A brief analysis of the preface to management innovation of private enterprises Throughout the past 20 years, the entrepreneurial process and development track of innovation of private enterprises in China have found striking similarities: rapid rise, rapid decline, and constant interpretation of the trilogy of "creation, rise and decline". Private enterprises in China are always full of vigor and vitality, highly competitive and pioneering spirit, and always seize and make use of opportunities properly. As a result, considerable achievements have been made, with a short but extremely fast expansion and development stage, and it has been able to rise rapidly. However, just when these private enterprises have completed the primitive accumulation and have the conditions and ability to make great strides, they stop, some lose their goals and directions, show a series of irrational behaviors, and some decline rapidly. Just like the collapse of Aiduo in recent years, the collapse of giants, the decline of Sanzhu, the flash in the pan of many private enterprises and the collapse of many famous star entrepreneurs. At the same time, it also makes people think deeply: Why can't private enterprises in China achieve sustainable development? During my internship this semester, I worked in a private enterprise. Through the problems existing in the management mode of this private enterprise, we can spy out some problems that need to be solved urgently in the whole private enterprise. Here, I will make a simple analysis. A little understanding of private enterprises and management innovation (I) Understanding of private enterprises With the vigorous development of private economy and the introduction of relevant supporting measures, the private economy has developed healthily, but from the enterprise classification index of the national statistical department, the concept of private enterprises has not been clearly defined. So, let's define the private economy first: first, the private economy refers to the form of operation, not the type of ownership as the defining standard; Second, as far as the business form is concerned, the so-called "private" is relative to "state-owned" and "government-run", that is, the government directly manages enterprises, which refers to the business form that adopts the operation mode of market economy, operates independently, is responsible for its own profits and losses, is self-disciplined and strives for development in competition. Because there is no specific concept, in a broad sense, it covers all rural and urban economic entities that are not state-owned and collectively owned, as well as urban private enterprises, mainly including private enterprises, foreign-invested enterprises (including Hong Kong, Macao and Taiwan-funded enterprises) and joint-stock enterprises controlled by private shareholders. (2) The meaning of management innovation "innovation" has become the most frequently used word in modern economic life. Too frequent use makes the meaning of this word more and more vague and divorced from the original intention. Management innovation is first of all the innovation of management ideas and concepts, which realizes the management from traditional family management to modern company system through innovation; From the arbitrary management of parents to the establishment of scientific decision-making procedures and management processes on the basis of extensive consultation; From leapfrog intervention in details to hierarchical management that pays attention to decision-making and budgeting and has clear rights and responsibilities. Secondly, the innovation of organizational structure and management structure. The scale of the company is a process of gradual development from small to large. The larger the scale, the more complex the structure, and the more it affects the efficiency of management and the flexibility of operation. The more we need to move from centralization to decentralization, the more we need to improve the leadership style and establish a decision support system. The third is the innovation of management norms and workflow. Many private enterprises have rough responsibilities, lack clear procedures between management links, rules and regulations often stay on paper, and democratic management tends to be formalized. In the process of enterprise transformation, it is necessary not only to make up lessons for scientific management and behavior encouragement to a certain extent, but also to adjust and dynamically update management norms and workflows according to the competitive strategy and operational function strategy, so that enterprises can establish reasonable norms and workflows from procurement, R&D, production, sales, finance, logistics support and other links to meet the requirements of market competition as a whole, and implement them clearly and strictly in writing. Analysis of the current situation of private enterprise management: China's private enterprises didn't really start until the early stage of reform and opening up, and entered the golden age of development after Comrade Xiaoping's southern tour speech. Generally speaking, they are basically in the exploratory stage under the conditions of socialist market economy and are not mature. Therefore, there are some problems in the development process, both the lack of self-management and the constraints of the external environment of enterprises, which directly affect the sustainable development of private enterprises. Here I only put forward some views on some problems in the management of many private enterprises. (A) private enterprises lack long-term strategic decision-making at the beginning of their business, and basically do not talk about strategy. However, with the expansion of enterprise scale, the organizational structure, management mode and business philosophy of many private enterprises are still the same as those in the early stage of entrepreneurship. Some newly run private enterprises, although the quality of employees and bosses is relatively high, pay too much attention to tactics, marketing and immediate interests, and even sacrifice long-term interests for short-term interests. They can rarely examine the road they have traveled from the perspective of industry development and formulate a complete development strategy. When it comes to the development strategy of enterprises, some enterprises are completely idealists, and seemingly beautiful blueprints are actually bubbles. As we all know, Sony is a world-famous big company that produces communication and electronic products, but at first it was just a small workshop. Judging from the history of Sony, when Sony was a small company, it set a long-term strategic goal of rushing out of Japan and going global. After setting this goal, we began to look for opportunities all over the world. 1952, Sony began to produce the world's first transistor radio. We can imagine how difficult it was to make this new type of radio in the 1950s. But it is precisely because of this long-term goal support that Sony is different from other small companies and has achieved great success. We might as well look at another example, that is, the giant group entered the field of bioengineering. For Giant Group, bioengineering is a completely unfamiliar field. In the development of this market, because of not understanding the characteristics of consumers in this field, especially the capital operation and marketing strategy in this new field, Giant Group suffered a total loss in the whole bioengineering, with a net loss of 50 million yuan. An important reason for the shrinking of bioengineering field also includes being dragged down by the Giant Building. Before deciding to enter the field of real estate and bioengineering, Shi Yuzhu had conceived a unique financial operation mechanism: first, the money from developing the Giant Building and selling the building flowers was invested in bioengineering, and then the profits from bioengineering were used to support the Giant Building. However, there is a deviation in actual operation. Due to the rising budget of Giant Building, Shi Yuzhu cannot inject capital into bioengineering. On the contrary, he kept drawing money from bioengineering to support the Giant Building, and the living money turned into dead money. As a result, the giant building failed to stand up, but lost to bioengineering. Thus, the lack of long-term strategic decisions is a fatal blow to the development of private enterprises. (B) the lack of effective management mechanism 1 focus on business, ignoring the management of private enterprises in China, were born in the 1980s. From the perspective of enterprise life cycle, they are basically in the late stage of growth and the early stage of maturity. This has led to a common phenomenon in general enterprises at this stage: before the development of enterprises at this stage, top managers often focused on business growth and paid relatively little attention to management, and the contradiction between "big enterprises and small management" was prominent. Just thinking about how to make the enterprise bigger, but ignoring how to make the enterprise stronger. 2. The institutional system is not perfect, and it is impossible to form the working mode of departments and teams, and there is a serious tendency of personalization in organizational behavior. In mature enterprises, departments and teams are the basic units of organizational operation, and individuals can only play their roles through departments, teams and standardized systems, and personal behavior must follow organizational behavior. However, due to the lack of standardized organization and operation systems and regulations, the normal operation of private enterprises in China basically depends on the rule of man, which leads to the great influence of individuals in the business process, and personal style, likes and dislikes, emotions and other factors also affect the management of enterprises; On the contrary, the corresponding functions of departments, workshops and other organizations as the basic units of enterprise operation have been weakened, and even become vassals or offices of some managers. There is no effective authorization mechanism. Due to the serious tendency of personalization in organizational behavior, individuals replace departments or teams, which makes the information and various resources (market resources and organizational resources) in business processes in the hands of a single person. As a result, management information has become personal private information (rather than organizational information), and various resources have become personal private resources (rather than enterprise resources), resulting in the capital owner or his authorized person actually losing control in management. When the enterprise is small, the boss can directly participate in various production and business activities, know all the production and business activities like the back of his hand, and have strong control over the enterprise. With the continuous expansion of enterprise production and operation scale, the boss has to engage in business strategy management without specific production and operation management, and entrust the specific production and operation management to the vice president, or even directly to the department (workshop) leaders. With the rapid expansion of business, these vice presidents or department heads must also authorize their subordinates. As a result, the specific production, operation and management information and related resources are gradually transferred. If there is no effective control mechanism at this time, the boss and even the vice president will lose effective control of the enterprise step by step. When information and resources are in the hands of individuals, it not only makes the boss lose effective control over the enterprise in the current period, but more seriously, it is impossible for the boss to even make personnel changes to the middle and high levels, otherwise the production and operation of the enterprise will be shaken, thus putting the boss in a dilemma. 4. Imperfect incentive mechanism and lack of effective incentive mechanism make it impossible for individuals to predict their future and interests in the organization; The substitution of individuals for departments will inevitably lead to such a direct result: the opportunism tendency of individuals has obviously increased (using every opportunity to seek personal short-term interests). When these two phenomena happen at the same time, it is impossible for enterprises to monitor or let individuals bear the losses caused by system defects in time. Therefore, people who have mastered certain powers use their power to secretly make profits for themselves; People who have no power try to be lazy and not work hard. In this way, the enterprise fails to motivate all employees to work in the direction that is most in line with the overall interests of the enterprise, or there is no effective mechanism to correct and restrain employees' behaviors that deviate from the interests of the enterprise. Many "disasters" have happened in this way. 5 Credit and Trust Crisis Most transactions of private enterprises are cash transactions. Due to the lack of credit environment and credit platform, there will be a crisis of trust, so that owners do not trust operators, and there is no trust among owners, managers and employees. Entrepreneurs like to take the lead anywhere. However, top managers ask questions about everything, and middle managers are not trained, which is not conducive to cultivating corporate successors and integrating corporate human resources. However, people's energy is always limited, and entrepreneurs waste a lot of energy on transactional work, which will inevitably affect the research on the strategic development of enterprises. 6 paternalistic management mode 1) paternalistic management mode is easy to lead to strategic decision-making mistakes of enterprises. Enterprises adopt paternalistic management mode, and one person has the final say, lacking effective monitoring, feedback and restriction from inside and outside, which greatly reduces the correctness and accuracy of decision-making. The limitation and randomness of paternalistic management in private enterprises lead to the romanticization and fuzziness of enterprise decision-making. The decision-making process is only based on irrational judgments such as "probable", "possible", "estimated" and "approximate". Pursuing fashion and diversification, not conducting in-depth market research and analysis in unfamiliar areas, and not attracting professionals for new business projects will inevitably lead to the decline of enterprises. 2) Paternalistic management mode makes the enterprise develop to the later stage of dictatorship and centralization. After some private enterprises earn a little money, their parents begin to get carried away, thinking that they naturally become entrepreneurs, blindly confident, always posing as elders, treating enterprises as their own private property and deliberately establishing absolute authority. Even engaging in cult of personality and not listening to opposition leads to the decline of management level, weakened vitality, reduced efficiency, rigid organization, blocked communication between superiors and subordinates, slow market response, decreased employee cohesion and sense of belonging, internal corruption and division, power struggle and factional struggle, and rapid decline of enterprises. 3) cronyism makes it difficult to attract senior talents. With the intensification of market competition, the demand for talents is getting higher and higher. Private enterprises are facing severe talent crisis and trust crisis, because it is impossible to produce so many "excellent and reliable" talents in the family, even if there are, they are loyal and limited. In fact, there are many loyal and talented talents, but they are scarce because some enterprises seem eager to recruit talents, but in fact, they are rich in talents and waste seriously. The fundamental reason is that the enterprise concept is backward and the management method is blunt. They think that the relationship between employees and enterprises is only the buying and selling relationship of labor, but they don't really attach importance to talents ideologically, pushing the interests and personal dignity of employees to the limit of psychological follow-up. Many excellent talents can easily jump ship. From the perspective of enterprise development and long-term, it can be said that cronyism is the biggest obstacle for private enterprises to adopt paternalistic centralized management mode to absorb and utilize talents reasonably. Third, realize the management innovation of private enterprises. Most private enterprises are almost in a state of change-the development of enterprises follows the thinking of entrepreneurs. In the face of criticism from all sides, private entrepreneurs often blame the irregularity of the market, or call this "randomness" "continuous innovation". However, real innovation should be based on standardization and institutionalization. Institutionalization and innovation are the relationship between "dynamic" and "static". Static without "dynamic" is conservative, while dynamic without "static" is arbitrary. Standardization of management is a powerful weapon to overcome randomness. Julia child believes that management normalization is "a working system that enables enterprises to establish a management structure that implements a set of rules, authorizes decisions and reasonably achieves expected results". Of course, there is no one-size-fits-all management model in the world, and each industry has its own characteristics, so the relative management model is bound to be different. But generally speaking, private enterprises should have the following similarities to realize management innovation: (1) Innovation of enterprise strategic management 1 With the tide of global economic integration and the deepening of China's economic system reform, private enterprises should seize the opportunity to realize strategic management innovation. In order to improve and invigorate the state-owned economy, China has put a large number of small and medium-sized state-owned enterprises in recession and without economies of scale into the market to find the best allocation of resources, while the deposits and cash of urban and rural residents in China have reached 7 trillion yuan, plus a large number of private hot money, which undoubtedly provides a huge imagination space for private enterprises to achieve scale expansion. If the capital market is established in the form of public investment funds, including industrial investment funds, venture capital funds and securities investment funds, or corresponding credit institutions are established to finance private enterprises, private enterprises will have sufficient funds to transfuse blood for a large number of small and medium-sized state-owned enterprises, so that private enterprises can not only be baptized by the transformation of modern enterprise mechanism, but also be thoroughly remoulded, which is of great significance to the economic development of the country and the vigorous vitality of private enterprises under the new market mechanism. Only by focusing on this height can private enterprises achieve sustainable development when determining their competitive strategies. After joining the World Trade Organization, private enterprises are facing greater opportunities and challenges. Leaders of private enterprises should look at themselves from a higher angle and formulate corresponding development strategies. Private entrepreneurs must realize that enterprises are social, not private entrepreneurs. Enterprises are not only responsible for shareholders, but more importantly, they are responsible for society, so that enterprises can grow in the industry, integrate into society, and cultivate and improve the soil for their survival and development. If you only regard the enterprise as an individual, you can't jump out of the circle of personal interests and always pursue the maximization of profits everywhere. In this way, we will eventually lose the foundation of enterprise survival, which is also the deep-seated reason why many private enterprises are short-lived. Only by pursuing the unity of enterprise interests and social interests and clarifying the socialization attribute of enterprises can we win the society, and the ultimate goal is to realize the progress of enterprises and society. From this height, we can truly realize the strategic management innovation of private enterprises by formulating corresponding strategies. (B) organizational structure innovation 1 Learning organization is a model for future enterprises.
Is the learning enterprise organization Peter? Shengji first proposed it in the Five Dynasties. He believes that to realize a learning organization, we need to have a solid foundation in the following aspects: systematic thinking, self-transcendence, changing mental models, establishing common aspirations and team learning. In an era when the diversity of quality, technology, products and services can be widely obtained at a relatively low cost and information can be obtained in a simple way, the speed of change is the basis for maintaining competitive advantage, and if enterprises want to innovate and respond to environmental changes in time, the first thing they need is learning ability. Learning and innovation interact, because all learning can be summed up as a circular process: deepening the understanding of things, inventing new behavioral possibilities, putting them into practice, and then observing. Therefore, the establishment of learning organization is the first choice for private enterprises to innovate, especially the overall quality of employees in private enterprises is relatively low, and they should continue to learn. The traditional organizational structure is pyramid-shaped, with the president at the top, middle and grass roots. The command key is from top to bottom, the decision comes from the upper level, and the executive level is below. However, it is the grassroots who have the most contact with the market. However. In today's era of change, the personalization of customers is increasingly prominent, which requires an inverted pyramid structure, which should be: customers-front-line employees-managers. Now the decision-making is made by front-line personnel, and the upper-level leaders have become support services. Of course, this move is definitely a challenge to "authority", especially paternalistic private enterprises. (3) Innovation of management system 1 Establishment of modern enterprise system. It is necessary to establish a scientific enterprise leadership system and organizational management system in accordance with the Company Law. Establish a leadership team that is good at management and dare to make decisions, so that the responsibilities between the authority, supervision and implementation agencies of the enterprise are clear. Establish standardized rights, responsibilities and obligations among owners, operators and workers, and establish an operating mechanism combining rewards and constraints to improve the overall quality and level of enterprises. Through the establishment of modern enterprise system, the innovation of corporate governance system is promoted, and the management of private enterprises is socialized, mature and scientific. 2. Establish a sound talent mechanism. In terms of talent development, the breakthrough point of management innovation should be in the concept of employing people, from paying attention to qualifications, appearance, life, professional skills and comprehensive quality to boldly reusing talents with unique skills, even those with certain shortcomings; In the selection of talents, we actively adopt competitive recruitment methods such as public examination and evaluation, and resolutely crack down on employment corruption; In the use of talents, by providing more opportunities to realize personal value and generous treatment, for example, by giving stage, goal, power, environment, responsibility and adequate welfare to retain talents, give full play to their role, and create a mechanism that is more conducive to attracting talents than state-owned enterprises or even "foreign-funded enterprises." (4) Innovation of management methods and means 1 The bosses of private enterprises should change from dictatorship and family management to democratic management, and employ excellent operators to manage enterprises; We should be able to trust excellent managers, boldly delegate power, get rid of trivial and complicated management affairs and concentrate on major management projects of enterprises; We should not only learn from the management experience of some excellent private and foreign-funded enterprises, but also dare to absorb some management essence of state-owned enterprises, break the traditional thinking mode and create advanced and scientific management procedures and systems; It is also necessary to be able to give generous rewards to senior managers and scientific and technological personnel who have made significant contributions, such as distributing shares, realizing "* * * productism" in some fields, making employees the masters of enterprises, reforming and innovating management methods, and promoting system perfection. Private enterprises should also establish their own corporate culture, and excellent corporate culture can promote the development of enterprises. However, some enterprises think that once corporate culture is established, it can be "long-term stability", ignoring the timely "innovation" of corporate culture according to the changes in the environment, thus making the culture that once played a positive role in enterprise development an obstacle to enterprise development. In fact, corporate culture can be divided into "good" and "bad". When a corporate culture becomes a closed system due to inertia, it is likely to stifle the creative spirit of enterprises, thus excluding foreign talents from joining and enterprises from making full use of social resources. Corporate culture should be closely related to the reality of enterprise management, to be precise, it should be promoted from the reality of enterprise management. The culture outside enterprise management is just "culture", which can't be called "enterprise culture", let alone "enterprise culture" of this enterprise. At the same time, corporate culture should be a dynamic process, and it must grow together with enterprises. The "corporate culture" without innovation or containing innovative spirit is a negative culture. Problems that private enterprises should pay attention to in implementing management innovation As far as a large-scale management innovation activity is concerned, the introduction of feasible schemes often requires a lot of hard work, and its implementation also requires a series of supporting work. Therefore, private enterprises must master scientific methods, pay attention to results, and do every job in a down-to-earth manner if they really want to do a good job in management innovation and achieve management innovation results. (A) handle the relationship between consolidating existing management achievements and management innovation. Management innovation is the improvement and perfection of existing management achievements, and the goal of consolidating existing management achievements is consistent with management innovation. However, there are also some contradictions between them, mainly manifested in the fact that when management innovation negates unreasonable management methods, it may modify some management achievements, even affect a good management atmosphere and undermine the existing normal production, operation and management order. Therefore, we should look at this contradiction scientifically. To reform a management work, especially a major management work, it is necessary to scientifically evaluate the effect of the reform. If the positive effect is greater than the negative effect, we must resolutely implement management innovation, otherwise we can ignore the reform; At the same time, when implementing the management innovation plan, it is necessary to destroy the normal production and operation management order as little as possible and minimize the impact on the work. (2) Implementing management innovation on the basis of flexible application of advanced management methods. The purpose of management innovation is not to seek novelty and novelty, not to achieve a temporary news effect, but to achieve the best management effect, which is conducive to improving work efficiency, rationalizing management relations and improving economic benefits. Therefore, as long as the best management effect can be achieved, no matter where the empirical methods come from, they should be boldly adopted. At present, we are in the era of knowledge economy, and excellent management achievements and management experience emerge one after another. Enterprises should widely absorb these management experiences and innovate in combination with reality. However, when absorbing advanced management methods, enterprises should conform to their own reality, not copy them, use them selectively, and really achieve good management results in management by removing the false and retaining the true, removing the rough and selecting the fine, and selecting the fine. (3) Perseverance and management innovation. For a management innovation, it includes not only a set of work steps and measures, but also a series of supporting work. Only by doing every stage well can we achieve good results, which requires private enterprises to persevere and do a good job in management innovation. Therefore, private enterprises should pay equal attention to the management innovation in daily operation when promoting the overall management innovation activities of enterprises, especially for some enterprises whose benefits have been hovering or even declining for a long time. We must never give up the reform and innovation work on the pretext of poor efficiency, and we must focus on management innovation on the one hand and management innovation on the other. When implementing every management innovation and even every link, we must adhere to the principle of "don't give up until you succeed, don't relax until you achieve practical results, and you can't relax until you are tight and retired; When carrying out reform and innovation, we should also be able to endure the "pain" of reform, strengthen the belief that reform will win, and persist in innovation. In addition, we should do a good job in all aspects at the same time, do a good job in all supporting work, and promote innovation as a whole, so that private enterprises can truly show their superiority in mechanism. The theory of enterprise life cycle tells us that at a certain stage of the life cycle, an enterprise must undergo "regeneration" to reach maturity. The establishment of an enterprise makes it come to life for the first time, but it will regenerate and mature only if it is separated from the influence of entrepreneurs. Comparatively speaking, the process of regeneration is more painful and takes longer. For private enterprises in China, there is also a process of regeneration, which is the second venture of enterprises. It takes considerable courage and boldness for private enterprises to start a second business and overcome themselves, but only in this way can private enterprises in China hope to mature and develop into large-scale modern enterprises. The development of private enterprises in China has always been highly valued by all walks of life, and the state is gradually strengthening the support and guidance of policies and laws. I believe that private enterprises can achieve their own sustainable development by constantly innovating and improving their competitiveness. References: Fan Jianmin's How to Implement Management Innovation in Private Enterprises is taken from Commerce, New Economy and Enterprise Fission, and China Economic Publishing House's Enterprise System Innovation in China after China's Entry into WTO is taken from China Economic Times and Zhang's Private Enterprises.