Honam Petrochemical Non-listed Companies Reform Measures And Optimization

Reformation of the state-owned enterprise system has always been an important and difficult issue in our country's economy. Due to lack of systemic theory for public-owned enterprises in socialistic market economy, China's enterprise reformation fumbled ahead slowly since the reformation and opening-up. It experienced four subsequent stages, lowering administration, separating ownership from right of management, modern corporate system and reformation of property right. Also at late of the last century, we practiced dramatic transformation, such as re-combination, re-organization, listing on stock market, on steel manufacturers, petroleum units, insurance companies and banks. Among large conglomerates that have been re-organized to get listed on stock market, most have chose a manner of splitting. That is splitting a part of business from a parent conglomerate to form a new company and get the new company listed on the stock market.In this paper, we selected Hunan petroleum company, an unlisted company subject to Sinopec, as the object of our study. After some fine capital peeled off along with central businesses, the company carried out a series of system reformation measurements under leading of Sinopec's strategy of cutting and fining. Measurements include diffluence of business and staff, organization transformation, importing new management techniques and so on. Based on Harold J.Leavitt's organization system model, this paper is trying to analyze the reformation measurements taken by the Hunan petroleum company on four aspects as manufacture task, company structure, staff and technology. On the analysis of the company's reformation practice, with aid of organization reformation system diagnostic model, we commented on the reformation measurements, intending to locate problems if any. We found that during the reformation, the company has quitted too more businesses and reduced the staff too sharply, and there's incoherence between organization structure and flow of work.Taking into account the problems with the reformation practices, according to relative theories of system reformation and Mintzberg's six elements model for organize configuration, we present an optimized plan for the company. The optimized plan retains the business and staff of finished product transportation that has a stable market and profit. It tries to adjust the company's management system according to public institution principle, and settle the conflicts between dispersive management and central administration. It imports information systems, such as financial management, capital chart-text management, transportation management and so on, to form a complete management system. Then the paper analyzes the optimized scheme, estimates outcome of the scheme and gives some suggestions on how to carry it out.Generally, system reformation is irreversible. Although the scheme proposed by this paper can not alter the reality that the company has done some unsuitable reformation, it still lights on its further development and other companies' reformation work.