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Kingdee Consulting: the trilogy of management trends

the general trend of the world is to divide for a long time and divide for a long time. In this separation and combination, the management mode has played a considerable role. Taking the Three Kingdoms as an example, Wei, Shu and Wu respectively represent different management modes. Shu started from an alliance of three brothers. It is a typical family business, a kinship management mode of kinship and connection. Wei Guo is a typical modern enterprise, which adopts the complete incentive management mode. Wu operated for three generations, using only a few capable family members such as Zhou Yu, as well as private enterprises with a certain scale in China. The more popular research directions at home and abroad for family management are the hybrid management mode of automatic universal electronic testing machine, dynamic testing machine (such as fatigue testing machine, impact testing machine) and incentive management. Because different management modes have also created different national power patterns, Wei is the strongest among the Three Kingdoms and Shu is the weakest. It can be seen that the management mode has a great impact on the development of the organization

is the management mode of Wei perfect? As we all know, the Three Kingdoms finally returned to Jin. Why did this result? Under the incentive management mode, the poor sense of belonging and loyalty of subordinates to the organization is the main reason for Sima family to win the final results

similarly, many existing organizational management models in China are not ideal, which has seriously restricted the development of organizations. However, many organizations do not attach importance to the management mode and feel unable to start. Kingdee consulting believes that the choice of management mode has its own rules, and it is evolving with the development and scale of the organization. Looking at the development and changes of major organizations at home and abroad, there have been three major trends in the management mode: standardization of family enterprises, incentive of state-owned enterprises, and socialization of modern enterprises

the first major trend: standardization of family business

family business is a common form of enterprise organization worldwide, such as Panasonic and Rockefeller family, which plays an extremely important role in the international economic arena. In China, private enterprises with family businesses as the main form have become an important part of China's economy

with the development of enterprises, especially after the number of employees exceeds 2000, this kind of management mode based on human relations, randomization and experience is not enough, and managers will feel particularly difficult. Family businesses need a breakthrough in management mode. For example, the Wu state in the Three Kingdoms period has been operating for three generations, and after having a certain economic foundation, it has the strength to introduce a large number of professional managers such as Lu Su, realize the separation of ownership and management rights, and realize standardized management. Therefore, it is necessary to establish a management system, adopt a unified incentive management mode, transition to modern enterprises, and gradually standardize management

Kingdee consulting believes that there are several key issues to deal with in the standardization of family enterprises

first, we need to clarify property rights and realize the separation of two rights. Among the current domestic enterprises, family business management is the weakest. In the entrepreneurial period, there are few assets and focus on market development, and property rights are vague within the family. However, with the development of the enterprise, this vague property right relationship is easy to cause the interests struggle within the family. In addition, clear property rights are the basis for the separation of ownership and management rights. In terms of specific operation, to realize the separation of the two rights, we can start with the diversification of owners and finally realize the diversification of property right structure. Secondly, strengthen the governance of the corporate structure, and family members voluntarily give up part of the management power, enter the board of directors, and gradually withdraw from operation and management. Finally, introduce professional managers, and finally realize the relative separation of management rights and management rights

second, solving the double standards of family business management is also the focus of standardization. Most family enterprises adopt the double standard management mode to manage the enterprise, the family management mode is used internally for family members, and the incentive management mode is used externally for members. This double standard of management is easy to cause management confusion. Because under this double standard, the relatives and friends of enterprise owners have more opportunities than external members, resulting in internal unfairness, brain drain and ultimately lack of competitiveness

finally, solving the randomness of family business management and the lack of system is also an integral part of standardization. In family enterprises, because the family management mode is adopted, human management, random management and experience management are common, so the system is very lacking. Even if there are a few systems, because the internal management adopts double standards, family members are often the destroyers of this system. To solve these problems, we must separate the two rights

the second trend: the incentive of state-owned enterprises

after four reforms, the existing state-owned enterprises have basically implemented the joint-stock reform, and the separation of ownership and management rights has been achieved in terms of corporate governance. In terms of operation and management, contract management culture has basically occupied the mainstream. If employees are under contract system, performance contract management should be carried out for the management of managers, and there are also performance contracts for general employees. Within the enterprise, performance pay has been widely implemented. All this, it seems that the incentive mechanism has been implemented

however, this is not the case. At present, state-owned enterprises mainly adopt the mixed management mode of family management and incentive management. Under the influence of family management mode, the incentive problem of state-owned enterprises has not been fundamentally solved. There are a lot of phenomena in state-owned enterprises, such as complex interpersonal relationships, slow response to the market and customers, nihilistic or ineffective implementation of the company's strategic planning, too small salary gap, difficult entry of social talents, irregular talent promotion, redundancy of personnel, and departments unrelated to the company's performance

the main reason for the insufficient incentive of state-owned enterprises is the excessive separation of ownership and management rights. First of all, the formal owners of state-owned enterprises, the SASAC and the board of directors are not real owners. The ownership goes from the state to local governments, then to the SASAC, then to the board of directors and management, and finally to the management and employees. There is a five-level principal-agent relationship. After five levels of principal-agent relationship, the final operator actually has nothing left. In addition, state-owned enterprises have the identities of managers, officials and businessmen, and Hongding businessmen, so it is difficult to clarify their responsibilities. Therefore, the restriction of enterprise executives mainly depends on professional ethics. And this kind of no rigid constraints, it is easy to cause moral hazard. Finally, this risk is transferred to enterprises, which often leads to disastrous consequences for enterprises. Therefore, it is necessary to explore the incentive methods of state-owned enterprises

in the real sense, the performance salary and the employment mechanism of cadres can be promoted or demoted are the fundamental ways to solve the incentive problems of state-owned enterprises, and also the development direction of the management mode of state-owned enterprises in the future. Under this management mode, enterprises are required to divide into small units, clarify performance indicators, and introduce professional manager system. Kingdee consulting believes that the future trend of state-owned enterprises will be a major reform in the incentive of management teams. It will be the future trend for the management to break the tenure system and adopt the tenure appointment system. Only when the performance target is achieved within the term of office and the salary is paid, can he stay in office, otherwise he will be dismissed. For ordinary cadres and employees, the lifelong employment system can still be adopted. The incentives for these employees come from the downward transmission of management incentives. Under the effective incentive of the management, the incentive mechanism is transmitted downward, and finally forms an effective incentive for the whole organization

the third trend: the socialization of modern enterprises

among the three countries, Cao Cao is the most knowledgeable manager. From the establishment of political power, he was established in the way of modern enterprise management. He has great talent and strong strength. He not only knows the external environment well, but also knows the key elements for the success of the company's operation. He is farsighted in strategic planning and meticulous in specific operations. In terms of incentives, reward and punishment are clear, which is a completely incentive oriented management method. At the same time, he has millions of soldiers, more than a thousand generals and countless advisers

why can't such a powerful company still be rich for three generations? By the third generation, the power has fallen, and the fifth generation has died (excluding Cao Cao, who didn't claim the throne)? In the final analysis, such an enterprise is still a family enterprise, and its equity is still single. At the same time, modern enterprise management, most of them learn from the American management mode and adopt the incentive management mode. Under such an incentive management mode, Liaoning Province will build world-class petrochemical industrial bases in Dalian and Panjin in a fierce external competition mode, and employees have low loyalty to the enterprise. The ability can be used by the company, but the inability can be abandoned by the company at any time. In such an unsafe state, it is difficult to say what loyalty you have to the company. As long as the conditions are mature, the yield strength of natural metal materials must be less than the ultimate strength. In this way, due to the continuous division of the company and the continuous strengthening of industry competition, the enterprises in the industry are bound to close down one after another, forming a situation that the rich can't be three generations

will this cycle continue forever? Management theorists and entrepreneurs have made bold explorations and beneficial attempts to socialize modern enterprises

at the beginning of the establishment of Microsoft, the equity was also very single. Later, through employee equity incentives, company listing and other ways, the company is not Bill Gates' personal company, but a social company. At the same time, modern entrepreneurs are also very different from previous entrepreneurs in their attitude towards personal wealth. In a media interview in 2008, Bill Gates said that he would donate all his $58billion property to the bill and Melinda Gates Foundation, his charitable foundation, and would not leave a penny to his children

Kingdee consulting believes that the socialization of modern enterprises is manifested in three aspects: the continuous social dispersion of enterprise equity, the continuous strengthening of enterprise society, and the socialization of individual assets of enterprise owners. This trend shows that the largest shareholder of enterprises in the future is not individuals, but society. This trend shows that enterprises are not only legal persons, but also social people, and the socialization trend of enterprises is becoming more and more obvious. The core of this change trend is that the management of modern enterprises is integrated by incentive management mode and social value management mode. This socialization of modern enterprises not only meets the requirements of social development, but also changes the concept of personal wealth. At the same time, it is also a useful exploration to establish the ten thousand year foundation of enterprises

in short, in order to jump out of the cycle of cooperation and division of the organization, managers are exploring the management mode of the organization's ten thousand year foundation, which is reflected in the change of the organization's management mode. Kingdee consulting believes that the overall change trend of management mode is: first, the incentive based management mode of family enterprises and state-owned enterprises will be strengthened; Second, the social management mode of modern enterprises and government organizations will be widely recognized by the society; Third, the incentive management model and social value management model will eventually integrate. This integrated management mode will gradually realize the synchronous coordination of fairness and efficiency, pursue the common development of employees, enterprises, governments and society, and finally the world will become a world of common prosperity and development under this effective management mode. (end)

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