Chapter 29 Improve the human resource management system

Through the reform of human resource management, Ren Zhengfei has enabled Huawei to form an entire human resource management system and a system for cadre training and selection. At the same time, it also enables employees to follow rules in everything they do. Since 1997, Huawei has cooperated with Hay Group to carry out human resource management reform.With the help of Heyi, Huawei has established a position system, salary system, qualification system, performance management system and employee quality model.On this basis, Huawei has formed the principles of selecting, cultivating, employing, and retaining employees and the principles of selecting, training, appointing, and evaluating cadres.Since 1998, Hayee has audited the improvement of Huawei's human resource management system every year to identify existing problems and hand them over to Huawei for solutions. Since 2005, Huawei has cooperated with Heyi again to carry out leadership training, development and establishment of leadership quality models, in order to cultivate leaders for the company's global development.

Huawei has long implemented a customer-oriented human resources and cadre management system.Customer satisfaction is one of the important assessment indicators from the president to cadres at all levels.Huawei's external customer satisfaction survey was commissioned by Gallup.Customer demand orientation and customer service requirements are reflected in the recruitment, selection, training, education, and assessment of cadres and employees, and strengthen the focus on customer service, and solidify the quality model for the selection and training of cadres and employees into the template for recruitment interviews .Huawei has to talk about the case of "Who Killed the Contract" when training every employee who just joined the company, because all the details may cause the company to collapse.Huawei pays attention to talent selection, but the top three students are not considered, because Huawei does not recruit self-centered students, it is difficult for them to be customer-centric.Now many people emphasize skills. In fact, perseverance is more important than skills, morality is more important than perseverance, and mind is more important than morality. Customers must find their feelings.

In terms of policy orientation for cadres, Ren Zhengfei proposed the "three priorities" and "three encouragements" policies. The "three priorities" are: priority is given to the selection of cadres from excellent teams, cadres should be selected from teams with outstanding performance, supervisors who cannot achieve management goals in a row should be dismissed, and deputies in departments who have been dismissed cannot be promoted to principal positions; Employees working in difficult overseas areas are trained in the cadre reserve team. The first phase of Huawei University was established in Nigeria; priority is given to selecting cadres with good results, self-criticism, and leadership as top leaders at all levels.

The "Three Encouragements" are: Encourage government cadres to work in the front line, especially the overseas front line and overseas difficult areas, the rewards are tilted to the front line, and the rewards are greatly tilted to overseas difficult areas; encourage expert talents to enter the career development channel of technical and business experts; encourage cadres Transform to internationalization and professionalization.All cadres must fill in a form to express their voluntary application to work in the most difficult overseas areas, otherwise no matter how outstanding you are, you will not be recruited.

Huawei's cadre appointment standards have clear requirements in all aspects, from morality, quality, behavior, skills, performance to experience.There are two channels in Huawei, one is to go to managers, and the other is to go to technical experts. Managers and technical experts with the same position can enjoy the same treatment.Huawei denies a free culture that aims to realize the personal value of employees. There are only two paths for employees to change their destiny in Huawei. One is to work hard, and the other is to make greater contributions.Huawei's remuneration to employees is based on their contribution and ability to serve, and will not pay any remuneration for employees' education, length of service, professional titles, or good internal "public relations".Cognition cannot be used as an element of appointment, it must be based on attitude, contribution and potential.The principles for training and selecting cadres are firstly to identify with Huawei’s core values, and secondly to have the ability to criticize themselves.

In the process of international development, Huawei advocates the cultivation of cadres at all levels in "Shangganling". Employees with leadership style, high quality and team appeal, and employees with clear goals and good management structure should be selected to the company's cadre team come.At the same time, Huawei cares about the training and growth of female cadres in the system, and considers the proportion of female cadres in the training of cadres at each level. Huawei adheres to the cadre elimination system, establishes a benign metabolic mechanism, insists on introducing batches of outstanding employees, and forms a steady stream of cadre reserve resources; opens middle and high-level positions, introduces senior talents with international operation experience, and accelerates the internationalization of the cadre team process.Huawei also unremittingly strengthens the ideological and moral education and integrity education of cadres and employees; insists on opposing corruption of cadres and gambling; establishes a personal information system for employees to record information about employees' integrity, including awards, punishments, promotions, qualifications, and performance and other information.

In terms of cadre selection procedures, Ren Zhengfei does not engage in democratic recommendation or competition for posts, but uses a mature system to select cadres.This mature system includes position system, qualification system, performance appraisal system, cadre selection and training principles, cadre selection and appointment procedures, and cadre assessment.First of all, the certification is carried out according to the requirements of the position and the qualification standards of the position. The focus of the certification is the employee's morality, quality and completion of responsibility results.After the certification, a 360-degree inspection is also required, that is, a comprehensive evaluation of the cadre's employment situation among the supervisor, subordinates and surrounding areas.After inspecting the cadres, a pre-appointment publicity is also carried out, so that the cadres are under the supervision of the employees. Every appointment must be publicized for half a month, and all employees can give their opinions within half a month.Huawei still has an adaptation period after the appointment of each cadre, and arranges mentors to provide guidance.After the adaptation period is over, the supervisor and relevant departments will only become regulars if they are qualified.

Huawei does not fully pay attention to performance in the cadre assessment process, because performance can only prove that you may not be eliminated, but it cannot prove that you can be promoted.The key depends on the assessment of individual behavior, and various factors must be considered comprehensively. For performance appraisal, Huawei adopts a comprehensive balanced scorecard approach based on the company's strategy.The comprehensive balanced scorecard is a tool for Huawei's overall strategy implementation. Its core idea is to achieve Huawei's strategic goals through the causal relationship between finance, customers, internal business processes, and Huawei's four aspects of learning and growth.The key to the Balanced Scorecard is balance: the balance between short-term and long-term goals, the balance between revenue growth goals and potential goals, the balance between financial goals and non-financial goals, the balance between output goals and performance drivers, and the balance between external market goals and internal key Balance of process performance.From strategy to indicator system to everyone's PBC (Personal Business Commitments, personal performance commitment plan) indicators, Huawei uses the balanced scorecard to achieve balance in various aspects such as long and short, financial and non-financial.

Huawei has a basis for evaluating the behavior of cadres in key events. Supervisors at different levels will look at your performance in key events or intentionally let you exercise in some key events, and then evaluate your behavior during the exercise. Evaluation, and then the results of performance inspections and key event behavior evaluations are obtained, which are directly linked to the salaries of cadres.If the target completion rate of middle and senior managers at the end of the year is lower than 80%, the principal shall be demoted to a deputy or be dismissed; the last 10% of the annual PBC completion of the managers at all levels shall be demoted or adjusted, and the deputy cannot be promoted to the principal; those with poor performance In principle, the team cannot promote cadres; managers who have committed major negligence are dismissed on the spot; cadres who have been punished cannot be promoted within one year, let alone promoted across departments; cadres who fail to pass the evaluation of key incident behaviors are also not allowed to be promoted.

Over the past 20 years, Huawei's continuous investment in human capital has been quite astonishing. The hardware investment in the company's training center alone has reached nearly 1 billion yuan. Huawei has hired three of the top 10 human resource management consulting companies in the world within five years. Some people think that the reason why Ren Zhengfei dares to invest heavily in human capital is because the high profits he obtains are enough to support this policy.In fact, Ren Zhengfei has made it clear in the "Huawei Basic Law": "The goal of human capital appreciation takes precedence over the goal of financial capital appreciation." Human capital is the source and driving force for creating financial capital.In fact, Huawei has always adhered to this principled position even when its profitability was not good.

Compared with domestic high-tech enterprises, Huawei's most distinctive feature in human resource management is the equity incentive and job qualification system.The remuneration of Huawei employees includes four parts: salary, bonus, equity or options, and benefits.Generally, domestic enterprises mainly focus on short-term incentives such as wages and bonuses. In fact, for the core talents of knowledge-based enterprises, long-term incentives such as equity or options are the most indispensable. One of the bases for long-term incentives is the so-called "community of interests".Since the interests of the management and core employees are not completely consistent with those of the shareholders, high agency costs will be incurred. If the shareholders take out a part of the equity to bind the interests of the two parties, it seems that the interests of the shareholders are reduced, but in the end the exchange is After making the "pie" bigger together, the shareholders' income will be maximized.The second basis for adopting long-term incentives is "knowledge capitalization".In the past, people only believed that financial capital created value, but now the concept that human capital (knowledge capital) and financial capital jointly create value has been generally accepted.Huawei uses virtual equity to make key employees become virtual shareholders of the company. While basically maintaining the status of original shareholders, it realizes the capitalization of knowledge, which greatly mobilizes the enthusiasm and creativity of employees. But Ren Zhengfei also realized that if an enterprise wants to maintain a steady development, it is still not enough to rely solely on material incentives.Ren Zhengfei said: "We must use material civilization to consolidate spiritual civilization, and use spiritual civilization to drive material civilization." Many people think that Huawei is a leading company in the industry, rich and well paid, and will definitely be able to retain talents.In fact, it is not the case. Retaining talents is a systematic work and a comprehensive strategy. Talent retention does not depend on more money. Good benefits can only reduce the brain drain rate.For example, from 20% to 12%, but not to zero.As far as enterprises are concerned, they will not pursue zero churn rate.What they want to retain is the core talent, not all of them.Therefore, retaining talents is not just a matter of money, but a complete set of human resource management systems, including career development and so on. In 1988, when Huawei started its business in Shenzhen, it only had 20,000 yuan in capital and seven or eight people who acted as agents for others, just like countless small businesses in Shenzhen today.But Ren Zhengfei is a leader. He has drawn a good blueprint for his employees and convinced everyone.At the beginning, Huawei's employees couldn't get paid. He said that in 10 years, you can count the money until you are soft.Sure enough, after more than 10 years, the first few people got very high returns. It can be seen that it is very important for employees to identify with the company itself.There are many companies that want to keep people with treatment, career and affection.But these three aspects are not easy to do well, and the requirements for business leaders are very high.Businesses may not have enough money, but they can still be attractive to employees.This is the training and future planning for employees.Let the employee know what he can learn and what he can become after 3 years. Looking at domestic enterprises, the most commonly used non-material incentives are organizing various colorful collective activities, or adopting humanized management methods such as respecting and trusting employees, but these alone are far from enough.According to Maslow's hierarchy of needs theory, only by providing employees with good career development channels and growth space can they meet the deep-seated needs of knowledge workers.In this regard, the qualification system promoted by Ren Zhengfei has played a very critical role. Judging from the implementation effect of Huawei's human resources management, the implementation of the qualification system has played an important role. First, it is used for talent selection and has established clear behavioral evaluation standards. The qualification system has become the main basis for "competition for employment"; Secondly, it opens up a number of career development channels for employees, which is beneficial for employees to realize the value pursuit of "developing together with the enterprise"; the third is competency training, which compares employees' abilities with standards through qualification certification, and finds gaps from them , so as to carry out systematic and targeted training; the fourth is to lay the foundation for the establishment of a capability-based salary system.In addition, the establishment of the job qualification system can produce the effect of "talent competition". "Birds of a feather flock together, people are divided into groups", through the "visible" ability scale, let employees feel the pressure of "if you don't advance, you will retreat" in ability, thus stimulating the inner strong motivation for self-learning.