HRM ASSIGNMENT XIAOMI

MISS . AMA DE SILVA

M.KUGAN
02001149

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Contents Pg no

Introduction. 3

What does a hr actually do. 5

Recruitment and employment. 7

Compensation and benefit. 8

Employee protection and benefit. 9

Employee development 9

Strategy used in xiaomi. 10

Conclusion. 11

Reference list. 12

Declaration form. 13

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Introduction

Xiaomi Corporation is a Chinese manufacturing company, involves in the consumer electronics and

computer hardware industries. The company was started in 2010 in China by Lei jun along with six

other associates. The company is just one step behind the market leader as they are the second-largest

smartphone manufacturer in the world. In 2020 they manufactured and produced 146.3 million

smartphones and in 2021 second quarter Xiaomi surpassed Apple Inc with a 17% market share to

second place. The company also supports more than 33000 employees worldwide( xiaomi, 2022).

The mission is the company's reason for existence and it has been set, so the path to achieving the

mission is the correct steps of vision ( SlideShare, 2017). The mission statement and the visions are

mentioned below.

MISSIONS OF XIAOMI

To produce top-quality products at a fair price

To be available worldwide and make people's life easier with innovative technologies

“to relentlessly build amazing products with honest prices to let everyone in the world enjoy a better

life through innovative technology.”

VISIONS OF XIAOMI

To make 10000+ offline store

To make Xiaomi an Indian company

Highly focused on after-sale services

Xiaomi has a clear and great objective which is based on the customer's goodness and for the

company as well. Even though the mission and visions are set this needs to be operated and applied in

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the real life for the outcome. This is why a Human resource manager comes into the plan and

management, HR manager is the efficient and effective utilization of human resources to achieve the

goals of an organization (Opatha, 2012). HR manager specializes in different areas such as

employment planning, staffing, human resource development, reward management, and employee &

labor relations.

There are two types of HR model used in organizations,

HARD HRM MODEL: The organization approach employee as task oriented and they must do the

job as directed. Candidates are recruit to the organization based on their ability and to be trained. They

have high pressurize situation in the working culture and it’s hierarchical.

SOFT HRM MODEL: Organisation approach the employee as people oriented, they value their HRM

as the biggest asset, candidates are selected based on their attitude, potential and connection with

team.

Xiaomi uses a soft HR model with their employees, which means that they consider employees as a

big asset for the company. A report from lei jun from Xiaomi said that entrepreneurs' clear choices in

human resource strategy are more important than “duansui” this so-called human resource strategy is

the strategic choice of an enterprise to improve core human efficiency and promote human operation

(HKT, 2022). This statement shows how important they value their employees.

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What does a HR actually do

A company hires an needs an hr manager in their organisational structure at first, this is due to the

functions and responsibilities they have :

Employment planning

This refer that when a company is formed first thing they need to run is employees, Hr manager

identifies the available vacancy, then identifies the roles and responsibilities a employee should have

to suit the available post.

Staffing

This contains the process after the employment planning, recruitment process company advertises the

available vacancy and does make interviews for the candidate then they select the HR selects the

correct person who suits hire the candidate, this is candidates wish to either accept the job opportunity

Or not according to his satisfaction and later the candidate will be inducted about the company and the

job role.

Human resource development

Even though a new employee has been acquired he can lack on some skills which the company would

require, HR manager finds the strength and the weakness the employee have and provides training

according to the need, as a drawback this will cost the company and more time consumed but also HR

depends on the future outcome as this would increase efficiency and increase in outcome.

Reward management

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HR manager needs to identify the cost gone and the analysis of income made from the employee, then

a correct amount of salary can be discussed with the employee. This also includes all other incentives

given by the organisation for an example like ETF, EPF, OVERTIME BONUS, COMMISION and

etc...

Employee and labour relation

A good HR must have good relationship with employees of the organisation, HR must need to have a

good knowledge about each employee and needs to look into the safety of each and everyone in the

organisation. This also includes all action (violation should be avoided and discrimination, sexually

amusement and etc...) against the rules of the company and employees needs to be monitored and acts

should be taken immediately. HR manager also acts like a safety manager for the employees.

DIVERSITY

Xiaomi has one of the most diversified business culture, 95 percent of the manufacturing employees

are women in the Indian plants. Even though this percentage is high , this is only in Tamil Nadu

manufacturing plant, overall globally xiaomi just has 34 percent has female employees which is

around 7535 and males around 14539 which is 66 percent of the total workforce. Xiaomi also

provides the employees free transportation to factory

Xiaomi Corporation divides and categories their employees into two part age and gender. The

organization contains 52 percent of employees between 30-50 and 42 percent of employees below 30

(xiaomi, 2020)

The below chart shows more details about the gender and age gap among the organization, also this

refers that xiaomi has one of the most mixed organization culture of employees.

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Xiaomi believes that talent is the most valuable asset and source of their competitiveness it is a unique

feature to have, this mean that talent can be found in everyone but each everyone will have their own

unique talent and ability this make an importance in the xiaomi to attract and retain talent in their

workplace. xiaomi maintains high diversity, maintain a healthy work and life balanced, and provide

employees special programs and training benefits to meet their own career development goal.

Recruitment and employment

Xiaomi strictly focuses on the government labour law of the people’s republic of China, the labour

contract law of the people’s republic of china and other applicable law, in a principle of “fairness,

impartiality and openness”. The organization also have internal policies on recruitment, employment,

compensation and welfare, performance assessment, equal opportunity, anti discrimination and

diversity. They prohibit employee discrimination based on gender, race, age, marital status and

religion.

In 2020 xiaomi assigned recruitment specialists on each unit to have a strategic recruitment policy and

to repond immediately when hire is urgent in the strategic business unit (SBU). The recruitment team

is responsible to find each employees talent and appoint roles and conduct training and development

according to the weakness.

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In recruitment xiaomi arranges two types of programs, they are “xiaomi future star” (this targets new

graduates on phd and masters to attract and retain on future technology and professional experts) and

“postdoctoral program”(worked with top universities in mainland China to set up a research on

postdoctoral program to attract outstanding talent in ai, big data communication and other)

(xiaomi,2020).

According to an employee in xiaomi, the recruitment process for assistant manager camera testing in

xiaomi india, they starts from sharing profile shares with technical team , then selected based of

previous work experience and the requirements , a telephone interview is scheduled, then a telephonic

discussion regarding the company and job profile, another telephonic interview on non technical

questions, on 4 th they present an assignment and should be submitted, an f2f interview, another client

interview on Skype, then hr discussion on telephone at last offer later will be received .

Compensation and benefit

Xiaomi highly concentrate on equal pay system, this doesn’t mean everyone is paid the same amount

but their employees are paid base on their work done , this makes them fair and competitive in the

workforce. In this year they set up 3 roles in the organization :- assistant reviewer, consulting

advisors, primary reviewers additionally they organize performance review to communicate

employees to ensure there performance review was conducted fairly so they can satisfy without no

conflicts in the industry.

In motivation for employees the organization promoted equity sharing this year for selected

employees from board members, 137,947,024 shares across 4686 issues (xiaomi, 2020).

In addition the company gives their employees more benefits like supplement benefits (business

insurance, birthday benefits, marriage benefits and etc…), global business travel insurance ( covers

medical expense, loss of property, casualty, travel delay and etc…), employees assistance program

(free counseling).

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When an employee is joined newly for the organization xiaomi gives 3 options they are, cash wages

like normal market conditions,2/3 salary + part of stocks, 1/3 of salary + more of stocks. This makes

employees to choose from fully cash salary or part of salary to be as xiaomis stock (imedia, 2022).

Employee protection and benefit

For employees safety xiaomi strictly obeys the production safety law of people’s republic of china,

on prevention of controlling occupational diseases and supervison on safe health at work. On 2020

ciaomi received ISO45001 certification in Hong Kong. The organization devises programs such as Mi

project emergency

For peoples activity xiaomi has organized more than 57 employee clubs and has organized 5 wide

company events with participants over 10000. Xiaomi has also organized more sports events like

football. Badminton. And basketball tournaments for employee relief.

Employee development

Unlike some work base companies xiaomi concentrates and be focused highly on their employees

development. Xiaomi allows employees to grow along the business, the promotion and rewards are

based fully along with their performance inside the organization.

In the process of improving the quality of employees xiaomi has organized variety of training and

development programs they are shown below:

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Strategy used in xiaomi

From lei jun (ceo of xiaomi) says that knowing 18 martial arts is better than knowing one at 90% or

more , human strategy is more efficient. As first strategy in human resource management they focus

on human resource capital to be improved , this is based on payment for the employees wither it’s

paid on equity based to attract mature talents inside the organization or setting up a team for the new

employee to improve relationship.

At second strategy they focus on increasing the talent density which it is fully based on programs like

training, lei jun spender more than 80% of their time on finding people for the company, as he said “if

you don’t spend big money on introducing talents or release big incentives then companies should

have enough confidence.

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Strength of xiaomi

Xiaomi is more competitive in the market for their lower price and the company produces variety of

similar products in every budget for consumers, unlike Apple who only produces smartphone in

premium segment, xiaomi produces smartphone even at the lowest point a person can buy till the top

tier flagship price. This is that xiaomi spends a lot in their human management resources and research

and development to reduce cost and increase efficiency. A strength of improving HR is that it closes

the gap between employees and the organization , every employee can refer to HR when they have an

idea or any problems to share. This makes the relationship inside the organization as a family as they

understand better and be United to each other.

Weakness

In common at most organization HR department would most likely ignore the finance department,

this is because finance department obeys everyone in the organization as a cost not an asset. Also HR

might cost high for the organization in a short run this is most of the decision made by HR would be

based on long run for the company. HR needs a strong foundation this is because most of the tasks

might take more time than normal. High internal practices would make external practices difficult

this make customer relationship to be broken and results in less revenue and brand image.

Conclusion

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As from this research xiaomi is one of the most successful companies to be existed without no time,

unlike other big companies you know xiaomi is hidden due to the economical and international

problem on china. At this time xiaomi produces one of the most valuable techs worth for each penny

to be spent on them. Xiaomi concentrate on maximum sales rather than higher profit, the profit

margin is less as they wish to sell higher units with less profit. Xiaomi also makes their employees

feel better at their workplace and satisfied with their rewards and satisfied.

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Reference list

1. Anadi Anant (2017). Xiaomi inc swot pestle. [online] Available at:
https://www.slideshare.net/AnadiAnant1/xiaomi-inc-swot-
pestle?next_slideshow=79423054 [Accessed 12 Dec. 2022].

2. Annual report. (2020). [online] China: Xiaomi. Available at: Anon, (n.d.).
[online] Available at:
https://i01.appmifile.com/webfile/globalweb/company/ir/announcement_
us/annual_report_2020_e.pdf. .

3. HRKatha, A.G. | (2020). How Xiaomi is driving a culture of engagement and

learning for its employees. [online] HR Katha. Available at:
https://www.hrkatha.com/features/how-xiaomi-is-driving-a-culture-of-
engagement-and-learning-for-its-employees/.

4. www.wipo.int. (n.d.). Xiaomi Corporation: Promoting a better life through

innovative technology. [online] Available at:
https://www.wipo.int/ipadvantage/en/details.jsp?id=12271.

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