How JD.com Manages 75,000 Employees: The 4 Key HR Frameworks

First Table: Capability & Values System

JD.com classifies employees into five categories based on performance (ability) and cultural fit (values): “scrap metal” (low ability, low values), “iron” (low ability, high values), “steel” (average), “gold” (high ability and values), and “rust” (high ability, poor values). The company prioritizes values over ability when hiring and retaining staff.

Second Table: ABC Principle

The ABC principle defines a two‑level authority hierarchy (A‑B‑C). Decisions on salary, promotion, termination, and equity for C‑level managers are approved jointly by A and B, while HR only verifies compliance with company values, preventing any single person from having unchecked power.

Third Table: 8120 Principle

Management spans are limited to 8‑12 direct reports for senior managers and at least 20 for lower‑level supervisors, ensuring leaders have enough time for strategy while avoiding overly thin or bloated structures.

Fourth Table: 2N Principle

Two rules: a manager may bring only one former colleague into the company, and each manager must identify a qualified successor within one year (two years for promotion). Failure to comply leads to removal, ensuring no single person creates a “clique” and that critical roles have backups.

Overall, JD.com’s HR system emphasizes strict team sizing, clear authority layers, and rigorous value‑fit assessments to maintain a stable, high‑performing workforce.