The Role of Management

The role of management

The structure of ownership and employment has experienced a significant change in the past 25 years with the implementation of economic system reform since 1978. The ‘Open Door’ policy has successfully accelerated the economic development by encouraging and introducing the Western managerial knowledge and the Japanese style. The reform path underpins the formulation of the special Chinese employment relation system as a result of the cultural influences and the modern western theories.

Ownership forms

-Domination of SOEs and COEs before 1978

During the state-planned economy period, state-owned enterprises (SOEs) and collectively owned enterprises (COEs) were the drive forces to push the national economy forward.

-Diversification of ownership forms since 1978

Because of the political and economic reform, new forms of business ownership have arisen to participate in various industry sectors. As a consequence the employment relations are suffering a great revolution (Cooke, 2005). Especially after joining the World Trade Organization (WTO), foreign direct investment (FDI) has attracted a number of investments. Foreign-invested enterprises (FIEs), such as foreign-owned business or investments from Hong Kong, become the most popular employers. Meanwhile, the opening gate of Chinese economy leveraged the growth of domestic private enterprises (DPEs), individual economy (self-employed business), township etc.

-Employer organization

The All-China Federation of Trade Union (ACFTU) appointed by the nation is the only official association represented for the employers and workers in all the sectors.

Labour market

The majority of workers experience little protections and get little welfare, though it seems that the working style and appealing right have been improved among the workers. There are primarily three types of workers in China.

-Working class

This group of people were mainly employed by the state sectors and enjoyed satisfying social welfare and benefits. Even though the restructuring reform in SOEs, such as the termination of employment security and welfare reduction, impaired the relationship between the workers and