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Xiaomi introduces a new department to oversee hiring, promotion and pay

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In parallel to Alibaba talking about succession planning, Xiaomi has announced plans to restructure its businesses, and create new leadership positions aimed at building a second tier to CEO Lei Jun, according to a staff memo shared with Human Resources.

Additionally, the smartphone maker will create two new departments: the organisation department and the strategic advisory department.

“The organisation department will be responsible for the recruitment, promotion, training, assessment and remuneration for mid- to senior-level management, as well as the organisational structure of each department,” said CEO Lei Jun in the memo.

On the other hand, the strategic advisory department will be responsible for assisting the CEO in formulating company strategy and supervising the strategic execution of each business unit.

ALSO READ: Alibaba chairman, Jack Ma’s letter to employees after succession announcement

As part of the succession planning efforts, Xiaomi will reshuffle its four main business units into 10 in an effort to promote younger managers.

The four business units reorganised are Mi TV, Mi Ecosystem, MIUI and Entertainment; which are now reorganised into 10 new business units (four Internet business units, four hardware product divisions, one technology platform and one e-commerce division), with the GM of each unit reporting to the CEO.

He added: “The majority of newly-appointed general managers are part of the post-1980s generation. With the establishment of 10 new departments, a wealth of new opportunities have emerged for our young and talented employees.”

CEO Lei Jun also set the pace for further changes to be announced: “With these changes, we intend to extend greater opportunities to the next generation of management to further prove themselves and to lay the groundwork for a more dynamic and enterprising organization. These changes are only the first of many more to come.”

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