Many researchers argued that corporate governance plays an important role in controlling the firm’s operations (Fama, 1980; Fama & Jensen 1983). This thesis will study the corporate governance of Sinohydro Corporation Group organization structure of it under nowadays context. It will not only study the organization structure but also the property relations, leadership system as well as corporate governance structure.
Sinohydro Corporation Group is a state-owned firms directly under State-owned Assets Supervision and Administration Commission. It occupies a leading position in the the hydropower construction market in China. However, due to social and historical reasons, many problems exist in the group. It did not reflect its due overall strength in the competition. From the perspective of external environment, the government has increased the reform intensity. The development of hydropower has entered in a moderate exploitaion subject to ecological protection. In the future years, the market competition will become more fierce. From the perspective of interior environment of the group, if the company is unable to solve the existing problems properly and soon enough and could not reform the organization reform fundamentally, the company will be at a disadvantage in the competition.
- Company introduction
The group corporation and its member enterprises were first establish in 1950. In 1988, the state established the Ministry of electric power industry and Ministry of Energy. Engineering Bureaus are subject to Ministry of Energy. All of them are the member enterprises of China national water resources and hydro power engineering corporation. In 1993, the Ministry of Energy was canceled, the ministry of Electrical engineering was established. China national water resources and hydro power engineering corporation were subject to the ministry of Electrical engineering. In 1998, the ministry of Electrical engineering was canceled, a capital tie was established between China national water resources and hydro power engineering corporation and State Power Corporation and becomes an exclusively-invested enterprise.
In 2002, in the system reform of the state power, the State Council approved the establishment of the hydro power construction company. In 2003, with the deepen of State property management system reform, the corporation group becomes the state owned firms directly belong to State-owned Assets Supervision and Administration Commission, the full name is Sinohydro Corporation Group. The Sinohydro Corporation Group is the largest and the strongest hydro power construction company in China. It occupies about 65% to 75% of domestic hydro power construction market share. The registered capital of company is 4 billion Yuan. It has 17 wholly owned enterprises and 8 holding company across China. Several management department, representative office and branch offices were established in other countries or district.
Its business is contracting hydro power construction domestic and abroad including survey and design, construction, consulting, supervision as well as manufacture, installation and service of electromechanical equipment, engineering machinery. Design, construction, consulting and supervision of power, road, rail road, port and channel, airport and house, Municipal Public Utilities as well as urban railway. By now, the company has become a comprehensive construction enterprise of pluralistic development with project contraction, investment and development and international management.
The function departments of the corporation group includes human resources department, marketing department, engineering department, investment department, corporation development department, assets property department, auditing department, supervision department, party office, etc.