The Study On The Management System Of A State-owned Company After Reformation

To improve the reformation of the state-owned enterprise, the former State Economic and Trade Commission with other7Ministries and Commissions issued "the Method of Surplus Personal Placement through Separating the Main and Auxiliary businesses in Large and Medium-sized State-owned Enterprises"(File Number [2002]859, State Economic and Trade Commission) based on "the Direction of Laid-off Workers Reemployment from Central Committee of the Communist Party". According to the file, all state-owned or-holding companies are required to separate auxiliary business from the main one and carry out further reformation. The main purpose of the action is to found the Modern Corporation and Management System by clarifying the property ownership. But after the reformation, some problems appeared such as low concern from the employees, incompetence of shareholder meeting, inefficiency of director board, lack of supervision and the rush for short-term profits. Since reformation has been proved necessary, finding a way to carry out it successfully and found a complete, scientific and self-balanced management system is our current priority.In this research, based on the former experience both home and abroad and several principals in management field, the author analyzed a reformation case in a state-owned enterprise so-called A here. Both Normative and Case analysis methods were used. The reformation progress, system change before and after, and management system establishment were discussed. Several problems were found existing in this particular case:1. The unreasonable Stock right structure which caused false vote of the investors;2. Failed self-balanced director board controlled by the main shareholder;3. Inefficient supervision by the Supervisory Board;4. No effective restrain or incentive system for the managers. Based on the conclusions above,6suggestions are given as follow:1. Optimize the Stock right structure;2. Complete the investor voting system;3. Improve the director board competence;4. Enhance the efficiency of the supervisory board;5. Establish incentive system for the management layer;6. Introducing management form other relevant source.Through the research and analysis on this case, the general way for state-owned enterprise reformation and further improvement is summarized as based on stock right, enhance and strengthen the competence and discussion system of the director board, complete the supervision ability of the supervisory board and establish long-term incentive system for managers. But which is worth mentioned, the corporation management is a very complicated subject, and different cases normally have different backgrounds, so it is very difficult to find a universal suitable method for all these enterprises. The study in this research just wants to provide some useful suggestions.Besides the work already accomplished, there may also something else worth to be carried out: introducing some other theories like game theory to verify and complete the research; the study on management is not supposed to focus on the interior factors of the company only. The exterior factors such as external market may also play a very important part in the whole process; as auxiliaries to the "three new meetings"(director, shareholder and party committee meeting), the "three former meetings"(labor union, employee representative and party committee meeting) are also very useful tools for a successful reformation process.