Prominent Problems Existing in Redevelopment of Private Enterprises and Countermeasures - Tsinghua University Training Thesis

Private enterprises, as the name suggests is private, ordinary people do business. In accordance with the ultimate ownership of an enterprise and its operating mechanism, except for state-owned or state-controlled enterprises, other types of enterprises are private-owned enterprises. Since the reform and opening up, private-owned enterprises in Yangzhong, Jiangsu Province, have made great strides in development. At present, they occupy an absolute share of Yangzhong's total economy and play an important role in Yangzhong's economic development. However, looking at the development history of private-owned enterprises in Yangzhong over the past decade, it is not difficult to see that there are too many enterprises that have experienced "starry splendor." After three or five years of leading positions, they actually turned from "stars" to "meteors." Blink of an eye, into the "because of accidental success, because of necessity and failure," the vicious circle. Based on the understanding and analysis of private enterprises in Yangzhong, I made the following thought on the outstanding problems and countermeasures in the further development of private enterprises.

First, the current Yangzhong private enterprises exist the main problems

1, family-style management has become the re-development of private enterprises shackles.

Some people say that family business has created a brilliant private enterprises in Yangzhong, in a certain sense, this sentence is based on. In the beginning of the establishment of enterprises, the conditions are very difficult, kinship or kinship ties together the family members and the total difficulties of the enterprise, its rights and responsibilities of a unified, self-management, flexible operation, higher efficiency, its internal cohesion and solidarity as well as enterprise The tacit understanding between management, these advantages undoubtedly will have a positive impetus to the production and management of enterprises to promote the growth and expansion of enterprises. Family management is particularly significant for the distribution industry in Yangzhong.

However, when the business development to a certain scale, the disadvantages of family business will gradually be exposed. Therefore, some people think that family business is an impenetrable quarry for private-owned Yangzhong enterprises. This remark is not without reason. First, members of the family belong to the hero of the enterprise. With the formation of the enterprise foundation and the expansion of the scale, these veterans and "relatives of the imperial relatives" have begun to gain their share of pride and rule out alienation. This part of people are often not high-quality, but also finger-pointing, not only easily lead to business decision-making mistakes, to bring serious business losses, but also urgently needed talents can not come in, even if they come in will not be reused, difficult to enter Policy makers make suggestions. The able-bodied people outside the family feel that there is a lot of brain drain when the business does not have a future. Talent is the blood of enterprises, the failure of hematopoietic function for the development of enterprises ring the death knell. Second, the family business is an empirical management, the enterprise does not have a complete set of constraints and oversight mechanisms, policy makers are often the "parents" a person have the final say, its decision-making arbitrariness, romance and ambiguity can Think of it. In this case, the decision-making experience of its decision-makers from wealth into a burden, once the decision-making errors brought to the enterprise is often drowned. Fengzhong Yangzhong City, a well-known village-owned enterprises in the early reform and opening up has created a brilliant output value of 100 million yuan. This kind of success, easily obtained under special conditions, makes the business owner feel that he can do anything. So in the absence of scientific market research, the head shot, decided to invest tens of millions of copper on the project. However, with the gradual maturity and standardization of the market economy, the emergence of irrational economic drawbacks in Yangzhong, and the combined effect of many factors such as the serious investment cost of the project and the fierce competition among family members, Difficulty, the scenery is no longer. Third, family-owned businesses have difficulties in choosing successors. Children may not be suitable for business, more children, but also inevitably compete for successor position and each other. Seek professional managers, and red and difficult to accept the family-based management model, not red, but also tantamount to lead the wolf into the room.

In short, the family business model is adapted to the production requirements and formed in a specific context. With the improvement of the socialization of production, this business management model is outdated and has become a serious constraint for enterprises to become bigger and stronger. Of course, family business does not mean that no family member is allowed in the business. If the enterprise management is based on the scientific management system, and family members can put their own position and have the appropriate ability, in its place, to do their duty, can share the affair, and have the same with the rich Correct understanding, that Yin can not avoid the pro-Yin.

2, blind expansion, diversification is the taboo of re-development of private enterprises.

People are not omnipotent. Similarly, an enterprise is not a panacea. They are over-ambitious, blindly spread their stalls, quick success, desperately pursuing high speed and diversification. They not only lack energy, financial resources and manpower, but also find it difficult to adapt to the ever-changing market needs. Enterprises in the fierce competition in the market into trouble. Such examples are not uncommon in Yangzhong. Yangzhong City Top 30 in the forefront of a village-run enterprises in the early years of its creation three or five years, specializing in the production of power distribution products, its output value, benefit doubling every year, not only for the local economy has made an important contribution, and has become Private enterprise success model. At that time, government departments first commended and praised business leaders, and then organized more businesses to visit and study. Just then, the giants of China built the "aircraft carrier" and the rocket-type growth of the three groups. The myths of the gigantic giants staged by the private-owned enterprises in the same period aroused the pride of the private entrepreneur to create a miracle in Yangzhong. First, Tens of millions of cable investment in the project, then the LCD screen, cordless phones, wood companies put into operation, during which another cross-industry merger of a steel mills in Nanjing. What is the result? The entrepreneur admitted at a wrap-up meeting after a government organization went to Zhangjiagang and Kunshan to visit and study: "The Group has invested over 100 million yuan in cross-sector development over the past few years, with few successes." A village party secretary said: "These investments are not much success, but all flooded." Over sixty days of the three President Wu Bingxin once spoke fiercely to the fierce Giants president Shi Yuzhu said: "should not earn There is not much money in the world, but few people have the power to curb their appetite. "Ironically, these two men became China's privately-owned enterprises At home because of "unconventional expansion" and "unconventional diversification" and failed typical. Yangzhong's private entrepreneurs who follow the footsteps are still no shortage of people.

Because of the temporary success in a field or a product, you over-exaggerate your energy, blindly think that you can do anything you can, and you can succeed in entering any industry. In a few products On the same time successful, think diversity is the way of business success, you can ensure that the East is not bright west. Enterprises under the guidance of these ideas are not far from the crisis.

3, the target business shift, the pursuit of vanity is the barrier to further the development of private enterprises.

The main objective of the enterprise is the pursuit of profit maximization. After some private enterprises in Yangzhong achieved certain achievements, the principal leaders of enterprises no longer regard their own development as the goal of the enterprise, but instead pursued some non-economic goals and even pursued vanity , Deviate from the direction of doing business. Corporate behavior, no longer for the development of enterprises and improve economic efficiency, but to make people look like appearances, especially in the face of government leaders to show off themselves, promote themselves. Xinzhuang Town, Yangzhong City, there are two power distribution manufacturing enterprises in the early 90s the output value exceeded 40 million yuan, its size and effectiveness are walking in the forefront of the city counterparts, the government has been constantly rewarded. In the face of flowers and honor, their original relentless pursuit of a career turned into a wealthless pursuit of endless restraint. The ballroom and the hotel became their home, thus creating a "brilliant" history of the Xinba Regal Hotel; "gambling" and "playing the miss" became part of their lives, thus creating a precedent for the gambling in Yangzhong ; In order to study abroad in the name of asking the government leaders involved in the mountains and oceans travel, which opened the Yangzhong 90 business ventures abroad. One of the entrepreneurs set up factories at both the town and village levels. In 1994, it managed to manage 286 desktop computers at a time and managed to become a model of modern management. Sadly, none of the middle-level cadres knew how to input Chinese characters. At this time of the enterprise, on the surface looks vigorous, thriving, in fact, already in crisis, to declining. Today, both private entrepreneurs are tasted vanilla brewed by their own pursuit of vanity.

Second, the current Yangzhong private enterprises to solve the problem of redevelopment measures

1, effectively improve the quality of private entrepreneurs, is the fundamental development of private enterprises.

"China Youth Daily" In the "2000 survey of college students fill in volunteer trends," "entrepreneurs" with 20.8% of the candidates to become candidates for the most important "best job." Although it is difficult for me to make a clear and precise definition of the concept of "entrepreneur", in the eyes of common people, entrepreneurs must accurately grasp what should be done and how they should do in the fierce market competition. To this end, entrepreneurs should have beyond ordinary people's foresight, innovation, judgment and control power. However, statistics show that "private entrepreneurs" in these "entrepreneurs", who are favored by scholarship, have less than 30% of them have college degree or above, while those who fail to understand the financial statements exceed 30%. The overall quality of Yangzhong private entrepreneurs may be higher than the national average, but the overall level of the lack of a serious constraint on the re-development of private enterprises in Yangzhong. Therefore, effectively improving the quality of private entrepreneurs has become the fundamental development of private enterprises.

Mr. Liu Chuanzhi proposed in Tsinghua University's "Business Excellence Leadership Forum" two characteristics of the outstanding leaders are "lofty ambitions, strong learning ability." Therefore, private enterprises in order to achieve rapid development, private entrepreneurs should first Strengthen their own learning and transformation, continuous, selective participation in professional learning and training, continue to improve their business management, legal awareness and ability to control the market in order to adapt to the requirements of managers in the information age. Only by giving visionary insight to entrepreneurs will there be an improvement in the quality of all employees in the enterprise. Only by giving full play to the subjective initiative of people can enterprises be invincible in the fierce market competition. Second, private entrepreneurs should establish five kinds of consciousness: innovation consciousness, opportunity awareness, service awareness, collaboration awareness and self-awareness (conscious self-development, self-accumulation, self-restraint, self-actualization). Thirdly, private entrepreneurs should also set eight kinds of values, namely, a reasonable profit concept, a legal business concept, a civilized competition concept, a social benefit concept, an optimized ecology concept, an enterprise ethics concept, an art outlook on man and a risk avoidance concept (five kinds of consciousness, Eight kinds of values ​​first proposed by the Shanghai University of Technology Luo Changhai). Only by improving the overall quality of private entrepreneurs will Yangzhong private enterprises become possible again.

2, eclectic to attract and retain talented people is the basis for the re-development of private enterprises.

The interpretation of the concept of "talent" can be said that the benevolent see the benevolence, the wise see the wisdom, with academic qualifications and professional titles to determine, with its contribution to society to determine. I think, talent should be judged by the market, for the needs of enterprises, others do not, you have; others do not, you will, then you are a talent. Therefore, who has the talent necessary for the development of the enterprise, who has mastered the magic weapon in the competition. At a very competitive talent competition today, attracting and retaining talented people has become a topic worthy of study by private entrepreneurs. So Yangzhong private enterprises how to attract and retain good people?

First, we must create a good working environment. Work environment includes "hard environment" (ie office facilities) and "soft environment" (ie working atmosphere) in two aspects. Good office facilities can not only improve work efficiency, but also ensure employees' physical and mental health so that they can maintain a healthy and balanced attitude and a comfortable mood under greater work pressure. A relaxed and harmonious working atmosphere and harmonious interpersonal relationships Allows employees to maintain good emotions at all times, give full play to their talent and imagination.

Second, we must formulate appropriate wage remuneration. Economy is the foundation and the first goal of employee's work. Therefore, to formulate a suitable wage payment, so that employees feel "worth their price," so as to work for the peace of mind of enterprises, not because of wage problems and job-hopping. In addition, we should also develop appropriate and effective incentives, so that talented people feel valued at all times.

Third, we must carry out work design. Job design refers to the staff arranged to their interested, suitable jobs, to stimulate their enthusiasm for the work, to be good at doing things, make the best use, make the best use.

Fourth, we must improve the spiritual incentive model. Although the primary goal of employee work is money, purely material incentives do not keep good people. The necessary mental stimulation can stabilize people and motivate their work. Only the combination of business development goals and personal goals in order to enable outstanding people to produce a strong corporate identity and sense of responsibility. Only talented people feel the joy and challenge of their work, and can fully demonstrate their own talent, so that talented people can generate satisfaction and self-realization.

Fifth, to provide employees with training, learning and promotion opportunities. Training is provided to employees. Learning is an intellectual investment in an enterprise. Through advanced study and learning, not only can employees' knowledge and skills be updated, but they also can make them mentally productive. By providing promotion opportunities, employees can have Strive for the goal and maximize their talents, so as to achieve the purpose of retaining talent.

3, strengthen management, change "rule of man" to "rule of law" is the key to the re-development of private-owned enterprises.

If family management is called "rule of man," then institutionalized management belongs to the category of "rule of law." Private-owned enterprises must be freed from the family-owned management mode that few people have the final say. According to the requirements of the modern enterprise system, a corporate governance structure with discretionary powers of decision-making, management and management is established. Formulate and implement scientific management systems and business processes, standardize the behaviors of organizations and individuals, clarify their responsibilities and supervise them effectively, and form a management mode of scientific decision-making, process standardization and examination and institutionalization. The strict and scientific system of management and fully mobilize the subjective initiative of employees combine to change the "rule of man" as a "rule of law", so as to achieve the purpose of comprehensively enhancing the competitiveness of enterprises. This is the key to the re-development of private-owned enterprises in Yangzhong.