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In the ever-changing Internet era, the whole society is full of Internet thinking, subverting many traditional industries. However, there is still a company that not only has not been subverted, but has always maintained the spirit of the tortoise and the hare, maintaining continuous growth every year, and successfully surpassing its opponents. One of the key secrets is: promote incremental performance management on a jog. high precision cheap price Professional OEM Custom CNC machining parts buyer
This is the famous Huawei company.
The ancients said that when you are calm, you can be calm, when you are quiet, you can be peaceful, when you are peaceful, you can think, and when you think, you can gain. “Setting” means positioning, setting strategy, setting culture, setting principles, setting mechanism… Once set, everything will be quiet, because your “heart” will not be impetuous, so that you can focus on planning actions with peace of mind, every day A step forward may seem slow to the outside world, but it never stops. The process of quantitative change is qualitative change, and successful results will come naturally. Huawei, becoming more and more successful, has become the three inescapable things in Chinese life: death, taxation, and Huawei.
Huawei has become the pride of the nation, and Ren Zhengfei has become the backbone of the world’s entrepreneurs.
All of this is inseparable from the “incremental management” of Huawei’s performance management, which is a successful example of the localization of “amoeba management” in China. high precision cheap price Professional OEM Custom CNC machining parts buyer
So, what unique method does Huawei have in promoting “incremental management”?
Let a company reduce the number of employees by 50%, increase the labor force per capita by 80%, and increase sales revenue by 20%.
The method is actually very simple, the core is “reducing people, increasing efficiency, and increasing salary”.
Enterprises must keep these six words in mind.
- Reversing tasks from wages When making budgets, many companies always assign tasks to their subordinates, which is tantamount to “forcing” their subordinates to do it. high precision cheap price Professional OEM Custom CNC machining parts buyer
Huawei’s approach is just the opposite. There is only one rule: first give him a salary package, how much salary he wants to get, and roll out his tasks proportionally. For example: Give him a salary package of 5 million, and his salary is 300,000, then he must find a way to complete the performance for the 300,000.
The core management issue of the company is to correlate the organizational performance of the company with departmental expenses and employee income.
Only in this way, the most important thing is to increase the income of core employees, and increasing the wages of core employees can force his ability to grow.
The company should consider how employees can survive, and consider whether the quality of life of employees will not be reduced.
Employees have money but no time to spend it. This is the happiest thing for an enterprise.
And what is the most painful thing for enterprises? high precision cheap price Professional OEM Custom CNC machining parts buyer
There are many people with low wages, but everyone has nothing to do. A group of employees have time but no money all day long. Therefore, in Huawei, it is mandatory to increase the wages of core employees, so as to deduce how much income he has to complete. To complete the task every year, add 20% salary to the top 20 employees, and 10% salary to the middle 20% employees. For every 10% overfulfilled, an additional 10% of employees will be added.
In addition, even if the department is doing poorly, the wages will be raised, but the number of people can be reduced.
Many companies often make a mistake: the worse the performance of the department, the less wages will be given to employees.
If wages do not rise, excellent employees will definitely leave, and the rest will be relatively poor. For small and medium-sized enterprises, every employee’s wages cannot be as high as Huawei’s, but you can make core employees’ wages high. In this case, it is inevitable to increase the salaries of core output positions. In short, to retain core employees, raise wages for a few outstanding employees, and push back your tasks, this is incremental performance management.
- Increase per capita gross profit However, many employees will not work hard to increase sales revenue, so there must be gross profit, which is basically 30 to 100 times. high precision cheap price Professional OEM Custom CNC machining parts buyer
Huawei first divides the gross profit into 6 packages:
- R&D cost package
- Market product management fee package
- Technical support fee package
- Sales fee package
- Management support fee package
- The company’s strategic investment package.
And to find the “package owner” of these 6 packages, let this “package owner” match the ratio according to the gross profit. How many people are needed below.
For any enterprise, gross profit per capita is the only indicator of survival. The per capita gross profit is 350,000 yuan, which is the lowest income level of an enterprise. If the per capita gross profit is 350,000 yuan, 60% or 210,000 yuan is labor costs, 35% is business expenses, and 15% is net profit.
At present, in the first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen, if the employees in the enterprise do not get a salary of 8,000 yuan a month, everyone will not be able to live.
The reason why Huawei must achieve the goal of a per capita gross profit of 1 million yuan is that Huawei stipulates that employees must receive a fixed salary of 280,000 yuan.
This problem is also applicable to small and medium-sized enterprises, and we must pay attention to raising the per capita gross profit.
The growth of the per capita gross profit rate determines the growth of the salary package.
If the salary package of small and medium-sized enterprises cannot be covered, it will definitely become the Whampoa Military Academy of large enterprises, and talents with excellent skills will be poached by others. high precision cheap price Professional OEM Custom CNC machining parts buyer
- Reduce people, but also increase efficiency. The best state of an enterprise is to let one person do a lot of things and not support idlers.
For example: if four people do the work, if two people do it, they can get three times the wages.
This involves a problem: reduce people and increase efficiency. This is the primary goal of performance management.
Therefore, when Huawei’s human resources department often determines recruitment needs, at least three points should be considered:
The first thing is to understand why you want to recruit this person?
The second is what is his unique contribution?
The third question is whether you can give this job to someone else and give them a little bit more salary?
In Huawei, a department manager can only work for three years. The task of the first year is to streamline personnel and merge many positions.
Enterprises must remember these points: the more combined management positions and functional positions, the better, the more functions a position has, the better, and the more detailed output positions, the better. high precision cheap price Professional OEM Custom CNC machining parts buyer