Anand Ashok Jain

(X18108466)

MANAGING THE ORGANISATION

Date: 07th December 2018

Word Count: 4559

Contents
1. Introduction.
2. Overview of a Management in an International Context.
3. Managerial Practices.
a) Planning and Organising
b) Leadership
c) Motivation
d) Communication and Negotiations
4. Manager’s approach towards Quality and Control.
5. Conclusion.
6. Appendix.
a) Experiences during my work at Huawei
b) Annual Report
7. References
1. Introduction
Every organisation wishes to be the best in its working area irrespective of whether it is a
start-up or a MNC operating worldwide. It seems to be impossible to achieve this feat
without having the clear long-term goals and a vision. Well, if you have the goals and a
vision, but if you have no proper planning and execution, then it will be a sure fiasco. So,
who will be going to look after these planning and executions?
Managers are the true drivers of any organisation who runs the business in an organized
manner with all the planning and execution with respect to keeping an eye on their
organisation’s goals and vision. Managers have lots of responsibilities on their shoulders
along with the authorities they possess.
I will make you go through the managerial practices in Huawei (“Wah-Way”!)
Technologies, a Chinese MNC founded in 1987. Huawei is a private company fully owned
by its employees and having presence in more than 170 countries and regions with an
employee strength of around 180,000 (Huawei, 2018).
It is believed that the mastermind behind the huge success of Huawei, as an organisation
is its founder and long-time CEO, Ren Zhengfei and his seven leadership lessons viz.
Purpose-Driven Ambition, Adaptive Vision, Inspiration, Humble Dedication, Directive
Style, Cooperative Mindset and The Power of Learning (De Cremer, D. and Tao, T. 2016).

Fig.1. Seven Leadership Lessons (De Cremer, D. and Tao, T. (2016)

Huawei is a customer centric company. Moreover, it would be wise to say that the
customers are the only reason for its glorifying success across various segments of
information and communication technology (ICT) infrastructure and smart devices.
Huawei provides integrated key solutions across four key domains - telecom networks, IT,
smart devices, and cloud services (Huawei, 2018). It could be argued that heavy
investment in its R&D and cheaper products are the reasons for Huawei’s success, but
however, it cannot be denied that the marketing and management strategies played the
equal role in reaching this altitude.
2. Overview of a Management in an International Context
Expanding your business from local market to the global market; brings new opportunities
and new challenges. There are enormous opportunities to capture bigger customer
segment which help in the huge growth of a business. But along with this great
opportunity, the great challenge comes in. The challenge of differences in socio-economic
culture, politics of that country, jurisdiction, rules and regulations, taxation and many
more. So, to figure out the better feasibility in that market, the organisation must have
viable strategies to foresee the better future inside those challenges. The organisation
must have a bunch of talented managers who can formulate such strategies to survive in
the global market.
Hitt M, Black S, Porter L (2014) asserts that, the managers must be aware of two important
facets of the country’s environment: institutions and culture. The institutional bodies
include country’s rules, policies and enforcement processes. The nation’s objective
towards its economic growth lies in the depth of its policies that are nurturing the business
environment in the country. The schemes that are executing within the country for the
welfare and the growth of the entrepreneurship must be equally good for the foreign
firms as that for the local firms. The imposition of tariffs on imported goods must be fair
enough to sustain the business in a country for a long period of time.
The aspect other than institution is the culture of the country. “Understanding culture is
critical because it can dramatically influence, how people observe and interpret the
business world around them–for example, whether they see situations as opportunities
or threats” (Hitt M, Black S, Porter L, 2014, p.457). The different part of the world has
different social, economic, ethnic and working cultures. What is soft and normal in one
country could be treated as offended in the other country. So, managers must be smart
enough to avoid such diverse cultural hiccups and should acquire precise knowledge of
one’s culture before expanding or starting the business in that country.
The World Bank does the survey every year on the ‘Ease of doing Business’ in 190
countries across the world. The survey is done by considering the procedures, time
duration, cost etc on regulatory performances like Starting a business, Dealing with
construction permits, Getting electricity, Registering property, Protecting minority
investors, Paying taxes, Trading across borders, Enforcing contracts and Resolving
insolvency (The World Bank, 2018).
Looking at Huawei’s current growth rate, it’s clear that Huawei’s strategies and
management goals are executing on the track and evolving exponentially. Huawei has its
presence in all the top economies and expanding dynamically. Flexibility and adaptability
in different cultures across globe is the backbone to survive and grow in global market
and Huawei is far ahead in grasping that grip.
 Economy Global Rank
New Zealand 1
Singapore 2
Denmark 3
Hong Kong SAR, China 4
Korea, Rep. 5
Georgia 6
Norway 7
United States 8
United Kingdom 9
Macedonia, FYR 10
Ireland 23

Table 1. Ease of doing business Rankings (The World Bank, 2018)

 3. Managerial Practices
To run an organisation with an employee strength over 180,000 and having a presence in 170
countries, management is crucial and plays a vital role. Management helps in building and
exploring the competitive advantage over the rivals to sustain in the market. Moreover, the
strategies that are defined, can be well equipped and execute properly with clear goals if the
management has a foresee vision for the organisation.
Management process could be: Internal and External. Internal management is done within
the organisation which emphasize on internal processes, employee development and
retention, project assignments, HR roles, CSR tasks to be undertaken. This helps in
maintaining internal environment growing and focusing on employee centricity. After all, it
builds the feeling of oneness among employees, transforming employee attitude and help
them in achieving work-life balance.
External management is a thing that look out for setting an eye on end customers by
delivering the best services and products. However, it is not only limited to customer
centricity, but also focuses on strategic management to create a unique advantage to the
organisation over there rivals and making the place in customers’ heart. To work out these
practices in proper rhythm the organization must have to practice the following qualities viz.
Planning, Organizing, Directing and Controlling. Digging deeply, the Leadership qualities, the
Motivational impacts, Skills of Communicating the intensions and Negotiation tactics are the
powerful attributes. Let’s discuss these practices regarding Huawei’s management.
a) Planning and Organising:
There is a wise quote by Benjamin Franklin: “If you fail to plan, you are planning to fail!”.
It is undoubtedly true for all, whether for an individual, a team, an organisation or an
entire country. Planning is the first step which help us in setting our goals to achieve the
benchmark.
At different levels of organisation, different planning processes are undertaken to achieve
the objectives at that levels. The different types of plans are Strategic Plans, Tactical Plans
and Operational Plans. These plans are executed at Corporate level, Business level and
Functional level respectively. Strategic plans are set by keeping broad perspectives, which
are inclined to the entire organisation’s objectives to be achieved in next three to five
years down the line. Whereas, the tactical plans are framed to achieve one of the business
segments objectives for a period of about a year. Operational plans are performed at
functional or departmental level to achieve a daily, weekly or a monthly target (Hitt M,
Black S, Porter L, 2014). Fig.2 shows the interaction between these levels and the different
plans.
Huawei has strong strategic plans as compared to tactical and operational plans. Huawei
had spent around 15 percent of its total revenue on R&D which is considered as one of
the highest R&D spenders after Amazon and Google’s parent company Alphabet (Jiang S,
2018). More investment in R&D gives clear idea that Huawei aims high for a long term and
it seems to be quite essential as technology is changing and evolving day by day. It shows
the zest; the organisation has on their strategic planning and execution. Probing into the
tactical and operational planning of Huawei, I find it’s not good enough. I am stating this
on the grounds of my prior experience at Huawei Telecommunications, India (refer
appendix a) i.).

Fig.2. Interaction between Plans and Levels (Kazan C, 2018)

The manager has to face various challenges while implementing the plans that are
coherent to the organisation’s objective, as he has to deal with various resources, need
to assess the performance of a team, have to allocate the budget for the project that has
been undertaken and need to put forth the reviews of the team’s direction and progress
with the higher management. Different managers have different roles and different tasks
to do but one thing is common and that is handling the resources. It’s very critical to take
along the employees with different ideology and methodologies at work. It’s totally a
manager’s skill which bring out the best from this diverse attitude (Bradfield D., 2018).
At Huawei, the organisation structure is quite different and work on the principle of equal
opportunity. Huawei have no any fix CEO, as it is replaced by rotating CEO concept. “In
this system three deputy chairmen act as the rotating and acting CEO for a tenure of six
months and form a board of seven together with four standing committee members. In a
symbolic way, the four standing committee members are present to provide a stable pillar
to the three rotating CEO’s. The person who holds the CEO position is at that time the
highest-ranking officer in the company; whereas Zhengfei maintains his CEO role always
to act as a mentor and coach for the rotating CEO” (De Cremer, D. and Tao, T.,2015). Figure
3. shows the structure of Huawei’s corporate governance and from it we can depicts the
fact of rotating CEO system. It can also be seen that the Huawei’s corporate structure is
hybrid or mixed structure combining the functional and products-based structures
(Bradfield D., 2018).
Every company has their own strengths and weaknesses and relying on that they have
their opportunities and threats. Huawei, being a leading company in ICT business is not
an exception to this. It has its competitive advantage which help it to flourish in the
globalized economy and tackling the challenges that are coming its way. MarketLine has
done the SWOT analysis of Huawei has shown some interesting and surprising facts as
mentioned in Table 2. Being a customer centric company, Huawei has partnered with
various carriers like Vodafone, Telefonica, Deutsche Telekom, and China Unicom to serve
the customers in smart homes, smart meters and connected vehicle domains. Huawei has
attained tremendous growth in public safety, government institutions, finance and energy
(‘Huawei Investment & Holding Co., Ltd. SWOT Analysis’, 2018).
However, being a leader in ICT industry Huawei has some serious breach of obligations.
“In August 2017, Creative Technology and its subsidiary, QMax Communications filed a
lawsuit against Huawei. The High Court, in a judgment, found Huawei liable for
misrepresentation. Huawei was also held, in the alternative, liable for breach of contract.
Huawei was ordered to pay US$9.3 million and US$15.6 million with interest, totalling
US$36 million, and its counterclaim was dismissed” (‘Huawei Investment & Holding Co.,
Ltd. SWOT Analysis’, 2018). Even though, there are underlying opportunities because of
its technological monopoly and products at competitive price which make customer to
consider Huawei as a better stand-alone resource.
Apart from such magnificent opportunities ahead, Huawei has been going through strict
political scrutiny which preventing it to grow in U.S and in other markets. The same
scenario has been observed recently in Australia, as government ban Huawei’s 5G
network implementations on national security grounds. However, there are no evidences
that Huawei has violate any security norms. Banning telecom suppliers only based on
geographic origin and influences by political orientation is of no sense (Henry B. Wolfe,
2018).
Strength Weakness

 Connecting with customers  Lawsuit

 R&D activities
 Market Position

Opportunity Threats

 Positive Outlook for Cloud  Intense Competition

Computing Market  Foreign Exchange Currency Risk
 Advancing Digital Transformation  Growing Political Scrutiny Could
 Focus on 5G Technology Impact Business
 Strengthening LTE Portfolio

Table 2. SWOT Analysis of Huawei by MarketLine (‘Huawei Investment & Holding Co.,
Ltd. SWOT Analysis’, 2018)
b) Leadership:

There are great lines quoted by an International author Robin Sharma, “Leadership is
not about title or a designation. It’s about impact, influence and inspiration. Impact
involves getting results, influence is about spreading the passion you have for your
work and have to inspire team-mates and customers”. Leaders have the unique quality
of taking everyone along to the destination that is set for the individual’s and
organisation’s growth. Leaders are good at recognizing the talent in their subordinates
and are great in utilizing that talent when the situation arises. They fill the fuel of
confidence in every level of employee and bring the paradigm shift by rising them
above the mediocrity.
 Fig.3. Corporate Governance Structure (Huawei Investment and Holding Co., Ltd.
2017 Annual report)

Leaders can be charismatic, visionary, transformational, transactional or authentic.

Leadership functions are not solely driven up by any single quality like being good at
functional skills or by being good at domain knowledge. It is a balance combination of
qualities like interest, knowledge, skills and motivation (Armstrong, M., 2012). Huawei has
got the charismatic and visionary leader in the form of founder CEO Mr. Ren Zhengfei. His
seven leadership lessons stated above are the true driving force to the giant success of
Huawei.
Purpose-Driven Ambition, Adaptive Vision, Inspiration, Humble Dedication, Directive
Style, Cooperative Mindset and The Power of Learning are lessons that are the base of
Huawei’s leadership goals. The first lesson Purpose-driven ambition states that Huawei is
relentlessly passionate to help customer to achieve their dreams by providing not only
the products but unparalleled 24/7 service. This created a repute of sincerity among
customers. The second lesson is about Adaptive vision which help Huawei to think and
work as western work culture. This move was of setting up Huawei for a globalized
economy. The third lesson is inspiring the employees consistently and make them believe
that they can reach the unreachable star. The fourth lesson of humble dedication imbibe
the thought of sharing the responsibility and consider the success as a collective reward.
The fifth lesson is of directive style which points that how Huawei become flexible in
taking and executing the decisions which help the managers to be more active and
creative. The sixth lesson is of building a cooperative mindset by winning the hearts of our
competitors by playing a healthy competition. The seventh lesson of believing in the
power of learning and that’s why Huawei has invested heavily in their R&D operations to
sustain longer and be the key player in the market (De Cremer, D. and Tao, T. (2016).
The key attributes of leaders which separate them from rest of managers are strong inter-
personal skills which reflect the sensitive and empathetic nature, strong emotional and
social intelligence which is replicated by their self-awareness, self-regulation, motivation
and capability of reading one’s mind. They possess the strong judgemental and analytical
abilities which foster the effective decision making along with technical skills (Hitt M, Black
S, Porter L, 2014). Huawei’s higher management exhibits that they are always ready to
plunge into the new markets and dig deep to explore new possibilities by taking the
calculated risks. This risk-taking attitude helped a lot to Huawei in outperforming in the
global markets. Huawei believe in talents and minds of their employees which help in
reshaping its future. Huawei has a policy of rotating CEO’s which help it in exploring new
talents and examining their work methodology and impact of their leadership on the
organization.
Looking back to my Huawei days, I observed that employees who having few years of
experience had been promoted to the next levels only because of their exemplary
performances at work and attitude of customer handlings. There were other seniors and
highly experienced employees in the team but failed to get promoted because of no
creative performance and inhibiting monotonous tasks. These bold moves may put
seniors in fray but for an organization it seems to be boon. It’s tough to take such decisions
when there is possibility of conflicts and grudges. However, putting the right person at
right place is important from the organization’s perspective.
c) Motivation:
Employees are more productive when they are happy in the organisation environment.
Managers must motivate their employees regularly to grow their business. There are
simple steps that can be followed in order motivate the employees and the manager
himself must be an ideal example to his employees. If manager has no impact and
influence by his work methodology, what else we can expect from his employees? The
manager must be dynamic, enterprising and vigorous to uplift the team-mates. The simple
steps that can be enacted are:
i) Communicate Better: Generally, the employee communications are neglected
which must be avoided in any case. Managers must talk to employees face to face
and let them feel that they have also importance and considered in the
organisation.
ii) Be an Example: Managers have to establish the rapport with the subordinates by
showing how optimistic he is in achieving company’s objectives and goals.
iii) Empower Them: Managers must encourage employees to put their inputs and ask
for advices whenever necessary and implement them. Managers must take regular
employee review meetings and guide them how well they could perform and
progress ahead in their assignments.
iv) Offer Opportunities for Advancement: It should be imbibed in the minds of
employees that there is potential growth to their career advancement in the roles
they are working. Continuous training and assessments have to be planned for
upgrading their skillsets.
v) Provide Incentives: Its quite natural that money motivates as it is the fundamental
need to grow in the personal life.
(MJ Management Solutions (2014).
Huawei has always showed perks to their employees and motivate them by all means to their
core employees and retained the talent in the organisation. Huawei employees are the
shareholders of their company. This gives them the feeling of oneness and feels like
contributing efforts for their owned firm. The founder CEO Zhengfei has just 1.42 percent of
stake in Huawei (Tian, T., De Cremer, D. and Wu, C.,2017). Huawei’s sole focus is on consumer
needs and dedication towards work. As the CFO of Huawei UK commented, “Everything we
do is to understand consumers. Now, customers want more from Huawei, our customers tell
us what happens next, what they want to buy, so 4G, 5G, 6G comes” (Xiaolan F, Zhongjuan S.,1,
Pervez N. G,2018)

Maslow and Alderfer has postulated the need theories which gave the base to the motivation
theory for an employee in an organisation. They classified that various parameters are inter-
related for bringing in the motivation aspects in the employee. As per Maslow’s theory the
most essential need is the Physiological need and then followed by Safety, Belongingness,
Esteem and Self-actualisation. Alderfer has analogous theory which focuses on the
parameters like Existence, Relatedness and Growth. The difference in both the theories is that
Maslow’s theory has sequential bottom-up approach and states that the bottom needs need
to be fulfilled first and then the upper needs can be brought into the thoughts. Whereas, the
Alderfer theory (ERG theory) says that employee at any level can be at any stage of the need
depending upon the time and circumstances. (Hitt M, Black S, Porter L, 2014). The theories
are shown in figure 4.

Figure 4 – Need theories (Hitt M, Black S, Porter L ,2014)

The upper managers are commonly looking for esteem and self- actualization whereas the
subordinates are interested physiological and safety needs (Bradfield D., 2018).
d) Communication and Negotiations:
As stated by Dr. I. W. Zartman in 1976, the founder of International Peace and Security
Institute, “Ours is an age of negotiation. The fixed positions and solid values of the past seem
to be giving way, and new rules, roles, and relations have to be worked out. The hard lines
and easy cognitive recognition systems of the Cold War have first multiplied and then melted,
revealing the necessity of talking things over and out. Negotiation becomes not a transition
but a way of life” (Roloff, M. E. and Putnam, L.,1992). In this era of globalization and free trade
it is implicitly necessary that the organisation should focus on communication and
negotiations as they have direct impact on the revenue of a business.
In order to sustain and survive in the rapid political and economic changes that are occurring
worldwide, the organisation have to focus on their Human Resource Management which help
in formulating policies in context to global markets. They have to frame out the compliance
as per international norms and need to design conduct guidelines. Expanding business in
other part of the world requires great communication and negotiation skills and need to
assure the various governments that how we are being an organisation will help in improving
their economy and have to build high level of diplomatic relations. The organisation requires
the bunch of talented and knowledgeable managers who can start and build the company’s
unit on new soil and win the hearts of new consumers. It is also needing to consider that the
cultural and ethnic diversity would not form a barrier and company is open to include such
diversified culture.
Apart from global perception, communication and negotiation skills have to utilize while
dealing with customers for whom we are manufacturing the products or delivering the
services. “Negotiation is a process by which parties attempt to reach an accord that specifies
how they will act towards one another” (SAWYER, J., & GUETZKOW, H. 1965). There should
be clear goal for negotiation by being aware about your own limits, know when to
compromise, if not reach the agreement then what could be the possible solution. There are
four stages of negotiation viz. Preparation, Exchanging Information, Bargaining and Closing
and Commitment. Huawei is being operating in 170 countries worldwide and has built great
rapport in those markets but however, currently facing espionage issues where they seem to
be short fall in convincing the innocence even though there are no any direct evidences
against them.

Fig.5 - Stages of Negotiation (Tutorials Point, .Nd)

 At functional levels, managers have to do various negotiations when dealing with clients and
have to compromise at certain levels by bringing in the diplomacy. Clients are our primary
resource and they should never be get let down on small issues. Apart from that, even at
inside the organisation the managers have to do various sort of negotiations to retain the
good employees who can bring more business to the organisation. Therefore, retention of
key employees is very important in company’s success. The tasks performed by HR Managers
have to deal with many crucial issues like Employees’ Appraisals, Pay Structures, Incentives,
Referrals, Recruitments, Job Analysis, Trainings, Framing Policies etc.
4. Manager’s approach towards Quality and Control.
“Quality means those features of products which meet customer needs and thereby
provide customer satisfaction. In this sense, the meaning of quality is oriented to income.
The purpose of such higher quality is to provide greater customer satisfaction and, one
hopes, to increase income. However, providing more and/or better-quality features
usually requires an investment and hence usually involves increases in costs. Higher
quality in this sense usually costs more” (Juran J. M, Godfrey A. B, 1998, p. 2.1). According
to Juran, quality of your product or service is directly proportional to the customer’s
satisfaction. Quality health check-ups helps an organisation in reduce rework, waste
reduction, improving delivery performance. Managers have to define quality goals in
order to meet customer’s satisfaction and need to evaluate quality processes and keep
records to inspect its effect on sales. After thorough analysis rectified processes must be
implemented. Juran’s trilogy focuses on three managerial processes: Quality Planning,
Quality Control and Quality Improvement (Juran J. M, Godfrey A. B, 1998).
Quality Planning comprises of the parameters like formulating and establishing quality
goals, identifying the customers, determining the needs of customers, developing product
features that respond to the customers’ need and developing the processes which will be
able to produce the product features. Quality Control comprises evaluation of actual
performance, comparing the actual performance with quality goals and acting on the
differences. Quality Improvement comprises of proving the need, establishing the
infrastructure, identifying the improvement projects, establishing the project teams,
providing the team the resources, training and motivate them to diagnosing the causes
and stimulating the remedies. (Juran J. M, Godfrey A. B, 1998, p. 2.6).
The important requirement of Total Quality Management to be implemented in an
organisation is the 100 percent commitment. Managers have to lead from the front, must
promote cultural change, he must remove barriers between departments and must instill
focus on customer centricity and must align company goals with the vision and mission of
the company. (Rizwan Khurram, 2012)

Fig. 6- Six C’s of TQM (Akrani G, 2012)

5. Conclusion:
Huawei being a global leader in ICT industry, has grown exponentially in last decade.
Starting as a small enterprise in Shenzhen, China in 1987, it struggles a lot in its early days,
but the founder CEO Ren Zhengfei had hold patience and work hard on the concerns and
obstacles that came across his way. He made a vow of making a Huawei as customer
centric company and instruct strictly to all the employees to provide services to customers
24/7 unconditionally. This is the first big move taken by Huawei and started gaining
confidence in the market.
In initial days when it was considered that Huawei products are worst and get damaged
easily then Huawei tackle the issues by providing instant services to customer. But very
soon they realize that to rule in the market and compete with rivals, they need to match
the product quality as that of their opponents; and only better service will not help in
floating this huge ocean. In early 2000, they started investing in R&D to bring the most
viable and cheaper products in the market. As of now they have invested more than 15
percent in the R&D works only of their total revenue, and in results which boost the profit
margin significantly. Due to such a big investment in R&D and employing 45 percent of
their work force in R&D, Huawei emerge as a key player in various sectors like Digital
Transformation, Cloud Computing, Artificial Intelligence, 5G technology. It also grown its
roots in Smart Homes and Smart City projects.
The future seems to be of glorifying success because of its monopoly in the market by
providing quality products much cheaper than the rivals and instant services when
required. But the only concern that may prevent Huawei’s growing success is acquisitions
of breaching put on them by U.S. Some events that had happened in the past where
Huawei had lost the lawsuit and portrayed as fraudster. Due to such reasons Australia had
also ban its 5G operations in the country.
I feel that in this success of Huawei so far, the products and services they provide at
competitive price has major role as compared to their managerial practices. Huawei could
be the biggest player in AI and Cloud if they can wipe out their bad image on security
grounds.
6. Appendix:
a) Experiences during my work at Huawei.

i) I had worked in Huawei at Pune(India) from September 2015 to June 2018. In

the mid of 2017, one of the prominent client of Huawei was Telenor
Communications (Formerly known as Uninor) suddenly decided to close its
business from India. Due to this decision Huawei had faced some financial
losses and to avoid any further losses company decided to lay off some
thousands of employees without any intimation. It was a situation where the
future of those thousands of employees was at stake. Being such a big
organisation, Huawei might have been handle this concern in softer and
keeping the employees’ welfare in the front. However, Huawei’s employee’s
satisfaction ratio is good in other countries of their presence.

b) Annual Report.

Table 3 – Financial highlights (Huawei Investment and

Holding Co., Ltd. 2017 Annual report)
Fig.7- Graphical representation of financial highlights (Huawei Investment
and Holding Co., Ltd. 2017 Annual report)

https://www-file.huawei.com/-/media/corporate/pdf/annual-
report/annual_report2017_en.pdf?la=en&source=corp_comm
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