The Politics of Management in People's China: From CMRS to Modern Enterprise and Beyond

• Published in: Asia Pacific business review 1999-03, Vol.5 (3-4), p.47-72
• Main Authors: Forrester, Paul L., Porter, Robin S.
• Format: Article
• Language: English
• ISSN: 1360-2381; 1743-792X
• DOI: 10.1080/13602389900000004

This study reviews and analyses the changes in management systems in the People's Republic of China over the last decade. Within the wider context of the Open Door policy, the modernization of industry and increased enterprise autonomy, the contract management responsibility system (CMRS) and, more recently, the modern enterprise system (MES) have been introduced. These both provide enterprises (and the managers within them) with a framework within which to practise. This analysis describes the CMRS and the IMES and then, on the basis of discussions and interviews with factory managers, and with officials responsible at the macro level for monitoring the itnplementation of policy, analyses the implications of the changes. The authors conclude that, despite the introduction of a degree of management discretion and independence, differences in opinion persist on what, precisely, are the current industrial problems, and therefore what to do to address them. There have, consequently, been mixed reports on the success or otherwise of both systems.