Research On The Relationship Between Organizational Slack And Corporate Entrepreneurship

Competitive spirit, market-favored products, and lower cost of production are keyto a company’s survival and development. Hence, a considerable number of iron andsteel enterprises pushes technological upgrade for production line, abandons the olderequipment, improves quality of the products, invests more in new product development,enhances product competitiveness, reduces the cost of the production remarkably, andcuts off the overstaffed offices to improve office efficiency.In the process of technological advancement and company expansion, manyprevious apparatuses and workforces become redundant. Because of this situation, theseemployees could potentially become a burden to the corporation. Moreover, due to thenature of State-Owned Enterprise, it is problematic when comes to downsizing.By studying the relationship between redundant resources and reassigningresources, one enterprise could make the perfect strategy to avoid the aforementioneddilemma, and therefore ensure the company’s profitability without downsizing.Based on the theories of human resources and organizational behavior, this studyfocuses on one particular State-Owned Enterprise P, as the model to demonstrate how toreutilize redundant resources while guarantee the success of the company.This study examines the forming process of corporation P’s redundant resources,including technical termination, material redundancy, and workforce overload; it alsoexplores the reasons behind the formation of redundancy, and how to reutilize thesedifferent types of resources. This study especially analyzes corporation P’s severalstrategies, including products restyle and upgrade, hot coil box technology, hot rolledtwo-level automation technology and it concludes that:1. Corporation P is a capital-intensive enterprise so that resource redundancy isinevitable.2. Corporation P solved the problem of resource redundancy by reutilizing therecourses, recreating jobs and recycling material recourses to make the company evenmore profitable.This study provides a theoretical guidance for reinvesting in redundant resources, improving profitability, and reassigning resources. Moreover, it discusses the possibilityof recreating jobs within the companies as well as between different companies. Toconclude, this study is useful for practice of entrepreneurship and reassigning redundantresources of corporations.