An Empirical Study Of The Performance Impact Of State-owned Enterprises, The Organization Redundant

There are some features for low efficiency in state-owned enterprises: weak market, low competitive power of products and low management and service level. In economic transition, there is huge organizational slack in enterprises, especially redundant staff, which calls high attention of government and required to improve their efficiency of enterprises by staff reduction. Undoubtedly, downsizing in large or middle enterprises has some effect on reducing loss and increasing surplus to a certain degree. But at the same time, we pay more attention on how to choose research methods which can gain higher efficiency persistently. In the process of staff reduction, some enterprises regarded it as the effective way for corporate governance. They believe that enterprises have to increase surplus by reducing staff. This is a unilateral view as downsizing for efficiency is a method of reform in enterprise but it is not the basic purpose which is improving the management level and economic efficiency by reform.In this paper, we research the general information and finance performance of state-owned enterprises in five years from the project of state-owned assets supervision and administration commission of Sichuan provincial government"Study on development of state-owned economy in Sichuan Province". Then, we screen out the financial performance samples of 600 state-owned and state-holding enterprises, and analyze the relationship between redundancy and performance in enterprises with descriptive statistics. It has theoretical and practical significance to provide some references for state-owned enterprises in improving operational performance.This paper is divided into five chapters.In the first chapter, it introduces the features of low efficiency in enterprises, appraises the general reform information of state-owned enterprises, and analyzes the reason why the state-owned enterprises get into deep water, the characters of low-efficiency in enterprises, and methods for improving efficiency. And this paper researches the influence of organizational slack for performance.In the second chapter, it is the review of literatures which is the researches on resources and organizational slack.In the third chapter, it analyzes empirically for selection of sample, criterion system and research methods, steps, figures and data.In the fourth chapter, it gives the results of empirical test, and analyzes its significance in theoretically and practically.In the last chapter, it gives a conclusion, which is helpful for the reform of enterprises in the future.The organizational slack is not only the cost of enterprises, but also the unique and potential advantages of enterprises. Only enlarging the cognition for the source and characteristic of organizational slack can manage internal redundant resource effectively and take special and positive effect fully.The relationship between organizational slack and operational performance in enterprises is not only the issue researched by scholars in China and abroad, but also the concerned issue of managers for dealing with the slack in the process of reform. In this paper, we get that there is a relationship between organizational slack and performance, which is negative or positive, after we analyze the financial data of 600 state-owned enterprises between 2001 and 2002. And it has theoretical and practical meaning on how to efficiently improve enterprises'performance with organizational slack.The results can give some suggestions for managers, investors in China and abroad and policy-makers. Firstly, it is not wise to eliminate slack simply, because our research indicated that the slack in two stages has positive effect on performance. Secondly, it is not enough to know slack is helpful for enterprises sometimes. And we should know the range of slack in the enterprises, and launch different strategy to improve efficiency in different stage. For example, when the relationship between slack and performance in the enterprise is in the positive correlation stage, the high investment will not only consume the slack, but also influence the normal operation if the enterprises develop the new product and enter international market blindly. Thirdly, practitioner must pay attention on negative effect of slack, and know clearly that ideal level of slack will result is unexpected reduction of performance. For example, enterprises shouldn't be diversification and internationalization excessively which will result in the reduction of performance.