(1) linear/linear functional organizational structure from establishment to 1995.
1987, Ren and five partners jointly invested 20,000 yuan to establish Huawei Company. During this period, Huawei first represented the products of Hong Kong companies, and then independently researched and developed products and implemented a centralized strategy. In the market competition, we should adopt the sustainable development and production of a single product, adopt the sales strategy of encircling the city from the countryside, seize the market quickly through low cost, and expand the market share and company scale. When Huawei was founded, there were only six people and there was no organizational structure. By 199 1, the company has only 20 employees. Although it has an organizational structure, it is also a very simple linear organizational structure widely used by small and medium-sized enterprises. All employees report directly to Ren Zheng Fei. Until 1992, the sales scale exceeded 100 million, and the number of employees reached about 200. From 65438 to 0994, Huawei's sales exceeded 800 million yuan and its employees exceeded 600. The organizational structure has also begun to change from linear organizational structure to linear functional organizational structure. In addition to business process departments, such as R&D, marketing and manufacturing departments, there are also departments that support processes, such as finance and administration departments.
Evaluation: During this period, Huawei, like most other companies, had a single product and adopted a low-price strategy in sales. The organizational structure is simple, the power is centralized, the resources can be quickly and uniformly allocated to participate in the competition, and the market responds quickly. The organizational structure of the linear functional system also matched the strategic development of the company at that time.
Under this framework, all marketing strategies can be directly transferred from the top of the company to the front line in the first time, thus completing the marketing task. For another example, the company's product development strategy, because the communication equipment industry is technology-intensive, capital-intensive and talent-intensive, Huawei's linear functional organizational structure can centrally dispatch any resources of the company, forming the support for the R&D strategy in the first place.
(b) From 1996 to 2003, two-dimensional matrix organizational structure.
By 1995, Huawei's sales had reached1500 million yuan and its employees had reached 800, ranking 26th among the private enterprises in the electronic industry in China. By 2000, the sales exceeded 20 billion, increasing at a rate of 100% for five consecutive years. During this period, Huawei's strategy gradually shifted from centralization to horizontal integration, from single product to mobile communication, transmission and other product fields, and began to diversify and become a company that can provide comprehensive communication solutions. 1995 set up a research institute in Beijing, and 1996 began to enter the international market. At this stage, the organizational structure is also adjusted with the change of strategy. During this period, competition intensified, market demand diversified, and Huawei sought transformation. On the one hand, product strategy develops to horizontal integration; Geographically, it began to enter the international market, and in terms of market expansion, it continued to follow the development strategy of "countryside surrounding cities", starting from developing countries, and gradually entered the markets of developed countries with low price strategy. Huawei opened up the international market, from extremely difficult to open the market, from overseas income to 4% to 75% of turnover, and finally achieved a gorgeous turn.
During this period, the advantage of linear organizational structure has become the disadvantage of development: on the one hand, there is no special functional structure, the burden of managers is getting heavier and heavier, and coordination between departments is difficult. On the other hand, the number of employees in Huawei has increased rapidly. 1998 The total number of employees is close to 8,000, and the sales scale is close to 9 billion yuan. If we follow the original organizational structure, it will definitely restrict the further development of the company. Therefore, Huawei began to carry out management reform, starting with the division system, and established a two-dimensional matrix organizational structure combining the division system and regional departments: the first function of the division is to fully authorize under the macro leadership of the enterprise, have completely independent business autonomy, and conduct independent operation and independent accounting; Second, the product responsibility unit or the market responsibility unit has the function of unified leadership on the integration of product design, manufacturing and sales activities.
In order to seize the local market to the maximum extent and do a good job in product sales and services, Huawei also attaches great importance to the establishment of regional companies. 1997, Ren first proposed the establishment of a joint venture company, and then jointly established North Huawei with Tietong, and acquired the original 102 factory to establish Sichuan Huawei, which opened the curtain of Huawei's market strategic layout. In 2002, Shanghai Huawei was restructured and became the real East China branch of Huawei Marketing Department (that is, Huawei's regional company). Subsequently, other joint ventures were gradually reorganized, and Huawei's joint venture finally completed its historical mission and evolved into a later regional company.
This complex organizational structure is described in Huawei's basic law: the basic organizational structure of the company will be a two-dimensional structure, with strategic business divisions and regional companies. The Division undertakes the responsibilities of development, production, sales and customer service within the business scope specified by the Company; Regional companies effectively use the company's resources and operate in the regional market designated by the company. Division and regional companies are profit centers and bear actual profit responsibilities. Functional specialization is the basic principle of establishing management department. The company's management resources, research resources, pilot resources, certification resources, production management resources, market resources, financial resources, human resources and information resources are all public resources of the company. The principle of object specialization is the basic principle of establishing new business departments. The division principle of business divisions can be to establish expanded business divisions according to product fields, implement centralized policies and decentralize operations, which is the profit center; Establish a service-oriented business department according to the process. Regional companies are subsidiaries with legal personality, which are divided by regions and wholly owned or controlled by the head office. Regional companies make full use of the resources allocated by the company and try their best to mobilize the company's public resources to seek development in designated regional markets and business areas, and take full responsibility for profits. In the regional market that regional companies are responsible for, the head office and various business departments do not compete with them for the same cause. If each business department needs to expand its business, it can do so by cooperating with or supporting regional companies.
Evaluation: Business divisions and regional companies are the main sources of Huawei's economic benefits. The company headquarters manages the company's public resources, and guides and supervises all business divisions, subsidiaries and business departments. The headquarters mainly makes major decisions, controls and services, and concentrates superior resources and energy to break through the market dilemma. When the departments divided according to the principle of functional specialization and the departments divided according to the principle of target specialization cross-operate, a matrix structure is formed in the organization. In order to achieve the market goal, the regional department and the business department will adopt the mode of joint operations, and the business department will also adopt the mode of joint operations.
(3)2004-20 12, product-oriented matrix organizational structure.
After two years of slow growth, in 2003, Huawei's sales quickly exceeded 30 billion, still maintaining a growth rate of more than 50%. In 20 12 years, its sales exceeded 200 billion, and the number of employees increased from 30,000 in 2004 to 2065,438+038,000. Officially become the boss of the communications industry.
By 2009, Ren began to brew new reforms. This year, under extremely difficult external conditions, Huawei successfully withstood the test and its performance went against the market. The annual sales exceeded $30 billion, and the sales revenue reached $210.50 billion, further improving the customer relationship. Internally, the organizational structure and human resources mechanism have been reformed simultaneously, and the naval battle formation of "based on the iron triangle of the representative office system department, light weight and comprehensive ability" has been determined, so as to cultivate opportunities, discover opportunities, seize opportunities, and complete the planning and request of contract acquisition and delivery and CUHK project support in a small scope. It turns out that with the passage of time and the expansion of the organization, Huawei's decision-making institutions with too much power and resources have been far away from the battlefield. At the same time, in order to control operational risks, many process control points are naturally set up, and they are unwilling to authorize, which breeds serious bureaucracy and dogmatism. As a result, less than one-third of the front-line combat troops spend their time looking for targets, opportunities and turning opportunities into results, and a lot of time is spent on frequent communication and coordination with the rear platform. In the face of the growing market, the front line is constantly being lengthened, and the fleeting fighters leave Huawei less and less time to mobilize resources. The frontline must have more decision-making power to adapt to the ever-changing timely decision-making.
How to solve this problem? Conventional thinking, since the front and back are too far apart and lack of coordination with each other, then streamline the organs, personnel and processes in the rear, so as to improve the efficiency of communication and resource allocation between the front and back. However, Huawei EMT (management team) does not agree with this practice. They believe that simply streamlining the organization cannot fundamentally solve the problem. After the cadres and workers are pushed to the front line, they will increase the burden of the front line, increase the cost, and more importantly, they will not be able to help and produce additional benefits. Moreover, the cadres pretend to be the headquarters after going down, but they interfere with the normal front-line work, which is not worth the candle. Since the conventional method doesn't work, it is not easy to innovate, and it will be deadlocked. A report by Huawei North Africa Company gave any inspiration. In Huawei North Africa Branch, employees set up a working group composed of account managers, solution experts and delivery experts to form a customer-oriented "iron triangle" combat unit. The essence of the Iron Triangle is to break down functional barriers and form a project-centered team operation mode for the goal. Huawei's advanced equipment and high-quality resources should be able to play a role in time and provide effective support as soon as targets and opportunities are discovered on the front line, rather than those who have the resources to direct wars and support soldiers. This provides an idea for Huawei's organizational change and decentralization, that is, according to the authorization rules, the decision-making power is granted to the front-line team, and the rear only plays a guarantee role. The corresponding process combing and optimization should be done in reverse, that is, the purpose is determined by the demand, the guarantee is driven by the purpose, and everything is considered as the first line. * * * Efforts should be made to control the setting of effective process points, thus streamlining unnecessary processes and personnel, improving operational efficiency and laying a solid foundation for survival. Huawei used to be centralized, and its organization and operation mechanism was a powerful engine of central authority. In the process of pushing, some useless processes and useless positions are invisible. Now Huawei has allocated power to front-line teams and gradually formed a "pull" mechanism. Accurately speaking, it is a combination of "push" and "pull" and a mechanism based on "pull". When pulling, when you see which rope is not stressed, you cut it, and the departments and personnel connected to this rope are cut together, which greatly improves the organizational efficiency. The redistribution of power has completely changed Huawei's organizational structure, operating mechanism and process. Each chain can operate quickly and flexibly, and key interaction nodes are controlled. Naturally, there will be no bloated and bureaucratic institutions.
At this stage, Huawei adopted the strategy of vertical integration, diversification and internationalization; Market competition adopts the strategy of "partner" to win. The company has also transformed from a telecom equipment provider providing comprehensive communication solutions to a telecom equipment service provider providing end-to-end communication solutions and customer or market-driven. Huawei's organizational structure has changed from a combination of business divisions and regional departments to a product line-led organizational structure. Although Huawei has introduced a number of consulting organizations to carry out process reengineering, its main structure is still a product line organization structure oriented to market and customer needs, in order to change the mode of small profit center, speed up decision-making and adapt to the rapidly changing market.
Evaluation: The adoption of product line can effectively communicate with customers about products, discover and meet customers' needs in time, thus effectively enhancing Huawei's competitiveness in the international market. After several years of reform and adjustment, Huawei has gradually transformed from a telecom equipment provider providing comprehensive communication solutions to a telecom equipment service provider providing end-to-end communication solutions and customer or market-driven.
(d) Dynamic matrix organizational structure from 2013 to now.
At present, Huawei is a diversified enterprise, which has formed three business systems: operator business, enterprise business and consumer business. In the future, its organizational structure will remain such a matrix organizational structure. And this huge matrix organizational structure is also dynamic and will be adjusted at any time with the adjustment of strategy. When enterprises encounter external environmental challenges, this network will shrink and overlap, that is, posts and personnel will be streamlined; When the environment improves and needs to be expanded, the network will be opened and the posts and personnel will be expanded. But its basic business process will remain relatively stable.
The so-called strategy determines the structure, and the structure is also reacting to the strategy. Huawei's 30-year development process also explains this concept very well. At the same time, in order to support the implementation and achievement of the company strategy, Huawei has also carried out a series of process reengineering and organizational structure changes, from the initial linear functional organizational structure to the matrix organizational structure of the current product line. There is no best model, only the most suitable model. Enterprises should explore and establish the most suitable mode and road according to the industry and their actual situation. But in general, it is an inevitable path to move towards standardization, specialization and internationalization and bid farewell to the boss's "centralization". Only in different occasions and situations, the specific ways and means and the grasp of "degree" are problems.