Organizational Structure Changes after Privatization of State-owned Enterprise－In the Case of China Steel Corporation

• Main Authors: Juinn-Sheng, Lee, 李俊生
• Other Authors: 吳昇曄
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/85284444730071895825

碩士 === 義守大學 === 管理科學研究所 === 91 === Under the trends of liberalization and internationalization of worldwide economy, the originally state-owned enterprise of various countries successively follow the policies of their governments and march towards privatization. Due to the step-by-step change of economic pattern in Taiwan, the state-owned enterprise, upon completion of their missions in stages, are guided by the government to adopt privatization because the government expects to see the vitality and flexibility of private businesses to be added in the state-owned enterprise. Meanwhile, the government also hopes that through market mechanism, the overall economic resources can be most efficiently allocated and used. Therefore, to comply with the government policies, China Steel Corporation (CSC), from the administrators to the foundation staff, positively put efforts in accomplishing the task of privatization. Finally, on 12th April, 1995 as the government held a proportion of shares of lower than 50%, CSC was changed to be a private company. Owing to the rapid alterations of the whole environment, the change of social formation, the trends of government policies, the progress of information technology and the worldwide competition, the privatized CSC, in pursuit of persistent operation, must face reorganization and reforms internally. CSC positively developed towards diversification and the transformation into a group. It changed its role of “a producer of iron and steel materials” with iron and steel business as its core in the preliminary stage, to the role of “a supplier of iron and steel materials.” It referred that the original pure production plant was changed to be engaging in the production of iron and steel products and the running of iron and steel business. To meet the policies of diversification and transformation into a group, CSC, apart from maintaining its core business of iron and steel, had changed the positioning of its operation to be the role of “a supplier of industrial materials” so as to assist the development and operation of the original associate enterprises and to explore the realm of new business. In this way, CSC not only produced iron and steel products, but also started diversified operation, including the business of steel structure, environmental protection project, coal chemicals, blast furnace cement, silicon chip material, etc. After privatization, in order to make a good use of the existing resources and achieve a professional division of labor, CSC continued to develop outwards, and explored its business realms according to the business correlation, technical correlation and process correlation. Through the establishment of correlated businesses, CSC made a flexible use of its operation resources and raise the utility efficiency of resources so as to exert synthetic effects of the business. Therefore, the whole organizational structure of CSC was transformed into a group. It covered the related businesses of iron and steel as well as the industrial materials, including the areas of channel business, construction business, financial business, servicing business, information business and newly-emerged industries. CSC had been transformed to be “a supplier of industrial materials, good-quality life and brain resources. Generally speaking, to expand the business coverage and pursue a persistent growth, the organizational structure and the operational and development strategies of the privatized CSC coped with the development trend of the whole environment, and made appropriate adjustment in the right timing in consideration of the conditions of the internal resources of CSC. In future CSC will even put much efforts on the goals of “diversification, internationalization and transformation into a group.” Only an enterprise with visions can it exert its potentials. Therefore, CSC has proposed a goal of a total business income of NTW22,000 billion of the group in 2005. The growth strategies of CSC group, as formulated under these visions and through the gradual transformation into a group, have created new development space. Whenever mentioning the state-owned enterprise, people must have in their minds a picture of a large group of blue ants eating a large bowl of rice. It seems that the staff of state-owned enterprise are just like the rice worms. But let us think about this carefully: these staff who passed the examination and then served in the state-owned enterprise, were a group of outstanding people of that time. Their talents made them being selected from the great number of candidates. In fact many of the smart and unforgettable officials in government departments and many professional mangers in many private enterprises were originally the staff of leading ranks in state-owned enterprise. Having been metamorphosed from a state-owned enterprise to a private business, CSC went through continuous organizational structure changes, innovations and reconstruction, and changed itself from a model student in the prosperous age of state-owned enterprise into a smart business among the private enterprises. CSC has set a good example for the privatization of state-owned enterprise. And the organizational structure and the operational and development strategies of CSC after privatization also provide the enterprises with a reference and an example for comparison.