Chairman Liu Hanyuan recently received an exclusive interview by Economic Community magazine president Li Lan, and expressed his views on H.R. management,

On H.R. management and human nature, Mr. Liu stated, managing people is indeed difficult. "Human nature is good or evil?" This is a broad and sharp topic. But I have always believed that human nature is good, but more often behaved as "loose" and "indolence", especially young people, who are more relaxed and more tolerant towards themselves. Currently in China this is a relatively common phenomenon.

In fact, as business managers, we have been thinking, how to let a group of people follow you for a long time? How can enterprises get approval and recognition from individuals and the society? I think this is the question many entrepreneurs would seriously consider about.

For so many years, we feel the premise for a business enterprise’s long-term stability and stable development is its root of "righteousness". Only such enterprises can truly unite "the good" and let the staff follow good code of conduct to restrain themselves, and grow with the enterprise.

Only when the corporate image, products and staff go in the same direction, will the company be possible to get recognition by individuals and the society. As long as the company holds the core value of "righteousness", the contravention could barely make intrusion. True recognition comes from moral and legal levels. I often refer the situation to an analogy: In such environment, even thieves and robbers come would not steal or rob.

On talent policy, Mr. Liu stated, we summarized and established Tongwei’s management philosophy as ’honest, trust, fairness, excellence’ in 1994, specifically, Honesty: being sincere and candid; Trust: winning trust by credibility; Fairness: running business with fairness and legitimacy;

Excellence: taking the lead with guaranteed excellence. Only these ideas are deeply incorporated into the daily practices of each staff members, can the company’s philosophy be accepted and turned into executive power.

We also realized a very plain truth. Our legitimate business is not for showing how noble we are, but for the enterprise’s internal stability and its foundation for long-term survival. Like I said earlier, only the enterprise itself, the company’s products and its staff are consistent in ethical and legal levels can the company be recognized by society.

Metaphorically, you can drive through a red light and several yellow lights and just get a few tickets on a short view. But it is possible that you might suffer a severe crash one day because of these rule violations.

This is a process of systematic building, where in the business people is critical. In Tongwei, we retain our talent by career, material benefits, and affection. Working together even just for 5 years is a long time, during which we spend more time each day with colleagues than with our family. It is precious.

Figuratively, it is not easy for a couple to stay together for a lifetime, when both met at their prime time and keep each other company for the rest of their life. I think this is the same with Tongwei and its employees, who joined Tongwei at their best time and grow together with the company for 1 year, 10 years or even longer, staying together in spite of the pressure and complaints，just like husband and wife. Therefore, we should cherish each other for fate’s arrangement.

We always stress that each employee should have lofty ideal. One cannot just be engrossed in pulling the carriage without looking up at the road ahead. Our employees should have ideal, and know that survival is tough. Therefore, we need to be somewhat idealistic, but not be too immersed in the ideals to handle and treat everything we do.

Meanwhile, we also emphasize that the achievements and contributions one receive are often in proportion to evaluation by others, and inversely proportional to self-evaluation.

Tongwei relied on its staff to grow its business. We hold that trust and respect is the best incentive. Those who fit the job are qualified staff; those who perform higher than social average level are talent; those who identify with corporate culture with innovation are excellent talent.

Tongwei is more than an enterprise and manufacturer. It is a school that fosters talent. Tongwei puts great value on talents with creativity and the spirit of starting over. Talents are the vibrancy and backbone of the enterprise. Through all the years, Tongwei has educated outstanding manpower with innovation and strong management capability

Basically, 70% of our senior management is educated and trained by ourselves. The flow of personnel keeps in the 5% - 15% range. If lower than 5%, the flow shall be compelled; higher than 15% controlled. We would also force the flow in different levels to avoid frog boiling effect.

Mr. Liu emphasized that Tongwei’s staff are those who are down to earth but who also have a dynamic and progressive approach to their work. Everyone has his own faults. A successful business leader must have his own strengths and qualities to take the lead. It is so for a business enterprise, which to some extent possesses qualities that are widely recognized.

Entrepreneurs should not overestimate themselves. We are no more than an economic cell and drive of the society. We are just minor individual participants. We should keep a low profile.

On pursuing business internal peace and harmony, Mr. Liu stated, it is based on rational thinking and logic judgments. With erudition, staidness, and persistence, you can achieve anything that other people are capable of doing.

Furthermore, Mr. Liu emphasized on the importance of learning and study. With persistent study on regional and rural economy at Sichuan University, EMBA and DBA at Peking University, Mr. Liu is keen on the profound Chinese traditional cultural, Confucianism, as well as Buddhism. Especially, the Chinese culture has a great impact on business establishment in terms of development strategy, management and technology.

For the internal development of Tongwei, the most perplexing problem for Mr. Liu is the relationship between tolerance and efficiency. On one hand, we have high requirements for our management and staff. On the other, we need to be tolerant if the requirements cannot be reached. Whatever things we do, we need to take it seriously, so that the time and efforts we spend is worthy.

Doing business is a process. At some point, one might wonder what is the significance and value of the company’s existence. Chinese enterprises still have a long way to go to catch up with the world-class enterprises, but there is no need to worry, nor simply go after speed. Chinese culture is strongly resilient. We need to look at both sides, and not to worry about what we will look like in 50 or 100 years.