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Huawei, Inc. ©: Full Analysis from A to Z.

Technical Report · May 2015

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 Huawei, Inc. ©
by
Ahmed Mohamed Abdel-Mawgoud 115460
Amir Mohamed Medhat 115584

MODULE: Culture & Change Magement: 2015

WORD COUNT: 9758

STUDENT IDS: 115584, 115460

FACULTY, MAJOR: ICS, CS & CN

1|Page
Table of Content :

Introduction 3
Brief History About The Company 4
Main Information 5
Huawei’s Main Functionalities 11
Huawei Success Factors 12
First Factor: R&D Investments 12
Second Factor: Employees’ Shareholding Mechanism 13
Third Factor: Cyber Security System 15
Conclusion 17
The Organizational Structure 18
The Organizational Strategies 30
Chandler’s Theory 30
Miles & Snow’s Theory 32
Mintzberg Theory 33
Perrow’s Theory 35
Hofstede’s model 36
Johnson and Scholes’s Culture Web 41
The Compass Model (Hall’s Compass Model) 44
Deal & Kennedy’s Theory 46
Models of Political Rule 51
Leader power, positional power and control over resources 52
The Managerial Grid 55
Hersey & Blanchard’s Model 60
Quinn’s Theory 62
Employees’ Resistance to Change 63
Data Analysis 66
Hofstede's Dimensions 66
OCAI's Types 68
Bibliography 70

2|Page
Introduction:

The internet is a worldwide system that connects billions of devices around the world using

protocols and communication aspects, it is a worldwide (network of networks) that contains

private, public, governmental, academic, military optical computer network technologies

.Computer Network generally is known as many collections of computers or network hardware

that allow sharing data or resources through specific network channels but scientifically it was

defined as any telecommunication network that allows the computers to transfer or exchange

data or packet using standard protocols.

In computer network, it is known that many connected computer devices with each other

form a node, when many nodes are connected to each other they form a small network . The

nodes can be connected with each other using either cable or wireless media. Nodes can be

formed from many different types of hosts such as (Network hardware, Personal Computer or

any hardware network that allows connection with other device). Nowadays, computer network

is the base of the modern communication. All the fundamentals of the public switched telephone

network (PSTN) are controlled by computers. The source of the vendors -which supplies all the

needed technology to reshape the computer network technology by the time- are the main reason

of developing the vendor to take it to a new level of a high growth-rate of the network

technology. One of the strongest computer network companies worldwide which are known

internationally as Huawei that will be discussed in this essay.

3|Page
Brief History about the Company:

In the 80’s, when china was opened to the world and it was very difficult to start a private

business, from very humble beginnings, in a small town in china called Shenzhen, that is the

center of the largest telecommunication service provider in the whole world nowadays- a man

called Ren Zhengfei who used to work as communication technology engineer in the Chinese

military forces started in 1987 to found an idea called Huawei providing all the needed

supplements by himself instead of depending on the other venture to secure technology from any

other company, as the main mission of this small project was focusing on phone switching

industry without putting a clear vision for the future. It was the main provider for a lot of small

establishments in the city (Local Companies – Restaurants- Schools- Hospitals). This small

company was founded when huge names existed then, such as (Nokia – Ericson – IBM - Alcatel)

which made it very difficult for him to compete such a companies in the beginning. However,

this kind of industry needs heavily budget to spend on the development researches. He said then

“We can learn. We should learn management experience from other companies. So we invest

heavily in management.” (Ren Zhengfei).

Gradually, the company expanded its range to include enterprise business, manufacturing

electronic communications devices and telecom carrier network.

By 1990, the company was having about 500 highly computer network system developers, and

started to have its own independent commercialization targeting high level enterprises in China.

In 1993 the big major breakthrough, when they developed a system to control the telephones

switches that made the company to break its way through the international mainstream market by

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signing a contract with the local authorities to build its known headquarter we know nowadays.

Up till today, Huawei has a lot of international bases in Europe, South America, Africa & Middle

East and an office in each country where the Chinese embassy exists. (R.Anderson,2012, BBC

News).

Main Information:

1. Goals:

Customers First:

On of Huawei's main goals is serving customers with demands that make-up the driving

forces behind the development of Huawei. That's why the company crate long-term value for

customers by means of acting responsively to their needs and requirements. Huawei can only

achieve success through its customers’ success and support.

Dedication

Huawei attracts customers' respect and trust mainly by being dedicated to the cause. This

means making every effort to create value for customers and work on improving its capabilities,

hence valuing their employees' contributions and rewarding them for that.

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Continuous Improvement:

Huawei needs improvements to be better partners with their customers and improve Huawei's

infrastructure and employees. This is mainly done through listening and learning from everyone.

Openness & Initiative:

Huawei is driven by its customers' needs, hence it peruse customer-centric innovations in

an open manner. They have an essential believe that business success is the ultimate measure of

the value of any type of technology, solution, product or process improvement.

Integrity:

On of Huawei's most important assets is integrity, which drives the company to behave

honestly, keep promises and finally win their customers' trust and respect.

Teamwork:

As any company, Huawei can only achieve success through teamwork, working in both

bad and good times. Cross-culture collaboration is vital as well as efficient processes.

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2. Objectives:

Coping with the revolutionary changes that often take place in the information industry,

Huawei continues to innovate in order to meet their customer’s' needs and advance their

technological leadership. This is sustained through cooperating with industry partners that

focuses on building future-proof information pipes as well as value for the customers and society

at whole. Dedication to enriching life and improving efficiency through better connected world.

Moreover, Huawei aims to be the number one choice and partner for telecommunication carriers

and enterprise customers whilst being a great brand of choice.

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Ubiquitous Broadband:

“As the Internet makes it easy to disseminate and obtain information, and stimulates

people's desire to go online anytime, anywhere using any device. This level of connectivity

enables users to access more content and applications and enjoy the convenience made possible

by mobile offices.” (Huawei, Inc. 2015). Enterprises have started to migrate their services from

IT systems to data centres and clouds, which place higher requirements on networks. Huawei

simply aims to get the benefits of networks to more factions of people.

Agile Innovation:

As Huawei corporate explained in their statement on Innovation, “Enterprises and

industries must rapidly gain insights into business opportunities and continuously enhance IT -

enabled organizational collaboration in order to launch new products and new services into

markets better and faster. IT is transforming from a support system into a production system and

has become a core competence of enterprises.” (Huawei, Inc. 2015).

The company provides data centre infrastructure solutions that is based on cloud

computing in order to help their customers in enhancing the utilization of storage and resources,

enabling business systems to be deployed rapidly, operated easily and maintained, and managed

efficiently. Huawei provides mobile office solutions in peruse of helping their customers in

improving their work efficiency. This is achievable by Huawei’s intelligent data analysis system

leverages Big Data technologies that have the ability to help customers gain wide knowledge into

business opportunities and the making of agile business innovations.

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Inspired Experience:

Huawei’s goal is too mainly to provide an industry-leading device product, which is done

through innovations in key technologies, industry designs, and cloud services. This is aiming to

take the user experience to a new level through Huawei’s innovations.

3. Hierarchy:

Huawei explains in their Hierarchy guide: “The Shareholders' Meeting is the highest

authority within the company, making decisions on major issues such as the company's capital

increase, profit distribution, and selection of the members of the Board of Directors/Supervisory

Board.” (Huawei, Inc. 2015).

9|Page
 In Huawei, the Board of Directors (BOD) is the decision-making body for corporate

strategy and management. It guides and looks over the overall business operations and is

involved in making decisions on important strategic issues. The Board of Directors has

established the HR (Human Resources) Committee, the Finance Committee, the Strategy &

Development Committee, and the Audit Committee to assist and support BOD operations.

(Huawei, Inc. 2015).

The Supervisory Board oversees the Huawei’s financial and operational performance,

monitoring the responsibility fulfillment of Board of Directors members and SM (Senior

Management), and the standardization of the Board of Directors (BOD) operations.

Huawei uses the rotating CEO (Chief Executive Officer) system under the leadership of the BOD

(The Board of Directors). The one who is responsible for the company’s survival and

development is the primary person of the company’s operations and crisis management during

his tenure, the rotating and acting CEO (Chief Executive Officer).

4. Firm age (years):

Huawei, Inc. is 27 Years old (Established in Shenzhen in 1987).

5. Size of firms (number of full-time employees):

Huawei has over 140,000 employees, around 46% of whom are engaged in research and

development (R&D).

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6. Gender distribution:

Not Data Available.

7. Age of employees (years):

Not Data Available.

Huawei’s Main Functionalities:

The company is organized based on three main business groups; Enterprise Service Group,

Operation Group and Consumer Group. They are completing each other in the company to

achieve those four main aims:

1- Building communication and electronic systems for establishments.

2- Enterprise Business, supplying all the needed equipment for the enterprise customers.

3- Manufacturing telecommunication devices.

4- Providing the needed network infrastructure, wireless network and network computing

for telecommunication companies.

As a result of this mission expansion, the total gross of the company has aimed to increase its

sales from 4 billion $US in 2011 to15 billion $US within four to six years. Vitorovich, Telecom

magazine (9 March 2011).

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Additionally, Huawei has its own market perspective to gain long-term customers called

(Offering Service). Firstly, by supplying all the needed equipment and supplement technologies

for the telecommunication operators, helping them to expand their range of mobile broadband.

Secondly, the company assets network service providers to replace the old technology of copper

cables to fiber optic cables to provide a high DSL speed and Passive Optical Network (PON). By

using this (Offering Service), Huawei gained 47 contracts from many different network

companies to help them improving the efficiency and maintenance of their system so they can

reduce the cost of the network operations. The revenue of the system in Huawei grew 29.2% to

4.82 billion $US. (Australian Business Forum, 4 May 2011).

Huawei Success Factors:

As a company that is having more than 150,000 employees around the whole world and

exists in more than 130 countries. In less than two decades, from servicing rural China going

through the international market mainstream it became the second network vendor supplier after

(Cisco) with a huge rapid expansion. We have to discuss the three strongest factors of this

company.

First Factor: R&D Investments:

R&D is an abbreviation which stands for (Research and Development), any startup company

which is working in a technology field needs investment to be funded in the researches to bring

the company to two benefits. First, a point where everything about the mission of the company is

12 | P a g e
clear socially, economically and industrially. Second, taking the technology that the company

produces to a total new level of quality and sophistication. Some of these investments’

opportunities are worth taking the risk. So, it is better to be having a strong study to reduce the

loss to the lowest possible level.

Specifically, Huawei has in the R&D department more than 70,000 employees, most of

them are locating in the company’s headquarter in China. Representing about 45% of the

workforce of the company around the world. The used mechanism to get a distinct competitive

edge is to expand in building laboratories worldwide to represent the innovation and technology

development research in the company. Especially, give the most care for the ICT field that is

provided to the customers in a way smarter pipes that requires no time to wait. That is what make

such a company has a very highly technology growth in a very small period of time, by arranging

the proprieties by its importance to the market from a technology perspective not from a

financial one.

In 2012, Huawei made a new record in its expenses totaled about 30,100 million CNY,

accounting for about 14% of the annual revenue of Huawei. The R&D department that year was

funded with 1,300 CNY million of the total expenses was spent in the research field. Making the

whole fund that was directed to the R&D field in the last decade reaches more than 130,000

million CNY. (Alexandra Harney, 9 December 2012, Financial Times).

Second Factor: Employees’ Shareholding Mechanism:

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 The employee of Huawei are sharing an ownership system which includes a very unique-

distinctive mindsets among the company’s employee that are a part of the firm success, profit

making and value the meaning of hard working instead of promotion by seniority. By this

mechanism this company is giving a strong example for working inspiration.

In the very beginning, The available financial resources which was available for the employees

to give them salaries monthly was very limited, the main board of the company agreed that every

single employee who would join the firm will be paid from a percentage of the Huawei profit,

while the rest of the profit will be invested in the business again. (Ching and Liu 2004: 109.10).

The structure ownership of the employee started purely as a necessity of the economic, the board

of the company realized this will be a very motivating mechanism for the employees inside the

company. In the beginning of the 90’s, the founders of Huawei reached to a very sophisticated

mechanism to measure the profit of each firm in the whole world based on the attributed each

employee in the company based on their market performance. As a result, a bonus will be

distributed on each employee accordingly. While the employees who are not benefit the

company from any side will be prohibited from any bonus. As a result, if they kept going down

till reaching the bottom of the rung, they will be fired. Continuously, the employees who are

contributed in getting a high profit in the firm they are in, they will be automatically promoted to

a higher managerial position. By the time, Huawei started to remunerate the active employees in

a generous way than any other company in China, which made the company a very attractive

center for a high-performed Communication Engineers, Computer Networkers and Information

14 | P a g e
Technology people, as they believe they will be wealthy if they worked hard in this company.

(Wang 2007a: 101)

Third Factor: Cyber Security System:

Security is the first defense wall against hackers attack in any company before starting any

process to produce the product. There are a lot of different cases that can happen to penetrate the

system of any company even if it was internationally well-known. Network data nowadays can

be easily hacked by hackers in order to steal sensitive information from inside the company

system database. Also, computer viruses that can affect the ability of any working system

negatively by reducing its efficiency and speed level. Once the hacking was happened the loss of

the company will be increased proportionally by the passed time.

Huawei has one of the strongest fully implemented cyber security systems around the world, it is

what programmers called end to end system; because the safety of the company system is one of

the most fundamental to gain the trust of other corporations/customers and keep high worldwide

reputation. The system is updated internally each month and fully changed each year with a new

version to be able to face the global cyber security threats. As a result, the company has to face

any resultant un-expected risks that may happen because of abuse of technology.

In 2013, Mr. John Suffolk, Huawei's Global Cyber Security Officer, stated that the system each

year is being optimized to face the security challenges, but at the same time it has to follow the

policies of the government and the standard of the company. The main aim of the trained

employee inside the company from the first place is to have adopted improvement measures to

15 | P a g e
their work in order to provide a secure and safe service or product to the customer. Also, many

points Mr. Suffolk announced many important points about the new cyber security system of the

company in all branches around the world, during an interview with (The Wall Street journal)

Nov. 2, 2014.

1- The company set strict rules to make the employees in their daily work aware about the

security issues; by the end of 2013 about half of the staff of Huawei worldwide was

trained for how to care of the cyber security issues. As a very important rule to encourage

the atmosphere of cyber security awareness education.

2- The system is built in employee’s daily work life Any employee has the freedom to

design, implement or built a new product inside the company as this work will be

examined, improved, and automated by the internal hardware system inside the company.

3- Building a multi-layer cyber security system so the company can allow the product to be

tested by many different teams.

4- When a wrong issue happens with the customers, researchers or the employees from the

security side, the damaged side will be automatically connected to the Product Security

Incident Response Team (PSIRT), so in order to avoid data loss about any product the

cyber system has a backup data of about 98% of the whole company database. It will be

automatically restored in about minutes.

5- Any negative issue happened in the past will be automatically resolved in the new

updated yearly system. As a network company the transparent policies is the

responsibility not only of the system but also of each employee who represents the

company.
16 | P a g e
Conclusion:

Huawei is a Chinese vendor telecom provider based in a city called Shenzhen. Founded in

the late of 80’s and in less than two decades, the company expanded its range to include

enterprise business, manufacturing electronic communications devices and telecom carrier

network, it became one of the strongest network vendor providers in the whole world, with

offices that is existed over 130 countries around the world. Huawei managed to reach the

customers by providing all the needed telecommunication and electronic vendors to the small

companies with the highest quality, secured systems and the lowest possible cost. The security

system, research field and employee’s shareholding mechanism this company could

breakthrough its way to the top in a record time, giving a strong example to the all entrepreneur

around the world that your dream has no limits as long as you have the skills and believe in it,

but also you have to use your rational thinking to make the best use of your skills so you can take

the right steps to build your way to reach it. I learnt through making this research that there is no

limit for what a human being can do, as long as you believe in your skills and work very hard

and never quit to reach that dream in the star you always want to reach, and remember, as long as

you can breathe, then there is no limit for what you can achieve in this world. Finally, thanks to

that Chinese man who called Ren Zhengfei that approved to the whole world that there is no

sensible excuse for not thinking out of the box and being what you want to be.

17 | P a g e
 The Organizational Structure

The Huawei Company’s structure is largely Mechanistic (aka. bureaucratic).

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a) Highly specialized tasks:

Each single individual member in the company is specialized in his/her own are of expertise

and work. So, every employee is assigned to a job based on his/her specialization, which

makes the company's tasks stable and easy to control.

 Refer to survey question 'L': "The leaders of the organization are generally considered to be

coordinators, organizers, or efficiency experts."

Count of The leaders of the organization are

generally considered to be coordinators,
organizers, or efficiency experts.

Strongly disagree

Strongly agree

Not sure

disagree

Agree

0 1 2 3 4 5 6 7 8

 Refer to survey question D': "Position"

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b) Rigid departmentalization:

Activities are divided through several groups based on their common nature. So, every group

of work would have its own department which is entrusted to some responsible

supervisor/manager. On that, the departmental activities would be done based on the rules of

the company (i.e: organizational rules) as well as regulations.

 Refer to survey question 'M': "The management style in the organization is characterized

by teamwork, consensus and participation."

Count of The management style in the

organization is characterized by teamwork,
consensus and participation.
12

10

0
Agree Disagree Not sure Strongly agree

 Refer to survey question 'H': "The organization is a very formalized and structured place.

Bureaucratic procedures generally govern what people do."

Count of The organization is a very

formalized and structured place.
Bureaucratic procedures generally govern…
10

0
Agree Not sure Strongly agree

20 | P a g e
c) Strict chain of command:

Because the Mechanistic Strucutre is kind of bureaucratic, the company will have a strict and

clear chain of command all the way from top to bottom (i.e: subordinate levels) in the

management hierarchy. This clearly allows for good communication of information, and

makes the company function more smoothly.

 Refer to survey question T': "The glue that holds the organization together is formal rules

and policies. Maintaining a smooth running organization is important."

Count of The glue that holds the organization

together is formal rules and policies. Maintaining
a smooth running organization is important.
10
9
8
7
6
5
4
3
2
1
0
Agree Disagree Not sure Strongly agree

21 | P a g e
 Refer to survey question X': "The organization emphasizes permanence and stability.

Efficient, smooth operations are important."

Count of The organization emphasizes

permanence and stability. Efficient, smooth
operations are important.
Strongly disagree
Strongly agree
Not sure
Disagree
Agree
0 1 2 3 4 5 6 7

d) Narrow span of control (aka. management ratio):

The span of control refers to the number of subordinates controlled directly by some kind of

a supervisor or superior. In other words, it is the number of people that report to a manager in

the company.

In a narrow span of control, this number of employees is comparatively low. This allows the

manager to have/allocate more time for each employee that is subordinate, which helps to

guide his subordinates more effectively for the better of the company. It also allows the

supervisor to have more free time to use to finish his some tasks personally, rather than

sending them to his subordinates to do.

e) Centralized decision making:

The right of decision making is left only with the top level management, and not delegated to

the subordinates. So, they the subordinates would have to work in accordance with whatever

their direct superior decides, without interfering in the decision making process.

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 It can seem some-what dictatorial – at least for the subordinates –, but also well effective for

preserving the work process and making sure that correct decisions come from the people

that have the most right to make them.

 Refer to survey question 'AF': "Employees should not disagree with management

decisions."

Count of Employees should not disagree with

management decisions.
Strongly disagree
Strongly agree
Not sure
Disagree
Agree

0 1 2 3 4 5 6 7

 Refer to survey question 'AI': "Managers expect workers to closely follow instructions and

procedures"

Count of Managers expect workers to closely

follow instructions and procedures
9
8
7
6
5
4
3
2
1
0
Agree Disagree Not sure Strongly agree

23 | P a g e
  Refer to survey question 'AD': "It is frequently necessary for a manager to use authority

and power when dealing with subordinates."

Count of It is frequently necessary for a manager

to use authority and power when dealing with
subordinates.

Strongly disagree

Strongly agree

Not sure

Disagree

Agree

0 1 2 3 4 5 6 7

24 | P a g e
f) High formalization:

This relates to the extent to which the work rules are structred in the company (i.e: how

detailed are they), and the activities of the employees are governed by rules and standard

operating procedures.

Formalization is highly influenced by techonology and the company's traditions.

This means that employees cannot use simply use their logic or creativeness to perform their

tasks, but rather they need to follow the company’s procedures.

 Refer to survey question 'H': "The organization is a very formalized and structured place.

Bureaucratic procedures generally govern what people do."

Count of The organization is a very formalized

and structured place. Bureaucratic procedures
generally govern what people do.
10

0
Agree Not sure Strongly agree

 Refer to survey question 'AJ': "Rules and regularities are important because they inform

workers what the organization expects of them."

25 | P a g e
 Count of Rules and regularities are important because they
inform workers what the organization expects of them.
Strongly disagree
Strongly agree
Not sure
Agree

0 2 4 6 8 10 12

 Refer to survey question 'AL': "Instructions for operations are important for employees on

the job."

Count of Instructions for operations are

important for employees on the job.

Strongly disagree

Strongly agree

Not sure

Disagree

Agree

0 1 2 3 4 5 6 7 8 9

g) Vertical communication and reporting system:

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 Vertical communication is the communication where information and messages flows

between/among the subordinates and superiors of the organizational.

It conveys the message of the subordinate, maintains good labor-management relations and

organizational discipline. Vertical communication also maintains good chain of command

and efficiency. However, it delays process, and may make the chain of command and

disciple may be broken and information can be loss or distorted. Also, superiors can neglect

to send message to their subordinates.

 Refer to survey question 'P': "The management style in the organization is characterized

by careful monitoring of performance, longevity in position, and predictability."

27 | P a g e
 Count of The management style in the
organization is characterized by careful
monitoring of performance, longevity in position,
and predictability.

Strongly disagree

Not sure

Disagree

Agree

0 1 2 3 4 5 6 7 8 9

h) Little teamwork:

The company is fragmented into a lot of departments and sections, each with its own

specifications, expertise and tasks. There is hardly any team work that occurs between the

different employees within their perspective departments. However, each department/section

depends on the other to complete the overall job/product.

 Refer to survey question 'M': "The management style in the organization is characterized

by teamwork, consensus and participation."

28 | P a g e
 Count of The management style in the
organization is characterized by teamwork,
consensus and participation.
12

10

0
Agree Disagree Not sure Strongly agree

29 | P a g e
 The Organizational Strategies
Here, we shall discuss the strategies that Huawei uses from the opinion and scope of

several strategic theories, and preview what characteristics made our choices.

1. Chandler’s Theory

Huawei’s strategy according to Chandler’s categories is Divisional; which applies to

diversified, changing product or service line, through national or international markets.

Telecom networks:

Huawei offers a variety of network technologies and solutions to help

telecommunications operators expand the capacity of their mobile broadband networks.

Huawei’s core network solutions offer mobile and fixed soft switches, plus next-generation

home location register and Internet Protocol Multimedia Subsystems (IMS). Huawei assists

content service providers looking to migrate from copper to fiber with solutions that support

xDSL, passive optical network (PON) and next-generation PON (NG PON) on a single platform.

The company also offers mobile infrastructure, broadband access and service provider routers

and switches (SPRS). Huawei’s software products include service delivery platforms (SDPs),

BSSs, Rich Communication Suite and digital home and mobile office solutions. In 2010,

revenues for Telecom Networks were US$18.79 billion.

30 | P a g e
Global services:

Huawei Global Services provides telecommunications operators with equipment to build

and operate networks as well as consulting and engineering services to improve operational

efficiencies. These include network integration services such as those for mobile and fixed

networks; assurance services such as network safety; and learning services, such as competency

consulting.

In 2010, Huawei won 47 managed services contracts to help improve network

performance and efficiency for customers, as well as reducing the costs of network operations

and maintenance. In 2010 Huawei's global services revenues grew 28.6% to US$4.82 billion.

31 | P a g e
 2. Miles & Snow’s Theory

According to Miles & Snow’s structures, Huawei follows the Prospectors strategy, with

diverse products, searching for market opportunities and technological break-through, while also

defending their existing product lines as an example its expansion method.

International expansion:

In 1997, Huawei won its first overseas contract, providing fixed-line network products to

Hong Kong Company Hutchison Whampoa. Later that year, Huawei launched its wireless GSM

-based products and eventually expanded to offer CDMA and UMTS. In 1999, the company

opened a research and development (R&D) center in Bangalore, India to develop a wide range of

telecom software. From 1998 to 2003, Huawei contracted with IBM for management consulting,

and underwent significant transformation of its management and product development structure.

After 2000, Huawei increased its speed of expansion into overseas markets, having achieved

international sales of more than US$100 million by 2000 and establishing an R&D center

32 | P a g e
in Stockholm, Sweden. In 2001, Huawei established four R&D centers in the United States,

divested non-core subsidiary Anasys to Emerson for US$750 million and joined the International

Telecommunications Union (ITU). By 2002, Huawei’s international market sales had reached

US$552 million.

3. Mintzberg Theory

In the Forces and Forms of Mintzberg’s theory, Huawei has a force for Adhocracy

(Innovation). Adapting to new technologies and learning from the other’s failures, while

introducing their own new technologies and services to the people. Huawei has a divisionalized

form of organization, having different departments for each product or service with their own

teams. Huawei is organized around three core business segments:

1. Telecom Carrier Networks, building telecommunications networks and services

2. Enterprise Business, providing equipment, software and services to enterprise customers,

e.g. Government Solutions etc.

3. Devices, manufacturing electronic communications devices

Huawei announced its Enterprise business in January, 2011 to provide network

infrastructure, fixed and wireless communication, data center, and cloud computing solutions for

global telecommunications customers. Huawei has stated that it aims to increase enterprise sales

to US$4 billion in 2011 and $15 billion within three to five years.

33 | P a g e
34 | P a g e
 4. Perrow’s Theory

Huawei’s nature of tasks according to Perrow’s Theory is routine, mass production, as

the problems that arise can be analyzed with a few exceptions. In April 2011, Huawei announced

an earnings increase of 30% in 2010, driven by significant growth in overseas markets, with net

profit rising to RMB23.76 billion (US$3.64 billion; £2.23 billion) from RMB18.27 billion in

2009. In 2010 sales outside China continued to be the main driver of Huawei’s business.

Overseas revenue rose 34% to RMB120.41 billion in 2010 from RMB90.02 billion in 2009,

fueled by regions including North America and Russia. Revenues from China rose 9.7% to 64.77

billion, as the country's big telecom operators reduced their investment last year.

Huawei's revenues in 2010 accounted for 15.7% of the $78.56 billion global carrier-

network-infrastructure market, putting the company second behind the 19.6% share of Telefon

AB L.M. Ericsson, according to market-research firm Gartner.

Huawei is targeting revenue of $150 million through its enterprise business solutions in

India in the next 12 months. It denied using Chinese subsidies to gain global market share after

being recently accused by US lawmakers and EU officials of unfair competition at best.

35 | P a g e
 Hofstede’s model

Organizational Culture is the way the members of the organization relate to each other and their

work within the organization as well as the outside work with comparison to the other

organizations. The Organizational Cultural Model (Hofstede’s Multifocus Model) has 6

autonomous dimensions plus 2 Semi-autonomous ones.

Autonomous dimensions (variables):

1- Means-oriented vs. Goal-oriented:

It is highly connected to the effectiveness of the company.

In the means-oriented culture, the employees’ concern is the way/method by which the work is

carried out in the company. This means that people are identifying with the ‘how’ of the matter.

On the other hand, in the goal-oriented culture, the employees’ concern is a set of goals or

internal results that they are out to achieve, even if they included risky points. This means that

people are identifying with the ‘what’ of the matter.

Huawei has a largely goal-oriented dimension.

 Refer to the questionnaire question ‘N’. Its average is 4.05.

36 | P a g e
2- Internally driven vs. Externally driven:

In the internally-driven companies, employees regard their task towards the outside world as

completely given. Based on that, ethics such as honesty and accuracy are very important and its

being the most good to the customers. On the other hand, the externally-driven companies,

employees regard the customer's requirements the most, as the result that are expected are the

most important as well as pragmatic rather than ethics.

Huawei is largely internally-driven.

 Refer to the questionnaire questions of ‘Confucian Work Dynamics’: From ‘AU’ to ’AX’.

 Refer to the questionnaire question ‘P’. Its average is 4.05.

3- Easygoing work discipline vs. Strict work discipline:

An easygoing culture involves loose structure internally as well as very little predictably, control

and discipline. So, employees have a more comfortable space. On the other hand, a strict work

discipline involves a very strong structure as well as high predictability, control and discipline.

So, employees are very serious about their timings and deadlines.

Huawei is strict work disciplined.

 Refer to the questionnaire questions of ‘Power Distance’: From ‘AB’ to ’AF’.

37 | P a g e
4- Local vs. Professional:

In a local company the employees identify with their supervisor or their department they work in.

While in a professional company, the employees identify with their professions or the job

content itself.

Huawei is a professional company.

 Refer to the questionnaire questions of ‘Uncertainty Avoidance’: From ‘AG’ to ’AK’.

5- Open system vs. Closed system:

In an open-system, the company welcomes newcomers and people from all different types

warmly and can make a room for them to fit. On the other hand, a closed-system did not quickly

welcome any outsiders and does not help making them fir in.

Huawei has a very open system.

 Refer to the questionnaire questions of ‘Collectivism’: From ‘AQ’ to ’AT’.

 Refer to the questionnaire questions of ‘Confucian Work Dynamics’: From ‘AU’ to ’AX’.

6- Employee-oriented vs. Work-oriented:

It is highly connected to the philosophy of how the company runs and operates with relation to

its employees as humans.

38 | P a g e
In an employee-oriented company, the company takes its employees’' personal problems and

troubles almost as its own. So, the company gives a lot of care for its employees' welfare, even if

it is on the expense of the work and their quality. On the other hand, in a wok-oriented company,

their problems are not taken in consideration, and the work is what matters.

Huawei has an employee-oriented company.

 Refer to the questionnaire questions of ‘Management of Employees’: From ‘L’ to ’O’.

 Refer to the questionnaire questions ‘X’, ‘P’ & ‘T’. Their averages are respectively 3.1, 4.05

& 4.2.

Semi-autonomous dimensions (variables):

7- Degree of acceptance of leadership style:

This dimension relates to the degree that the leadership style of the employees' supervisors are

being in line with the employees' preference.

|
68.7

Huawei has a degree of 68.7 with regard to acceptance of leadership style.

39 | P a g e
 Refer to the questionnaire questions of ‘Power Distance’: From ‘AB’ to ’AF’. Their averages

are 3.1, 2.7, 3.55, 3.25 & 3.5 respectively.

 Refer to the questionnaire questions of ‘Uncertainty Avoidance’: From ‘AG’ to ’AK’. Their

averages are 4.1, 3.95, 3.9, 3.05 & 3.25 respectively.

8- Degree of identification with your organization:

This dimension relates to the degree of cohesion between the employees and staff members in

the company in its totality. In other words, people's ability to identify with the company's

aspects. So, employees can identify strongly with the company's, clients', ones and supervisors'

goals all at the same times.

|
78.1

Huawei has a degree of 78.1 with regard to identification with the organization.

 Refer to the questionnaire questions of ‘Collectivism’: From ‘AQ’ to ’AT’. Their averages are

4, 4.4, 4.4 & 4.15 respectively.

 Refer to the questionnaire questions of ‘Confucian Work Dynamics’: From ‘AU’ to ’AX’.

Their averages are 3.3, 2.3, 4.55 & 4.15 respectively.

 Also, refer to the questionnaire questions of ‘Masculinity’: From ‘AL’ to ’AP’. Their averages

are 4.45, 1.85, 3.7, 2.05 & 3.3 respectively.

40 | P a g e
 Johnson and Scholes’s Culture Web

41 | P a g e
Johnson and Scholes’s Culture Web Explanation:

1. Stories:

These involve the myths and legends that surround the organization/company.

2. Routine & Rituals:

These involve behaviours and actions that are known to be normal and acceptable in the

organization/company. It is mostly what happens daily and what is most valued by

supervisors.

3. Symbols:

This is the physical structure, such as buildings, offices, brands, logos as well as the dress

code (official or otherwise).

4. Organisational Structure:

This relates to the organisation/company's values from its formal structure. The Informal

structure (Power Networks) is revealed through the way that tasks are processed in the

company.

42 | P a g e
 5. Controls Systems:

It deals with making or influencing decisions as well as what people believe and

champion within the organization. The dimension of the use (or abuse) of this power is

also very important. It also refers to the processes that handle monitoring what happens

within the organization/company.

6. Power Structure:

This relates to the sources of the real (main) power that drives the organisation/company.

It deals with the nature of those making or influencing decisions, as well as what people

believe and champion within the organization/company. Also, the way this power is used

(or abused) is a very important dimension.

43 | P a g e
 The Compass Model (Hall’s Compass Model)

Huawei's culture is very demanding, driving and challenging to its employees. It is also

largely characterized by hard working with a great emphasis on mutual trust and priority to the

team's (overall) good to be accomplished in as much harmony as it can.

This means that Huawei’s culture is high on both assertive and responsive standards.

•Quantitative
- Assertive
- Responsive •Factual Cautious
•Precise
•Methodological

•Task oriented
North •Loyal
•Demanding •Trusting
•Taking control West East •Compromising
•Pushy •Team player
•Authoritative South •Value harmony

•Quick moving
•Unpredictable
•Challenging
•Individualistic + Responsive
+ Assertive Assertive & Responsive

44 | P a g e
Cultures:

Cultures have 2 dimensions or measurements’ where the culture can be high or low,

whether on one of them or on both.

7. Assertive (characterized by being forceful, directive):

a) Fast movers

b) Challenging

c) Individualistic

d) Pushy

e) Driving

f) Demanding

g) Hardworking

8. Responsiveness:

a) Harmony

b) Loyal

c) Sensitive

d) Trusting

e) Compromising

f) Team players

45 | P a g e
 Deal & Kennedy’s Theory

Deal and Kennedy’s (1982) model, based on two dimensions, suggested that the biggest single

influence on a company’s culture was the business environment in which it operated.

Deal and Kennedy’s model of organizational culture

The Tough Guy, Macho Culture:

In the 80’s, when china was opened to the world and it was very difficult to start a private

business, from very humble beginnings, in a small town in china called (Shenzhen) -that is the

center of the largest telecommunication service provider in the whole world nowadays- a man

called (Ren Zhengfei) who used to work as communication technology engineer in the Chinese

military forces started in 1987 to found an idea called Huawei providing all the needed

46 | P a g e
supplements by himself instead of depending on the other venture to secure technology from any

other company, as the all main mission of this small project was focusing on phone switching

industry without putting a clear vision for the future. It was the main provider for a lot of small

establishments in the city (Local Companies – Restaurants- Schools- Hospitals). This small

company was founded when a huge names existed then, such as (Nokia – Ericson – IBM -

Alcatel) which made it very difficult for him to compete such a companies in the beginning.

However, this kind of industry needs heavily budget to spend on the development researches. He

- Ren Zhengfei - said then “We can learn. We should learn management experience from other

companies. So we invest heavily in management.” (Zhengfei, R).

Gradually, the company expanded its range to include enterprise business, manufacturing

electronic communications devices and telecom carrier network. This theory was inspirational

and incorporated five critical elements (Applying to Huawei Company):

1- The Business Environment:

a) Political:

Since the 1980s, the Chinese telecommunications services through relaxed price controls

break monopolies and regulatory institutional reform and industrial restructuring for the

content of the three stages of reform.

b) Economic:

Domestic telecommunications industries have restructuring, 3G network construction

gradually, the market size is expected to continue to expand.

c) Socio-cultural:

47 | P a g e
 According to the Chang (2013) said that “Twelve Five Project” is a critical period of

building a moderately prosperous society, the communications industry as a national

information technology to promote economic growth mode transformation of basic

industry.

d) Technology Environmental:

The produce of communications equipment has a large investment into the production.

High technology, high investment, and high returns are a distinctive feature of the

telecommunications equipment industry originally.

e) Legal:

Through overall planning, insist the decision-making of government policies unswerving

to guide industry development, and through the guided of project, establish the special

financial support of State government.

48 | P a g e
2- Values:

3- Hero:

Ren Zhengfei a Chinese businessman. He is the president of Huawei Technologies Co.

Ltd., headquartered in Shenzhen, China, and an ex-People's Liberation Army officer. Hurun

Report listed Ren as the 556th richest person in China in 2013 with private assets of

approximately $590 million USD

4- Rites and rituals:

There was no information that was available concerning the data required in the analysis

of this section.

49 | P a g e
5- The cultural network:

In 1997, Huawei won its first overseas contract, providing fixed-line network products to

Hong Kong company Hutchison Whampoa. Later that year, Huawei launched its wireless GSM-

based products and eventually expanded to offer CDMA and UMTS. In 1999, the company

opened a research and development (R&D) center in Bangalore, India to develop a wide range of

telecom software.

50 | P a g e
 Models of Political Rule

Technocracy: as people with knowledge and expertise have the upper hand in making decisions

within the company.

Formal and Personal Power:

Huawei’s employees use the Legitimate Power by which the managers/leaders can tell

people below them in the hierarchy what to do; also the Reward Power is used in some occasions

regarding new products. People in higher positions within the company possess a lot of skills that

qualified them to be in those positions; hence their opinions and orders are highly respected and

carried out.

Power and Influence:

Position -> Rules and Procedures

Expert -> Magnetism

Personal -> Persuasion

Huawei Egypt’s employees do believe in following people with higher expertise in the

company due to their higher positions, which Egyptians inherently respect.

Expert or Knowledge powers, as people with more knowledge that are in higher

positions have more power. Symbolic Power as the achievements and positions do have power

and influence as well.

51 | P a g e
 Leader power, positional power and control over resources

1. Leader Power and Positional Power:

Huawei uses an unusual leadership structure, which is a system of rotating and

collaborative innovation. This commonly involves "alternating decision control to use

complementary capabilities in both partner organizations, zig-zagging trajectories that engender

broad technological search, and fluctuating network cascades to promote the mobilization of

highly varied participants." (Davis, J. Eisenhardt, K. : 2010).

Huawei came to that system of rotating in 2004, when Mercer, which is a New York-

based consulting firm, helped the company establishes their EMT (executive management team).

They proposed that Mr. Ren Zhengfei (the company's founder) would be the chair of the

executive management team. But, Mr. Zhengfei refused to work like that and to take that

position, but rather wanted to have the members to rotate in chairing the EMT. That remained

from 2004, where there were 8 people who rotate as the chair executive management team, until

2012 where they became only 3 people positioned as rotating CEO. The other members on the

EMT are trusted with making collective decisions as a team in order to promote high-level

managers or change salary structures. (Davis, J. Eisenhardt, K. : 2010).

On the issue of decision making, Huawei's leadership has different mechanisms for

different matters in making decisions. Guo Ping - who is the rotating and acting CEO explained

that for some matters, the rotating active CEO will make decisions himself/herself, while there

52 | P a g e
are other matters were a decision will be taken if the majority agreed to it. For critical issues, it is

submitted to the board for approval which is normally done by consensus.

2. Control Over Resources:

Huawei has swiped the international market through the mobile phones companies that

supported Huawei as a rising company that offered it mobile phones with various specifications

for relatively low prices, leading to its spread even in the Arab world. It is not a secret that home

users doesn't only use Huawei's phones, but also a lot of other devices such as all internet

modems in Egypt - even given as a startup gift from internet providers such as TE-Data - as well

as non-home users find that mobile connections antennas are actually Huawei's. (Awwad, A :

2013). These advances even include superstars such as the Lebanese singer Nancy Ajram

becoming a "Huawei Brand Ambassador" and promoting its products including the Ascend Mate

7 smartphone as well as participating in its conferences. (Jaffar, A. :2014, ITP.NET :2014).

On the issue of controlling resources from the part of Huawei, internationally, the

company does not seem to have any type of monopoly on any type of resources, be it

government and capital, natural, economical, biological, computer or human resources.

In fact, Huawei seems to be completely against institualized monopoly, to the extent that

it sew companies for trying to undergo monopolistic practices on its competitors. A recent

example of that was last year (in December 2011) when Huawei filed litigations in China

accusing "Inter Digital" of discrimination in patent licensing. (Bridge IP Law Commentary:

2014).

53 | P a g e
 However, very recently, there have been complains in many Arab countries from

economists and technology entrepreneurs of fears of complete monopoly lead by Huawei that

may occur if un-justified government support continues. An example of that is Huawei in Jordan,

where the company was given the bid to redevelop Orange's 4G network, moving from a stricted

and limited monopoly to an open one for the Jordanian communications' frequencies for at least

5 years. This appears to be a legetement fear for the other competing companies in a market that

strives to keep competition and minimize monopolies. (Hawamda, M. :2015).

54 | P a g e
 The Managerial Grid

The managerial grid is inspired by the McGregor Y theory. The leadership style associated with

Managerial Grid for Huawei is The Sound (or Team) style. This means that it has a position of

(9, 9) on the grid.

Leadership / Management Grid

55 | P a g e
According to the definers of this style (i.e.: the managerial grid), Dr. Robert Blake and Dr. Jane

Mouton, the Sound (or Team) style is the most effective leadership style from among the five

styles of the Managerial Grid.

The leaders according to this style will contribute to the work at large as well as being committed

to the job. They are best at motivating as they themselves are motivated, and they truly respect

and trust them employees and aim to empower them. This is because they believe that this is

crucial for incepting a team environment that holds these values, hence enhancing the

employees’ contentment as well as productivity.

 Refer to survey question 'Q': "The glue that holds the organization together is loyalty and

mutual trust. Commitment to this organization runs high."

Count of The glue that holds the organization together is loyalty

and mutual trust. Commitment to this organization runs high.
15

10

0
Agree Disagree Not sure Strongly agree

56 | P a g e
 Refer to survey question 'U': "The organization emphasizes human development. High trust,

openness and participation persist."

Count of The organization emphasizes human development.

High trust, openness and participation persist.
15
10
5
0
Agree Not sure Strongly agree

 Refer to survey question 'Y': "The organization defines success on the basis of development of

human resources, teamwork, and concern for people."

Count of The organization defines success on the

basis of development of human resources,
teamwork, and concern for people.

Strongly disagree

Strongly agree

Disagree

Agree

0 1 2 3 4 5 6 7 8 9

 Refer to survey question 'I': "The leaders of the organization are generally considered to be

mentors, facilitators, or parent figures."

57 | P a g e
 Count of The leaders of the organization are
generally considered to be mentors, facilitators,
or parent figures.
8
7
6
5
4
3
2
1
0
Agree disagree Not sure Strongly agree

 Refer to survey question 'K': "The leaders of the organization are generally considered to be

hard-drivers, producers, or competitors."

Count of The leaders of the organization are

generally considered to be hard-drivers,
producers, or competitors.

Strongly disagree

Strongly agree

Not sure

disagree

Agree

0 1 2 3 4 5 6 7 8

 Refer to survey question 'L': "The leaders of the organization are generally considered to be

coordinators, organizers, or efficiency experts."

58 | P a g e
 Count of The leaders of the organization are
generally considered to be coordinators,
organizers, or efficiency experts.

Strongly disagree

Strongly agree

Not sure

disagree

Agree

0 1 2 3 4 5 6 7 8

 Refer to survey question 'AU': "Employees should pursue their goals after considering the

welfare of the group."

Count of Employees should pursue their goals

after considering the welfare of the group.
10
9
8
7
6
5
4
3
2
1
0
Agree Disagree Not sure Strongly agree

59 | P a g e
 Hersey & Blanchard’s Model

At the time of Huawei’s establishment Huawei was focused on manufacturing phone switches,

but it has since expanded its business to include building telecommunications networks;

providing operational, consulting services and equipment to enterprises inside and outside of

China. Many different styles have been used through.

1- Delegating Style:

During the 1980s, China's government pressed forward a multi-pronged strategy to

modernize the country's underdeveloped telecommunications infrastructure. A core component

of the telecommunications network was telephone exchange switches, and in the late 1980s

several Chinese research groups endeavored to acquire and develop the technology, usually

through joint ventures with foreign companies.

2- Participating Style:

Huawei describes itself as an "employee owned" company, partly as a means of

counteracting perceptions of Chinese government involvement. However, the actual ownership

structure is opaque and surrounded by a culture of secrecy. According to Caixin magazine, "even

long-time employees admit the [shareholding] system is nearly impossible to understand."

Employees receive no information about their holdings, and their shares do not entitle them to

any voice in management decisions. The company's 50,000+ employees outside China are not

given shares. Richard McGregor, author of The Party: The Secret World of China's Communist

60 | P a g e
Rulers, said that the majority of shares are likely owned by Ren Zhengfei and Ren's managers,

though the company states Ren directly owns less than 1.5%.

3- Selling Style:

In 2010, Huawei won 47 managed services contracts to help improve network

performance and efficiency for customers, as well as reducing the costs of network operations

and maintenance. In 2010 Huawei's global services revenues grew 28.6% to US$4.82 billion.

4- Telling Style:

There was no information that was available concerning the data required in the analysis

of this section.

61 | P a g e
 Quinn’s Theory

According to Quinn’s Theory of Competing Values, the leadership style within Huawei Egypt is

the firm leadership style, as the leader is task oriented, and directive. Ren Zhengfei is the

president of Huawei and has held the title since 1987.

Huawei disclosed its list of board of directors for the first time in 2010. Ms. Sun Yafang

is board chair. As of 2011, the members of the board are Ms. Sun Yafang, Guo Ping, Xu Zhijun,

Hu Houkun, Ren Zhengfei, Xu Wenwei, Li Jie, Ding Yun, Meng Wanzhou, Chen Lifang, Wan

Biao, Zhang Pingan, and Yu Chengdong. The members of the Supervisory Board are Liang Hua,

Peng Zhiping, Ren Shulu, Tian Feng, and Deng Biao.Richard Yu Chengdong is the Chairman of

Huawei Device, its mobile phone division.

On 1 July 2013, Huawei Device announced former head of Nokia Colin Giles joined the

company as Executive Vice President of Consumer Business.

62 | P a g e
 Employees’ Resistance to Change

Huawei has over 140,000 employees, around 46% of whom are engaged in research and

development (R&D) It has 21 R&D institutes in countries including China, the United States,

Canada, UK, Pakistan, France, Belgium, Germany, Colombia, Sweden, Ireland, India, Russia

and Turkey, and in 2013 invested US$5 billion in R&D.

In 2010, Huawei recorded profit of 23.8 billion CNY (3.7 billion USD). Its products and

services have been deployed in more than 140 countries and it currently serves 45 of the world's

50 largest telecoms operators.

According to Caixin magazine, "even long-time employees admit the [shareholding]

system is nearly impossible to understand." Employees receive no information about their

holdings, and their shares do not entitle them to any voice in management decisions. The

company's 50,000+ employees outside China are not given shares.

In October 2007, 7,000 Huawei employees resigned and were then rehired on short-term

contracts, thereby apparently avoiding the unlimited contract provisions of the Labour Contract

Law of the People's Republic of China. The company denied it was exploiting loopholes in the

law, while the move was condemned by local government and trade unions.

Huawei's treatment of its workforce in Guangdong Province, Southern China also

triggered a media outcry after a 25-year-old software engineer, Hu Xinyu, died in May 2006

from bacterial encephalitis, as a result of what is believed to have been work-related fatigue.

63 | P a g e
 In its 2010 Corporate Social Responsibility report, Huawei highlighted the importance of

employee health and safety. In 2010, Huawei provided annual health checks to all full-time

employees and performed 3,200 checks to employees exposed to occupational health risks

Also, in 2011 Huawei initiated a Scholarship program, "Huawei Maitree Scholarship",

for Indian students studying in China.

Huawei Technologies Reviews (from CareerBliss statistics):

On average, employees at Huawei Technologies give their company a 3.8 rating out of

5.0 - which is equal to the average rating for all companies. The happiest Huawei Technologies

employees are Software Engineers submitting an average rating of 4.0 and Technical with a

rating of 3.9.

64 | P a g e
65 | P a g e
 Data Analysis - Hofstede's Dimensions

1. Power Distance (answers’ mean = 3.05):

The power distance is large or big, making the society characterized by centralized

authority, autocratic leadership, paternalistic management style as well as many hierarchical

levels. It also encompasses large number of supervisory staff, acceptance that power has its

privileges with an expectation of inequality and power differences.

2. Uncertainty Avoidance (answers’ mean = 3.65):

The degree to which members of the society are able to cope with the uncertainty of the

future without experiencing undue stress is strong. This makes it characterized by avoidance of

risk, lack of tolerance for deviants, respect for authority as well as strong need for consensus.

The organization have clearly delineated structures, many written rules, standardized procedures,

promotions based on seniority or age, and it needs predictability which is provided by planning.

3. Masculinity (answers’ mean = 3.07):

Huawei is based on a career success (masculine) culture. This makes the company have

clear and distinct gender roles where men are assertive, tough and focused on material success. It

do not place great importance on benevolence, but rather places importance on the value of

mastery of job, nature, people, or some other. Women are predicted to consider personality,

66 | P a g e
affection, intelligence & sense of humor as desirable characteristics of a boy-friend as well as

health, wealth & understanding as those of a husband.

4. Collectivism (answers’ mean = 4.2375):

Huawei has a Collectivistic culture, which make the company have specific

characteristics. The company behaves according to social norms that are designed to maintain

social harmony among members of an in group, as well as considering the implications of their

actions for wider collective. It shares resources and is prepared to sacrifice personal interest for

collective interests, and favor certain in-groups. Huawei's employees belong to a small number

of in-groups that influence their lives have a greater tendency toward conformity than

individualists are very concerned about in-group members and are indifferent or hostile toward

out-group members. There is a great emphasize on hierarchy and harmony within group, while

regulating behavior through group norms.

5. Confucian Work Dynamics (answers’ mean = 3.575):

Huawei reflects a dynamic, future-oriented mentality that emphasizes persistence

(perseverance), thrift, having a sense of shame as well as ordering of relationships based upon

status and observing this order. It supports interrelatedness through sensitivity to social contacts,

as well as being positively associated with economic growth.

67 | P a g e
 Data Analysis - OCAI's Types

Total Mean of the Means of A, B, C & D Radar

1
The Clan 3.9 The Adhocracy
3.8
3.7
3.6
3.5
3.4
4 3.3 2

The Hierarchy The Market

3

The Radar shows that the culture is more attracted towards the Clan (Family) Culture

 Total Mean of the Mean of Answers of ‘A’ (The Clan Culture) = 3.841666667:

Huawei is a very pleasant place to work, where people have a lot in common. It's leaders

are usually facilitators, mentors and team builders. The values that drives the company the most

are commitment, communication, development. Huawei believes that effectiveness is possible

through human development and participation. It also believes that among the crucial quality

strategies are empowerment, team building, employee involvement, Human Resource

development, open communication.

68 | P a g e
 This makes Huawei’s Quality Strategies have characteristics of:

a) Empowerment

b) Teambuilding

c) Employee involvement

d) Human resources development

e) Open communication

69 | P a g e
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from: http://www.theage.com.au/it-pro/government-it/huawei-founder-attempts-to-dispel-

myths-20130510-2jbvd.html

2- James Delahunty, J. (2012). "Huawei vows transparency, will fight myths and

misinformation". Retrieved on 02/04/2015 from:

http://www.afterdawn.com/news/article.cfm/2012/10/24/huawei_vows_transparency_will

_fight_myths_and_misinformation

3- Anderson, R. (2012). "Huawei Technologies: Controversial success story". Retrieved on

02/04/2015 from: http://www.bbc.com/news/business-19568465

4- Wright, M. (2012). "Huawei controversy: when it comes to Chinese tech companies, we

should be paranoid". Retrieved on 02/04/2015 from:

http://blogs.telegraph.co.uk/technology/micwright/100007989/huawei-controversy-when-

it-comes-to-chinese-tech-companies-we-should-be-paranoid/

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