A Study On The Theory And Practice Of Company System Alteration For Labor & Employment Service Enterprises

The labor & employment service enterprise (referred to as LESE here after) is one that has special characteristics and functions. In the past 20 years ever since its establishment, it has played an important role in solving the problems of unemployment of employed young people living in the city, extra labor force and laid-off workers from state-owned enterprises in the course of their reform and development. In this way LESE has made historical contributions to the development and flourishing of our collective economy. LESE, though still with its condition of socialist market economy and its special nature of service, has to face the severe challenge of market competition with other state-owned or individual enterprises. Owing to its initial disadvantages, its heavier burden and its low competence, LESE is in recent years facing a crucial problem in management and even in its survival. To find a way out for LESE, it is therefore of great importance, theoretically and practically, to analyze the theoretical basis of company system alteration for LESE, to make researches on the existing problems, and to work out ways to solve these problems.Guided by the theories of property right and company management, this paper, based on the summaries and analysis of LESE's characteristics, its past achievements and contributions, its three stages of developments and the problems existing at present, offers suggestions for solving these problems and strengthening its competence, including the discussion on the theoretical basis of the company system alteration for LESE, its necessity and feasibility. A project of Qingan mechanism manufacture company system alteration is then designed on the basis of the author's many years of managing experience. This paper intends to offer, both in theory and in practice, suggestions and references forcompany system alteration of labor and employment service enterprises in our country.Conclusion:1. Company system alteration of LESE must be guided by the theories ofproperty rights and company management. It is of great significance to be clear about the purpose and the measures of the alteration.2. The aim of LESE system alteration is to establish an enterprise operationsystem so as to meet the demand of market economy, to strengthen its competence, and to ensure its persistent development.3. The way of system alteration is to establish a complete collective propertyright system and to choose a suitable organization form. The most suitable organization form at present is mainly the limited liability company, which should be carried out from the top to the bottom.The creative value of this paper lies in its view that the LESE system alteration at present should be mainly in the form of the limited-liability company. The stock cooperate company has, in contrast, its limitations. The weak point of this paper lies in the fact that there is not enough data analysis.