| Ⅰ. IntroductionAs a regional production enterprise reporting to Petrochina, Daqing Petroleum Administration had been advancing collectivization and specialization since 1999. The development pattern was formed in 2006 including 12 groups and 9 specialized companies. Relationships among the Administration, the groups and the specialized companies had been straightened out by adjusting functions, resetting working circuit and flatmodel reforming. But practice has proved that the groups still have a plenty of work to do, including optimizing deployment of resources and flatmodel managing. In addition, the centralization and decentralization relationships among the Administration, the groups and the specialized companies have not been straightened out completely. Working capability still needs improving in the groups. The scale effect and polymerization effect have not been embodied clearly. Therefore, it is urgent to improve management and control system.Ⅱ. Operating Collectivization and Specialization and Mixing Holding Company SystemsOperating collectivization and specialization usually means that a certain number of enterprises establish long-term cooperation through ties of technical economics and develop the management by means of groups. So far, collectivization and specialization operating have become the general choice and important tendency for modern enterprise development.Organizational structure is the relationship pattern formed among constituent parts within the organization. In practice, the organizational structures of enterprises contain H-type, U-type and M-type. At present, large enterprises more or less have"mixed"organizational structures. Therefore, most present enterprise groups are in mixed structures of holding company system and institution system. Some enterprise groups are even in mixed structures of holding company system, institution system and direct function systems. Such enterprises are mixed holding companies. In other words, they are engaged in both shareholding and production business. According to the form of organization, mixed holding companies mainly have two forms of organization: subsidiary and parent company; head company and branches. The two forms have completely different ownership. Subsidiary companies are independent corporate entities, while branch companies are branches governed by head companies. They also have different management systems. Parent companies manage subsidiaries as shareholders, while head companies manage branches by appointing managers.Management control is managing activities that administrators control and affect the employees in order to ensure the effective execution of the organizations'mission and strategy, including bureaucracy control, market control and clanship control. In general, head companies manage and control branches directly or indirectly in the way of bureaucracy or market, while parent companies mange and control subsidiaries mainly in the way of market.Ⅲ. Practical Operation of Collectivization and Specialization within Daqing Petroleum AdministrationAt present, Daqing Petroleum Administration has a structure of 12 groups, 9 specialized companies and 7 institutions. Daqing Petroleum Administration Adjustment Program for Collectivization and Specialization Managing Function and Daqing Petroleum Administration Implementation Program of creating System Advantages have decided that Daqing Petroleum Administration is the strategic decision center and investment center of the whole administration, which is mainly in charge of strategic management, vital personnel arrangement, investment and financing management, operation supervising and controlling, capital operation, comprehensive coordination, and so on. As main market responsibility body, the groups undertake all the management targets and perform their functions such as strategic planning, investment decision and business supervision. The subordinate enterprises carry out the decision of the groups. Their management functions depend on their characters, scales and operation situations.After the sustaining advancement during the last years, Daqing Petroleum Administration has achieved remarkable success in collectivization and specialization. However, there are still three conspicuous problems:A.Branch and subsidiary companies have not been classified for management. They are still mainly in a bureaucracy control system.B.Management for subsidiary shareholding is becoming formal gradually. Board meetings are generally not held in accordance with regulations and vital decisions are directly reported to the Petroleum Administration.C.The management and control for the subordinate enterprises are still a bit too strict. Examination and approval matters are over trivial.Ⅳ. Daqing Petroleum Administration's Management and Control for the Subordinate EnterprisesBased on an overall consideration of production and management characteristic, strategic business importance, degree of association with core activities, business risk, difficulty degree, tax and transaction cost, and other factors caused by national and industrial regulations, the subordinate enterprises of Daqing Petroleum Administration are divided into: A. Construction Group, Kunlun Group, Qingdao Qingxin Company, Supervision Company, Lishen Pumps LTD., International Engineering Company and Perforation Charge Plant. All of these enterprises ought to be managed as subsidiary companies. B. Chemical Engineering Group, Chuangye Group, Development Group, Equipment and Production Group, Drilling and Exploration Group, Electric Power Group, Materials and Equipment Group, Property Group, General Hospital Group, Culture Group, Water Supply Group, Bus Company and Communication Company. All of these enterprises ought to be managed as branch companies.Meanwhile, active measures ought to be taken to improve and perfect the Petroleum Administration's privilege control for its subordinate enterprises:A. Improve and perfect the management control manners according the thoughts of the Petroleum Administration. Branch companies ought to be controlled mainly in a bureaucratic manner; Simulative subsidiary companies ought to be controlled mainly in a market manner along with administrative means; Subsidiary companies ought be controlled mainly in a market manner by the Petroleum Administration with its voting rights and seats on Board.B. Explore severity and extensity of privilege control based on central responsibility system. First, Daqing Petroleum Administration's subordinate enterprises should be broadened responsibilities according to their specific conditions, and therefore the suitability of centralization and decentralization relationships can be explored. Second, strategic, investment and financial methods and other measures should be taken, and the Party organizations should also play their roles in controlling. Third, the Petroleum Administration's subordinate enterprises should be further untied and have greatest powers of decision regarding both operation and management. Thus their initiative and creativity can be aroused to take part in developing markets.C. Strengthen strategic decision abilities and improve strategic control for the Petroleum Administration's subordinate enterprises. At present, the Administration's strategic instructions are just macroscopical and not deep-going or concrete enough. And the investment, financial, personnel and audit control are not strong enough. The Petroleum Administration's central function for strategic decisions has not been exerted fully. Consequently, the Administration ought to strengthen its instruction and audit for its subordinate enterprises and also ought to improve its supervising and evaluation for the operation strategy execution so that the subordinate enterprises can carry out operation strategies which are better for the whole administration's policy and the actual needs of the Second Pioneering. |
PDF Full Text Request