Subject category:
Human Resource Management / Organisational Behaviour
Published by:
China Europe International Business School
Version: 2020-10-15
Length: 16 pages
Data source: Published sources
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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