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Which company is Huawei's organizational structure most similar to?
Practice of Ford and Huawei.
According to the requirements of the target customer group, the streamlined organizational design gradually extends from the sales-side business activities to the back end, forming a value creation process built by functional teams end to end.
Typical representatives of process organization are Ford and Huawei. In the 1920s, there were 80,000 operators in the Ford factory. They all immigrated from South America, with no education and skills handed down from their families. They are completely different from European immigrants and belong to pure manual workers. Ford put them in the factory and created a world-class company. At that time, the market share of Ford Model T in the world reached more than 50%.
How did Ford do it? It is to rely on 5% skilled workers and technicians to turn them into commanders of 10, 100 and 1000 people in the Roman army, and each person is responsible for a process to ensure that this process can pass smoothly. In addition to working with workers, we should also help the factories of the production line to formulate operation guidelines and help them master every operation skillfully. Subsequently, all enterprises began to learn the assembly line operation in Ford's production activities.
However, in the field of knowledge workers' activities, many enterprises, or most enterprises, have not yet learned how to streamline organizational design. Huawei is an exception. Huawei's approach is through PACE.
PACE method refers to product and cycle-time Excellence, which is a product cycle optimization method to follow Ford's organization and management method of manual labor, and divide the whole process of automobile manufacturing into more than 8,000 jobs, and more than 80,000 workers undertake one process. * * * There are 80,000 processes, and each process has only 20-30 operations.
Just as Ford decomposes the actions of workers, Huawei also decomposes the actions of knowledge workers, thus forming a streamlined organization to organize knowledge workers. However, unlike Ford's management of workers' organizations, Huawei's PACE method relies more on experience database and expert database to support the process.
Under the condition of knowledge-based labor, 80% of the work content is repetitive, so we can rely on experience to support the work of workers. Then, management emphasizes turning the exceptions into individual cases and handing them over to workers for decision-making, that is, turning them into individual cases to reduce the pressure on management.
There is still 20% of the work content that needs to be judged, inferred, creatively and creatively solved. In this way, it is necessary to turn to the expert database, rely on the support of experts rather than managers, help every knowledge worker complete the task smoothly, accumulate and share knowledge in the form of organization, ensure the natural passage of the value creation process, and reduce the intervention of managers in the process, including reducing traditional management functions.
In this way, Huawei has formed an integrated organization on the basis of highly specialized division of labor, and its effectiveness can be imagined. In fact, many of our companies go to Huawei because they want to learn from Huawei. What did they learn? The essence of Huawei's success lies in the integrated cooperation between enterprises and knowledge workers in the process of value creation, which has established a streamlined organization for the value creation of knowledge workers. Under such circumstances, the driving force for the development of the whole organization is not from the top-down promotion, but more from the pull of market demand and the pressure to compete for the market. Because every value creation process, the input and output of every link are linked together, thus forming an internal driving force, which is called the authority of the process.
What are the specific methods for activating organizations and liberating individuals?
We think there are usually five methods for reference-process-oriented organization design, division-based organization design, flat organization design, matrix organization design and ecological or platform organization design.
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