Strengthen The Organization To Promote The Survival And Development Of State-owned Enterprises

Organization is combination of dynamic activities and static structures. Its essence is inter-personal relations. An organization shall have objectives, division of labour and order. Effective management of an organization must observe principles such as uniform objectives, coordinated division of labour, reasonable scope of management, harmonized rights and obligations, unified command, centralization and decentralization of power, high efficiency, stability, adaptability and balance. To understand an organization and set up an effective operational mechanism, one must look carefully into the organization's strategy, organizational structure, human resources, system management and cultural consolidation.Enterprise is a form of organization. The purpose for establishing an organizational structure is to clearly identify the scope of rights and obligations of people within the organization, to form up a complete system for responsibilities and functions, and to ensure people in the enterprises can attain the enterprise's objectives in a coordinated and uniform manner. Main types of enterprises' organizational structure include simple structure, function-based structure, business-unit-based structure, subsidiary-based structure and matrix.Organizational establishment and management of Chinese state-owned enterprises experienced several stages, i.e. General-Manager responsibility system which is under the leadership of the Communist Party committees, economic liability system, contracting-based responsibility system, and modern corporate system. Main problems at present are the core issue of ownership and the absence of standard modern enterprise system.Given these problems, it is suggested that state-owned enterprises shall strengthen organizational development and management, set up market-based ownership structure and corporate governance system, reform personnel regime, improve the morality and teamwork spirit of managers at all levels, and strengthen the role of the Communist Party in enterprises.The case that the thesis studies is an enterprise engaged in recycling of discarded automobiles where I am working. After my joining the enterprise, I put much focus on organizational development and management of the enterprise through two-stage restructuring, which successfully helped the enterprise out of difficulty and resumed smooth growth.However I believe given the scenario of this enterprise, reform of its operational mechanism is not enough because it can only solve surface problems rather than the root ones.Therefore, the fundamental solution to a difficult enterprise is the ownership reform. Wholly state-owned enterprises shall be transformed into modern corporations with multiple investors and sound corporate governance system. Based on that, enterprises must set forth skillfully forward-looking strategic objectives, redesign the organizational structure, cultivate corporate culture, adjust business process and recruit appropriate human resources. Only by doing so, can the enterprise enjoy good development in the long run.I believe that is the only way that most state-owned enterprises can achieve long-term development.