Product details

Product details
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Published by: China Europe International Business School
Originally published in: 2021
Version: 2020-10-15
Length: 16 pages
Data source: Published sources

Abstract

This case focuses on the distinctive 'paternalistic' leadership and management style of Ren Zhengfei, founder of Huawei Technologies Co, Ltd (hereinafter 'Huawei') and considers whether he needed to adapt his style in light of new challenges at the company. Ren's own military experience shaped Huawei's early corporate culture and management structure. It emphasized clear-cut goals, hard-and-fast rules, employee dedication and absolute obedience. At the same time, the company acknowledged the contributions of dedicated employees by remunerating them generously. This approach transformed Huawei into a company of strivers and fueled rapid business growth. Nevertheless, as the market evolved and employee characteristics shifted, the shortcomings of Ren's management model grew ever apparent. Consequently, Huawei's performance took a nosedive and employee satisfaction also sank. Beset by internal and external challenges, Huawei needed to completely rethink its approach to business, corporate culture and company management.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Time period

The events covered by this case took place in 2017.

Geographical setting

Region:
Asia
Country:
China

Featured protagonist

  • Ren Zhengfei (male), CEO

About

Abstract

This case focuses on the distinctive 'paternalistic' leadership and management style of Ren Zhengfei, founder of Huawei Technologies Co, Ltd (hereinafter 'Huawei') and considers whether he needed to adapt his style in light of new challenges at the company. Ren's own military experience shaped Huawei's early corporate culture and management structure. It emphasized clear-cut goals, hard-and-fast rules, employee dedication and absolute obedience. At the same time, the company acknowledged the contributions of dedicated employees by remunerating them generously. This approach transformed Huawei into a company of strivers and fueled rapid business growth. Nevertheless, as the market evolved and employee characteristics shifted, the shortcomings of Ren's management model grew ever apparent. Consequently, Huawei's performance took a nosedive and employee satisfaction also sank. Beset by internal and external challenges, Huawei needed to completely rethink its approach to business, corporate culture and company management.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2017.

Geographical setting

Region:
Asia
Country:
China

Featured protagonist

  • Ren Zhengfei (male), CEO

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