Production Head Office In Zhengzhou City Management And The Case Of Workers' Layer Acquisition And Analysis

As China joint WTO and is gradually establishing social market economy systems, the government's function is changeling into the economic management mainly through the macro-control ways, government owned economy is being strategically adjusted and state-owned business enterprises are gradually withdrawing from the competition fields. In our state enterprises property right is still a most serious problem such as unreasonable structure of property right, high agency costs, "internal person control" and the lack of effective incentive system etc. So reform in the system of property rights of the state enterprises necessarily needs deepening. Economists believe that Management and Employees Buy-out(MEBO) is a good way to solve the problems above mentioned.This is a case about how Zhengzhou Production Materials General Company executes MEBO, by which I aim to show you how MEBO play a positive role in resolving the problems mentioned above. In this text, on one hand I introduced and analyzed the theories on MEBO; on the other hand I illustrated and explained what experiences we had got and what problems still existed there.The whole text is divided into two parts. In the fires part, I described the case and supplemented the important materials including financial reports and government documents. In the other part, I come to the conclusion based on my analyzing.According to my study and analysis on the case, I found it mainly possessed the following characteristics:1. Being legal in procedure.2. Being strongly Supported by local government, particularly in the aspect of reform costs.3. Being supervised by the government.4. Being more democratic.5. Being more publicized.6. Some historical problems being solved legally.However, there are still some problems which need to be discussed and resolved as follows:1. The local government did more than what they should do in processing the concretes things. That may result in unreasonable evaluation of state-owned assets.2. No information indicates that the company realizes the importance of corporation culture in the development of company. As a matter, whether the managers and employees are integrated will play an key role in the future of it.Therefore, I suggest the process of MEBO should be more publicized in order to reduce the loss of state-owned assets as much as possible. In addition, The leaders who are responsible for the loss of the company should be punished in accordance with taw.