Download The Non-standard Labour Force Behavior of State-owned Enterprises

The Non-standard Labour Force Behavior of State-owned Enterprises
PAN Malin
Zhengzhou Light Industry University, P.R.China, 450002
[email protected]
Abstract: Perfecting step by step along with the China socialism market economy reformation, the
state-owned enterprise reformation has been arrived again one crucial moment. The human resource
development and management of the China state-owned enterprise is reaching a special real meaning.
This paper is studied the China present managing situation of the state-owned and state-controlled
enterprises by the way of human resource development and management. And the influence of China
society economy development has been analyzed by it. The Pandora-box of the non-standard productive
labour action and the low benefit with high input has been analyzed by the way of studying the inside
and outside factor of human resource. The one of the crux of restricting the China state-owned
enterprise and the society economy development has also been demonstrated.
Keywords: Human resource, state-owned enterprise, labour force's action, production efficiency
1 The foreword
Being in under the background of the china society mould turning phase and the world finance crisis
background, the whole world enterprise has entered the winter state. According to the concerned
economists, this winter state will go on about 2 years at least. The three big resources that the enterprise
relies on are human resource and wealth and substance. But the wealth and substance also needs
human to go to manage them, therefore the factor of human resource is the most importance in the
business management. But the China state-owned and state-controlled enterprise still exists some
problems. The high input inefficient benefit is not adaptable each other with our country economy
development and reformation. This paper is studied the China present managing situation of the
state-owned and state-controlled enterprises by the way of human resource development and
management with economic and management and statistic theories etc. And the influence of China
society economy development has been analyzed by it. The Pandora-box of the non-standard productive
labour action and the low benefit with high input has been analyzed by the way of studying the inside
and outside factor of human resource. The conclusion of restricting the China state-owned and
state-controlled enterprises and the society economy development has also been demonstrated. The
argument of "the low production efficiency influence of the state-owned enterprises has been worked on
by the non-standard labour force behavior” belongs to original creativity of author's. It has not been
found identically in the home and abroad. Seeing also the new examined report of science and
technology (number: 200941b0100577) by Henan Science and Technology Information Research
Institute in 2009 year 5 months 18 days.
2 The meanings and function of inside and outside essential factor and the
working behavior of the human resource
The development and management of human resource exists inherent essential factor and external
essential factor. The management of inherent essential factor is to the mentality of person and the
management of action. The human resource is the combination of particularity person. As far as the
individual of person, the subjective dynamic role is the foundation of zeal and the creativeness.
Thought of one person, and mentality activity and action all are the shows of the subjective dynamic
role of person. As far as the colony of person, every subjective dynamic role of aspect one by one not
certainly all can form the optimum effect of colony merit ability. So can appear the appearance of 1+1<1
and 1+1=0. If the colony is consistent in the thought concept, it is harmonious in the feeling,
coordinating actions. The merit of colony can equal to whenever the sum of aspect merit ability one by
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one. 1+1=2 is appearing. If the colony latent capacity can be constantly aroused out, the merit of
colony can probably be made the greater sum of aspect merit ability than one by one whenever, to
realize 1+1>2.
The economic developing in China, the restriction of resources and capital is very great. The
improvement of them is comparatively difficult. It is excess that the China human resource supplies,
and the human resource is the richest in our country.
The human resource action is the reaction and action of a workingman such as obtains, employment,
obtaining employment occupation, reward, leisure and working condition etc. The action of human
resource is with the ethics thought and culture, character, knowledge standard of a workingman,
cognition, manner and motive etc. Except to the reaction of economy condition, the human action is
also reacted strongly with the societies of factor to cause, interpersonal relationships, honor and
confidence. Therefore, the human resource action not only is the workingman as "a economic person "
and the action of "a society person”. Every workingman is engaged in economy activity, and has the
action with the motive of self all without exception, but the economic appearance and achievements that
all relates with labour are the results of workingman's action. Therefore the work action of human
resource possesses the close relation with the economic growth in the relation of human resource input
and economic growth.
The work action that supplies action and work of workingman force has the difference in the human
resource. Namely labour force is the labour force physical strength and the sum of intelligence,
indicates person who possesses the work ability. But the working is the consumption of physical
strength of labour force in various economy activity and the various activities related with economy and
mental power, namely labour physical strength and consuming of intelligence. Reality that labour
force works supplies is produced by the work action decision of labour force, such as management etc.
So, as for output and economic growth, supplying of the important is not labour force quantity, and is he
labour force's diving into who pays real work capacity.
3 The non-standard productive labour action and its cause of formation of China
state-owned and state-controlled enterprises
The angle of from labour individual is spoken, and labour will gain the biggest income with least work
consumption (physical strength and intelligence consume) in the work course. From the angle of entire
economic performance maximize of the enterprise and society seeing, physical strength and intelligence
that labour pays to the enterprise and institution is adaptable each other with his reward of income. So
the reward maximize of the unilateral physical strength seeking of labour and the minimization of
intelligence consumption is the work action of not standard to society and enterprise and institution.
When the labour action is conforming to the standard, and the output is hastened in the normal standard.
When the labour action is not conforming to the standard, the output standard descends.
In the economy life of reality, particularly in the state-owned enterprise of China, the labour force does
not give out his due efficiency, so the output is the not biggest. This kind of appearance is short of
irritating or competing pressure, and it produces the motive force shortcoming of the labour force.
That has made labour different contributing in working, and namely labour force's action has the level
show of standard and non-standard. In the course of time, this makes that the state-operated
big-and-middle-sized enterprise of China has become the difficult point in the reformation. Speak that
the sore is not more approached into the carbuncle for a long time as the common saying. The
enterprise economic structure operates in spite of faults, it is accumulated many long-standing problems,
"like notes money shortcoming, the huge amount is not repay the debt, the existence of a large number
of redundant personnel as well as the enterprise does the society etc., the nothing is not establishment
modern times the obstacle of enterprise system ". In the work action extremely not standard, labour
does not contribute to working only to go to work, or energetically a bit, at the same time they are not
responsible to works, and are serious to manipulate miss, hold the enterprise property, to do personal
products in working time. The appearance such as has even to the extent that appeared more serious
embezzlement waste and the public money is eaten and is drunk and the prostitute is visited prostitutes
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by public money tour and public money and "officer embezzles greatly" and "small officer embezzles a
little while" and "common people broom and iron wire is moved toward the family" etc. His loss that
the result is the enterprise is more than workingman to supply to the work of unit. Thus creating the
enterprise output kills to carry on the back. This kind of enterprise is bound to lose. And as labour
force during the super standard of action, when namely labour selflessly offers as a tribute, the
enterprise output increases, and the work cost reduce. This kind of enterprise only occupies the only a
few.
Owing to the labour force's action is non-standard, they only dive into the capital alternation to work in
the state-owned enterprise of China in order to pledge that the output is unchangeable. The more the
non-standard work action, the more the input capacity of capital. Shown like the chart 1.
Chart 1. The long-term requirement curve of labour force, and the alternation effect and output effect
caused by the non-standard labour force action.
Having three waiting production output thread in this chart (A), G2 is the highest, and G0 takes second
place, and G1 is the lowest. They represent respectively the three output standards of high, middle and
low. Diving into quantity working approaches under the fixed circumstances, if the work action
standard, the real input capacity of work 0LA, the capital input capacity is OK1, the outcome is G0.
If
the work quantity is OLB, the outcome will be descended from G0 to point E of G1's production standard,
ordering the work action is not standard. The work action universally exists not under the
circumstances of standard in the China state-owned enterprise, and the output of many enterprises does
not descend. It is because with the capital dives into to compensate the work action not standard to
keep output standard of G0. Such as, the nominal work input of enterprise is OLA, but the real work
input measures for OLB. Diving into capital essential factor from K1 to K2, it replaces the inefficient
rate to keep the output in the standard at point B of G0. The large redundant personnel are deposited in
the big and middle-sized state-owned enterprise of China. The huge amount debt will not be paid off.
And the fund can be not poured full. They are the genuine causes of the state-owned enterprises. Not
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to get a effecting radical cure like these causes, and only can create producing more, the more loss it is.
The outcome is bigger, and the big vicious circle aspect is got over in the loss.
Diving into to the working at LA and the capital at K1, the normal outcome should be the point A of G0.
But if the interior and external essential factor condition of labour force is good, the character standard
of personnel is high, and the output that can appear 1+1> 2 are more than the dive into. Namely the
manpower capital input alternation capital is dive into, and the outcome achieves at point D of G2 under
the equal input condition. This kind of circumstances is the only a few in now available in the China
enterprise.
The selection of enterprise profit maximize and cost minimization should be A's point scheming in (A)
under the normal condition. If the outcome is at the point G0, it produced by the working unit LA and
the capital unit K1. The wage value has been changed from W1 to W2. In spite of the enterprise can
according to the now available standard continue produce, the production method more concentrated to
the capital will be moved, about for B's point. The labour force that can make and use falls from LA
that this also is replacing the effect to LB. It has been replaced by another kind for one kind of input.
Moreover, owing to the high wage is, the enterprise will produce few output, so the labour force's
quantity that it used also should be descended. This effect is output effect or scope effect, and appears
for moving from the point of B to the point of C. Labour force's quantity should be descended to Lc
further. The effect (from LA to LC) is the variety of the substitute domino effect and the output domino
effect.
Long-term labour force's requirement curve is formed by the points of A and C . The enterprise
organization has realized cost of production minimization and profit maximize on these points. Being
shown like the picture 1 (b), this is a labour force's requirement curve that inclines down. That point of
A is exactly relative with A in the picture. and the point of C also opposites to each other with
the point of C. No matter when capital quantity is unchangeable in the short-term, being still when
capital quantity is variable in long-term, an workingman force's requirement curves of enterprise should
all be the down incline.
But now owing to the naught elasticity of the labour force supplies and the wage supplies in the
enterprises of China, the naught elasticity requirement curve of labour force can be given off in the chart
(b) from C to D . Also it will not reduce the outcome, giving birth to the output effect of the wage
adjustment from the point B to C. So it is more to have appeared production in most enterprise
organization, the big vicious circle aspect is got over in the loss. Also it is thus clear that these
appearance from the enterprise economy operating and the national economic statistics data. Firstly,
see from the time queue. Owing to the fact that the real work supplies go down by the relative labour
force's supplies year by year, the capital will be inputted more and more to replace the shortcoming of
the real work supply, thus making the product matter consumption specific gravity move upward year by
year.
According to the nation statistics bureau datum, the specific gravity in the industry gross output value of
belonging to the nation industry in 2004 serve as 15.3%. The specific gravity of belonging to the
nation industry at present probably still will be lacked at the datum [1]. See the table 1.
＇
＇
＇
＇
Table 1.
Total
＇
＇
The specific gravity in the industry gross output value of the enterprises of state-owned and
state-holding in 2004 years
(100 million yuan)
Number
Total
Annual
Gross
Total
Revenue
of
Profits
Average
Industrial
Assets
from
Number of
Principal
Enterprise Output Value
(current prices)
Employed
Business
(Unit)
Persons
(10,000
persons)
137.5
23.23
(Ten 24.07 (Ten 21.84 (Ten 1.31 (Ten 9304 (Ten
(Ten
thousand)
thousand)
thousand)
thousand) thousand)
thousand)
231
State-owned
25339
23519
44694
24181
1089
892
Enterprises
State
Joint 756
523
837
499
26
10
Ownership
Enterprises
Joint State-collective 532
85
109
84
3
5
Enterprises
State Sole Funded 2083
9906
19237
10423
638
371
corporations
Total of State-owned 28710
34095
64877
43187
1756
1278
Enterprise
Specific Gravity of 2.1
15.3
27.0
19.8
13.4
13.7
Sum Total (%)
Remarks: The table datum is from the 505th page of << the China statistical yearbook in 2006 . The state-owned
property enterprises are chosen only in the tens kinds moulds that the industrial enterprise registers (they are
calculated moiety of the only the Joint State-collective Enterprises.). Then add to its, and removes with the total
industrial enterprises, and reaches the specific gravity.
Increasing the not standard labour force action increasingly, the capital beneficial result descends at the
same time increasingly. The serious loss occurs in the enterprises, or the name is full of solid
deficiently. The China state-owned enterprise capital profit had been descended to 2.55%, in 1995
from 24.2%, in 1966. Capital profit tax rate had been descended from 34.5% in 1966 year to 8.01%
now, the enterprise loses was from 36.4 hundred million yuan in 1979 year to 540.6 hundred million
yuan in 1995 year [2].
According to the announcement that is issued by the nation statistics bureau in 2006 year. The profit of
644700 million yuan had been made by the state-owned and state-ventured enterprises in 2005 year. It
had been increased by 17.4% than the last year. Among them, the number amounted to 102600 million
yuan had been lost by the loss enterprise, than the increasing rates compared with the last period 56.7%
in 2004. The state-owned and state-invested industrial enterprises had realized the profit of 644700
million yuan. That was the profit that had been deducted by the loss quantum of the loss enterprises.
The overall of from state-owned enterprise is seen, and his profit rate of increase transcends that GDP
rate of increase 15%. The state-economy still possesses the fixed superiority in the market in the
competition. But the loss number amount was 102600 million yuan of the state-owned and
state-invested industrial enterprises. It approached the huge loss amount in 1998. It was the second
loss summits in history. The new height loss number has been created of the 16 years [3]. The loss
appearance of enterprise economic performance is serious.
The problem that the business
administration also exists makes their work productivity raised relatively stagnant. The advance
one-step creates that the beneficial result is universally high, and The clear and hidden losses of the
state-owned enterprise are universally. The loss subsidy to the state-owned enterprise is one of major
cause that the government borrowed money. In addition, how many the hidden loss of the state-owned
enterprise every year is still hard to give out accurate at present. But according to the typical
investigation, darkly losing to have more at least more than 50%, the state-owned enterprise loss is often
being covered the problem that the belonging to the nation capital and property is run off than the clear
loss. This is the consumption fund of state-owned enterprise expands. The problems of the
administration cost etc. are hard controlled. And these are the one of the major causes.
4 The conclusion
All the problems are given rise to, being enterprise system and action not conformed to the management
and standard. The budget restriction of enterprise is softened, and the enterprise does not think over
the labour and the capital marginal revenue respectively, and it also dose not reduce the staff and
workers and the wage etc. to balance the low of work efficiency. At the output value and speed
objective is ordered about down, and the enterprise is in order to contend the loan, and contends
tax-freely, and contends the investment, and contends that the methods such as various resources etc. to
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make up the real reduced supply by the no standard labour force action to keep the increasing output.
The mould of the capital consumption (alternation) is the riddle of the inefficient benefit with high
investment of the state-owned enterprises in China.
Remarks: This thesis belongs to the content of the soft science item of Henan Province, PRC. (The
study of human resource development and management of the state-owned big-and-middle-sized
enterprises, the serial number: 005060300).
References
[1]. Liu Ri-xin, The specific gravity of the nation industry occupying industry gross output value in
2004 only is left 15.3%! , The banner net, January 18, 2007, 1, p1~3 (in Chinese).
[2]. The concerned data is from the China statistical yearbook (1996), September 1996, p 429, 433,
and the China statistical yearbook (2006) September 2006, p505~525 (in Chinese).
[3]. Li Shou-xi, The huge amount loss of the state-owned enterprises had been dialyzed, the China
reforms net, July 12, 2007, p1~2 (in Chinese).
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