Organizational Reform Of Qiqihar Railway Rolling Stock (Group) Co. Ltd.

As an important part of the national economy, railway equipment manufacturing industry plays a very important role in improving the transport capacity and boosting national economy growth. CNR Qiqihar Railway Rolling Stock (Group) Co. Ltd (herein after referred to as QRRS) is a manufacturer providing important equipment for railway transportation. It has been a leading and major enterprise in designing and manufacturing the railway rolling stock and railway crane and an export base. It is now at a critical stage transforming from planned economy to market-oriented economy. How to fit into the increasingly fierce market-oriented competition has become the chief subject necessary for QRRS to consider.This case is based on the Work General Meeting for the first six months in 2004 of QRRS. By generalization and analysis of the state of operation of the first six months in 2004, the historical problems existing in planned economy and the state-owned enterprise are exposed and the problems in internal management and system operation in the state-owned enterprise are reflected. Due to the limitation of market for railway products, QRRS meets with many restrictions in market exploration. Especially in the first six months of 2004, influenced by the macroeconomic situation, QRRS met the most difficult operation situation since ever before. The economic revenue was decreasing greatly. How to get out of the knotty situation becomes the chief object for QRRS to tackle. By case analysis, it can be seen that, by streamlining organizations, reducing surplus staff, separating the auxiliary departments from the main ones and changing the organization form to operational divisions. By simplifying the organization structure, the defects of internal management such as superfulous company orgnizations, management layers, overlapping job duties, and the low management efficiency are improved. By doing so, QRRS can better fit into the changeable market environment, improve the operation management, reduce the management cost, increase the economy revenue and strengthen the enterprise's competition power.