Expansion of the Enterprise's Decision-Making Power and Change in the Ownership Relation
AbstractFor 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 InfoIf 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.
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 InfoArticle provided by M.E. Sharpe, Inc. in its journal Chinese Economy.
Volume (Year): 19 (1985)
Issue (Month): 1 (October)
Contact details of provider:
Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=110901
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral 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.