Preliminary Study On Multidivisional Structure Of Chinese State-owned Construction Enterprises

Since adopting the reform and opening up policy, China’s economy is graduallymoving towards a market economy. As the highly centralized organization structureunder the planned economy system has become more and more difficult to adapt tothe socialist market economic system, appropriate separation of power was requiredfor the enterprises. Under this background, many state-owned enterprisesimplemented the multidivisional structure. This paper explores the reason behind themultidivisional structure reform of state-owned enterprises, compares thecharacteristics of organization structure of modern enterprises, and analysescomprehensively the applicable conditions, misunderstanding and the advantages anddisadvantages of multidivisional structure. Based on the above mentioned analysis, itreached the conclusion that the key for the reform of multidivisional structure is tobuild decision-making center, profit center and cost center, and grant them reasonableauthority. The core of this system is to balance the relationship between concentrationand separation of power.This paper combines theory and practice. It focuses on the current situation ofthe multidivisional structure of China’s state-owned construction enterprises. Theunique perspective and way of researching makes it different from the existingliterature and data in China. In the end, this paper followed the trail of multidivisionalstructure reform in A construction enterprises in five years, analyzed the problems andshortcomings, and further put forward some constructive suggestions to discuss thefuture development path of multidivisional structure. The purpose of this paper is toprovide useful experience for reference for the multidivisional structure reform ofChina’s state-owned construction enterprises...