A Research On Improvement Of The Selection Mechanism Of State-owned Enterprises' Principals

With the reform of State-owned enterprises, more and more attentions were paid to its Selection mechanism. For a long time, the Administrative Appointments can not adapt to the modern enterprise in our country, the best quote of which is the malfeasance and corruption of principals. As a result, the reform of selection mechanism of state-owned enterprises should be put in to practice as soon as possible.The selection mechanism of state-owned enterprises initiated from Administrative Appointments to Job Posting. There are still many problems such as the subject of selection is in vague while the object is not clear, the methods and processes of the selection are not scientific, the selection mechanism is divorced from the management system, and so on. After the empirical studies of more than 700 state-owned enterprises of Shandong Province, we find many effects as follows: the operating performance of state-owned enterprises can be greatly prompted through selecting managers by investors, selecting the general manager from technical managers, and implementing an annual salary system; the operating performance state-owned enterprises will be constrained in terms of that one person serves as president and general manager, and the general manager appointed by political. To determine the most effective selection methods and the most reasonable measurement model, the standard selection process, we can start from 3 parts: select the subject explicitly, expand the object of the selection, improve the corporate governance structure. More specifically, the subject of selection should be the board of directors, and some workers should be involved in the selection of the head of state-owned enterprises. Selecting from the generalized managers'market, which consists of the external talent market existing in the external of the state-owned enterprises, composed by people in each industry that had the capacity to manage state-owned enterprises; and the talent market within the enterprises, consisting of all kinds of talents that were in the state-owned enterprises and had the ability of management. Therefore, the reform of the board, the examination and evaluation system of principal in his or her term, the establishment of detailed succession plan of the principal, and employment in retirement leader should be accelerated.