Case Stady On The Employees Relationship Management In The Property Rights Reform Of Guangyue Company

The restructuring of property rights of state-owned enterprises, which seems to be achange of the ownership of properties, is in fact a change of human relationship. The reformof state-owned enterprises will lead to a thoroughly reform of employment relationship ofsuch enterprises. After the restructuring, the employees will no longer enjoy their identities asemployees of the state, and become employees of enterprises. The substance of therestructuring of state-owned enterprises is the restructuring of the relationship between theenterprises and the employees.In July2011, according to the reply by SASAC, Guangdong Guanyue (“GY”) initiatedits restructuring of property rights. The aims of the restructuring is to lower the state-ownedshare of GY from80%to less than15%, thus change GY from a state-owned enterprise to anon-state-owned enterprise. The largest impact caused by the restructuring is that theemployees, who loss their identities as employees of the state, feel confused about their future.Therefore, the most important task is to strengthen the management of employmentrelationship, stabilize the employees’ expectation, establish a harmonious employeerelationship. During the progress of the restructuring, GY stuck to the aim of building upharmonious employees’ relationship, focused on the key issues including management oflabour contracts, psychological contracts, employees status, common expectation etc.. Byenhancing communication with employees, implementing employees’ participation,upholding democratic decision-making, balancing employees’ shareholding, and carefullymanaging employees’ relationship, GY established a common expectation which is acceptedby the employees, and got a good result in the restructuring.Of course, GY’s restructuring over-focused on equality of the shares which are held byemployees. Although the over-equal design of share percentages, which satisfies theemployees’ demand of equality, is beneficial to the establishment of employees’ relationship,it may cause negative effect on the motivation of entrepreneurship. Therefore, balancedsuggestions are provided in this paper.