Qingdao Foundry Machinery Co., Management Of Change Research

Qingdao Foundry Machinery Group Company, built fromQingdao Foundry Machinery Work, which is a first–grade medium-scaleenterprise engaging in the scientific research, manufacture and trading offoundry machinery in China. It is the earliest enterprise thatmanufactures the metal surface treatment equipments and the firstenterprise to pass the IS9001 Quality Certificate System. Due to somehistorical and realistic disadvantages, Qingdao Foundry MachineryGroup Company encountered some difficulties in strategic operation,such as declining market share, high turn-over rate in technologypersonnel, limited capital available, less effective control over businessperiod, production cost and quality, out-of-date compensationdistribution package, negative employees, etc.. In order to solve thoseproblems and improve the performance, Qingdao Foundry MachineryGroup Company began to promote managerial transformation in 2004year.The main idea of this paper is to discuss a series of managerialtransformation measures, including the rearrangement of theorganization structure, the adjustment of business process, projectmanagement and re-distribution of the compensation package. For therearrangement of the organization structure, this paper suggestsredefining the functions of different departments in order to well definepower and responsibility;it also suggests intensify the function ofhuman resources and finance departments in order to well control overall the departments. For adjustment of business process and projectmanagement, after analyzing the present process, this paper suggestsredesigning those processes that influences the business period,production cost and quality,. Based on the new process, the papersuggested promoting project management to improve the efficiency ofthe core business process. For compensation package re-distribution, inorder to motive employees, by abandoning the present fixed and averagepackage distribution system, raising the salaries of sales, technical staffas well as middle management, and adopting floating wage system, thewhole company will focus on profit. After transformation, QingdaoFoundry Machinery Group Company's efficiency has been improvedstep by step. Further transformation measures will be taken in the future.