Chapter 1386 - Big business disease

Why did Liu Tao propose the split?

In addition to the decision made from above to carry out in-depth reforms, a very important reason is - big enterprise disease!

Over the past thirty years, from Panshan Machinery Factory to Panshan Group, the development speed has been extremely fast, reaching a jaw-dropping level.

Panshan Group grew into a behemoth very early on.

This behemoth was extremely large even for China at that time, but it still developed rapidly, from domestic to foreign. Up to now, it has become an incredibly large multinational enterprise.

Business covers all over the country!

Even in Europe and the United States, there is a considerable industry!

Even in war-torn areas, there is still business.

In the process of development and growth, it has gradually developed the big company disease, which is a chronic disease that makes people anxious.

The so-called big company disease is generally characterized by bloated organization, multiple leadership, and talent loss.

Organizational bloat is a basic characteristic of "big business disease".

A small group is assigned to handle matters that can be handled by one person, and a large group is assigned to handle matters that can be handled by a small group. Generally, there are many middle-level leaders, senior leaders, and responsible persons. When there are a lot of people competing for interests, they will shirk responsibility at critical moments, leaving subordinates confused and seriously affecting the development of the company.

The company lacks cohesion, talents are not valued, and the company's development is slow, resulting in the loss of talents who are truly passionate and love their careers.

Panshan Group is a central enterprise and a state-owned enterprise!

How could Panshan Group completely avoid the problems existing in central enterprises and state-owned enterprises? ?

Many employees regard their current jobs as a stable job, thinking that even if they have no merits, they have worked hard in the development of the company. They live on the strength of their qualifications and experience, and even the superiors cannot move them.

Just like in government departments, even if it is a lowly clerk, the department leader cannot fire him no matter how unhappy he is. At most he will be left on the bench.

This situation also exists in many companies under Panshan Group. The company leaders dare not even fire lazy employees, because it is not easy to fire an employee in central enterprises and state-owned enterprises.

This phenomenon actually existed before and is becoming increasingly serious.

The destructive power it causes is not just a problem of reduced efficiency, but it will also cause a group of ambitious talents to be affected and corrupted, or leave.

It's not just ordinary employees who have problems, the problems within the cadre team are even bigger!

Some people think they have made contributions and that their level is high enough, so nepotism and wanton behavior are common. When they are investigated, they still shout that they have made contributions to the company and that the company should not abandon them.

Various problems arise frequently and become increasingly serious.

As the country is deepening reforms, Panshan Group, as the largest state-owned enterprise in the country, will naturally follow suit.

The most fundamental purpose of reform is to enable enterprises to eliminate their malpractices and regain vitality, rather than sitting on the laurels of the past. That would be like a sick patient whose illness will become more and more serious as time goes by, and in the end, there will be no cure.

Of course, another more important purpose is to raise more funds for regional integration through market-oriented operations.

Regional integration requires a huge amount of investment.

If we do it like the Americans, then this will not be the regional integration that China wants, but will become the current North American Free Trade Area.

What China wants to achieve is true regional integration, which is the integration of the entire region in terms of economy, politics, military, culture, etc.

This means that China has to invest money, and invest large amounts of money continuously.

There will also be a lot of difficulties here. These difficulties do exist, but they must be overcome.

But in the final analysis, you need money!

Money is not everything, but without money, nothing can be done.

In addition, it involves the reform of the mainland stock market, or financial reform!

Although the A-shares have been established for many years and performed well in the beginning, they could not withstand all kinds of outrageous operations, so that now the A-shares are in a mess. Various market makers treated investors as leeks and cut them round after round. Many listed companies lost their ambition and became junk stocks. It is not uncommon for people to become major shareholders by speculating in A-shares.

Therefore, there was this financial reform.

These enterprises of Panshan Group are all leading enterprises in their respective fields and should play a catfish effect.

During the 12th Five-Year Plan period, five companies were divested and fully marketized, involving a market value of more than 10 trillion yuan.

As for the internal system of Panshan Group, it is like killing the chicken to scare the monkeys, so that everyone will be alert.

If an enterprise is completely separated and operated in a market-oriented manner, it will no longer be like before. Employees will no longer have a stable job, but may be fired at any time. This will smash the stable job and make everyone feel a sense of crisis.

At the time, Liu Tao felt that the original rules were good and had good intentions. If everyone worked hard and conscientiously, they could get a good salary with guarantees, and they could also strive for excellence and develop towards the "craftsman spirit". But the facts have proved that this is not a permanent panacea, because humans are the most complex animals in the world, and human hearts are the most difficult to guess.

Adjustments must be made based on actual conditions!

As for the five companies to be divested, they were chosen with due consideration, as all of them are mainly in the civilian field.

China Motorcycle Group, a global leader in the motorcycle field, accounts for one-third of the world's motorcycle sales each year, and the motorcycles it produces are sold well all over the world.

China Automobile Group, a leader in the global automotive field, is the absolute overlord in traditional fuel vehicles and emerging new energy vehicles. It has dominated the world's automobile sales champion list for many years and is also the highest ranked among the world's many automobile companies and among the Fortune Global 500 companies.

China Gree Home Appliances Group is the world's dominant player in the field of home appliances. Its business scope includes air conditioners, refrigerators, televisions, electric fans, hair dryers and other products. Even at the worst time of the economic crisis, its market value did not fall below the trillion level.

Southwest Airlines Group, the leading enterprise among China's civil aviation companies, owns the largest number of civil passenger aircraft and civil cargo aircraft among China's civil aviation companies, and has the largest and most powerful talent pool.

Ludao Airlines is second only to Southwest Airlines among China's civil aviation companies.

"Leader, this..." Liu Qiang opened his mouth and stammered, wanting to say something but not daring to.

Liu Tao frowned and said, "Since you are attending the meeting, just say whatever you want to say boldly. It's useless to be so hesitant."

Liu Qiang, General Manager of Huaxia Motorcycle Group, graduated from Tsinghua University. He joined Huaxia Motorcycle Group right after graduation and was appointed as the General Manager of Huaxia Motorcycle Group before the age of 50. He is definitely a leader.

Liu Qiang went to the production workshop after graduation and worked his way up from a worker in the production workshop. He is a typical insider. People like Liu Qiang are also the most normal situation in all the companies of Panshan Group.

Liu Qiang took a deep breath. As time went by, Liu Tao's authority in the entire Panshan Group system became more and more powerful. Even a leader of Liu Qiang's level felt tremendous pressure when facing Liu Tao.

Although Liu Tao has always been approachable and respectful of talents, everyone's awe of him is growing.

Up to now, apart from Chen Weimin, no other senior executive dared to joke with Liu Tao.

In the group's leadership, a part of the team is replaced every term, and I don't know how many times they have been replaced so far.

Back in the Panshan Machinery Factory era, basically everyone has retired.

After all, even if you started working in 1980, you have been working for 30 years now!

According to the group's regulations, under normal circumstances, men must be 60 years old and women must be 55 years old. In special cases, those who work underground, at high altitude, at high temperature, in particularly heavy physical labor or other work that is harmful to health must retire at the age of 55 for men and 50 for women. For voluntary retirement, men must be 55 years old and women must be 50 years old, and they must have worked for 20 years or more, or 30 years or more.

Because the basic pension, position salary, and grade salary are calculated at a certain ratio, and the basic salary and tool salary are calculated at 100% of the salary, many people will take the initiative to apply for retirement once they reach the voluntary retirement age, so that they can live a peaceful retirement life and find a new job outside. The relevant units will often approve the active application for retirement.

In this case, Liu Tao is already the most experienced person in the entire Panshan Group, and his contributions are unmatched.

It is because Liu Tao has always adhered to his principles, otherwise the entire Panshan Group system would have become his one-man show.

"Leader, if we follow the first draft, I'm afraid most employees will find it difficult to accept it emotionally. Most employees have been in the company since they started working." Liu Qiang stood up and spoke, organizing his words.

After Liu Qiang's speech, others who felt that it was inappropriate also spoke up.

Over the past few years, there have been a total of 20 companies affiliated with Panshan Group that are listed on the mainland stock market and in Hong Kong.

But more of them are not listed.

It's not that they don't want to go public. In the listing trend, local governments want companies to go public, and company leaders also want their companies to go public. However, due to the size of the company, it is easy for them to absorb all the funds in the stock market, and most other listed companies will probably end up in tragedy.

This is also why there has always been a saying in society that listed companies are not China's high-quality assets, but rather a large number of unlisted central enterprises and state-owned enterprises.

For example, Huaxia Expressway, Huaxia High-speed Railway, Huaxia Airport, State Grid Corporation of China, etc. are not listed.

China Motorcycle Group, China Automobile Group, China Gree Home Appliances Group, Southwest Airlines and Ludao Airlines are listed companies, but not completely listed companies because these five companies were not listed as a whole at one time, but were split up. The smallest one was split into three parts and listed, while the largest one was split into ten parts and listed but some of them are still not listed.

The corporate culture and atmosphere of listed companies have not changed much and are still the same. This is why all employees, from top to bottom, consider themselves to be employees of state-owned enterprises and employees of the Panshan Group system.

This situation exists not only in these listed companies, but also in other unlisted companies.

How many people are there in the entire Panshan Group system?

Tens of millions level!

For example, Huaxia Expressway, which is not listed, has a total number of employees exceeding 50,000.

For example, the unlisted China Railway High-Speed ​​Railway has a total number of employees exceeding 2.5 million!

As a super large state-owned enterprise, Panshan Group has always assumed not only corporate responsibilities, but also considerable social responsibilities.

There are quite a lot of positions provided for families of martyrs, wives of police officers, wives of soldiers, disabled veterans, etc.

When faced with a crisis, not only will we not reduce recruitment, we will increase it to ensure the employment rate of college graduates.

It is necessary to deepen reform and eliminate internal malpractices.

However, complete divestiture and complete market-oriented operation may not necessarily be a good way to solve the problem.

The emotions of employees must be taken into consideration!

Big business disease does exist!

But more employees is good!

We cannot deny the majority of good employees just because of the problems of a small number of employees.

"Leaders, what you comrades said makes sense. We all support deepening the spirit of reform and getting rid of malpractices. However, this is a complete separation. Should we discuss it further? I suggest conducting an internal poll to see what everyone's wishes are. What do you think?" Chen Weimin raised his hand to speak.

Southwest Airlines and Ludao Airlines are both affiliated to China Southwest Aerospace Corporation. Chen Weimin once served as the general manager of China Southwest Aerospace Corporation and is familiar with the situation.

Even though Chen Weimin is now the general manager of China Southern Ordnance Group Corporation, the spin-off of Panshan Group will not happen in China Southern Ordnance Group Corporation, not to mention in the future, at least not in the short term.

But Chen Weimin still felt that the original draft was a one-size-fits-all approach and somewhat inappropriate.

Liu Tao did not expect that everyone’s opinions would be so strong.

He listened to everyone's opinions and suggestions, and he didn't get angry. Instead, he couldn't help but reflect on himself calmly.

Big business disease exists.

But have all the workers become lazy? Have all of them become corrupt?

That’s absolutely not the case!

Most of the employees are good!

There is no doubt about this!

Every year, Liu Tao would take some time out to walk around and take a look, to be with the grassroots workers, to listen to what they say, and to take a look at their lives.

Hearing both sides will lead to enlightenment, while hearing only one side will lead to confusion.

Liu Tao would not just rely on what his secretary said or look at internal reports. He would rather believe what he saw with his own eyes and heard with his own ears.

As some people have said, they are state-owned enterprises, not private enterprises.

If we adopt a one-size-fits-all approach, then what’s the difference between us and capitalists?

If they are separated, most employees will definitely not be able to accept it emotionally.

Over the years, almost all employees regard the company as their home.

That kind of emotion is definitely not just talk, but it really exists.

Even now, many workers who have reached retirement age, even wearing big red flowers, still shed tears on their retirement day, saying that they can still work healthily for another ten years, or even for a lifetime! (End of this chapter)