Performance Management Practices at HUAWEI
Introduction to Huawei :
Established in 1988, Huawei Technologies is a high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipment, providing customized network solut toions for telecom carriers in optical, fixed, mobile and data communications networks.
Performance Management Process of Huawei :
As a result of organizational and individual performance and value, performance management reveal the whole meaning of the organization and individual activities, the importance of performance is self-evident. The CEO of Huawei, Ren Zhengfei has repeatedly stressed to create a high performance corporate culture and performance culture is regarded as the enterprise survival and the source of development, which all depend on its advance performance management system.
As is shown in the figure the performance management system can guarantee fairness and efficient about performance management and stimulate employee’s performance, which were implement in a circle with four segments (performance goal, performance coaching, performance rating, performance result). The performance management circle is begin with setting performance goal based on enterprise strategic goal and the goal including enterprise core business, department core business and position core business equip key performance indicators (KPI). In the process of performance appraisal, there have special performance management organization and responsibility system to supervision, implement and guarantee the effectiveness when take performance assessment among different levels of employees―including top managers, middle managers and general staffs―and also to be responsible for the improvement of performance management system.
Performance Goal :
At the beginning of each year, all employees in Huawei according to company strategic objectives signed the PBC (Personal Business Commitment), made detail work plan for all employees, and the company mainly according to the half-year cycle to design staff’s PBC and secondary head’s design for one year period. At the same time, executives and employees reach an agreement on performance appraisal target which is the combination of performance objectives, measure and improvement. In the process of set up performance goal we must obey SMART (Specific, Measurable, Attainable, Realistic, Time-based) principle and analysis internal and external environment of company facing.
Performance Coaching :
It is mandatory in Huawei that managers at all levels should not be less than three times every six months to direct and guide employees with a formal interview and a detailed written record. Performance coaching mainly includes three aspects: performance diagnosis is to help employees improve work methods and skills. Process monitoring refers to the director within the department to establish and implement the system of “two-way communication”, at any time to correct employee behavior and the feasibility of the target deviation. Data collection is to collect and record the employee behavior or the result of key events or data. So, on the one hand it can help to understand the status of the employee’s work with the effect of the nip in the bud, on the other hand it will reduce the distance with employees and is conducive to stability and subsequent management.
Performance Appraisal :
The performance evaluation mechanism of Huawei mainly includes three aspects: First is the liability result oriented and individual key events behavior result evaluation. Second is Hierarchical classification reporting on activities based on company strategy, namely the complete degree of commitment PBC and desired result. Third is based on the position qualification standards at all levels to investigate employee actual ability whether meet the requirements of office.
The emphasis of the assessment is different for different levels employees of Huawei. High-level managers should pay attention to enterprise long-term interests, the mainly appraisal way is reporting and KPI which is the combination of quarterly and annual reporting on activities. The grass-roots staff mainly focus on the completion of reality tasks and self-improvement, with assessment of IPBC, which is the combined of quarterly assessment and annual evaluation. And for ordinary employees, especially to measurement staff, review monthly. Under the fairness and equality principle it fully implements evaluation team system in the appraisal process. And it focuses on evaluation of the responsibility sense, mission sense, team spirit, skills, ideological and moral quality of workers.
Performance Result :
Performance results as the main reference basis for an employee promotion, deployment, assessment. At the same time it is the basis to eliminate the last one in Huawei. Evaluation results on the one hand take into the promotion and salary basis, on the other hand as part of the performance improvement, according to survey if there is gap between the expected goals and reality performance after evaluate and without staff performance communication in the late, the head of the department will be given red card to warning.
The basic purpose of performance appraisal is not to layoffs but to put employees in a suitable post through the examination, to ensure that everyone is able to achieve the ability of performance goals, and then through the realization of individual performance goals to complete the company’s overall strategic objectives. There may be a variety of reasons lead to bad performance result, usually through training or relieve to another post to improve the performance. If it doesn’t work eliminate will be work. We should memorise in mind that performance result also is the beginning of next circle, and supervisor should pay attention to communication with the staff about performance result and next step planning goals.
Established in 1988, Huawei Technologies is a high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipment, providing customized network solut toions for telecom carriers in optical, fixed, mobile and data communications networks.
Performance Management Process of Huawei :
As a result of organizational and individual performance and value, performance management reveal the whole meaning of the organization and individual activities, the importance of performance is self-evident. The CEO of Huawei, Ren Zhengfei has repeatedly stressed to create a high performance corporate culture and performance culture is regarded as the enterprise survival and the source of development, which all depend on its advance performance management system.
As is shown in the figure the performance management system can guarantee fairness and efficient about performance management and stimulate employee’s performance, which were implement in a circle with four segments (performance goal, performance coaching, performance rating, performance result). The performance management circle is begin with setting performance goal based on enterprise strategic goal and the goal including enterprise core business, department core business and position core business equip key performance indicators (KPI). In the process of performance appraisal, there have special performance management organization and responsibility system to supervision, implement and guarantee the effectiveness when take performance assessment among different levels of employees―including top managers, middle managers and general staffs―and also to be responsible for the improvement of performance management system.
Performance Goal :
At the beginning of each year, all employees in Huawei according to company strategic objectives signed the PBC (Personal Business Commitment), made detail work plan for all employees, and the company mainly according to the half-year cycle to design staff’s PBC and secondary head’s design for one year period. At the same time, executives and employees reach an agreement on performance appraisal target which is the combination of performance objectives, measure and improvement. In the process of set up performance goal we must obey SMART (Specific, Measurable, Attainable, Realistic, Time-based) principle and analysis internal and external environment of company facing.
Performance Coaching :
It is mandatory in Huawei that managers at all levels should not be less than three times every six months to direct and guide employees with a formal interview and a detailed written record. Performance coaching mainly includes three aspects: performance diagnosis is to help employees improve work methods and skills. Process monitoring refers to the director within the department to establish and implement the system of “two-way communication”, at any time to correct employee behavior and the feasibility of the target deviation. Data collection is to collect and record the employee behavior or the result of key events or data. So, on the one hand it can help to understand the status of the employee’s work with the effect of the nip in the bud, on the other hand it will reduce the distance with employees and is conducive to stability and subsequent management.
Performance Appraisal :
The performance evaluation mechanism of Huawei mainly includes three aspects: First is the liability result oriented and individual key events behavior result evaluation. Second is Hierarchical classification reporting on activities based on company strategy, namely the complete degree of commitment PBC and desired result. Third is based on the position qualification standards at all levels to investigate employee actual ability whether meet the requirements of office.
The emphasis of the assessment is different for different levels employees of Huawei. High-level managers should pay attention to enterprise long-term interests, the mainly appraisal way is reporting and KPI which is the combination of quarterly and annual reporting on activities. The grass-roots staff mainly focus on the completion of reality tasks and self-improvement, with assessment of IPBC, which is the combined of quarterly assessment and annual evaluation. And for ordinary employees, especially to measurement staff, review monthly. Under the fairness and equality principle it fully implements evaluation team system in the appraisal process. And it focuses on evaluation of the responsibility sense, mission sense, team spirit, skills, ideological and moral quality of workers.
Performance Result :
Performance results as the main reference basis for an employee promotion, deployment, assessment. At the same time it is the basis to eliminate the last one in Huawei. Evaluation results on the one hand take into the promotion and salary basis, on the other hand as part of the performance improvement, according to survey if there is gap between the expected goals and reality performance after evaluate and without staff performance communication in the late, the head of the department will be given red card to warning.
The basic purpose of performance appraisal is not to layoffs but to put employees in a suitable post through the examination, to ensure that everyone is able to achieve the ability of performance goals, and then through the realization of individual performance goals to complete the company’s overall strategic objectives. There may be a variety of reasons lead to bad performance result, usually through training or relieve to another post to improve the performance. If it doesn’t work eliminate will be work. We should memorise in mind that performance result also is the beginning of next circle, and supervisor should pay attention to communication with the staff about performance result and next step planning goals.
Satwik Yelike,
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