Huawei's success has its own reasons. Many of us are using Huawei mobile phones and related products. The following is what I brought about the reasons for Huawei's success. Welcome to read it!
Technology and management belong to two fields. One person often cannot become a management and technical professional at the same time, but the difference in salary between the two positions will directly affect the efforts of scientific research and technical personnel. In order to solve this dilemma, Huawei has designed a two-way promotion channel for job qualifications. New employees start with grass-roots business personnel and then rise to the backbone. Employees can choose managers or technical experts as their future career development path according to their preferences. Before reaching the senior professional title, the salaries of grass-roots managers and core backbone, middle managers and experts are the same, and the two positions can be converted to each other. When it comes to the positions of senior managers and senior experts, the positions of managers and experts cannot be changed. The development direction of managers is professional managers, while the occupation of senior experts is professional technicians. Huawei's two-way employment channel takes into account employees' personal development preferences and gives employees more choices. At the same time, it considers technical functions and management functions equally to help employees grow. In addition to the two-way promotion channel for job qualifications, Huawei provides a mentor for new employees to care and guide them in their work and life. When employees become the backbone of management, they will also be equipped with an experienced mentor to give guidance. Huawei's complete career development channel and tailor-made tutor system for employees can effectively help employees grow and reduce the turnover rate of excellent employees
Equity incentive is not omnipotent. When the strength of equity incentive is not enough, the effect of equity incentive is also quite limited. At the beginning, Huawei's equity incentive was biased towards the core middle and senior technical and management personnel. With the expansion of the company's scale, Huawei consciously diluted the equity of major shareholders, expanded the shareholding range and proportion of employees, and increased the employees' sense of responsibility to the company.
Huawei's respect for human capital is also reflected in Huawei's basic law. The law states: "we believe that labor, knowledge, entrepreneurs and capital create the full value of the company"; "We use the form of conversion into capital to reflect and repay the accumulated contributions of labor, knowledge and entrepreneurs' management and risk; we use the equity arrangement to form the backbone of the company and maintain effective control over the company, so as to make the company grow sustainably.", This shows that equity incentive is one of the policies for employees to use human capital to participate in dividends.
Huawei's emphasis on human capital is also reflected in its investment in R & D. Huawei invests 10% of its sales revenue in scientific research every year, which is more than twice the average scientific research investment of domestic high-tech enterprises. In terms of resource allocation, Huawei believes that the task of management is to enable the best people to have sufficient authority and necessary resources to realize the tasks assigned to them.
To achieve the purpose of incentive through the salary system, we must first establish a different salary system. Through equity incentive, Huawei has not only become the company of most employees, but also opened the gap between employees' salary and income. With the development of Huawei in recent years, the proportion of dividends has increased significantly. The impact factor of dividends on employees' income is more than 30%, which is very encouraging for employees.
In addition to the incentive of salary structure, equity incentive also needs the fairness of performance evaluation. Huawei takes measures of regular inspection and real-time updating of employees' wages in the performance appraisal of employees. Employees don't need to worry that their efforts have not been discovered by the management, as long as they work hard. Huawei's measures ensure a relatively simple competitive environment for researchers and are conducive to the development of employees. Huawei's equity distribution is based on sustainable contribution, highlighting talent, morality and risks. The equity distribution is inclined to the core layer and the backbone layer, and the equity institutions are required to maintain dynamic rationality.
While maintaining the rationality of performance appraisal, in order to reduce or prevent office politics, Huawei's investigation of leaders is also conducted from a three-dimensional perspective, that is, the personal performance of leaders, the views of superior leaders and the relationship between leaders and employees at the same level and lower level. Leaders should pass the employee assessment for six months before taking office. Good performance only means high salary, which does not mean they will be promoted. Such a leadership promotion mechanism restricts the personal rights of leaders from the perspective of morality and interests, and more reflects the respect for the opinions of lower level employees.
Equity incentive is not empty talk about equity. The key to the successful implementation of equity incentive is to realize development and dividend in the future. In the industry, Huawei's leading position and stable sales revenue have become the economic guarantee for the implementation of its internal equity incentive. According to the consulting report of informa, Huawei ranks third in the world in the field of mobile device market. Huawei's products and solutions have been applied in more than 100 countries around the world and serve 36 of the top 50 global operators. In 2008, the performance of many communication industries declined, while Huawei achieved contract sales of US $23.3 billion, a year-on-year increase of 46%, of which 75% came from the international market.
In the past, Huawei's cash dividends and asset appreciation were one of the factors that prompted employees to buy Huawei's equity without hesitation. It is understood that with the rapid expansion of Huawei, Huawei's internal shares have appreciated significantly in recent years. In 2002, the executive price of virtual restricted shares announced by Huawei was 2.62 yuan per share, 2.74 yuan in 2003, 3.94 yuan per share in 2006, and 4.04 yuan in 2008. The annual rate of return of employees has reached 25% ~ 50%. Such a high stock dividend is also an important reason why employees are willing to buy Huawei equity.
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