Employee Satisfaction of State-Owned and Private Enterprises in China

DOI

10.2991/978-2-38476-092-3_73How to use a DOI?

Keywords

enterprises; employee; satisfaction; economy; corporate culture; training

Abstract

This essay discusses the important role played by state-owned enterprises in China’s economic growth during the 40 years of economic reform. Despite experiencing hardships and adversity, state-owned enterprises have continued to contribute greatly to the country’s economy. The total amount of state-owned assets has continued to grow, effectively promoting rapid economic growth. State-owned enterprises have also played a major role since the impact of the international financial crisis. Although the number of state-owned and state-controlled enterprises decreased, operating income and total profit increased significantly. In 2017, the total assets of state-owned enterprises nationwide were 183.5 trillion yuan, the total liabilities were 118.5 trillion yuan, and the total state capital and equity reached 50.3 trillion yuan. The essay also discusses how state-owned enterprises can enhance their international competitiveness and drive the development of small and medium-sized enterprises. The essay provides a brief introduction to the definitions of state-owned and private enterprises in China. It also talks about the development of China’s private economy and the important role it has played in the country’s transition from a planned economy to a market economy. Since the government relaxed restrictions on private enterprises’ import and export operation rights, private companies have become the main player in foreign trade and the main driving force of China’s economic development. The private economy has two distinct advantages: a market-oriented business model with a strong sense of competition and flexible mechanisms and the ability to allow employees to become shareholders. China has improved its economic environment through economic liberalization and market-oriented reforms, allowing the private sector to flourish. Recently, large-scale privatization of state-owned enterprises has also contributed to the rapid growth of the private economy. Privatization limits the redistribution of income by transferring residual income and control to private investors, increasing the incentive to work hard. It emphasizes the importance of China’s economic transformation in achieving such great achievements in economic development. This essay discusses the success of China’s economic reform in maintaining high growth and low inflation, while other countries that have undertaken mass privatization have experienced severe growth and stability problems. It outlines the three stages of China’s economic reform towards a market economy system, which are economic liberalization, marketization, and privatization. The essay further explains the role of the private economy in promoting China’s economic development, including private investment, venture capital, and labor-intensive industries. The essay also highlights the importance of job satisfaction and burnout syndrome in reducing employees’ intentions to quit, providing clues for health-sector managers to keep their physician resources motivated and stable. It also discusses various studies on job satisfaction, including one that suggests that a weak social safety net can lead to higher job satisfaction and another that identifies factors such as culture, work, management, and benefits as important in measuring employee satisfaction in Chinese resource-based state-owned enterprises. The essay also highlights the importance of compensation reform in achieving equity and improving job satisfaction, and emphasizes the need for managers to adhere to principles of integrity, equity, and justice when conducting job evaluations and other pay-related tasks. However, the essay notes that previous studies failed to address the core differences between state-owned and private enterprises.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yanze Geng
PY  - 2023
DA  - 2023/09/09
TI  - Employee Satisfaction of State-Owned and Private Enterprises in China
BT  - Proceedings of the 2023 9th International Conference on Humanities and Social Science Research (ICHSSR 2023)
PB  - Atlantis Press
SP  - 604
EP  - 612
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-092-3_73
DO  - 10.2991/978-2-38476-092-3_73
ID  - Geng2023
ER  -