Analysis On The Reform Of Business System Of Shanxi Securities Co., Ltd

During the process of China’s financial market development, with the expansion of capital market and the increase of the securities business, the size of securities organizations has a dramatic growth. Not only could securities corporations engage in acting stocks dealings, but they expand into diversified newly developing business including assets management, investment bank and some more complex business. With the pace from a single region to the national market of securities institutions, divisional organizational structure has been established step by step. The change of organization structure leads to significant improvement of business levels and management skills. However, the complication of organization structure will bring new conflicts and problems such as inefficient management decisions, function overlaps, lack of risk control and so on. Therefore, reform and innovation for securities companies’ internal organizational structure have great influence on existing issues.Shanxi securities co., LTD., founded in 1988, is one of the earliest securities firms after reform and opening-up of China. In December 2001, with the approval of China Securities Regulatory Commission (CSRC), Shanxi securities made acquisition and merger with five trust companies in Shanxi Province. After implementing capital raising, Shanxi securities set up a new securities firm based on the original limited company. But with the continuous expansion of the company’s assets, rising business income and the incensement of regional office and direct sales department, the former simple divisional organizational structure has been the constraints on the development of the company. So at the end of 2014, the board of Shanxi securities decided to reform the current organizational structure.Of course, enterprise organization structure changes will involve in sort of new issues. For example, what about the result of enterprise organization structure innovation reform? How to implement the innovation of the enterprise structure reform step by step? Which risks should be under control during the process of reform? How to avoid the existing risks on the premise that company could enjoying the dividend from the reform? All the above are fundamental keys which must be solved of the structure innovation and changes.Aiming at these problems, based on management theories such as enterprise organization, organizational behavior, etc. This paper make use Shanxi securities’ structure reform as the case which firm the author belongs to, around the implementation of the reform process and the detail implementation steps. In order to analyze the feasibility of the securities organizations’ structure innovation reform, to explore new model of the enterprise organization structure innovation. And combined with the implementation result from Shanxi securities’ structure changes, it is hoped to actually provide innovative ideas and theoretical and practical reference for our country’s structure enterprises who have similar intend on structure reform.