The Perfection And Innovation Of The Administrative Structure Of Chinese Family Firms

The research object is one of comparatively ubiquitous enterprise organization forms in China's economic life - the family firms, and the paper focus on analyzing all kinds of problems which hinder enterprise's sustainable and stable development in the evolution of Chinese family firms and find the roots that problems produce more lay on the enterprise administrative structure. The key point of research is how to perfect the administrative structure of family firms.In the course of researches we see it that Chinese family firms have special culture background, developing background by historical method and positive philosophy etc. The different one is congenital insufficiency in enterprise administrative structure than other family firms of other countries and regions, which embody in unreasonableness of property right structure of family firms and the state with dictatorial and fuzzy property right. These enterprises haven't made in order the clientage and agent relationship, lack perfect encouragement and restriction mechanism, have a kind of frightened sense to outside talents, exist in the mode of family management, and don't accord with the demands for modern enterprise system.At the same time, the external environment of our country is unfavorable to the development of the family firms too. Various kinds of economic policies discriminate against the family firms; the relevant laws and regulations are insufficient too; there are no laws to abide by and no regulation to follow. These extremely unfavorable factors will affect the long-term development of china family firms, which can lead to the result that the family firms can't exist beyond three generations.Based on the above analysis, the focus on solving the problem of continuous development of china family firms is to establish modern enterprise system in the family firms, but the core of setting up the modern enterprise system is to set up and perfect company's administration structure.According to the characteristic of china family firms, the first step is to set up rational property right structure, to realize the pluralism of property right, to change the fuzzy status of property right, and to establish the reasonable property right structure. The rational change of property right can push the socialization of capital and management in family firms, make the family firms open to society, merge t the social capital into family capital, widen the financing channel of family firms and improve the ability to resist risk of enterprises.The second step is to make the clientage and agent relationship clear, to overcome the repulsive and jealous psychology to outside personnel, to Introduce the professional manager's system firmly and to utilize enterprise outside resources fully. The key of using the outside talents, such as professional manager, etc is the establishment of perfect incentive mechanism and restraint system inside enterprises. The family firms should pay attention to the innovation of incentive mechanism. The material encouragement is as important as the spirit encouragement. It is essential to establish the rational salarystructure and combine the long-term encouragement and short-term encouragement. Yearly salary system, the stock right encouraging and in-service training should be adopted, it is important to eliminate the gap between the operator and owner, make the operator manage the firms with the owner's psychology, excite talents' dynamic role, at the same time to dispel the credit crisis to the professional manager, and through the law restriction to perfect the inner restriction of family firms. The behavior and moral restriction and the measure of trade entering prohibits can reduce the behaviors of damaging the enterprises.At the same time the management of company involves lots of legal problems, which must be standardized by country through legal way. It can't be realized only by establishing a balance framework; the more important thing is to define the right, responsibilities and profits of relative persons, to strengthen the restriction to relative persons and to achieve the goal of managing in the company through the final deterrent force of the law. This is the requirement of construction in the laws and regulations of the country. According to the experiences of developed countries, the first step of strengthening the establishment of enterprise's laws and regulations about behavioral norm is there must be a law to abide by. Country must make and revise the relevant laws and regulations actively, ensure there are laws to abide by and law breakers be prosecuted, give full play to the deterrent function of the law. the enterprise should Increase the degree of getting involved of the judicial power in the legal norm of company's administration structure and solve the problem that appear in company's administration structure with the way of the law.It is proven by practice that through the perfection and innovation of administration structure of family firms can solve the existing problems of family firms, which are feasible, and can help the continuous development of china family firms and realize the second rapid development.