Chongqing Iron & Steel Designing Institute Financial Management Model Reconstruction

ChongQing Iron & Steel Designing Institute (CISDI) is translatingtraditional institution into enterprise in accordance with centralizedarrangement, and what are our countermoves facing the threat and challengeafter China becoming a member of WTO especially? Our enterprise shouldtransfer traditional financial management model (FMM ) into a new modelwhich is suitable for Modernized Enterprise System.The working circumstance fOr the new FMM is an international companyundertaking contracted prOjects under modern enterprise system. The basicrequirement of modern enterprise system is that property right of a companymust be clear and distinct, seeing that CISDl is a knowledge &technology-intensive industry, so lntelligence-capital should be introduced toimprove and perfect the content of property right fOr the new FMM. The targetof financial management (FM) is to achieve maximum value of enterprise ismade definite, after anaIyzing all kinds of financial relationships. The essenceof organization institution for modern enterprise system is agency byagreement, which can operate perfectly under the conditions of perfectencouragement & engagement rules, so the core of the encouragement &engagement rules fOr new FMM is to establish distribution regulations. Thereare many measures can be taken availably, such as Budgeting, Project costmanagement etc. and many new concepts of advanced management are worthbeing adapted, for instance, opportunity-cost, cost-benefit, legal knowledge,and so fbrth.There are five parts in my article. The flrst is the aim and the writing routeof the articIe, the second one is a brief introduction on ChongQing Iron & SteelDesigning lnstitute (C1SDI) and what financial management trouble CISDlfal1en into. The third part is the theory about constructing a new FMM. Theforth is reconstructing FMM for CISDI. Then the countermeasures andsuggestions to ensure the new FMM performance perfectly are put forwardtbllowed. The last is the summary of the FMM fOr CISDI.