Systematic Management In Chinese Small And Medium Enterprises

Systematic Management in Chinese SMEs (Small and Medium Enterprises), which seems a complex proposition, make systematic management as the ultimate question. This article herein will elaborate on research directions and results of systematic management in Chinese SMEs. What is the goal of systematic management? The goal is profound culture, specific strategy, clear structure, excellent innovation where behavior has regulations, work has procedures, content can be copied, everyone can operate, and others can replace, products are exquisite, quality standards exist, inspection is regulated, the process is controllable, results are assessable, competence can be enhanced and management can be improved. To achieve this goal, companies should have a long-term institutionalized&standardized&systematic construction. In order to build a scientific and standardized management system, companies should sort and specify aspects, from top to bottom, from macro to micro, like corporate culture, human resources management system, basic management system for all departments, company operating processes and business processes, responsibilities of all departments and all posts, job skills&requirements of all departments and all posts, product process and quality standards, operating procedures, and so on. Without a scientific and standardized management system, it is impossible to achieve scientific and standardized management, and it will not be able to achieve sustainable systematic management.The Chinese private enterprises developed from stalls and self-employed households in the eighties of last century after the reform and opening up. At first they were starting from scratch, took a little under their hard accumulated deposits or borrowed from friends and relatives on a little money to buy goods from point A at a relatively low purchase price, then to sell out at point B at a relatively higher price, and earn fictitious profit. So at that time "profiteers" were very popular, because you can profit from reselling the goods, or all the other commodities, "profiteers" on the resulting.Some of the better-run "profiteers" began leasing a store or market, shops, getting self-employed industrial and commercial households license and starting the so-called standardized operation. These stores and shops were relatively more stable and secure than streets selling, with better reputation. As their business scale and sales increased, they found the original model was unable to compete with stalls, and purchased from A and sell to B earned much less than farther stocking and greater wholesalers. Some individual industrial and commercial households began to go further afield to purchase, and continue to increase the amount of each purchase to reduce the lower prices and get more favorable payment method, handle both wholesale and retail. This not only expanded their own business and increasing their competitiveness, but also enabled them to reap more impressive profits and accelerate their capital accumulation. Certainly, there were many non-standard business practices, including tax evasion, dragging account, deadbeat, and even roll stuff away. In short the market then was of prosperity and confusion.As the market was both prosperous and confused, some far-sighted and more ambitious individual industrial and commercial households were not content with only being a wholesaler or retailer. They found themselves could manufacture goods and, in this way, could earn more and become stronger and more competitive. So they began to try their own production, or copy, and some even began to register Ltd., as a basis and platform for their own career development. After companies or factories were established, one acted as manager and boss, purchaser and salesperson, cashier and accountant, responsible for both technology and production. In short, all things were decided by one person who undertook success and failure. As the business grew bigger and workload increased, they began to recruit assistants and their family members or relatives were the first choices when parts of the work were assigned to them. Simple manufacturing or trading was in control. But with the size of the company expanding, staff increasing, range of products widening, market complicating, things were out of control. Some bankrupted overnight because of poor management or bad investments. Others were aware of their management loopholes and problems and started to strengthen regulation and management, but relied solely on experience without a complete system, not to mention systematic management. However, there were people who not only realized their problems but also began to invite more capable and smarter brain to the company to discuss corporate strategic management and systems management issues trying to formulate some rules and regulations and keep revising and improving, they persevered and evolved into today’s small and medium private enterprises, and even large-scale private enterprise group.However, up till now, many loopholes and congenital defects still exist in the management of Chinese small and medium private enterprises, including many large private enterprises, especially in the aspect of corporate culture and business strategy management. Although they focus on institution building and process reengineering, they are not solving problems from the perspective of systematic management:they concentrate on corporate culture while ignore reality, or stress on cost without development, or emphasize institution while pay no attention to personality, or lay stress on personality without discipline, or put too much emphasis on the process which led to inflexibility; some employees simply pretend to be obedient, listening to what are said and doing what are told, which result in a busy and tired boss and many idle employees and not properly ran company. Even worse, dawdling and flattering employees get to higher position while hard working people fail to be recognized and rewarded. Over time, all talent drain leave and incapable employees stay and the enterprises eventually have to close down. The reason some workshops and trade companies fall in the expansion or fail to survive is that they never apply systematic management. Therefore, the Chinese small and medium private enterprises have no choice but to strengthen scientific and standardized and systematic management. It is the only way out to establish a complete management system from the top-level for the enterprise and continue to implement. How to strengthen systematic management in Chinese small and medium private enterprises? Companies should develop detailed and specific management system according to their practical situation such as line of business, nature of company, production scale, product type etc. Fundamentally, they should sort and specify every section:corporate culture, human resources management system, basic management system for all departments, company operating processes and business processes, responsibilities of all departments and all posts, job skills requirements of all departments and all posts, product workmanship and quality standards, operating procedures, to reach the goal of systematic management: profound culture, specific strategy, clear structure, excellent innovation where behavior has regulations, work has procedures, content can be copied, everyone can operate, and others can replace, products are exquisite, quality standards exist, inspection is regulated, the process is controllable, results are assessable, competence can be enhanced and management can be improved.This article specifies the details of systematic management. It goes to elaborate following content one by one:Strategic Management of Chinese small and medium private enterprises, corporate culture, Corporate Governance, Innovation Management, system development and improvement, human resource systems, department settings&system improvement, implementation measures and details, process reengineering, company operating procedures, business processes, department duty implementation procedures, responsibilities designation and requirements, departmental responsibilities designation and requirements, job responsibilities and skills requirement, quality system, quality policy and objectives, quality standards, test procedures and regulations, product processes.By analyzing present situation of enterprise development and management of Chinese small and medium enterprise to the situation and combining several cases to illustrate problems existed in the course of development of Chinese small and medium private enterprises, this article is to find out the crux that hinders the development of China’s many small and medium private enterprises. This article also explores every problem in the management practice of China’s SMEs and points out direction of the development and management of China’s SMEs for Chinese entrepreneurs. The author wants to tell the company owners how to prevent mistakes, how to handle problems, how to keep innovation and progressing, how to form a scientific and standardized modern management system. The author hopes that systematic management can help Chinese SMEs enhance core competitiveness so that more and more Chinese national brands emerge and time-honored well-known companies stand proudly at the top of the market.