From Bureaucratic Capital Enterprises To State Enterprises

During of the foundation of the People’s Republic of China, the Communist Party of China established the base of the state-owned enterprises by confiscating, taking over and transforming bureaucratic capital enterprises. However, this process was not achieved overnight. CPC needed to carry out various integration and transformation measures. In order to have a microscopic observation on this issue, this thesis takes QingHe Garment Factory, the largest bureaucratic capital textile factory in Beijing at that time, as a case.In QingHe Garment Factory, CPC overturned the old management pattern in the level of human being by gradually eliminating feudal workshop directors.Production competition and staff education not only resumed production but also exercised the workers and strengthened the workers’ recognition and support to CPC;Introduced democracy to the economic organizations and set up factory management committee to mobilize the enthusiasm of workers and various aspects strength to participate in enterprise management.Sublated Soviet one man management experience, took the way that the party controlling all aspects, which was used in revolutionary time, thus ensured party’s leadership in state-owned enterprises;Taking primary position and primary wage, and individual adjustment system temporarily, to ensure enterprises’ smooth transition. Conducting thorough reform of wage system, taking eight-grade wage system, narrowing grade number, and widening grade gap when the situation was mature, to stimulate the staff’s enthusiasm to development production and learn technology. Through the above series of measures, QingHe Garment Factory became a vibrant state-owned enterprise from a rigid hierarchical bureaucratic enterprise.Of course, at least so far, the way to manage state-owned economy is still on the way.The state-owned enterprises, like QingHe Garment Factory that set up by take-over and transformation in the early days of the foundation of the People’s Republic of China, ended up by different fates eventually in the tide of market economy.