Analysis On The Reformation Of An Institute Of Building Research

With the constant deepening of economic system reform in our country, many secondary research institutions that deal with of their own accord face restructuring, namely restructuring into scientific and technological enterprises. According to the overall requirements of the state about deepening the reformation of research institutions management system, directly under construction department, Provincial Academy of Building Research has begun to step into the road of reform since 2001 to explore the development of the enterprise. In 2001, Provincial Academy of Building Research was reformed to a technology enterprise from a public institution. In December 2005, it reformed the company's system successfully, from an enterprise owned by the whole people to a private enterprise. At the same time, based on the requirements of modern managing structure of the juridical person, Provincial Academy of Building Research set up the board of shareholders, the board of directors and the board of supervisors. It also employed the general manager by the board of directors.Through the company system reform, Provincial Academy of Building Research continued to expand its scale. From 2005 to 2013, its production value grew from 40 million to 160 million. In 2005, it had 200 employees, and now the number of employees has increased to 500. Meanwhile, its markets have expanded to Liaoning, Shanghai and so on. However, compared to other units that reformed in the same period, such as Provincial Communication Planning Survey and Design Institute and The Architectural Design and Research Institute of Province, the development of Provincial Academy of Building Research is not very fast. Its output per head and profit margins are relatively low, and its original equity appreciation rate is less than a third of the other two companies'. That is because Provincial Academy of Building Research still follows the management mode of enterprises owned by the whole people, although it established corporate governance structure. Its board of shareholders, board of directors and board of supervisors perform practically no function. What is more, Provincial Academy of Building Research has many problems in management, for example, the board of directors'intervention is too large. Business development lacks innovation. It lacks simulation measures on the general manager. Compensation structure is not sound, and it pays more attention to return on equity, and ignores the employees'labor income.To make Provincial Academy of Building Research better to adapt the market competition, and realize corporate growth in employees'income, shareholder dividends and benefit, summing up the reform experience of Provincial Academy of Building Research, and learned from experiences of other companies, this paper puts forward several aspects to explore the reformation plan of Provincial Academy of Building Research:making trade union replace the small shareholders leadership, pay attention to the guiding role of development strategy, improve legal entity's governance structure, set up operator long-term incentive schemes. Hoping to condense development joint effort, conformity development resource, promote the further development of Provincial Academy of Building Research, and make shareholders and employees share the achievement of development with enterprises.