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The Reasons for the Success of ZTE

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In the first stage of this report, the historical background of ZTE will be introduced. Secondly , compare zte and foxconn organizational and culture, next Introduced the culture and organizational structure’s ZTE the relations and on the impact of the business, then talk the employees in zte behavior and leadership styles, Introduces the principle in the application of maslow’s resurgence , in the end , Summarize the influence of some factors of zte development.

1.3 Background
ZTE Corporation is China’s largest listed telecommunications manufacturer and wireless solutions provider.Founded in 1985, ZTE Corporation has been listed as an A-Share company on Shenzhen Stock Exchange since 1997. As the pioneer of China’s telecommunications equipment manufacturing industry, ZTE Corporation is a comprehensive provider of telecommunications equipment, mobile terminals and services. With its three product series, i.e. wireless, network and terminal (mobile phone), ZTE is capable of providing global customers with diversified integrated telecommunications networking solutions and a wide range of professional services on a 24×7 basis, and has been involved in the market of international telecommunications operation services. To date, ZTE has been the only Chinese vendor with complete package of independently developed base stations and switching systems with self-owned brands.

By now ZTE is the only Chinese mobile phone manufacturer that provides products of the three systems, i.e. GSM, CDMA and PHS. In a bid to grasp key technologies in mobile phone R&D, ZTE has independent intellectual properties to all the core software, hardware circuits, core chips and overall design & integration. ZTE invests nearly 10% of its annual sales income into research and development. It has set up a complete human resources management system from recruitment, training and appointment to incentive advancement. ZTE has 21,000 employees, of which 70% hold a bachelor or higher degree. ZTE Corporation was accredited as “China’s Top 10 Listed Companies”, consecutively listed among the “Top 50 Listed Companies with the Greatest Growth Potential in China Securities and Asia Business” for 4 years and the “Best 10 Employers in China’s IT Industry”.

2. Compare and contrast different structure and culture
Organizational structure and culture play crucial roles in the company’s growth and survival. There are two companies in structure and cultural differences.

2.2 Culture of ZTE

▪ Honesty culture: sincerity is zte’s success of smee, zte person the first rule of action. also includes the enterprise personnel between respect and trust. For example, in management, ZTE has created the culture of “full authority” to authorize the team to success. Trust each employee is to work the initiative to employees to facilitate their employees to create business interests, The identity of managers at all levels was the coach, guidance and help employees achieve work objectives. Inconsistent views on the lower level, the company stressed that a consensus through communication, communication is required to listen to as a basis of equality, open mind, and to report lower levels could leapfrog, and the superior general does not allow leapfrog command. At the same time on employees’ respect also reflected in reward.

▪ Customer culture: customer oriented, consistently for the customer to the success. Enterprise is to a customer service. Enterprise is the key to the success of clients and customers decide everything. Zte products are made from customer decision.

▪ Learning culture: without learning people are actually choice behind. Enterprise provide study training opportunities, this is the largest enterprise to employee welfare. Zte has stressed the need to set up a learning organization; learning culture is a kind of hidden income of staff. A year into for employee training funds millions dollars, the employee’s knowledge constantly update, always has a strong competitive era.

2.3 Culture of FOXCONN
▪ Hard work culture:
▪ Responsible culture;
▪ Solidarity and cooperation and sharing of resources culture;
▪ Have contributions will be rewarded culture.

2.4 Comparison of different
StructureCulture| Advantages| ▪ Zte is taken Matrix structure, This structure enhanced co-ordination among different departments ZTE exchange of information, to overcome the linear function of the structure of the phenomenon of disjointed departments.▪ It is flexible and so greatly improved the utilization rate of personnel.▪ The functions of the personnel directly involved in the project, but also in the issue have a say in important decisions, increase the participants sense of responsibility and enthusiasm.| ▪ This is flat organization. More opportunity for delegation and relatively cheap.▪ In theory, the advantages of this organizational structure are that it can implement decisions quickly. This helps to improve foxconn work efficiency| | Disadvantages| ▪ Project principal responsibility are often more than power▪ Project Leader for the project members do not have enough quality work incentives and punishment, the project members may be subject to dual command, affect organizational efficiency and stability|

▪ Due to more concentrated decision-making, promotions of staff are more difficult. It is easy to effect the motivation of staff that they will not work hard to the company.▪ Foxconn employees to pressure, especially in the bottom| | Advantages| ▪ Integrity both in terms of customers or employees is critical, this culture for enterprises to win more customers, but also increased the visibility of ZTE. While promoting the enthusiasm of staff▪ Customer oriented,according to the different needs of customers make market positioning,companies can avoid the blindness, as well as to maximize the benefits zte▪ Learning will help strengthen the competitiveness of enterprises, but also improve the quality and skills of staff| ▪ Militarized management, products of good quality and high production efficiency▪ Foxconn low production cost, and competitive| | Disadvantages| ▪ Welfare is still not perfect

▪ According to own actual design reasonable salary incentive system.| ▪ The Foxconn have a serious situation is unequal distribution of salary system and reduce the staff’s working enthusiasm▪ Foxconn regard employees for machines, working longer hours, cause employees of discontent▪ Staff stressful▪ Treating employees inequality, lead to complain too much| My view| Through organizational structure of zte and foxconn comparison can be found zte has more advantages than foxconn in the organizational structure. Matrix management organizational structure in order to strengthen the zte between different sectors with information exchange, while the structure also exist certain limitations.

Besides, foxconn also exist certain disadvantages in the enterprise culture and main performance for employees. Such as a serious situation is unequal distribution of salary system. An enterprise’s organizational structure and culture on the survival of enterprises play important role, although at present foxconn than zte development quick, but in the organizational structure and cultural aspects to lag behind ZTE , foxconn will optimize organizational structure and strengthen to the enterprise culture propulsion, otherwise the enterprise will face a risk, such as Foxconn employees jump out of the building events.|

3.Culture and structure of the relationship and influence

Finger 3 Culture and structure of the relationship

The relationship between organizational culture and organizational structure is an important theme that is often overlooked. In the zte, organizational structure is built by culture and culture is also changing by the structure. The two can be difficult to clearly distinguish from one another, and even more so to clearly define within an institution. Organizational structure works within an organizational culture, but it is not completely separate. The two are very much intertwined. In the zte , Organizational culture is more of a larger picture, a more general term that refers to a large umbrella of smaller topics and issues within an organization. The structure refers to the infrastructure, and the various methods and practices within that infrastructure, that helps an organizational culture run with the efficiency and consistency that should be the hallmark of any healthy organizational structure, whether it is in a corporation, sports team, or any other set up that is large enough to create its own organizational culture.

This makes the structure an integral part of any organizational culture, but also narrows out a very specific segment of the culture as its own responsibility. Organizational structure will deal primarily with the set up of the culture. Another common way to describe how structure works is to say that organizational structure is the way in which the interrelated groups within and organization are set up to allow them to function smoothly from a larger standpoint. The two main purposes of a successful organizational structure is to ensure effective communication between various parts of the company, as well as to increase coordination between different departments.

3.2 Effect on business performance
Enterprise good culture and production structure can improve the development of the enterprise, such as ZTE to improve employee benefits can increase the staff’s working enthusiasm and employee make to comfortable, good organizational structure can promote each department communication and teamwork, shorter working hours, so as to promote productivity. PHS is zte departments joint efforts developed product. The company according to the Chinese market characteristic of to satisfy the different customer’s needs, and to meet customer demand ensures product quality, but also for the company to obtain great interests

4. Individual behavior at work
Many factors affecting people in the work behavior, there are several factors in the figer.

Finger 4 Individual behavior at work

Every region has different features, such as the headquarters of zte is Shenzhen and it a developed economic city, so people by a high degree of education and the ability to work in work affect employee behavior. Besides, Company policy affects employee’s work behavior, zte leadership everywhere for employees consideration, meet their needs, to solve their difficulties, make them work in positive efforts to create profits for enterprises

5.Different leadership styles and effectiveness
The correct leadership style to enterprise’s development play an important role
There are four of the most basic leadership styles:

▪ Autocratic
▪ Bureaucratic
▪ Laissez-faire

Democratic Leadership Style—The democratic leadership style is also called the participative style as it encourages employees to be a part of the decision making. The democratic manager keeps his or her employees informed about everything that affects their work and shares decision making and problem solving responsibilities. This style requires the leader to be a coach who has the final say, but gathers information from staff members before making a decision. ZTE is democratic Leadership Style, “zte” to construct a set of internal information communication system, President of the mobile phone, telephone is open, the office door on employees also unimpeded. This leadership style to provide opportunities for zte employees to develop a high sense of personal growth and job satisfaction.

6. The theory and application
6.1Maslow’s Hierarchy of needs

As we know, Maslow separated the five needs into higher and lower orders. Physiological and safety needs are the lower-order needs. Social, esteem and self-actualization needs are the higher-order needs. Good management system meet different employee needs in zte, first good salary system satisfy the employee’s material requirement, Secondly zte open enterprise culture makes staff to maintain good mood, At the same time the company of incentive mechanism promotes the staff’s working enthusiasm, also give employees chances of promotion.

6.2 Victor Vroom’s Expectancy Theory
Expectancy theory is the relationship of individual effort, individual performance, organizational rewards and personal goals. People also need achieve goal to satisfy their individual needs. Before goal achieve, it is become an expectation, and this expectation can motivate people’s individual effort.Foxconn’s new employees always have a high expectation, they want work hard to get rewards and achieve their goals. after a while, these employees found that their effort can not earn the rewards which they expected. These employees become passive and have some psychological illness; this situation causes some terrible events such as the suicide events in Shenzhen’s factory. However, zte pay more attention to satisfy the employees’ expect, remuneration system is good example, it besides the most basic salaries, also include some encouragement policy for employees, this policy practice not only meets the employees in different time, but also encourage the employees’ positivity to make the enterprise keep talents

7. Conclusion
To sum up, the enterprise organization structure and culture has a great influence to enterprise’s develop, ZTE adopts rectangular organizational structure is convenient the relationship of each department, improve the work efficiency. Harmonious enterprise culture promotion the ZTE staff’s work enthusiasm, and perfect remuneration system and incentive system meets the employee different needs. Besides, the democratic leadership style make ZTE employees express personal advantage, and make them work relaxed and happily in the work. Zte’s success with these factors have inseparable connection, it is worth to learn. Of course, the report also exist limitations, the divide of organization structure should according to the change of enterprise and market to optimize.


On the company structure and culture:
1. http://www.foxconn.com.cn/
2. http://www.zte.com.cn/
3. CCTV2
4. http://baike.baidu.com/view/118648.htm
5. http://www.docin.com/p-42145106.html
6. Economic newspaper
7. http://www.training.com.au/pages/menuitemad58357996edf090f9fa5a1017a62dbc.aspx 8. http://blog.163.com/gu-yue-coco/blog/static/133343377201052110276462/ 9. http://www.essortment.com/all/leadershipstyle_rrnq.htm

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