The Problems And Countermeasures Of The Enterprise Organization Cost Control

At the current stage of enterprise development strategy, the cost control plays an important role and has a far-reaching significance on the development of enterprises. In essence, any organization is an economic organization. In order to keep the economic organization working normally, the cost must be paid, which is the organization cost. To some extent, the organization cost determines the organization value, because the organization value equals the gap between organization earnings and organization cost. For an economic organization, the organization cost depends on their internal structure and mechanism. In order to maximize the organization value of the enterprise, it is necessary to control the organization cost. After reading relevant literature both at home and abroad, we found that few scholars made a thorough analysis on the organization cost. The thesis, beginning with how to comprehend the organization, adopts such research methodology as literature review, qualitative analysis and cross-disciplinary research to relate theory with practice. It also applies other knowledge in the field of management, psychology, organizational behavior and accounting. The thesis can be divided into the following steps in order, which is, introducing the topic, posing a problem, analyzing the problem and solving the problem. The purpose of this study is to explore the problems, causes and strategies of the organization cost control, thereby finding out the ways and advice to reduce the organization cost, improve the enterprise efficiency and better the management. Another purpose is to make the managers and employees of the enterprise think of better ways.The organization cost lacks of comprehensive and systematic theoretical explanation. What’s more, most of the organization cost is the hidden one, which cannot be exactly reflected from the accounting records. And it also has all kinds of sources. As a result, it doesn’t draw much attention of the enterprise. This article points out that the enterprise’s organizational structure, business processes, IT and outsourcing are the key influencing factors. The hidden cost of the organization cost includes the opportunity cost, information communication cost, efficiency cost, influence cost and failure cost of decision-making. The occurrence of the cost is closely related to the management of the enterprise. From the perspective of its sources, the problem of organization cost lies in enterprise managers, organizational structure design, and human resources management. For example, the wrong decision-making, the unreasonable organization structure, over-centralized management, giving the priority of material over human resources, and the unreasonable performance appraisal and incentive mechanism. The thesis based on the cause analysis of problems, combined with the status of China’s enterprise to conduct in-depth analysis and discussion, it offers the following strategies and measures: implementation of strategic cost management in the enterprise, optimizing the organizational structure design, creating a learning organization, establishing a full cost-conscious, mobilizing the staff reduction cost, and improving the performance plan and taking advantage of incentive theory, improving and perfecting the accounting of the hidden cost and the enterprise system institution. The vitality of the organization can only adapt to environmental changes in order to sustain, the enterprise to win the gradual breakdown of the market must be optimized and even re-design the suitable organizational structure for its own. It is based on the strategic objectives of the enterprise and the enterprise outside environment, to minimize the cost from the cost control management. To reduce the organization cost, it is necessary to achieve the optimal allocation of human resource in the organization, so that the quality of personnel and its post can match, and every employee can give their wisdom and talents to the enterprise.The conclusions are as follows. In the control of the enterprise organization cost, it should establish a capable and efficient leadership team, improve the design and innovation of the organizational structure, and achieve the optimal allocation of human resources, which can greatly reduce the organization cost and improve the economic efficiency of enterprises.The thesis is composed of six parts. The first part is the introduction, which analyzes the background and its significance. The literature review, the methodology and the basic structure are included in this part. The second part is an overview of the organization cost of the enterprise. It starts with the meaning and characteristics of the organization cost to explain the organization cost, influencing factors, as well as the relational management theories. The third part is about the problems of the organization cost control. The thesis poses five major problems. The fourth part is the cause analysis and it introduces five reasons. The fifth part describes the countermeasures to improve the organization cost control problems of enterprises. In the last part, the thesis summarizes the conclusions of this research, as well as some deficiencies in the research process.