Study Of Centralized Internal Reform Of State-owned Enterprises

Enterprise, from the viewpoint of productive force, is a kind of basic social economic unit, which has the legal person qualification and the power of independent check. Based on the system of self-management and responsibility for profits or losses, it takes part in economic activities by offering products and services, in order to meet the needs in market. It is also a kind of organization form, which can replace the market in real trading so as to lower the expenses. Viewed from the aspect of productive relation, the enterprise reflects people's relationship in production, exchange and allotment. According to the theory of enterprise, the enterprise is a combination of a series of contracts which are formed in trading in the factor market and can confirm the relation in corporation, exchange and allotment.The goals of enterprise are fulfilled in a management process, which includes a lot of activities and functions, such as planning, organization, controlment, and so on. In private enterprises, the private economic entity has the droit of property, that means it has the right to freely use and control that property. As for the modern enterprise, that kind of right comes from the agent relationship between the owners and the professionals based on contracts, namely the modern enterprise system. However, that is not the case in state-owned enterprise. It acted as an adjunct of the national administration organization and formed a highly-centralized enterprise system in the past planning economic system. As a result, the state-owned enterprise cannot become the real enterprise, for it has no power of independent management and no vitality.This thesis mainly studies the reform of that highly-centralized power management in state-owned enterprise. Firstly, based on the characteristics of state-owned enterprise and the relative theories like organization structure theory and lifecycle theory of enterprise, it investigates the internal centralization management by using interviews and questionnaires to reveals the recent conditions and a series of shortcomings in state-owned enterprises. Secondly, by studying the phenomenon of "centralization, die; decentralization, disorder" in the past score of reform, it confirms that the reform is not simply a kind of choice between centralization and decentralization of authority. Both of them have their shortcomings, so a dynamic supervision mechanism should be built. Finally, it comes to a conclusion that the methods of developing diverse investment subjects and building the corporate governance structure should be used in this reform to solve the problems caused by over-centralization in state-owned enterprises. Besides, some idiographic measurements are summarized in this paper based on the study of a real company's internal centralization reform.The main research techniques adopted in this thesis are as follows: obtaining a great deal of data through interviews and questionnaires, then making a combination of real example analysis and generalization; the method of taking the history analysis as the main line and combining the logic analysis with the literature materials.