Research On The Central Enterprises To Establish A System For Professional Managers

The state-owned enterprise (SOE) reform has experienced long exploration and practice as the central link of economic system reform. In view of the SOE reform for over 30 years, its direction is to establishmodern enterprise system of "clearly defined ownership and power and responsibility, separation of enterprise from administration, and scientific management". By advancing separation of government functions from enterprise management,establishing and improving the corporate governance structure and board pilot, improving employment system of the enterprise leaders and other reform measures, the SOEs have gradually shifted their operation mechanism, adopted the market and economic rules to run and govern enterprises, and become market subjects of independent corporate position during market competition.The manpower (especially business leaders) distribution of the SOEs has not completely meet the needs of market economy in terms of marketization. The team of SOE leaders is still unreasonable in structure, incompetent, less energetic, etc. to some extent. High-level international operation management talents are relatively short. The centralState-owned enterprises, as the main force of SOEs, lead all industries, accounting for 85%of the total Chinese enterprises in the list of World Top 500. They are challenged by more market space and heavier market responsibility. The officer teams and boards of the central State-owned enterprises shall further optimize structure, improve quality and effectively stimulate the enthusiasm and energy of entrepreneurship and practice. During the SOE reform, the exploration and pilot towards professional managers are constantly making progress. Many SOEs and central State-owned enterprises have actively explored contractual management, market-based recruitment, etc. with certain achievement. When the SOEs start a new round of reform, the professional manager construction will become a key. The Resolution of Several Key Issuers on Fully Deepening Reform of the Third Plenary of the Eighteenth Communist Party of China (CPC) National Congress suggests for the first time to "establish enterprise manager system and better play the role of entrepreneurs." It is the key decision of the Central Party Committee to strengthen state-owned economy and deepen state-owned assets and enterprises.Implement the Third Plenary Session of the Eighteenth CPC National Congress, explore professional manager system with the SOEs, especially with the central State-owned enterprises, as a key institutional innovation of deepening the state-owned assets and enterprises reform. The dissertation profoundly states the importance of the central enterprises in establishing professional manager system in line with the goal of the central enterprises for strong, excellent and world-class performance; Systematically states relevant theoretic results of foreign economics and management science, deeply analyzes the experience of foreign multinational companies by cases, and summarizes and concludes the conditions and features of the professional manager system; sorts out and reviews the key issues of about the revolution, status quo and existence of Chinese non-public-owned enterprises and SOEs in exploring and establishing professional managers; Empirically analyzes the features and scope of the professional managers, and suggests the competence model of the senior managers of the centrall State-owned enterprises. On such basis, It is suggests the basic targets, general requirements, path, key measurements and relevant policies and suggestions for the central State-owned enterprises to establish professional managers. The dissertation adopts literature review, international comparison, historical comparison, case analysis, empirical analysis, etc.1. The dissertation systematically studies the related theories on professional manager system. Via defining concepts of enterprise managers and enterprise manager system, professional managers and the professional management system, on the basis of introducing the emergence and development professional managers, the dissertation systematically works on the relevant theories such as the Contract Theory, Principal-agent Theory, Property Rights theory, Human Capital theory, Corporate Governance Theory. The Research shows that premises of the professional management system's appearing is resulted from the separation of ownership from managerial authority caused by social division of labor whose advantage lies on the optimization of the corporate governance structure and the release of human capital efficiency. The core of professional manager system is to establish a contract-fundamental rights and responsibility system whose key is the design and practice of the Incentive and Restraint Mechanism.2.The dissertation studies the development of the professional management system in foreign countries. The development status quo of the foreign professional management system is:the level and function of professional managers are gradually be refined; the selection and training of the candidate still evaluated within the enterprise but are integrated with investors and the market; a long-term incentive based compensation and incentive system has been set up; adopt a supervision and restraint mechanism combined with the internal supervision and market discipline. It cites the concrete practice examples of Electricite De France, Singapore Temasek Corporation, international business machines Co. Ltd. General Company which enlightens us that the improvement of the professional manager system should be supported by a mature professional manager market and also should be based on a professional manager culture in order to be in accordance with its own development status and the actual growth reality3.The dissertation analyzes the development and practice of professional manager system in Chinese non-public enterprises and local state-owned enterprises. It carries out a specific analysis of the professional management system in overseas-funded enterprises and individually-run about the growing history, main characteristics and existing difficulties, taking the Lenovo, Vanke, Gome and Alibaba as examples. It also analyzes those same fields in local reformed state-owned enterprises, comparing the system practice of different ownership enterprises form its introducing motivation, training&promotion and existing problems.4.The dissertation investigates the characteristics and roles of the professional management system with the central enterprises. The research points out that the professional manager has four basic characteristics who should have a contractual relationship, market attribute, leading position and professional standards. Firstly, contractual relationship means that between the investor or enterprise and professional managers, through equal consultation, they clear rights (the right range), responsibilities (responsibility boundary) and benefits (duties and interests), which forms an agreement/contract that is a valid, and also make sure both of them are equal subjects of law. Secondly, market attribute reflects their human capital value is decided by its business performance through the realization of the market competition and the final remuneration. Thirdly, the leading position generally guarantee adequate operating rights who is at the top of the enterprise management team. Last is the professional standards which signifies managers all regard the successful operation of the enterprise as a professional ideal, owing a professional ethic of loyal to the investors and professional ability to manage a company.5.The dissertation constructs a competency model of the professional management system with the central enterprises. Research believes that the capacity characteristic of the professional management system with the central enterprises at least includes the following dimensions:Information Sensitiveness, Mental Capacity, Management Communication, Organizational Commitment, Self Efficiency, Frustration Tolerance, Achievement Motivation, Self Control and Leadership. In addition, the political quality is the particular one only possessed by the professional management system with the central enterprises.6.The dissertation analyzes the experience and problems during the construction of the professional management system with the central enterprises. Now, the professional management system with the central enterprises mainly boasts several patterns:the Comprehensive Exploration Mode of complete competitive enterprises,groups'new subsidiaries and the'Special Zone" Mode of emerging business sectors, the"Dual Track" Mode of mixed ownership companies and the Pilot Mode of less competitive enterprises. The construction of the professional management system with the central enterprises has obtained certain experience on following areas:how to promote the identity transformation of enterprise management personnel, to explore and improve the occupation managers management system, to implement professional managers marketisation selection, to institute management responsibility system and performance contract management, to grope for the marketisation salary distribution and excitation, to strengthen the training and development of the professional manager team and to probe the occupation manager market withdrawal mechanism, citing the examples of China Resource, Baosteel and COFCO. From the perspective of corporate governance structure, officialdom standard&administrative management, principle realization form of Party cadres, compensation allocation, incentive marketisation and the phenomenon of "easy to assume office but hard to resign", the dissertation specifically analyzes existing problems of the construction of the professional management system with the central enterprises.7. The dissertation has explored the basic design of the professional management system with the central enterprises. By studying the general idea, basic principle and reform path of the establishment of theprofessional management system with the central enterprises, the dissertation has discussed on market-oriented recruitment, indenture management, staff training and development, risk management, withdraw mechanism, and how to correctly handle the relationship between professional management system and the principle of the Party supervising carders.The Research suggests in exploring the establishment of professional management system with the central enterprises, accurately grasp the SOE market-based reform direction of the SOEs, stick to the principle of party ruling leaders, innovate effective means of party managing cadres with deepening and regulating board construction as opportunity and market-based professional managers recruitment and contractual management as main line, well conduct top design, create systematic, regular, scientific and effective professional managers system, create a professional managers team of morality, talent, energy and outstanding performance, better play the role of the enterprises and enhance the modern governance system and ability of the central enterprises. General requirements:grasp the direction, size the main line, keep faithful, innovate reform, regularly start, set pilot, focuses on collaboration and comprehensively make progress. The enterprises may choose incremental reform mode or inventory reform mode as realization approach according to the actual conditions. Incremental reform mode is to select some professional managers from the market and put them in enterprise operation board, carry out market-based recruitment and contractual management; inventory reform mode is to make the existing managers more professional for overall transformation. For market-based recruitment of professional managers, the key is to break through in implementing professional managers recruitment system, innovating and improving the management system of professional managers, improving and improving market based recruitment, etc., where the governing bodies shall explore professional managers pool for the central enterprises; for contractual management of professional managers, firmly grasp such key links as establishing professional managers recruitment agreement system, enhancing performance contract management, improving remuneration distribution and impetus mechanism, improving supervision and constraint system, enhancing market exit system, etc. The promotion, demotion, increase or decrease of the officers shall be determined according to the employment agreement and performance assessment results in line with the contracts.8. The dissertationprovides some policy implications about professional manager system construction. Focus on perfecting market-based legal environment, at the national level,comprehensively promotethe construction of the professional management system with the central enterprises, speed up the construction of professional manager market, improve the applicable laws and regulations, and adjust and optimize the applicable management policies; speed up enhancing the boards constructed and regulated by the central enterprises, research and formulate the instructions on establishing professional managers system with the SOEs, and select some central enterprises as professional managers system pilot and enhance the coordination of relevant reform measures.