Advanced Search
MyIDEAS: Login to save this article or follow this journal

Expansion of the Enterprise's Decision-Making Power and Change in the Ownership Relation

Contents:

Author Info

  • He Jianzhang
Registered author(s):

    Abstract

    For a long period of time a highly centralized administration, a system of direct state management, was exercised over industrial enterprises of public ownership by the whole people in China. This means a centralized arrangement for production, monopolized purchase and supply by the state, and unified collection of the revenue and disbursement of expenditure. In a word, the powers to manage personnel, financial, and material resources as well as supply, production, and sale were all concentrated in the hands of administrative agencies of the state at all levels; the enterprises did not have the decision-making power in regard to their operation and management. As all activities had to be conducted according to instructions from higher government agencies, the enterprises could hardly assume responsibility for the results of their operation. Consequently, it was the state that was held responsible for the losses or gains of the enterprises, which all ate "from the same big pot," namely, the state. An enterprise had no power to make adjustments for the wage earnings and fringe benefits of its employees. As the employees' personal interests were not tied to the results of the enterprise's operation, they, too, could only eat from the "big pot" of the enterprise. As a matter of fact, it is impossible for the state to handle properly all the supply, purchase, and sale relations of the enterprises, impossible to solve in time all the problems involving their manpower, material, and financial resources, and impossible to get rid of bureaucracy completely. Low efficiency and poor returns are the common failings of a highly concentrated management system.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=L60325662853416T
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by M.E. Sharpe, Inc. in its journal Chinese Economy.

    Volume (Year): 19 (1985)
    Issue (Month): 1 (October)
    Pages: 10-16

    as in new window
    Handle: RePEc:mes:chinec:v:19:y:1985:i:1:p:10-16

    Contact details of provider:
    Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=110901

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:mes:chinec:v:19:y:1985:i:1:p:10-16. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.