Chapter 902: Elimination Rate

"Our treatment and benefits are better than those of other companies, and the proportion of employees staying should be very high. Xie Wujin said.

"Our overall treatment is indeed better than others, but I have already said that other companies don't need to poach your vote, only a few elites. How many people can you keep for a few of these enterprises, how many people can you retain? People can pay a far higher price than you for a few elites, but we have to stabilize thousands of people, and this is unequal competition. If you want to put your hopes in the moral standards of the staff, I think it is better to save your worries, because the most unreliable thing in these years is the moral standards. Xia Chenghao said mercilessly.

He said it so bluntly, everyone's face was not good-looking.

said in front of the chairman that the moral standard of the staff is unreliable, what should Hang Yu think?

"In terms of circumstances, I think there is a difference between the hardware department and the software department, and we pay attention to technology accumulation. Moreover, hardware research and development requires a huge amount of investment, and they go to other small enterprises, and there is no room for them to play at all. There are relatively few domestic companies that do similar products, and the treatment of a few companies is basically inferior to ours. Xie Wujin said.

When he said this, the others were immediately unhappy, because everyone else was in the software department.

In order to keep the treatment of the hardware department, Xie Wujin retreated to the second place, but lost the support of others.

"There is a little difference, but there are still some commonalities between software technology and hardware technology, grassroots positions can use a large number of new employees, and more complex technical positions need experienced old employees. Hongyan said.

Other technical management also thinks so, Xie Wujin wants to distinguish the treatment of the hardware department and the software department, Hang Yu thinks that there is still a certain reason, because the hardware department has high requirements for the quality of technical personnel.

As Xie Wujin said, there are very few companies in China that make chip memory and LCD screens, and state-owned enterprises generally do not dig into private enterprises, because the scientific researchers in the system are, to some extent, a bit too much.

Therefore, the salary of doctoral and master's students who are engaged in scientific research within the system is still very low.

Private enterprises basically can't find this kind of high-end products, tens of billions of investment, those financiers would rather put money into the project of sharing bicycles, because the benefits of this kind of project can be seen.

However, the distinction of treatment does not mean that the hardware department should be treated favorably, and the software department can not be wronged, and the differentiated treatment is not the differential treatment, according to the characteristics of the two departments, the management of the two departments should be improved in a targeted manner.

"You don't have to worry about the treatment, we are an Internet company, and software is our main business, so I won't be wronged by the software department anyway. However, what Mr. Xie said is also reasonable, blindly preferential treatment of technical personnel, not to mention whether this management method is the best? It does cause a great burden to our company, just to make LCD screens consume a lot of our funds, in the next few years, we also have to transfer funds to the chip and memory industry, these two projects are more expensive than LCD screens. LCD screen has now achieved certain results, I will not reduce investment, because we want to continue to maintain the leading edge of LCD screen technology, but I hope that the efficiency of the use of funds can be improved. Hang Yu said.

"Although our technology company has only been developed for a few years, the basic R&D environment has been finalized, and I am afraid that it will be difficult for everyone to accept it for a while. Fu Lei said.

"Long-term pain is better than short-term pain, and it is good for everyone to change it early. Xia Cheng said.

"That being said, we should also take into account everyone's receptivity, we are now in a critical period of research and development, whether it is software or hardware technology, once there is a research gap, even if it is only a few months or half a year, it will have a great impact on the development of our technology strategy. Now that technology is developing so fast, we may be caught up by someone if we drag it out for a few months. Fu Lei felt that Xia Cheng was a little more extreme.

"The reform of the technical department should not be too drastic, even if it is to be changed, it must be done slowly, subtly, and without affecting the normal operation. I don't approve of the kind of major reorganization like other departments. Hong Yan said.

"In addition to the reform method, I think the wolf culture is not necessarily suitable for our company, you have to have a wolf first to engage in wolf culture. Ren Zhengfei is a wolf, but our chairman seems to be ...... I'm not saying that the chairman is inferior to Ren Zhengfei, I think the chairman is like a tiger. Su Xinyuan said.

In fact, Hang Yu is not like a tiger, Su Xinyuan's words are a bit suspicious.

Hang Yu smiled nonchalantly and said, "You don't have to make fun of me, it doesn't matter if I'm a wolf or a tiger, I will neither give up my previous strategy, nor will I completely imitate Huawei." Removing the dross and extracting the essence is my consistent way of learning, so let's set a rate of elimination and eliminate some indiscriminate researchers every year. ”

The management method for setting the elimination rate is the "vitality curve" management method that has been commonly used by large Fortune 500 companies in the United States over the past few decades.

This management method was first created by Jack Welch, president of General Electric, and the basic idea is to "rate and remove slag", and use the "annual quota" to evaluate the work of employees, and distinguish the good, medium and bad.

The percentages of these three vary from company to company, but at GE it is 20%-70%-10%.

20% are the winning employees, and 10% are the scum that will be eliminated.

At Huawei, this kind of performance appraisal is called natural elimination, and 5% is eliminated.

But in fact, the elimination rate of 5%-10% is only a starting point, and it is a practice when the company department is functioning normally. In times of sinister economic conditions, many companies lay off far more people than that.

Another fan of "vitality curve" management is Amazon, the world's largest online store, where the vicious competition between employees within the company, in order to innovate and complete the quota The relationship between colleagues is bad, and the performance competition has become a zero-sum game of life and death, which can be described as "people eat people".

The result of "people eating people" is the loss of talent, because once you fall into the bottom of the bad evaluation category, the only way out is to be laid off and leave, and there is no chance to even transfer to other departments and change positions.

Every year, the department manager has to complete a certain percentage of the elimination rate, and often in order to fill this quota, the department has to choose a scapegoat to protect the quality talent of the department.

This method of choosing a scapegoat to complete the elimination quota is known internally as "politely pushing people out of the car", which is the management cancer of Amazon's retail department.

Under this forced elimination mechanism, Amazon has lost a lot of talent, so much so that other companies in Silicon Valley, such as "Facebook", have opened offices directly in Seattle to accept talents eliminated by Amazon's vicious competition.

On the one hand, the "vitality curve" concept of personnel management has been widely adopted because it stimulates employee productivity, but it has also been questioned by the management consulting community, and opponents call it "forced ranking".

"Forced ranking" shows the true meaning of this management concept: the employees are forced to divide the good and the poor three grades, dividends, retention, and promotion are linked to this, which is equivalent to the legalist thought in enterprise management.

If you overemphasize the ranking of employees and the elimination after the ranking, it may lead to vicious competition among employees, and you should not think about the spirit of cooperation and sacrificing the interests of colleagues.