Breaking the 'big pot of food' and eliminating 'laziness and idleness'
Kang Xiang, born in 1982, became the general manager of Ginza Group Co., Ltd., a retail enterprise under Shandong Provincial Enterprise Lushang Group, in June last year. This new retail expert is the first professional manager of Lushang Group.
In the months following Kang Xiang's arrival, Ginza Group began to upgrade and strengthen its online and offline businesses simultaneously. Lu Shang Group Chairman Gao Honglei said that digitization is a new channel and path for Lu Shang Group to change lanes and overtake. To seize this opportunity, it is necessary to let professionals do professional things, and the prerequisite is to promote the implementation of the professional manager system. In the first half of this year, all second and third tier enterprises of Lushang Group will complete the reform of professional managers.
Lushang Group's bold move in the professional manager system is a petal in the flower sea of the "three systems" reform of Shandong Province's state-owned enterprises. In recent years, state-owned enterprises in Shandong Province have closely focused on the key variable of "people" to promote state-owned enterprise reform and stimulate internal motivation. The normalized mechanism of "managers can move up and down, employees can move in and out, and income can increase or decrease" has been basically established.
Those who are capable rise, those who are average yield, those who are mediocre fall, and those who are inferior are eliminated
State owned enterprises have long been criticized for their ability to employ people who can move up or down. Zeng Fanling, Director of the Assessment and Distribution Department of the State owned Assets Supervision and Administration Commission of Shandong Province, introduced that Shandong has implemented management systems such as the term system for management personnel of provincial enterprises, the system of competitive appointment upon expiration, the salary system, the final adjustment system, and the system of resignation due to incompetence, which have replaced a group of underperforming management personnel with young and strong "newcomers".
A group of "mediocre horses" "give way" while a group of "thousand mile horses" "rise to power". Last year, 211 management personnel of Lushang Group were dismissed, retired or transferred to the next level due to poor performance, poor evaluation and other reasons. The proportion of cadres who were "demoted" reached 5.3%, achieving a "major turnover".
In 2020, Shandong Energy Group, which implemented restructuring, focused on 177 outstanding young cadres, of whom 17 were selected to take on new leadership positions; Special assessments were conducted on the leadership teams of state-owned enterprises that have been slow to advance their work and have insufficient efforts to overcome difficulties. In less than a year, two members of the leadership team who were assessed as "incompetent" were demoted and appointed. Last year, 44 management personnel at all levels of state-owned enterprises were adjusted to be incompetent or at the end of the assessment.
Li Xiyong, Secretary of the Party Committee and Chairman of Shandong Energy Group, said, "Those who are capable go up, those who are average give way, those who are mediocre go down, and those who are inferior are eliminated." This has created a working and entrepreneurial environment within the group that dares to take responsibility and overcome difficulties.
In the overall operation of the "Qilu" Eurasian freight train, Shandong High speed Logistics Group boldly employs young cadres to "shoulder the big beam". Liu Ying, the general manager of Shandong High speed Logistics Group, introduced that the average age of the project team members is 33 years old. Despite lacking industry experience, they carry forward the spirit of "nail the nail", are brave in taking on responsibilities, and are willing to contribute. In 2020, the "Qilu" Eurasian train operated 1506 trains, completing the scheduled annual operation task ahead of schedule. The number of trains operated throughout the year increased by 43% year-on-year, achieving a counter trend upward trend under the impact of the epidemic.
The implementation of the term system and contractual management for the management of Shandong Province's state-owned enterprises is in line with the principle of 'being able to go up but not down'. Zeng Fanling introduced that 88% of provincial-level enterprises in Shandong Province have implemented term based, contract based management, or professional manager systems in second level ownership enterprises.
Shandong Iron and Steel Group has implemented a term system and contractual management for 205 management team members from 11 second tier enterprises and all third tier enterprises. Through market-oriented selection and competition for positions, 94 people were promoted and 20 people were recruited from society; 15 people withdrew from their original management positions due to unsuccessful competition, and 5 people withdrew from their positions due to failure to achieve performance targets.
Shandong Expressway Changying Equity Investment Management Co., Ltd. began to pilot the professional manager system in 2018, and successively selected 3 professional managers, one of whom reached the profit red line due to performance appraisal, and had terminated the employment relationship with them at the end of 2018 according to regulations.
Eliminating "mediocrity and idleness" leads to living water.
"Don't raise idle people, don't raise lazy people, don't raise enjoyable people, don't raise people with poor ability." On the internal website of China Heavy Duty Truck Group, Chairman Tan Xuguang proposed such employment orientation. China National Heavy Duty Truck Group stipulates that employees whose evaluation results are "incompetent" for two consecutive years or two within three years will terminate their labor contracts.
Hualu Group Lu Kang Medicine sets the system of "being able to enter and exit" through democratic procedures. For those who seriously violate various rules and regulations and those who violate national laws and regulations, as long as they meet the company's standards for rescinding the labor contract, the labor contract will be directly rescinded in accordance with the regulations. At the same time, if employees have bad work style and bad work attitude, are unable to perform their duties or have poor ability to perform their duties, and have an annual assessment grade of D (the lowest grade) without justifiable reasons, the labor contract will not be renewed in principle when it expires.
In recent years, 391 employees who have taken sick leave, have been absent from work for a long time and have no ability to perform their duties have been dismissed, accounting for 6.35 per cent of the total number of employees. In the 607 workshops that will implement the relevant reforms in 2020, the annual output of powder will increase by 13.5 after a 20 per cent reduction in staff, with an average increase of more than 26 per cent.
Similar market-oriented dismissal phenomenon is not uncommon in Shandong provincial enterprises. The data shows that under the vigorous elimination of long-standing abuses, the proportion of Shandong-owned enterprises actively dismissing employees has stabilized at about 3% in the past three years.
Zeng Fanling said that Shandong Province will promote provincial enterprises to implement diversified employment methods according to their job responsibilities and characteristics, further standardize different employment contracts or agreements, and build a normal competition mechanism for all employees. This year, 100 of the labor contracts of all provincial enterprises will be signed and 100 of the open recruitment will be implemented.
"It is better to buy equipment than to buy technology, and it is better to buy technology than to buy talents." Tan Xuguang said that high-quality talents have become the primary resource for responding to fierce competition in the international and domestic markets and achieving corporate strategic goals and sustainable development. In 2020, Sinotruk will introduce a total of 2000 outstanding graduates, making a strong talent pool for the follow-up high-quality development of the enterprise.
It is understood that in the past three years, Shandong-affiliated enterprises have introduced high-level talents with a compound growth rate of 30%, and recruited college students with a compound growth rate of 40%.
"Punishing laziness" requires "rewarding diligence" and getting more for more work.
At present, Shandong provincial enterprises have achieved full coverage of performance appraisal for all employees, and the appraisal results are closely linked to income distribution. "There is no difference between doing more and doing less, and doing good and bad is the same" has become history. At present, the income multiple gap of middle-level managers in Shandong provincial enterprises is more than 2.6 times, and the floating salary of middle-level managers and other personnel accounts for 61.6 and 54.7 respectively.
"Punishing laziness" requires "rewarding diligence". In Weichai Group, the "bidding incentive" with a maximum reward of 5 million yuan has tightened the "work" of the scientific research team ".
"The success of the bidding means that a military order has been issued, and we must race against time. The research institute has set up a'war room' for us to mobilize all personnel and technical resources that can be mobilized to accelerate the progress of product development." Zhao Hongen, who bid for the development of a new generation of gas machine products, said.
This mechanism aims to overcome the cutting-edge technology and core technology of "stuck neck", shorten the time of product launch and improve the competitiveness of core technology. Since its launch in 2019, it has covered Weichai Group's product development and cutting-edge technology research projects, and has released three batches of 17 bidding incentive projects to accelerate Weichai's scientific research layout of "R & D generation and reserve generation.
In order to stimulate the endogenous power of provincial enterprises, Shandong Province has strongly promoted medium-and long-term incentives in recent years. By the end of last year, 11 A- share listed companies had implemented equity incentives, accounting for 39.3 of the provincial A- share listed companies, and 202 enterprises had piloted medium-and long-term incentives for non-listed companies.
Hualu Hengsheng, which is located in an underdeveloped area and in a fully competitive industry, is difficult to attract and retain talents. "Incentives that rely solely on performance pay have certain limitations, and medium-and long-term incentive mechanisms must be explored." Hualu Hengsheng Deputy Secretary of the Party Committee, Vice Chairman Dong Yan introduction. In the face of outstanding problems such as insufficient endogenous motivation and brain drain, Hualu Hengsheng explored medium-and long-term incentives for core employees to bind to the interests of enterprise development, and adopted restricted stocks to implement equity incentive plans.
Shandong Expressway Co., Ltd. implemented the stock option incentive program in June 2020, which stimulated the enthusiasm and creativity of the management and core staff of the company's engineering management center. Under the encouragement, the staff of the company's engineering management center made every effort to speed up the construction of the Beijing-Taiwan high-speed Deqi project. Last year, a total of 5.2 billion yuan was invested in key projects, exceeding the investment task by 136.8 and exceeding the annual construction task by 2 months in advance. The Beijing-Taiwan high-speed Jitai project has achieved the goal of starting construction one month in advance.
Zeng Fanling said that Shandong Province will step up efforts to promote provincial enterprises to establish and improve long-term incentive mechanisms. By the end of this year, the coverage of medium-and long-term incentives for 2.-level enterprises in Shandong Province will increase by 33%, and the number of enterprises implementing medium-and long-term incentives will strive to reach 300.
Source: Economic Reference News
