How to view state-owned enterprises in foreign enterprises

I have worked in state-owned enterprises (SOEs), state-owned holding companies (SOHCs), private enterprises (POEs) and foreign-funded enterprises (FFEs), and I would like to talk about my views on SOEs, POEs and FFEs through my actual experience. The company I am currently working for is a British joint venture in China, which is controlled by the British side and is mainly engaged in the production, sales and service of power-related equipment. I have worked in SOEs for the longest time, for ten years in a state-owned listed company, an electric power engineering company, and for some time in the private enterprise Chutian Laser in Hubei. The following are my true feelings about the three types of enterprises. First, personal treatment. In terms of treatment, of course, is the best foreign enterprises. 1994, I was in Guangxi, a listed company's treatment is about 12,000 yuan per year, and then in Hubei, a power engineering company, if the headquarters does not travel, about 18,000 yuan per year, but the welfare is relatively high, each year, pension insurance, provident fund, medical care of the personal account of about 5,000 yuan. If you are at the construction site, it is about double (3,000~4,000 yuan/month). The current package at a foreign company is about 80-100k per year. There is also pension insurance and provident fund etc., commercial medical insurance and co-ordinated medical insurance. Overtime pay is three times the usual. The "four insurance and one pension" is about three times the average in Wuhan.

I was paid 1500 a month when I was in Chutian Laser, and 1800 after the trial period.

Only the officials in SOEs can travel on airplanes and sleep in soft beds, while the bosses in private companies can travel on airplanes and sleep in soft beds as long as the bosses agree to do so, and everyone in foreign companies can travel on airplanes and sleep in soft beds. The state-owned enterprises when the official can be divided into large houses, the average person divided into small houses, young people do not have a house. Private enterprises and foreign enterprises do not have a house, but the leadership of Chutian Laser and some of the backbone of the house. State-owned enterprises in the holiday year-end points of fruit and oil (procurement of these things is inevitable to fish kickbacks), foreign enterprises rarely points, but there is a year-end award (1-2 million). Second, the intensity of work. The most tired is private enterprises, the most relaxed is state-owned enterprises. I have served in state-owned enterprises in technical positions (technicians, project specialists), secretary to the general manager and management positions (by the way, I am specialized in mechanical engineering). However, technical positions in SOEs are very tiring, the income is also the lowest, but also have to take a lot of responsibility, so there is a lot of pressure. But management positions are very easy. In the private sector work as a technical most tired, but also very uncomfortable, a lot of pressure. Foreign enterprise work is not as tired as imagined. Maybe European companies are a little more humane. I have heard that Japanese and Korean foreign enterprises are very labor-intensive, I am not very clear, just heard. The nature of my work requires frequent business trips, and I usually work 250 days a year. The rest of the time, you can take a vacation or arrange your own working hours. The difference between foreign companies is that each person's position is given more power and a lot of freedom. For example, I am doing after-sales service, a person in the field to contribute to all things related to the equipment, including acceptance, equipment handling, on-site hiring, equipment commissioning and so on. When it comes to funding issues, you can generally make your own decisions, as long as the report can be. This is different from most state-owned enterprises. It is very difficult to deal with the expenses of state-owned enterprises. In the state-owned enterprises and private enterprises is usually "a pen", my state-owned enterprises have 2,000 people, so the boss has to sign a lot of words every day, really tired. Reluctant to decentralize, which may be the biggest difference between the management of foreign enterprises and private state-owned enterprises. Third, employee relations. State-owned enterprises have the most complex relationship between employees. I entered the power engineering company is recruited into, but most of the power system is relying on the relationship into, or internal children, so the recruitment into the company is often doing things, but if there is no relationship or not very good at dealing with interpersonal relations, then, the chances of promotion is very little. State-owned enterprises busy busy dead, play play dead, just into the company when almost everything to do, almost workers, technicians, quality inspectors things to do, very tired. After a few years you can tell the people who came in after to do it, play by themselves, the beautiful name of the apprentice. But the state-owned enterprises have an advantage, you again bad, no longer capable, no one dares to fire you. Sometimes in order to share the house general workers can break the leader's head. Our state-owned enterprise manager's head has been broken, because the distribution of housing is unfair. Employee relations in both private and foreign companies are very simple, and there are some conflicts, but they are not as complicated as those in SOEs. Foreign companies have better and simpler employee relations. Every year, they organize family trips and gatherings among employees. When it comes to difficult things, we all help each other, unlike private enterprises, which manage their own business and don't care about others. Both private and foreign companies don't know how much their colleagues earn in a month, at least not in detail. Labor unions and employee rights and interests. State-owned enterprises have the most powerful labor unions, with a labor union chairman, chief of staff, women's ministers, accountants, recreation ministers and so on, a large number of people, but they are only paid not to do real work of the Lord, and all have connections to that position. It is impossible for such a labor union to defend the interests of the workers, and there is never any negotiation with the leaders for higher wages for the workers. I find it funny to see the General Labor Union asking Walmart to set up a union, it's typical SOE thinking. Wal-Mart said, "We never oppose the workers to set up a union, and if the employees ask for it, the union will definitely support it. This is the way of thinking of foreigners, in fact, the trade union law also stipulates that trade unions must be organized by workers, the boss to organize trade unions, such a trade union can speak for the employees? Walmart actually stops being stupid. Our foreigners here were not accustomed to this Chinese way of thinking when they first arrived in China, and then the leadership slowly became "Chinese" and adapted to the Chinese way of thinking. They realized that the trade unions in China are actually for the enterprises, to coordinate the conflicts between the enterprises and the employees. Most private companies do not have labor unions. The foreign company I work for has a union, but no full-time staff, and unionization is currently limited to one trip abroad per year. It's hard to fire an employee in a state-owned enterprise because you have to go through a union congress to fire an employee, and more importantly, the leaders of state-owned enterprises are afraid of getting into trouble. It is common for private companies to fire employees and for employees to fire private companies. In general, foreign companies in Europe rarely fire employees, unless the business is not going on or really can not adapt to the work. Our company left the company is mostly fired company, only one is the company fired him. Most of the employees who leave the company have three destinations: to go abroad, to open a company, or to a better foreign company. Individuals fired will generally be notified in advance to the individual, let him find a new unit, find and then leave. Fifth, training. The most complete training system of foreign companies, but foreign companies generally will not hire a completely inexperienced graduates, foreign companies are also accustomed to recruiting people through headhunters. And once into the foreign enterprises, often into the list of headhunters, especially well-known foreign enterprises, almost everyone will receive a headhunter's phone. For students who have just graduated, state-owned enterprises are the best training base. It is generally difficult for students without work experience to enter foreign companies. It is said that Procter & Gamble hires fresh ones, but such companies are rare. State-owned enterprises training do not expect to send you specifically to further training, it is very difficult to give you, that kind of target will only be left to the officials and have relations. I would like to have training opportunities in the company, I remember a training I went to the leadership, learning for a month, back to the information to me, so that I can learn, things or I do, the people angry. State-owned enterprises can give you the best training is: do things. For example, the development of new products or a new project, this kind of thing in the state-owned enterprises, few people are willing to do, because there are risks, but also not much benefit. You boldly take the state-owned self assets to practice, no matter. This can be said to be your best opportunity to practice, where there will not be such a good opportunity. I am in the state-owned enterprises for the first time independently do product design, the first time for the chemical project, the first time for the real estate, these are very exercise, wrong will not go to jail, but the opportunity is rare. But the opportunity is rare, because whether you are in a private company or a foreign company, you will not have such a good opportunity for you to test the bull's-eye. There is little training in private companies. Foreign companies have more systematic training, even if you are already familiar with something, you may still have to have training every year. This training is usually within the company or group of foreign companies, rather than sitting in a classroom to listen to lectures. Sixth, management. One of the favorite sayings of state-owned enterprises is "management produces efficiency". There is nothing wrong with this phrase, but the state-owned enterprises have misunderstood the meaning of this phrase, the state-owned enterprises to understand this phrase as "good management of employees out of the benefits", or even become "the whole staff out of the benefits. In fact, even the strictest management of employees can not directly produce benefits. The real meaning of this phrase is "managed enterprises produce benefits", not "well-managed employees produce benefits". As a matter of fact, most of China's state-owned enterprises (SOEs) are no longer capable of competing with foreign enterprises, and the profits of monopolized enterprises come from policy support, while the profits of competitive enterprises have been getting lower and lower. Self-recorded information shows that the loss of state-owned enterprises in 2005 hit the second highest in history. State-owned enterprises are moving more and more towards the end of the industrial chain. This is my deep feeling about state-owned enterprises over the years. See the status quo of state-owned enterprises in Wuhan, let a person feel sad, even the Wu ship, Wu pots and these currently still good Wu enterprise is actually just have work to do, their profitability is very poor, I often see me some of the project subcontracted many times before falling into the hands of the Wu ship, the profit can be imagined, just to support the people only. At present, there are two types of foreign enterprises set up in China, one is to take advantage of China's cheap labor and set up export processing plants, one is to value the Chinese market and set up enterprises. Most of the latter focus only on sales and service. Such foreign enterprises do not recruit many employees in China, but they make considerable profits. For example, I know of the Beijing Philips Co., Ltd. has about 100 employees and an output value of about 1 billion, and as for the profits, they are much higher than those of related industries in China. (Here there is a foreign enterprise through the import of foreign companies in the Group to raise the cost of parts of the problem here will not go into detail, if deducted maliciously raise the cost of the factors, the profits of foreign enterprises will be higher). Why are the profits of foreign enterprises so high, because of technical barriers. Foreign enterprises have mastered the key technologies, there is no way. These technologies, not imagined so mysterious, many private enterprises in China through various means also mastered, but there are legal barriers. Private enterprises infringe on the patent rights of foreign enterprises from time to time lawsuits. In my opinion, the quality of workers in state-owned enterprises is still very high, and the quality of technicians is not bad, but the difference is in the management. Say a funny thing, I was in the power company also passed the ISO quality system certification, and this set of documents is the quality management engineer a person to write out, that person is not even a technician has not even been, because it is a woman, can not run the project, sit in the office to take a certificate of internal auditor. Such an important thing is so closed door out of the car. Such a document is bound to be only the format is not the content of the waste paper. Such ISO system certification, do not recognize it. Good things are spoiled by the state-owned enterprises. The fact that the state-owned enterprises is not no one, my original state-owned enterprises, a colleague, now doing business management consulting and certification in the country, many well-known enterprise management system documents are done by him, but forced to go. Now the famous desulfurization company in many backbone is my original that e-construction company out. My foreign companies such documents are generally drafted by the department manager, the drafter must be clear management, technology and other related aspects of each of its comprehensive quality to reach a considerable height. The general staff of foreign enterprises usually only know the system documents of the department. In fact, as long as you know this is enough, the interface with other departments will be described in the document. In this way, a business unit, an after-sales service department, can independently become a complete ISO quality system, and through the operation of the system to continuously improve the management loopholes. Private enterprises give me a feeling like a city contractor contracted earth contractor, they lack of money but policy, but I believe that some of them will become rich or even become a pillar of the national industry. Many private enterprises develop quite fast, of course, they sometimes do whatever it takes. For example, our company's equipment many companies in the imitation, are private enterprises, but this is the status quo in China, backward ah, no way, other countries after 100 years of research and development, improvement, China can not wait 100 years ah. State-owned enterprises and private enterprises are in the WTO, ISO, but I think they have ignored some of the most basic laws of management - decentralization. My original state-owned enterprises have been implemented until now financial a pen. 2000 people unit ah, really hard on the leadership, every day to sign countless words. An enterprise that will not decentralize the manager to exhaustion will not do much. Private enterprises have the same problem. Refuse to decentralize, is bound to affect the efficiency of the enterprise and staff motivation. I am in the foreign enterprises, almost every employee has a different degree of signing rights, such as my signature can be the scene of the purchase of small accessories, department manager can agree to sign my borrowing reserve, general manager can agree to sign the departmental activity funds and so on.

Seven, the front desk State-owned enterprises do not have a front desk, only the security guard at the gate, not to ask you "Can I help you?", but to ask: "What do you do?" Private enterprises have a receptionist, the appearance is good, if you do not speak, but also really a beautiful woman. If you don't speak, you're really a pretty girl, but if you do speak, you'll realize that your quality is low. There is always sitting behind the counter and playing solitaire. Foreign companies also have receptionists. Also beautiful. But at the same time part-time interpreter, when nothing is translating information. When there is a foreigner, it is "Can I help you?", otherwise it is "Hello". The quality of the front desk of the foreign company is good, but I think that the kind of foreign pander to foreigners is a bit disgusting.

Eight, the boss. State-owned enterprises work for ten years, the boss changed five, an average of two years. The first is a welder out, the second in place for three years, less than a year in Wuhan, I heard that most of the time in Beijing to run for office, and then really went to Beijing. Third, the fourth is also is transferred away. Foreign enterprise boss I have not seen, I heard is a British Chinese, but will not speak Chinese. In fact, he is not the real boss, just shareholders, the board of directors hired professional managers. But the supervisor and the department manager often deal with him. The division leader is a foreigner, a Chinese person who has been in China for 10 years, and the department manager is Chinese. All good, in fact, everyone is a part-time worker. The owner of the private enterprise (Chutian Laser) is a famous private entrepreneur in Wuhan, Sun Wen, a very smart person, do not be fooled by his naive appearance at the first meeting. But it still feels a little petty. Especially to the staff to open the price is too low, like to hire retired engineers and a little bit of a problem (such as disability) of the staff, I think not because he has a good heart, mainly because of the price of such a person is not high. But this can also be seen in the growth of private enterprises is difficult, not only lack of money, but also lack of core technology, lack of talent, lack of policy. But his development is still very fast, I studied in front of the school rented a house to open the company, is now the country's largest laser equipment manufacturers. Nine, business performance. I'm in the state-owned enterprises, the company in the service of 1,500 people, retired 1,300 people, the best years of output value is 600 million, profits declining year by year, I left when the profit of 2 million. When I was in Chutian Laser, the number of people was about 300, the output value was 100 million, and the profit was not clear. Currently in the number of foreign companies 500 people, 2005 output value of 2 billion, profit of 100 million (due to foreign companies like to transfer profits, this figure is not only no water, the actual may be much more than this).

I personally feel that the gap between state-owned enterprises and foreign enterprises is - "quite" big (celebrity Baiyun quotes). 500 people 2 billion output value by their own production is very difficult to do out, can only rely on the management, "the management of the enterprise can be out," he said. "Management-oriented enterprises can be effective", many foreign enterprises in China are management-oriented, few employees, so as to obtain high profits this is also within the domestic supporting capacity of the current reasons. If foreign companies import everything, their prices are actually not competitive. I have always believed that if private enterprises can master the core technology, the profitability of private enterprises should be able to exceed foreign enterprises, because private enterprises better understand China's national conditions. Many foreign companies in China is actually a failure, the reason for failure is almost the same - step to understand China's national conditions, in line with the laws of the economy, not necessarily in line with the rules of China. In any country can make money in the project, in China does not necessarily make money. In other countries can only make a small amount of money in the project, in China may be able to make a lot of money. Because China is too special. In dealing with the "Wu ship", "Wu pot" and other state-owned enterprises, I feel more and more, we once brilliant state-owned enterprises, if not to change the development of ideas, will only have to work for someone else's share. The high-end of the market in the brand, in technology, in management, not in production, if China has become the world's factory, without their own brand, technology, the end result can only be low wages, low efficiency. Our national policy on foreign investment is the most favorable in the world, preferential to more than national treatment, and foreign investors in China to obtain high profits even they themselves are surprised. Many foreign enterprises in China even feed supporting foreign enterprises by importing parts at high prices. Only when China's private enterprises rise up can they defend themselves against the strong attacks of these foreign enterprises - I have no hope for state-owned enterprises anymore. When I was in Zhejiang, I saw a small town has several imported processing centers, where there is a nationally renowned food machinery factory, all the parts, can be completed in a town by the individual households, where the private economy is active, beyond my imagination, a small town is equivalent to a large processing plant, except that they are all individual economy, when such individuals to form clusters, to form a large industry, the competitiveness will be Huge. May China's national industry soon be strong.