The Jilin Province Hongda Communications Engineering Corporation Management System Reforms Research

The Jilin Province Hongda Communications Engineering Corporation is a state-owned enterprise with level-2 state qualification in communications engineering. In the 1990s, when telecommunication industry was witnessing rapid development, the corporation was making fast progress; its various economic indexes ranked among the top enterprises of the same nature in Jilin Province, and it had won good reputations in the industry. However, in recent years, with ever-increasing market competition, it is losing its development momentum dramatically; its various economic indexes keep dropping, and its position in the industry has fallen a little. Of course this situation is due to many causes. This paper holds, however, that the basic cause lies with the failure of the enterprise management system to adapt to the requirements of market economy. I. Current Situations of the Corporation and Its Management System The Jilin Province Hongda Communications Engineering Corporations is a state-owned enterprise under the CNC. It has 220 staff and workers, of whom are 175 technicians, accounting for 80%, and 45 administrators, accounting for 20%. The corporation is mainly engaged in R&D of advanced facilities such as optical fiber communications, microwave communications, mobile communications, urban cable/wire communications, information networks, etc. and in engineering constructions. Since the reform and opening-up drive from 1994, the corporation has gone through several large/considerable splits and regroups. Several reforms have brought about some favorable changes to the internal management system of the corporation, but the corporation has not broken away completely from the restrictions of the planned economic systems, and basically, the current corporate management system still belongs to the linear functional management system. â…¡.Problems and Causes in the Corporation's Current Management System The imperfection of the corporation's management system has resulted in the following problems in the corporation: 1. Low profiting capacity and declining competitiveness. The corporation's net profits in 2002 were more than two million Yuan. With the corporation's economic profits declining year by year, its competitiveness is constantly decreasing, and its reputation in the past is disappearing in Jilin Province. 2. Many problems in its management and longstanding high costs. There are no strict regulations to control finance, and nobody is specifically responsible for the rising costs. 3.Loose organizations and brain drain. In recent three years, as many as 22 young technicians have left the corporation. 4. Low staff morale and poor creativity. The causes behind these problems are as follows: 1. Lack of explicit financial regulations, which results in rising costs and dropping profitability. 2. Lack of scientific management system and human resources management system, which results in low staff morale and brain drain. 3. Low system implementation capability and lack of scientific criteria in its internal operation. All the above originate in the imperfection of the corporate management systems, so we must be clear-headedabout the situations and promote management system reforms as soon as possible. â…¢.Contents and Tasks of the Corporation's System Reforms The corporation should stick to the following directions in its system reforms: 1. Adapting to the requirements of reforms and development to move towards shareholding systems. 2. Adapting to the requirements of market economy development to transform corporate management systems. 3. Adapting to the needs for corporate internal development to reform the corporation's human resources management systems. In the system reforms, we should adhere to the following principles: 1. Handling well the interest relations of the current staff and changing idea; taking into consideration the interest of all the old, the middle-aged and the young; relying upon internal forces and making use of external forces to integrate all the resources in the reforms. The systematic reforms should be conducted from the following aspects: 1. promotion of shareholding systems and staff owning shares. 2. Establishing sound financial systems to intensify project cost and budget examination and control. 3. Adjusting organization structures to turn the linear management to departmental management. 4. Practicing competitive employment to thoroughly eradicate the appointment and the tenure systems â…£.Measures to Improve Corporate Management System To reform corporate management systems, it needs not only identify reform directions, establish reform principles and clarify reform contents and tasks, but also effective measures, so as to ensure the success and final...