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State-owned enterprise internal labor market imperfections and restoration research

Author: ChenWenZuo
Tutor: JinYanPing
School: Dongbei University of Finance
Course: Business management
Keywords: state-owned enterprise internal labor market long-term employment internal promotion back-loading compensation
CLC: F272
Type: Master's thesis
Year: 2006
Downloads: 225
Quote: 0
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In the developed market economy countries, the internal labor market has became a universal employment system. It has some features such as long-term employment, internal promotion, back-loading compensation, which also has applicability in Chinese enterprises. Although the state-owned enterprises have some superficial characteristics similar to the internal labor market under traditional system, including the allocation of labor force through administrative means, typical job ladder, technical-grade wage system, a certain amount of working competitions Job evaluation system and so on, the difference is that because of the unsteady external labor market, the administrative allocation of the internal labor market in state-owned enterprises lacks of external pressure, which causes the double rigidity of employment and salary. Meanwhile the incentive absence makes the enterprises lack of internal pressure of competition and reasonable mechanism for the staff inflow and outflow, moreover, it is difficult to accumulate human capital. Therefore, the internal labor market of state-owned enterprises needs to repair urgently.This article selects China Marine Bunker Company Dalian Branch as the analysis object, analyzing its internal labor market. Through the analysis of its industry environment and own developing ability, this article points out many questions exists in the current internal labor market of the company, and proposes the preliminary solution for these problems: devising the internal labor market levels rationally, establishing different levels of employment based on management functions , technical functions, and positions value; creating an incentive internal promotion and competition channels, reopening the internal and external labor market, setting up "export" mechanisms and channels to maintain the staff "import and export" smooth; designing incentive compensation system to establish a organic relations between salary payment and performance appraisal and so on. Finally causing the internal mechanisms coordinate mutually to establish a long-term trust and initiative cooperation relations between the enterprises and staffs in the foundation of freely employment. Through this relationship to fully display the function of the internal labor market of accumulating human capital, creating good enterprise culture atmosphere, forming stable core staff troop, at last promoting the enterprise to develop healthily.

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