An Analysis Of Internal Control Of Non-state-run Enterprise Based On Power, Institution And Flexible Management

Scholars usually focus the study of internal control of Non-state-run enterprise on the operation such as accountant and audit. Few researchers pay attention to the effect of mechanism and philosophy. In fact, the internal control of Non-state-run enterprise includes more content than the operational control.This paper extends the study to three levels: operation (including accountant, audit, HR, etc.), mechanism (the relation and structure of the regulations and institutions), philosophy (which dominates the system of internal control).Distinctly defining the Non-state-run enterprise, this paper analyses the problem based on power, institution and flexible management. The power determines the relation of leader and member, which forms the pattern of control of subject and object. Different distribution of power affects the performance of the internal control. Institution regulates the means to manage the labor, finance and matter so as to restrict the leaders' over-use the power and ensure the enterprise in the right direction. Both power and institution have the character of rigidity. If the leader only paid attention to these two levels, the organization would appear the situation full of tediousness and rigidity. Therefore, in the process of development, the Non-state-run enterprise forms another character: flexible management. Through the flexible means, the Non-state-run enterprise avoid the tendency of doctrinairism and reduce the cost of rigidity, which ensures the validity of internal control.