Comparison Of Organizational Mechanisms Of The SOE And Commonality Enterprise

State-owned enterprises (SOEs) and individually-run enterprises (IREs) are the two main organizational forms and important composition parts of national economy at present. SOEs have been approaching the goal to establish modern corporate system with the consistent reform over twenty years. At the same time, IREs have been taking the opportunities of the reform and open door policy to develop quickly and create a great deal of remarkable economic miracles.The SOEs' benefit is low existing everywhere all over the world. The reasons are very complicated and vary with the particular conditions of each country. It is commonsense that IREs are more efficient than SOEs. To improve SOEs' economic benefit, we have to not only depend on reform of property rights and managerial innovation, but also attach much importance to operational mechanism of enterprise which is very important but easy to be neglected by people.The operational mechanism of enterprise is the interconnected, interdependent and interacting relationships among various composed elements of the enterprise organ and between the enterprise and other related organizations and their integral function. The operational mechanism of enterprise can be regarded as consisting of three interconnected parts including decision-making structure, information structure and motivation structure or of five subsystems including property rights mechanism, decision-making mechanism, competition mechanism, motivation mechanism and risk mechanism. There are very complicated, interconnected relationships between the operational mechanism of enterprise and its efficiency. The operational mechanism has direct influence on the cost level of the enterprise and therefore on its efficiency, while the change of enterprise's efficiency level can show whether the operational mechanism works well. Each part of the operational mechanism has its own specific effect on the enterprise's efficiency, the rise or fall of which can conversely facilitate the enterprise to improve its operational mechanism.Through concrete comparison of property rights, competition mechanism and motivation mechanism of operational mechanisms of enterprise between SOEs and IREs, we can find out that each mechanism has its own superiorities and inferiorities. According to the decomposing of enterprises'-total-cost-function model, we define the influence on total cost by enterprise operational mechanism, including property rights, competition mechanism and motivation mechanism, and confirm the influence on totalcost and benefit of SOEs or IREs by their difference in operational mechanisms.SOEs and IREs can improve their operational mechanisms through learning from each other. SOEs shall improve property rights mechanism to reduce social costs, utilize competition mechanism to raise resource allocation efficiency and depend on motivation mechanism to evoke the enthusiasm of workers. IREs shall pay attention to the integration and systematic optimization of the operational mechanism to diversify their property rights, strengthen non-material incentive and obligation to decrease operating cost and prompt equity competition.