Establish A Culture Of Cost Control As The Core Business - A New Driving Force For Sustainable Development Of Enterprises

This paper focus on studying how to build up certain corporate culture, which makes every employee have mission feeling, lowers corporate costs and doubles its profit.Firstly this paper tells research category and meanings of cost control and analyses how to control costs by value chain and cost drive factor. Then it studies relationship between cost control and corporate culture construction. It discusses essentiality and major merit of incorporating idea of cost control to corporate culture. Finally it dissertates several problems, which should be paid attention to in the course of implementing corporate culture, focus of which is cost control.This paper can further inspire some new thoughts and new ideas in corporate cost management.After cost control incorporated to corporate culture, employees begin to accept corporate culture just as they join the corporate. After cost control rooted in their thinking, they can easily accept ideas of cost control management.Ideas of cost control should be part of corporate culture. When implementing cost control, we should eliminate the wrong thought that cost cannot be reduced, train all employees, require them recognizing fully that reducing cost is endless and pay enough attention to cost management and cost control.We should form employees' democracy and self-management consciousness. In daily cost management, we can use research results of psychology, sociology, social psychology and behavioristics actively and introduce a kind of inherent restraint and incentive mechanism in employees' behavior norm. According to human being demand level theory, we should introduce inherent restrains and incentive mechanism, which emphasizes the highest-level demand of human beings, that is demand of self-development and self-realizing. This mechanism emphasizes self-encouragement of the human nature. It doesn't need any external restraint makes employees do themselves best while make contribution to the development of enterprises. This mechanism changes the old management style, which bases on punishment, reward, external restraint and incentive. It is most effective management style to lower cost self-management and is the lowest cost and effective cost management style. In a word, we should turn corporate culture construction into action.We should establish endless benign cycle among culture--action –result. We can lower costs with language, assume command culture and make culture effective by action. Behavior produces result, then cost is reduced, finally profit is raised and so corporate has more fund to reward those should be rewarded. This reward makes staff believe corporate culture and the result emphasizes the corporate culture. At that time, lowering cost and raising profits will become a kind of habit.