A Study On MBO Of State-owned Enterprises

In recent years, with the carrying out of the strategy to manage large enterprises well while ease control over small ones, MBO has been an important form for local government at all levels to ease control over small enterprise. However, there are also some outstanding problems go with the MBO of the state-owned enterprises, such as running off of the state owned assets, threatening employees' benefit and new internal person control. Because of these problems, people are suspicious of and pay attention to the MBO of the state-owned enterprises. How to treat and solve these problems becomes a hotspot attended by researchers.Under the background of economic transformation, this paper article gives the definition of MBO. Then MBO practices are detailed in theory and in practice respective. Finally, the characteristics and outstanding problems of MBO of our state-owned enterprises are derived from the cases of MBO practices.The further reasons the problems of MBO of my country exist are analyzed in this paper, which are local government selfishness' behaviors, limping in reforming of state-owned enterprises, and lagging of central government's MBO policies. It is necessary that regulating the governmental acts in MBO, and regulate objects and practical principles are also introduced by analyzing the state and shortages of government functions, government actions and government's monitoring MBO of the state-owned enterprises. The concrete measures on regulating governmental action in applying MBO to Chinese enterprises are given out.Author of the paper considers that as a supervisor, government should put the power in practice, separate themselves from enterprises, try to create a benign environment, establish and complete legal system, and make the market, enterprises, communities and agencies independence. On the other hand, government should enhance its abilities to guide the reform works of state-owned enterprises, strengthen management of enterprises after MBO, and actively lead the development of MBO of the state-owned enterprises.