Huawei organisation wasfounded by Mr. Ren Zhengfei in 1987. Huawei organisation has grown from one mansales agent selling PBXs (Private Branch Exchange) to one of the world largestinformation and Communications Technology(ICT) solutions and services provider.Today Huawei organisation is operator carrier networks, ICT solutions providerand provide consumer products and services. Huawei organisationplaced important aspect in house Research development and has become one of themost innovative, dynamic technology company in the world.
Due to strong R&D,Huawei expanded its products and ICT solutions to over 140 countries andservicing more than one third of world’s populations (Huawei2013). Due to heavyinvestments in research and development, Huawei introduced mobile products tocompete against Apple and Samsung and its mobile phone markets gains growth andworldwide exposure.In 2010, Huawei organisation has rankedNo.352 on Fortune’s Global 500 list and earned the revenue of $27 billion(Huawei, 2017).
In 2017, Huawei has risen from NO.228 to NO.129. In 2017, Fortune 500 that came out in the evening ofJuly 20th, Huawei organisation climbed up the list to the 83rd placefrom the 129th of last year with a revenue of $78.
51 billion,making the top global 100 for the first time (Prasso, 2017). Huawei organisation establishedthe Stakeholder Engagement Management Process to engage with stakeholdersthrough a broad range of activities, including meetings, attending, publishingwhitepapers, and participating in industry research groups and pilot projects. Huaweiorganisation pride themselves on being customer-centric and proactively engagewith the customers regularly. Public Affairs and Communications, Legal Affairs,and Standardization and Industry Departments regularly engage with governmentaland intergovernmental bodies and community groups, while participating inhundreds of specific industry standards bodies and associations. (Annualreport, 2016).
The case study address howHuawei organisation fit into types of change that are transformational andincremental change, why and what does it needs to change by usingBurke-Litwin’s (1992) Model as a guidance. The important for Huawei company tochange is to generate more profit and idea, bring technological advancement andbuild up competition. Another motivation forchange in Huawei organisation may be the ability to maintain a strong companyimage and strong relationships with customers and employees.Technology pressure constraints andpropels Huawei organisation to changes.
This is because technology can bringpositive and better result to an organisation. The advancement in technologyhave the potential to reduce the time required to accomplish a task properly oreliminate the necessity for a business to face and overcome competitor pressure(Stella Noble, 2017). Huawei’s products are hugely in the group of computinghardware, which is classified by rapidly changing technology and growingindustry standards. New designs and functions of products are the norm ofindustry expectation, mode and practice. Each customer needs and wants changein timely manner based on the invention and implementation of latest technologyin the market. Huawei organisation must not only focus and emphasize at currentopportunities, but require to prepare for future changes. Besides that, Huaweiis under growing company category and it often face a lot of competition fromother telecommunication competitors. Aspects such as price, quality of serviceand features of new products and services affect Huawei’s competitiveness.
According to other research, Huawei competitors are Nokia Networks Solutions,Motorola Solutions, Hewlett- Packard and Datang Telecom Technology. Forinstance, mobile phones released with advanced and latest technologyfunctionality to a market which consists of customers with high expectations intechnical advancement and improvement. If Huawei organisation wants to staycompetitive and undergo challenges, technology is one of the force thatpressure Huawei towards change (Michael Jones, 2014)Economy pressure propels and forcesHuawei organisation towards change. Economic pressure influence and controlHuawei organisation change its management strategy tactics by displayingpossibilities or challenges in the form of economic hesitation anduncertainties. Changes in the business cycle, changes in economic policies andstructures and the level of financial stability in the country affects thedevelopment of company and forces them towards change (Stella Noble, 2017).According to the researched article, world’s industrial economies have outlinedand summarized a downward spiral since the Global Financial Crisis. Europestate have met extreme economic pressures and it is the key market for Huaweiorganisation.
So, when the Europe economy becomes unsteady, Huawei Company alsowill be facing economy pressure which causes the company to undergo organisationalchange. Besides that, economic downturn has the capability to change thepurchasing perspectives of customers, which forces the telecommunicationcompanies such as Huawei to reduce their selling prices and requires a lot oflatest resources to stay competitive enough. Moreover, telecommunicationcompanies such as Huawei organization continued to survive and hold up despiteweak economy conditions. It helps to improve and recover their financialposition by withholding their investments activities and involve in cutting theoverall expenditure costs.
As customers tightened their daily spending,organisation such as Huawei have to lower their production cost to match lowereddemand or create a mobile phone with sufficient functioning in a limitedquantity. Moving from one dimension of forces to another can financiallychallenging and urge Huawei Company to be involved in organisational changesincluding creating a new affordable product line (Michael Jones, 2014) Based on the article, changes that has taken place in thisorganisation is they become a leaderfrom imitator. This generally means the organisation has improved bybecoming a technology leader from technology imitator. (liu,2013). This is theevidences of the company re-orientation, adapting, tuning, and recreationstrategies. Huawei was the world leader in designing and manufacturing thefirst 3G network and continuing to lead the world in the development of the 4GLTE which is known as (Long Term Evaluation) network (Telecommunication, 2012).Besides that, Huawei is the largest telecommunications equipment manufacturerand have taken over the company Ericsson in 2012. The reason why Huaweican implement a lot of changes in the organisation is because half of theemployee from this company works in R&D department with a lot of networkingaround them.
It’s easy for them to gain as much information in order for Huaweito transform better and lead the world to be advanced in technology. ThisR department has played a critical role in transform Huawei to a globalleadership position. It’s good that organisation implement change in theirworking place because this can make the company be ready in facing thechallenges they might encounter in future and also fulfil customer needs. Bylaunching the LTE and 3G network, Huawei has fulfilled customer need becausethey no need to use Wi-Fi when they have 3G network and personal data.The second changes that take place in this organisation isthat Huawei has enrolled in a developedcountries.
Previously, Huawei market was located in the China countryrural-side. This is because the place is a strategic location to do businessand it was their headquarters (Shenzen, Guangdong) where they sell of phonesand do business. Huawei has expanded in a few countries and has 21 R&Dinstitutes in China, United States, Canada, Pakistan and many more. Due to havea lot of R&D department is different countries, Huawei able to transformtheir internal organisation better because their employee did a lot of researchin identifying a strategic location for Huawei to operate their business. Doingbusiness in developed countries will help the organisation to increase profitand also their productivity because customer look for quality.
Indirectly, ithelps the organisation to have a better image in the industry. Besides that,according to the article that wrote by Holly Donging Zhu, Michael Jones onHuawei case study, it stated that in 2004 Huawei organisation overseas saleshas been increased and better than before of that domestic market. Therefore,every organisation should operate their business in developed countries tomaintain a competitive and sustainable positions in the market.The type of changes that can be found in Huawei’sorganisation is first order change. It involves in adjustments such asregulating the systems, processes or structures of the organisation.
Firstorder change does not involve in basic changes accomplished in strategyplanning, core values or corporate identity (Alexandre Koffi, 2015). Thechanges involving first order change in Huawei organisation is in the typicalwireless data entry field, whereby Huawei organisation uniformly improves andenlightens its products including in aspects such as product appearance,functions, features and mobile phone user experiences. In machinery field,Huawei also provides customized clarifications and solutions for vehicles,power and other type of industries. Moreover, Huawei organisation also tunedand adapted its strategy plan to developing country first and later on followedby developed countries. These allow the Huawei Company to obtain bearabletraction in the level of international market. Besides that, Huawei offerslatest technology updates and deliver customized explanations or solutionsbased on customer feedback. It helps the organisation to transform and alterits strategy and adapt the Huawei Company towards demonstrating aninternational presence through tuning and adaptation strategy (Michael Jones,2014).The next type ofchanges in Huawei’s organisation is second order change.
The changes involvingsecond order change in Huawei Company is Huawei has transformed its businessmanagement from a technology imitator to technology leader. Huawei Company wasa leader in planning, designing and owning the world’s first 3G network andinvolved in delivering the world’s fastest and high performance computer. Thenext change involving second order change is Huawei’s global operationexpansion. Huawei launched a minor software development and progressionoperations in India.
Later on, Huawei Company opened R center which isknown to be the largest and most significant assets outside China. Huawei alsolaunched FutureWei, which displays its commitment to international business andits operation. Huawei headquarters is located critically in UK to knock thevital and innovative telecommunication market meanwhile involve in raising abetter image in European market. Furthermore, the next second order change isHuawei applies a re-creation plan methods to build strategic alliances andaffiliation with competitors and world leading companies such as Intel, Altera,Motorola, Oracle and Sun. Huawei join business operations with Siemens to buildand developing 3G mobile communication products.
In addition, Huawei alsoinvolve in joint ventures with Symantee, which is a security firm that improvessecurity, protection and storage solutions or answers which then they offer tothe telecommunication markets (Michael Jones, 2014).The first issue the author isarguing in the article is about the communication. Communication is the majorrole in an organisation. In every organisation communications are needed totransfer the correct information to another staff. Verbal communication is abetter communication rather than the other two communications.
By using writtencommunication, the employees are not able to transfer because it will take timeto make the person receive he letter to understand. The theories they are usingis transformational change. Transformational change is where changing theorganizational entirely to the new place and the products.
The effectivecommunication can change the organisation to the successful change. If theorganization change the way of communication due to the failure of interactionbetween the employees. The employers have stopped to communicate with theiremployees and are writing the messages in the memo pad. By doing this the communicatingwith each other is reducing day by day. By changing the old managers, theproductivity for the organisation will be low because the new manager is notable to perform the job properly. The organisation has to change the overallorganization to the new so the new employers are able to perform the workcorrectly. By changing the mangers the employee will have difficulty incommunicating because not able to find the way and method to communicate(Anon.
, n.d.). The second issue the author tryingto implement is collective learning. Collective Learning is a common learningmethod that employee learns in an organisation. It helps to improve theemployee’s knowledge by teaching the new skills. The theory for thisargument is incremental change.
Incremental change is a where the organisationchange a part of the learning. It is just a partial change in a structure of anorganisation. An organisation uses the collective learning to improve theemployee’s knowledge and skills when the organization needed. They change thelearning process when it is not effective to the organization.
They will changeit according to the need of the organisation. The effective for organisationdevelopment and change for change managers is they have to learn the new skillsand knowledge’s to perform better in the organization. Every employee neededtalented managers so they can help them to complete their work.
Mangers areplaying the role to guide the employees to the correct path in the work so ifthe changes of managers occur it might difficult to learn from them becauseit’s take time for us to learn new things and the learning method will bedifficult. (Anon., 2008)Basedon the findings, the key lessons that can be learnt from Huawei Organisationalchange are an organisation should not be afraid to break the frame andconstantly need to engage transformational change. For example, Holly and Jones(2014 p. 2) acknowledged that all the mobile suppliers refused to sell phonesto Huawei when Huawei’s first 3G (third generation) was deployed in MiddleEast, they request to supply for its infrastructure. Thus, the company camewith an idea to develop its own mobile phones, which was not even a familiararea for it.
As a result, Huawei has successfully overtaken LG and ranked threein global market share price, which is after Apple and Samsung. Thenext key lesson that can be learnt from Huawei Organisational change areorganisation need to embrace incremental change as a way of straddling itsmarket opportunities. As tuning approach (incremental change) used intechnology, management process and development, Huawei Company constantlyimprove its products including its display, functions and customer experiences for the traditional wireless data access field.As per the machine-to-machine field, Huawei provides customized answers orsolutions for vehicles, power and other industries. (Holly and Jones, 2014p.2-3)Thefollowing lesson to be learned are communication is an important process forthe success of organisational change. For example, Huawei has formedinformation and communication channel to ensure they gain information up todate including forum for its employees, and communication channel for its suppliersand customers.
Thus, resistance of change will be reduced tremendously andcustomers will accept the change in the organisation by supporting Huawei.(Holly and Jones, 2014 p.10) Thelast key lesson that need to be learned from Huawei organisation change isorganisational need support from employees. Huawei organisation assumes thatemployee’s involvement is necessary for the organisation change.
For example,Huawei has “Mat culture”. Every Huawei’s staff is given a mat that is placedunder their desk, so that employees could take a nap after their lunch or theneed to rest when they are working late (Holly and Jones, 2014 p.6) Transparencyand effective communication is vital to implement change moreeffectively. (Lumen, ‘n.d.’) Managers required discussing and communicatingwith employees on matters regarding the process of organisation change and thereason the organisation need change. For example, if Huawei organisation wantsto implement a new technology that will help in the production of the company,but they require the employees support and a lot of initial labour to get thenew technology up and running, Huawei organisation should communicate why theimplementation of technology is important.
Next,effective education and training is essential to execute changes moreeffectively (Lumen, ‘n.d.’). Education and training is fundamental foremployees to understand and adapt to a change in the organisation.
A newprocess or procedure will put employees in a difficult situation as they areunfamiliar with the new procedure and employees will find it difficult to fitin their workflow. For example, Huawei organisation need to give training whenthey are executing either new procedures or improvise technology for theproduction of the workforce so that employees will able to understand betterand able to adapt to the changes more effectively. Personalcounselling is vital especially when there is a major change in organisation(Lumen, ‘n.d.’). Some employees might resist changing completely as they feelvery uncomfortable especially for those employees who are affected by thechange.
For example, re-orientation which is a type of change results is majorchanges to core elements of the organization, which includes its values andculture, strategies and structures of the company as well. For example, Huaweiaimed on newer technologies such as LTE( Long term evaluation) and in 2012,Huawei shifted its concentration from feature phones to smartphones as Huaweilaunched its Ascent smartphone series. Therefore, personal counselling isessential for employees who are affected by the change.
Oneof the most essential steps in managing a successful change in an organisationis to examine and observe how the change affect the organisation (Lumen,’n.d.’). This can be achieved by checking on the historical data, whichconsists of the trends and conditions in the company’s past, and theperformance of the employees before and after the change has occurred. Inaddition, Huawei organisation should also observe or examine the effect of thechanges on the overall production process. If the change is not convincingafter the previous implementation, the company should make some adjustment onthe changes in order to become successful.
Huaweiorganisation able to transform its technology imitator to technology leader dueto the founder strongly believe its need organisation change to staycompetitive and survive in international market. So, the organisation experiencefirst and second order of change.Internal change thatneeds to focus in organisation change that should not be afraid to break theframe. Huawei organisation strongly believe communication is a very importantprocess in organisation change (Lewis et al 2009) where communication canenhance understanding of change implementation process and implementation ofnew technology.Other aspect Huawei organisationstress on employee dedication, loyalty and high moral which can propelorganization to higher level of success. Huawei is provided a “map culture”where they can use it when take a nap after lunch or working late at night (Louet al 2011, The Economist 2011).
Huawei organisation also provide education toemployees so that it is much easier for employees to adapt to changeseffectively and reduce employee difficulties fitting into their workflow.Huawei organisation constantlyfacing pressure to change due to external forces. Technology which is rapidlyadvance and Huawei organisation need to change in order to stay competitive. Huaweiorganisation needs transformation to satisfy customers need in term of pricing,features of its products and services.
Other than Technology, it also facingeconomic pressure and uncertainties in world economy like Global FinancialCrisis which affect economy in Europe that directly affect Huawei organisationperformance due to consumer buying power.Today Huawei organisationsuccessfully becomes a technology leader due to its own R team set up in1993 which designed their own products. Huawei brand are well known andrecognized throughout the world due to its innovative, marketing strategy andmanagement philosophy and Huawei organisation is recognized as Master ofchange.