The management development of a large company group in China

A case study of Honko Steel Manufacturing Group

Abstract

Chinese enterprises are now changing the old management system sustained under planned economic policies into a new management system which adjusts for a market economy operating inside socialism. In the past, a lot of attempts to change the management system and organizational structure have been undertaken in Chinese enterprises. This study deals with management development activities conducted by one of the largest steel manufacturing company groups, Honko, as a typical case of the recent innovation. Firstly, after reviewing the history of the group, the process of change in organizational structure and management systems is precisely described. Secondly, the characteristics and the problems of new system are discussed. Thirdly, future goals for the series of innovations are proposed. The proposals suggest that:(1) The strong authority held by high ranking maagers and main departments should be delegated, (2) Equity of wages should be maintained, and (3) The responsibilities of the committee of the socialist party and the responsibilities of the president of the firm should be clearly separated.