Study On The Effectiveness Of Huawei's Profit Sharing Mechanism

Benefit-sharing mechanism has effectively promoted the sustainable and high-quality development of enterprises.It is an incentive mechanism to encourage managers to serve the company's long-term development diligently and conscientiously on the basis of sharing material and spiritual interests.In the process of production and operation,enterprises will adopt different benefit-sharing mechanisms in different periods,which will have a great impact on the economic benefits of enterprises.Therefore,it is of practical significance to study the benefit-sharing mechanism.Huawei Technologies Co.,Ltd.(hereinafter referred to as Huawei Company)is one of the successful enterprises that have successfully used the benefit-sharing mechanism in China.This paper summarizes the successful experience of the benefit-sharing mechanism of Huawei Company,and provides reference for other enterprises when implementing the benefit-sharing mechanism in the future.This paper takes the benefit-sharing mechanism of Huawei Company as the research object,and uses the methods of empirical analysis and systematic analysis to study the effectiveness of the benefit-sharing mechanism of Huawei.Firstly,it points out the research background of Huawei,perfects the existing benefit-sharing mechanism according to the needs of enterprises in different periods,applies it to enterprises,and points out the theoretical and practical significance of the problem.Then,it points out the benefit-sharing mechanism at the present stage.The limitations of the benefit-sharing mechanism are analyzed from multiple perspectives,further emphasizing the theoretical basis of human capital theory,principal-agent theory and two-factor theory.Secondly,through the introduction of Huawei Company and the analysis of its development process and development capacity,it points out that in different stages of development,benefits can be achieved.Benefit-sharing mechanism plays a key role,pointing out that Huawei's benefit-sharing mechanism has the characteristics of execution,sharing and adaptability,and further demonstrating some problems of Huawei's benefit-sharing mechanism.Then,through qualitative analysis of the shortcomings of traditional benefit-sharing mechanism,this paper emphasizes the advantages of Huawei's benefit-sharing mechanism.In order to achieve success,the benefit-sharing mechanism has been implemented,and the benefit-sharing mechanism has been quantitatively analyzed from the perspectives of equity incentive,salary incentive and cultural incentive.It is conceived that the equity incentive of Huawei brings the greatest economic benefits to the company than salary incentive and cultural incentive.Its purpose is to show that there is a very deep and wide benefit-sharing mechanism.It is a necessary condition to ensure the stability of the company and a key factor to promote the development of the company.This paper also puts forward relevant suggestions,which provide reference value for enterprises preparing to implement or implementing the benefit-sharing system.Finally,the paper summarizes and prospects.