On The Corporate Governance Mechanism Of Public Institutions

Public institution is a concept with Chinese characteristics. It involves the industry and people's life widely.?Many talented persons work here. The reform of public institution is one of the most important reform of China administrative system reform. However, the status of the corporation in the public institutions entrusted is not very important. The relationship caused by the principal-agent problem is not very good.What's more, the administrative feature is still obviously, and the supervision is insufficient. All of these bring public institutions many difficulties. While, building the corporate governance mechanism of public institutions can handle the problem of the institutions of the decision, motivation and supervise. And it is useful in the clarification of authority-responsibility relationship between the government and public institutions. Therefore, rationalizing the corporate governance mechanism of public institutions has practical significance. It can help to find the approach on ascending the institution performance and improving the level of public service.The paper is based on relevant policy documents.It uses the deductive inference with the contemporary corporate governance theory. It is mainly build three basic aspects of the organization, which are the council decision-making mechanism, incentive mechanism and supervision mechanism. The council decision-making mechanism is the core of the system. The incentive mechanism provide power support for the further development of the organization. The supervision mechanism promotes and guarantees the other governance mechanism orderly. Based on the corporate governance structure of public institutions, the three mechanisms form a complete organism to complete the mission and achieve organization's goals, which mutually influencing and affecting.Obviously, although they are all belong to the organization, public institutions and ordinary companies have different logic in the decision-making, motivation and supervision. Besides, as the administrative responsibility system under the leadership of the party has deep roots in the public institutions, the implementation of corporate governance mechanism has many obstacles and difficulties. Therefore, with the establishment of corporate governance mechanism, public institutions can rationalize the inner relationship between institution decision-making mechanism, motivation mechanism and supervision mechanism, which can improve the governance level of public institutions obviously.