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Growing Private Building Enterprise Organizational Structure Change Research

Posted on:2008-05-21Degree:DoctorType:Dissertation
Country:ChinaCandidate:X L ZhaoFull Text:PDF
GTID:1119360242468788Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
The non-state operated construction enterprise has got good development opportunities after Deng Xiaoping giving his speech in south in 1992 and the State Council's promulgating the "Opinions on supporting the development of Non-Public ownership Economy" in 2005. The non-state operated construction enterprise is the most active part in construction industry of China, which has significant affection to maintain the construction industry growing in a healthy and continual way. After nearly 20 year's development, many non-state operated construction enterprises have passed through the difficult embryonic period and entered the rapid expansion growth period. But in the process expanding unceasingly, many non-state operated construction enterprises still felt the pain of growth. The non-state operated construction enterprise in the growth period may faces various problems, but whatever the dispute of property right, or the asymmetry of the resource distribution , and even the human resource problem and the development problem, we always find that there is an organization issue hiding behind all these problems. The organization is the carrier of the enterprise's movement, many problems are raised from the organization, also may be solved through improving organization's condition. This thesis tries to find the reasons which obstruct the development of non-state operated construction enterprise from a perspective of organization structure, and makes some suggestions to the puzzled non-state operated construction enterprises which are in the developing period.This thesis studies on the organization problems of the non-state operated construction enterprises based on the division of the life cycle, and combining with the main organization theory (including Western tradition organization theory, organization economic, organization sociology and organization reforms theory), and analyses the necessity of organization structure reforming within the developing non-state operated construction enterprises from the perspectives of systematization theory, Transaction cost theory , the organization sociology theory and the lifecycle theory. This thesis also analyzes the correlation factor influencing the organizational transform of the developing non-state operated construction enterprises, and basing on it proposed some projects of the reforming. Therefore, this thesis mainly carries on the following works:Firstly, the division of the life cycle of the non-state operated construction enterprise. This thesis divides the non-state operated construction enterprise's life cycle into the embryonic period, the growth period, the mature period and the recession period. And according to the development characteristic of non-state operated construction enterprise, this thesis further subdivides its growth period for initial growth period, the intermediate growth stage and the later growth period.The characteristics of these three periods are:â‘ The non-state operated construction enterprise in initial growth period has just passed through the difficult embryonic period, and the aim of enterprise is to expand the scale of production and seize the market with steady steps. In this stage, the enterprise should not move forward recklessly, the most important task is to define property right relations and establish a good foundation for later development; while the small adjustment to the organization reform will be suitable.â‘¡The enterprise in intermediate stage growth must break through the limit of region and industry, and seeks large-scale and the multiplex development. In this stage, the enterprise may transform the management organization to achieve the goals by horizontal alliance, vertical alliance or mixed alliance.â‘¢The enterprise in later growth period already held the relatively stable market in the different region and the different profession, in order to seek a much more stable development, and march into the mature period smoothly, the enterprises have to decentralize the organization.Secondly, to summarize and comment the traditional organization theory and the newest theory achievement, which including the western tradition organization theory (consist of classical organization theory, behavioral science organization theory and theory of system management), the organization sociology, the organization economic and the theory of organization transform and so on.Thirdly, to give the in depth analyzes of the organization problems which are existed in the non-state operated construction enterprise in the growth period, and expatiates from the organization system, the property right system, and the control system perspectives.The main problems in organization system include organization's mechanization and the centralization management, oversized management scope, the chaotic established department and the low-efficiency basic-level organization management. The main problems in property right system include the unitary investor structure and the blurry defining of property right. The problems in control system mainly include the centralization paternalistic management method, the deficient science management system, lack of the coordinated system and the unclearness of responsibility.Fourthly, to analyze the transform motivation of the organization structure in growing non-state operated construction enterprise.The explanation based on system management theory: the law and policy are the initial factors to the transform, and exterior market environment is the necessary factor to the transform. According to the theory of system management, the organization is an open system, and the external environment change will induce and force the enterprise organization structure to change. The intrinsic factors are to overcome tradition hierarchy organization's disadvantages, to gain high quality resource through merging or allying, to enhance the core ability and to perfect the corporate governance.The explanation based on organization sociology theory: according to the organizational ecology theory, it's very easy to understand that the organization reform of the non-state operated construction enterprise is a biological sexual instinct time adapting to the external environment change, and during the process the enterprise must pay attention to the organization inertia as a barrier; The institutional theory gives a good explanation to organization assimilation and a better understanding to how the institution play its role in organizational transforming; Resources dependence theory gives a good explanation to different enterprise behaviors in organizational transforming from management resources perspective.The explanation based on organization economic theory: This segment is mainly resting on the transaction cost theory. The transaction cost theory supposed that enterprise sought transaction cost saving, and the enterprise would choose the lowest control cost structure when chose different organization forms. To reduce the transaction cost between enterprises, the basic method is internalizing exterior transaction, and it can be carried out by two forms: expanding enterprise's working scope or seeking the partner to establish cooperation. Based on this theory, this thesis try to explain why horizontal alliance, vertical alliance or mixed alliance comes out in non-state operated construction enterprises.The explanation based on life cycle theory: According to the Greiner's five stages pattern, the enterprise is facing different principal contradiction and crisis in different stage, and these contradictions and crises are crucial to the direction of enterprise's organizational reform. The non-state operated construction enterprise in the growth period must carry on reforming and innovating the organization at the right moment in order to avoid entering the trap of premature multiplication and too centralization,Fifthly, to analyze the correlation factor which influence non-state operated construction enterprise organization's reform. The exterior factors mainly include the political system, exterior market, the social culture and the technical vicissitude; the internal factors mainly include the development phase and size of the enterprise, enterprise's developmental strategy and the enterprise culture. The common characteristic of these factors is that each one has the possibility to become a motivation or a barrier to the organization structure's reform, and all depend on how much the non-state operated construction enterprise understand their functions.Sixthly, to propose some suggestions for the organization structure reform in the growing non-state operated construction enterprise.(1) Rebuilding the enterprise superstructure i.e. the property organization, this includes two aspect contents:â‘ The reform of the property right system, mainly carried out by clearly defining the property right and the diversification of the investors. The main way of clearly defining the property right is "puts off hat" as soon as possible, defining the property right between the natural persons and between the natural person and the legal person. The main way of diversification of the investors is amalgamation exterior and internal property right.â‘¡The reform of corporate governance pattern and structure. In the endogenetic non-state operated construction enterprise, the corporate governance pattern is in gradually evolution which mainly behaves as the family manages, and the trends of the investors structure's change is from simplification to diversification, and the surveillance system, the inspiriting system and the restraint system are moving gradually to a perfect situation, the decision-making is change from the despotic centralization into the science. The prominent characteristic of the exogenous non-state operated construction enterprise's corporate governance pattern is they are step from the non-family pattern into the joint-stock pattern. Therefore, the current goal is to establish joint-stock governance pattern. The corporate governance will be carried out through the establishment of exterior and internal government mechanism.(2) The innovation of the management organization structure. According to the stage division in the growth period, there are three kinds of suggestions:In terms of the non-state operated construction enterprise in the initial growth period, it may try to become a good-sized enterprise, and it can turn to a primary contractor company or the professional contract company. It can choose a kind of strong matrix structure such as chief project manager.In terms of the non-state operated construction enterprise in the intermediate growth period, it may take the property as the main joint link, through forms such as annexation, merge, holding, share-holding, to form a construction enterprise group with layers named the core layer, the fixed layer, half fixed layer and the loose level and so on. The group will help the member enterprise risk and share benefit altogether.In terms of the non-state operated construction enterprise in the later growth period, it may establish the multi-dimensional organization structure, which is dividing its dimension according to company's characteristic.(3) The rebuilding of skeleton organization, which can be carried out from the project management department and project manager's responsibility system.The project management department should be fixed or not, it depends on the situation of the enterprise and the enterprise's organization structure. In terms of the enterprise which is in the initial growth period, the project management department may organize with the strong matrix form structure, establish the project management department temporarily on demand, and the members could be transferred from other different departments. Also it is necessary to arrange a person especially for the project management, who is responsible for managing each temporary project, cooperation between departments and the internship.In terms of the enterprise in the intermediate growth period, the establishment of project management department must be based on the construction management, and the manager and the operator should be separated.In terms of the enterprise in the later growth period, the establishment of project management department must match to the division of services department. The adjustment of project manager's responsibility is achieved through establishing compound merit system, innovating the inspirit system and the supervise system.
Keywords/Search Tags:Non-state operated, Construction enterprises, Organization structure, Transform1
PDF Full Text Request
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