTE one of the
three strategic core.
However, ZTE's international or very low-key. At present, ZTE's overseas
sales are basically concentrated in the Asian and African and Latin
American countries. Year in these countries is like the rural telecom
market. As of the end of April 2004, ZTE CDMA products successfully enter
Algeria, India, Indonesia, Vietnam, Kuwait, Saudi Arabia, Egypt, Russia,
Uzbekistan, more than 30 countries, the global wireless equipment
capacity has exceeded 15 million lines, to become the largest overseas
sales exporting countries and the largest CDMA equipment manufacturers in
However, "rural" limited room for growth, after all, from
"rural" to Europe and the United States and other
"urban" market attack is inevitable. Europe and the United
States and other developed countries accounted for 85% of the
telecommunications market, the rest of the countries and regions combined
was only 15%, ZTE, Huawei, 15% had been in the turn inside the circle. To
achieve greater success in the international market, Europe and the
United States and other developed countries must enter the market.
Before and after 1999, ZTE learned, data and optical communications will
be period of time where the U.S. market demand. Particularly in the data,
next generation network (NGN) is a direction. Since then, ZTE began to
target the future compete on the U.S. market.
In Europe, Hou Weigui best, "encircling the cities" is like a
duck. Unlike the situation with the United States, Europe, more developed
than the Western European and Nordic, the other relatively less developed
region as a whole, the same region, relatively large gap between
different countries. The European version of "encircling the
cities" strategy of success, as ZTE to achieve an important basis
for its international strategy.
Huawei: foreign policy line followed by the sales line
Different with ZTE and Huawei in addition to price, technology, market
and other conventional routines, adhere to the Chinese government's
foreign policy line, as Huawei's own sales line.
Ren Zhengfei clear: "China's foreign policy line to be successful in
the world to win more friends ... ... Huawei, China's multinational
marketing is to follow down the path of diplomacy, I think, can
In 1996, President Yeltsin's state visit to China, Ren Zhengfei
immediately captured the changes in international relations in the hidden
opportunities, speed up cooperation with Russia. April 8, 1997, Ren
Zhengfei went to Russia to attend the Huawei joint venture with Russia
Beto Huawei's signing ceremony.
1997 Äê October 26 to November 3, Chinese President Jiang Zemin,
President Clinton invited the United States paid a state visit. 2 months
later, Ren Zhengfei also flew to the USA and IBM and other leading
When entering developing markets, Huawei is usually traction and support
by the government, because China and the developing countries have
enjoyed traditional friendship and assistance projects, therefore, the
first product assistance to open the door, to satisfy the local
government and the telecommunications sector confidence .
From the business point of view, the development of diverse vertical and
horizontal development of the internationalization of Chinese enterprises
is placed in front of the two major problems. The two "of" is
the key to all enterprises have the experience, ability, talent,
mechanisms and culture can smoothly migrate to other areas and other
markets. Transplant success, first of all depends on the business about
to enter the field and understanding of the region.
Fortunately, uneven development of the world's communications industry,
ZTE and Huawei to provide an opportunity to replicate their successful
model. Both low-key ZTE, Huawei is a high profile, objectively speaking
they are the international success of the road.
It is worth emphasizing that the diplomatic route in accordance with the
design of Huawei marketing line, it is very wise choice. There are two
advantages: First, in the context of national diplomacy, long-term
stability of overseas development; 2 is to contribute to economic
diplomacy at the same time, you can Youxian receive government support.
Tolerance, human locomotion VS Huawei
ZTE: the power of tolerance
ZTE's corporate culture is a culture of tolerance, humanity, its
president Yin Yimin said: "There is reasonable." Thus, while
ZTE against sub-culture, but when the sub-culture do appear, it can
tolerate its existence , and prevailing circumstances to form a positive
ZTE in Shanghai, Nanjing, Shenzhen headquarters owned and almost strong R
& D team, perhaps with this background because the scattered
provinces make ÒâÎ¶×Å culture will Zeng Jia Tong Yi's difficult. For
example, the Nanjing Institute of Culture is more pragmatic, is a typical
engineering culture, and the Shanghai Institute of more forward-looking,
fit to do some planning task. Even the headquarters in Shenzhen, CDMA
Business Unit and other departments are not the same culture, become more
In the ZTE, you can see employees seem to be more casual, we all speak
slowly, the whole office pack of jolly scene. The relationship between
employees and the company is an "economic contract + psychological
contract" between companies is very loving towards older employees,
usually repeated to give you the opportunity to dry in the ZTE over 10
years old employees are everywhere, many of these people today is an
ordinary employee, but they have shares and earnings is not bad.
Hou Weigui mainly through practicing and 3 times a year several high-
level business meetings and seminars Management, Management Learning
class of speech to spread their thoughts, affect their behavior. Hou
Weigui rarely develop strategies, are almost never determined to
implement a comprehensive set of applicable rules and regulations. Before
the next command, ZTE to allow communication and discussion, even if I
Hou Weigui, it does not deliberately add your own ideas across the
Huawei: mass movement force
December 26, 1995, Ren Zhengfei to an article entitled "the current
situation and our tasks" of the 10,000 word report, beginning the
training and consolidation of marketing the work of the Conference of the
prelude. During the meeting, all the marketing department of the chief
cadres, must submit two reports to the company, a work trip in 1995,
another report is to resign.
According to the actual performance of individual potential for
development and corporate development needs, 30% of the cadres to be
adjusted down. Collective resignation opened the Huawei
"Cadres" first of its kind, is also the industry as companies
realize the smooth transition period, "the new and old to
succeed," a classic case.
After several years, along with Huawei to double-type growth, internal
movement in full swing. From "Basic Huawei" great learning,
"Product Development Anti-naive," the great debate, the
"inaction" of the compositions with high-level launch, top-
down, layer upon layer push the mass movement for change has become
Huawei sign pattern.
Mass movement did play a magical effect. First, it trained the staff of
the political mind. Those who do not love learning company documents
before the young people will now rush to read the first time Ren Zhengfei
statements or articles.
Sports training and selection of talent has become an important tool,
Huawei called "purgatory." Some in the movement, "stand
out" as a temporary heroes, the age of 26 was promoted to executive
vice president of Lee and one man as the representative of corporate
management, through the movement of exercise, all young and inanimate; It
was also mentioned as senior , precipitation on the road to success for
the Huawei paving stone.
The effect of exercise is great, but the disadvantages are gradually
exposed. Fanatical religious "brainwashing" young people for
just speaking into the role of the community is obvious, but exercise
more than one, is compromised. Leaders shouted wildly above, the
following will be followed by echo, superficial also more up.
After 2000, Huawei began to consciously reduce the surface
"exercise", Ren Zhengfei also retreated from the front of the
stage behind the scenes. Changes in cross-sectoral leadership group to
replace the president's personal command, swearing has become a
systematic propaganda and training, major changes in business processes
and organization to adjust the alignment are sweetness and light in
It is this widespread movement force, so that Huawei can not afford to Xu
Ziwen of the existence of Huawei's staff also focused on one place in
Shenzhen, to facilitate unified management. In general, Huawei, a command
is issued, must be unconditional implementation.
It is said that Huawei's "firewall" is everywhere, Huawei
stringent enforcement of "least privilege" principle, that is,
if an employee of any contact with the work she is doing is not directly
related to the material, must receive special approval.
Cultural differences, the two companies led to the growth mode of
execution and market differences in attacking areas: ZTE more stable and
not easy to miss a major opportunity in the future more predictable. So
when in 2000 the global high-tech industry when the bubble began to
burst, ZTE announced that this year is the "speed", with 2001
to 2003, including all manufacturers, including Huawei, a large number of
layoffs or stop into, ZTE has a lot of trick people. Huawei will have
more teeth in the market are also more aggressive and take risks. This is
exactly the image that should be a metaphor: like a cow ZTE, Huawei is
more like a wolf.
Relative to the currently widespread concern and even respected the
"wolf culture", the outside world in the eyes of ZTE's
"cow culture", it might seem slow and outdated. However, the
true power of culture, may have to wait several years, ten years or even
decades, after a century, to appear in future generations. At that time,
Hou Weigui, Ren Zhengfei may have no chance to see the results, however,
as Ren Zhengfei said: "No resources will be exhausted and only
culture has survived generation." Just as Hou Weigui said: "If
I have any contribution to the Restoration, then may only leave a little
Modern enterprises in market competition wrestling, originally a never-
ending endurance. Enterprise content, Who can say?
In 2004, the two enterprises in overseas sales of about 40% in 2005, they
also set overseas target of 50%. Looking to 2008, they are likely to be
the only Chinese enterprise to compete with giant foreign multinationals.
2 low-profile business leaders always appear again and again to visit the
accompanying entrepreneurs, state leaders among the ranks, with the sign
at the flashing lights, to show the world the "Chinese power."
Although both ZTE and Huawei, "headquartered in Shenzhen, China's
multinational global operations", in many ways there are large
differences, sometimes simply completely contradictory, but they are
still able to twists and turns ahead.
This is confirmed truth: Management does not matter good or bad, as long
as practical for the development of enterprises, to achieve perfection,
the same can get a good result.