Establishing and Perfecting the Business Regime According to the Market Mechanism in the Corporation.

When forming a lease contract, the insurance part is not included. Ignoring insurance or not fully implementing the insurance regime is a serious violation in the income distribution regime for employees. While promoting bonuses or some superficial forms of welfare to gain prestige, the enterprise may forget a fundamental part of income related to human security, which is insurance. Therefore, fully implementing the insurance regime is something that needs to be emphasized in perfecting the income distribution regime for individuals in the enterprise when transforming the Corporation into a business enterprise operating under the market mechanism.

b, Bonuses and allowances other than salary .

* In a certain sense, for employees, salary is the main income, the hard part of the salary, bonuses and allowances are the additional, soft part. It can vary depending on the overall business results of the enterprise and on the efficiency or quality of labor, therefore, the additional contribution to the income of the employee increases the overall income of the enterprise. Bonuses, therefore, are only determined after a business cycle, usually one year. Bonuses are of two types: The first type, general bonus based on the overall business results of the enterprise. The bonus fund is determined

The second type is a bonus for individuals with high and special achievements. This bonus level is determined by the results of special contributions. Particularly for contributions that are effective for many years, the bonus can be extended over the effective period of the contributions to increasing the income of the enterprise. For example, in cases of industrial technical improvements, or initiatives in organization, management, and production rationalization that have the effect of significantly increasing productivity and efficiency. These contributions take the form of inventions and innovations, but are not separate from the operation of the enterprise.

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industry, so the employee does not become the owner of the intellectual property, therefore, the

That innovation remains within the scope of the business and is owned by the business. But to motivate development, the business can and must have a reward system that is appropriate for special contributions.

This type of bonus also needs to have clear regulations so that employees in the enterprise can proactively participate in improving techniques, technology and rationalizing production and business.

Along with the reward system is the penalty system. Penalties are a way to force employees to comply with the work regulations correctly and fully, while maintaining the discipline and responsibility of employees. The forms of penalties need to pay attention to the effectiveness of the penalty for violations and the level of loss to business efficiency, essentially to the work discipline of the company.

* Allowances are income in addition to wages. This income is intended to compensate for additional costs for special jobs. Overtime work, work outside the regime. For some jobs, due to working conditions, workers have health and mental losses and also need appropriate allowances. Above we have mentioned that part of this allowance is implemented through the insurance regime. But special jobs in addition to the high labor consumption and high responsibility, as well as many risks, even endangering life, or are not popular jobs. These are jobs that have social harm to workers. In exchange, there needs to be an appropriate allowance.

Allowances, although a supplementary part of total income, are a sensitive part, so businesses need to carefully consider determining the appropriate level and form of allowances to ensure benefits for employees, while creating a complete compensation system in the business.

This is a factor that makes the business operations of an enterprise a complete system, enabling the business machine to operate well.

3.3.4. Establish conditions for effective implementation of income distribution according to market mechanisms in the Corporation.

3.3.4.1. Establish and perfect the business regime according to market mechanism in the Corporation .

The guiding principle of the company's income distribution regime for individuals is the market-based business regime, therefore, the basis or prerequisite and basic condition for implementing the innovation of income distribution relations is to shift the economic activities of the Corporation from the centralized planning, subsidy, and administrative mechanism to the market-based business regime. This implies that establishing and perfecting the market-based business regime is the focus of economic innovation and therefore of the innovation of the income distribution regime.

This also means that income distribution innovation here is not just a local change, a technical change in distribution, but a fundamental change, shifting from the distribution regime of the subsidy mechanism to the distribution regime of business activities according to the market mechanism.

Establishing and perfecting the business regime according to the market mechanism includes the following main contents.

Firstly , determine that electricity is a commodity and the electricity price is the market price, or is determined by the market mechanism. Social policies related to supporting beneficiaries of the policy need to be separated from the electricity price. This is a prerequisite and basis for establishing a business regime according to the market mechanism of the Electricity Corporation.

Second , establish the Electricity Corporation as an independent business unit. The independence of the business entity is determined by the autonomy of capital, of all business activities and the business activities of the Corporation are based on the market mechanism, following the laws of the market economy. To establish the Electricity Corporation as an independent business economic unit, the equitization of the Corporation and its member companies becomes necessary. At the same time, the formation of new business units in the electricity industry and in the Corporation

Electricity is also based on the principle of establishing and developing independent, autonomous enterprises that operate according to market mechanisms. Equitization here is carried out synchronously throughout the Corporation, including the equitization of member companies. This equitization has the basic function of establishing the independent business entity character of the Corporation's economic units and in a certain sense

Independent member companies operating under market mechanisms are fundamental parts of the Corporation's market-based business regime.

Of course, when switching to a market-based business regime for the entire Corporation, the old subsidized economic regime was abolished.

Third , the human resource that the Corporation relies on is the labor market.

This is a condition and basis for changing and transforming the economic regime in the Corporation from a centrally planned, subsidized mechanism to a business regime based on the market mechanism. Here , labor input is a commodity and the wages of workers are the price of labor, and this price is determined by the market mechanism.

Of course, the change of workers in the Corporation from State employees to employees under the market mechanism is a significant change.

upside down. There are two points to emphasize: a , It requires an adaptive labor market development, along with institutions and laws on hired labor. b , Institutions and labor laws are necessary in establishing the relationship between business owners and employees. It maintains a basic relationship in business on the basis of protecting the interests of two basic subjects: business owners and owners of labor goods, that is, employees. But the purchase and use of labor are specific activities taking place in the enterprise, so on the part of employees, there needs to be someone who directly supports in pricing and negotiating between employers and employees: That is the union . Here , the union is an organization of workers, or employees in general. This is the difference of the State union, the person belonging to the business entity helps the director implement a number of social policies in the Corporation of the economic regime under the mechanism of centralized planning and subsidy. Because it is a commodity,

In addition to determining wages, how labor is used and how labor is attracted and fired, all are related to the practical interests of the employee. In maintaining the interests of the employee in the labor process,

activities, as well as in the event of disputes, or when dismissing employees, activities

The movement of trade unions has a particularly important meaning. As the force and voice of workers, or employees, trade unions create a social pressure that forces business owners to take into account the opinions of trade unions when deciding on issues related to the use of labor, to the payment of wages (salaries, bonuses, penalties and benefits).

3.3.4.2. Organizing the business system in the Corporation .

The development of the economy based on the process of market-industrial economy is the process of division of labor and specialization. Specialization can be said to be the basic method of developing productive forces. Here , division of labor and specialization, on the one hand, is the basis of organizing the production and business process, but on the other hand, through division of labor and specialization, the labor process is managed.

evaluate the effectiveness of the labor process in particular, the operational process in general. This implies that building a reasonable specialized division of labor system not only aims to increase productivity, save labor, thereby increasing business efficiency, but also forms the basis for considering and finding a reasonable direction for production and business, arranging labor reasonably, and at the same time evaluating the work efficiency of each individual. It can be said that in order to pay appropriately, it is necessary to analyze the production and business process into stages, specific specialized jobs as a basis for arranging and assigning labor. Specialization is the basis and necessary condition for income distribution according to the principle of linking income distribution with labor results, with the quantity and quality of labor.

The electricity industry is a complex production and business industry, consisting of many stages of work requiring high quality labor and professional skills. At the same time, jobs belonging to different stages and occupations have certain specific requirements on work quality. Different stages and occupations have

different occupations and levels. Standards for different occupations, occupations and levels throughout the entire production and supply process.

Electricity forms the basis, or technical and technological standards to determine the quality of work that must be achieved in the production and business process. At the same time, it is also a legal basis to assess the quantity and quality of labor.

activities, or work that each member participates in production and business in the Corporation. It can be said that the system of technical and technological standards according to industries, levels, and jobs is the basis, condition, or tool for managing the production and business process and the labor process of employees in the company, at the same time it is the basis for considering the quantity and quality of labor, thereby determining the distribution of income to individuals in the company.

To transfer the Electricity Corporation to business in new conditions, it is necessary to: a . Evaluate and analyze the entire production and supply business process.

electricity, from here forming specific stages and production processes, from here determining

b, Establish appropriate production and business units, specifically independent member companies; b , Develop a system of technical and technological standards and regulations for each job; c , Form a system of job ranks and levels appropriate to the stages and jobs according to technical and technological standards; d , Complete the business management and operation system. This is a necessary and important part not only for production and business, but also the basis for income distribution. Functional departments in the organization, management, and business administration perform full statistical accounting to create necessary information, on the one hand, accurately reflect the company's business activities, not only creating a basis for the board of directors to operate business activities, but also forming necessary information for deciding and adjusting income distribution appropriate to business results and the contribution to the business results of the Corporation's employees.

3.3.4.3. Forming a reasonable system of economic and technical norms in stages, sectors, and job ranks and levels.

Economic, technical and technological norms have two functions. Meters , which are the loss of quantity and quality of work, are the basis for arranging and organizing labor in the system of labor cooperation. On the other hand , it is the basis for determining wage standards or labor prices. This is a complex job, closely related to the organization and management of labor, and at the same time has a close relationship

to the benefit of the workers. Unreasonable norms will not reflect

The demand for labor is distributed in the work stages, thus causing difficulties in organizing the labor process, as well as rationalizing the entire production and business process of the company, and at the same time causing income loss for employees. Therefore, on the basis of modern techniques and technology and rationalizing production and business, the Corporation needs to build a reasonable system of norms. It can be said that this is a type of work that creates conditions and basis for organizing business activities and for the reasonable distribution of income for individuals in the Corporation.

In the management of the production and business activities of the Corporation, the management of the norm system is especially important. There are two points to emphasize: a ,

Set in a period of strong innovation in engineering and technology, and often

constantly streamlining the production and business process, productivity therefore changes frequently, therefore, the level of loss in quantity and quality of labor for different types of labor

dynamics also change accordingly. This means that, along with developments in technology, and in general in the mode of production, economic standards change, and thus price standards also change. To reflect

Reflecting changes in economic relations and therefore in organization, management, business administration, regular adjustment of economic and technical norms becomes necessary . b , The company's economic and technical norms are not only related to

to the organization, management and administration of the business process, but also related to the interests of employees, therefore, the set of economic and technical norms, as well as the system

salary scale, grade, accompanied by price standards, that is, salary levels according to grade, grade

and calculated according to the norms that need to be publicly announced, transparent, moreover, must

be made clear to the employees and understood by them. This is the basis of agreement and commitment between the buyer and seller, as well as the basis for differentiation.

determine and resolve any disputes.

3.3.4.4. Forming standards for allowances, rewards, penalties and regimes

company benefits

First of all, it must be understood that allowances, rewards and benefits are all different parts of wages, and therefore, are forms under which wages are expressed.

expressed. This means: a , in various forms of wages, allowances, bonuses and benefits that are not a gift from the company

for employees. b , Different forms of income distribution, allowances, bonuses and benefits need to be determined in connection with business results and levels

the worker's contribution to the production of income. in a single sense

In general, salary is the hardware, while allowances, bonuses and benefits are the software of wages. As software, forms of distribution other than salary become a lever, a tool in motivating and encouraging employees, at the same time, demonstrating fairness in distribution, therefore, it is necessary to pay due attention to standards, levels of bonuses and benefits, at the same time, standards, levels of bonuses and benefits are also public, transparent and well-known to the company's employees.

Distribution is a fundamental step in the reproduction process, therefore, when changing

With fundamental changes in the mode of production, the relationship of income distribution also changes.

fundamentally adaptable change. The Electricity Corporation is currently shifting from a centrally planned, subsidized economic regime to a business regime based on the market mechanism, inevitably causing fundamental changes in the distribution regime. Establishing and perfecting the income distribution regime of the Corporation, as an enterprise operating under the market mechanism, is essentially a process with three elements: a , Establishing and perfecting the business regime according to the principles of the market economy. This is the basic part, establishing the foundation of the distribution regime according to the mechanism

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