AM Lecture 2

Effects of "Corporatization"

The government attempted corporatization to improve performance, for example, some did sell shares and were listed in outside stock exchanges, such as the US. However, many sold some shares to outside investors but were still the major shareholders, so the firms effectively remained SOEs.

Zhang et al. (2004) hypothesised that listed SOEs would do better than unlisted firms, in terms of learning practices and performance results.

Service-orientated firms do better than manufacturing firms, as they are customer focused, meaning they have the philosophy of change and learning. This makes them a "learning organisation".

A learning organisation, according to Zhang et al, is one that:

• Learns and encourages learning among its people
• Promotes exchange of information between employees hence creating a more knowledgeable workforce
• This produces a very flexible organisation where people will accept and adapt to new ideas and changes though a shared vision

The above points encourage the organisation and individuals to learn, so that they can adapt to the outside world. The organisation is arguably more like a family, as information flows throughout the company, as opposed to the static rigidity of a SOE.

The Learning Organisation

Change motivation

Chinese culture

Chinese management and tradition

Sinoelectronics - Case study

Other studies and remarks on Chinese management

Conclusions